Logistics Trends, Challenges, And Perspectives: Simulating The Effectiveness Of An Urban Intermodal Hub In Australia

Logistics models for urban area

Discuss about the Trends Challenges and Perspectives Simulating.

Qube has expanded and extensively developed its logistic portfolio and is now the biggest logistics services provider in Australia. Currently, it is working to establish additional strategic logistics hubs  in both inland and port locations by building larger infrastructure. With additional choice of transportation, the hubs give an added advantage. In the New South Wales (NSW) this is expected to be a complete supply chain solution. For this purpose, Qube is building an intermodal hub at Moorebank that connects to Port Botany.

The intermodal terminal may comprise a huge area as per the ABC News on 12th June 2015, the size was announced be “from Circular Quay to Chinatown, from Darling Harbour to William Street”. With this size it turns to be the Australia’s largest intermodal freight. The rail connects the interstate terminals thus replacing 3,000 trucks. Eventually it would reduce 40,000 tonnes of carbon per year. Every required service such as material handling, transportation, warehousing, and packaging would be included in the terminal.

The report aims to explore the logistics concept of in different metropolitan areas. The papers tend to address and discuss the recent logistic issues suggested by Qube. By studying the effectiveness of new hub the solutions and benefits area analysed and discussed for the new intermodal terminal.

Earlier, the aim of the aim of the logistics was to have easy military movement for transferring soldiers in the required place and at right time (Taylor et al. 2005).  Currently, the logistics have turned to be a commercial activity of public transportation of goods. It includes services such as material handling, production, transportation, inventory, warehousing, packaging, information flow and security. According to Windt et al. (2005), this process represents the “physical logistics” of transferring by professional capabilities. With the rapidly changing society, there is a need of change in logistics system. Globally, there is a significant change in the consumer trend. Hence, there is an increase in the production of goods and higher number of imports and exports in metropolitan areas. There are new small businesses emerging with the need of local freight services.

However, the new logistic system in the metropolitan area is associated with issues that are the major challenge for both the public and the government. Therefore, there is a need to reduce the scale of living conditions while examining, understanding and controlling the freight transportation in the urban areas. The initiatives to be taken may include addressing the issue of rising mobility, congestion and pollution. A logistic system is encouraged that does not compromise the regular business activities (Benjelloun & Crainic 2009).

Examples of urban logistics system implication

In different urban areas, there are different policies and approaches. The government of Netherlands has introduced strict licensing system. It is reducing the vehicle load by restricting the number of vehicles per day entering the city. The system has obtained effective results since its implementation. The freight service providers have helped in reducing number of trips and deliveries through collaborative activities (Benjelloun & Crainic, 2009).

The Urban Freight services in Monaco were made accessible as public service. In the city, large trucks are not allowed and instead the final distributions are made through single carrier with its vehicles. Since the private carrier, taking charge of public carrier does not involve huge modification in terms of operating policies and system structure it has showed high effectiveness (Benjelloun & Crainic, 2009). Further, Benjelloun and Crainic explained that the vehicles in NSW are currently involved in “two tier metropolitan Logistics system with different types”. This system makes use of a special path, which is chosen for satellite access. In each trip, the urban trucks can travel at least more than one satellite therefore affecting the traffic and the environment. While coordinating with the city -freighter and satellite access and availability the routes and departures can be optimised. City-freighters are small vehicles and are highly useful for transport and distribution. These vehicles can travel any routes in the city in less time (Benjelloun & Crainic, 2009).

In the last decade, the metropolitan areas have broadly implemented the urban consolidation centres or UCC, which is one of the models of logistics (Nordtømme et al., 2015). UCC is built near city centre for consolidating goods and services, which are delivered on designated routes in the city centre by small vehicles or even by foot. The purpose of this logistic model is to minimise transportation by optimising deliveries sent to end receivers in different areas in town. The intermodal terminal of Qube’s Moorebank has characteristics similar to the UCC model of logistics. By replacing trucks with rails, the transportation is highly minimised.

In urban areas, transportation of goods and services is the major factor regulating the social and economic activities. This enabling factor retails, supplies, and delivers posts to companies and individuals. However, the road-based freight system is the primary issue in the NSW logistics network due to increasing traffic congestion. Sydney is mostly affected with the traffic congestion being the largest metropolitan area. For a long time M5 and M7 motorways has been a prime source of trouble. The study executed by Benjelloun and Crainic (2009) identified that the major factor of disturbance in the metropolitan areas is “freight transportation”. High space is consumed in parking and on street by the Freight vehicles such as vans and goods trucks, which significantly contributes to the traffic congestion. With the increasing number of such vehicles, the traffic congestion has aggravated. Urban development and its sustainability is promoted by urban mobility as per Russo and Comi (2012). The cause of growing seriousness of the logistics issue is the increasing business practices. Low inventories and on time delivery forms the basis of the current practices of production and distribution. Adding to it, the drastic growth of “business-to-customer electronic commerce” such as Amazon has significantly increased the volume of personal delivery of goods (Benjelloun & Crainic, 2009). The issue can be prevented from getting worse only if the current transport management system is replaced.

Urban Consolidation Centre (UCCs)

QUBE has identified NSW with limited distribution centre and integral logistics hubs which is causing multiple handling of goods and greater consumption of time and funds. Refer to diagram below for detailed illustration.

According to the diagram, there are different locations with distribution centre retailers requiring transportations and there are trucks with empty containers. In many metropolitan areas the key target is to minimise the number of empty vehicles and improve the efficiency of freight movements (Benjelloun & Crainic, 2009). The supply chain system in the above diagram shows a room for improvement. Firm, shipment and vehicle are to be considered as elements of “integrated logistics system” that also involve all the components of current logistic chain.

The study executed by Duin, Quak, and Mun?uzuri (2010) found that the issue of NSW can be resolved by improving the efficiency of the distribution. The higher occupation rate of the load capacity can increase the efficiency of logistics. The number of vehicles entering the city must be reduced or increase the use of smaller vehicles. To increase the efficiency of the supply chain different vehicles should be used for different purpose. More suitable load carriers can be used for work and the other option for improving the efficiency is to streamline the supply chain. According to Aschauer and Starkl (2010) there are limited opportunities of using alternative transportation modes in the urban areas for land freight.

Replacing trucks with rails is one of the option for land freight in urban areas. Thus, QUBE has introduced the new rail to NSW freight system. This approach is sure to reduce the traffic congestion while increasing the load capacity and decreasing the time required for transporting goods. Hence, the new hub ensures efficient logistics network in NSW.

The diagram given above represents the QUBE’s investment with more centralised network compared to the “current existing supply chain”. It shows the transport between the port and the terminal by rail. Trucks are used for transporting goods to different locations in the town. Rail is considered to be an efficient option of distribution because of the bulk of goods to be transported to the wholesalers and retailers from the port.gghxb

The most efficient method to reduce the cost is reducing multiple handling. This method would attract more service providers to join the new hub system. In addition, the new system is sure to save the current expenses. It is also supported by the study of Kayikci (2010), which described two fold benefits of “efficient logistics centre structure”. It includes fair chance of maximising profits and increase investments. Other than that an increased competitiveness in the market place is expected. The improvement in the efficiency of the  freight transport systems is strongly associated with well located integral hub. The hub is also a key factor in ensuring the sufficient supply chain activities. The Moorebank terminal would cut down the transportation time and the number of freight required because most of the retailers, wholesalers and different distribution centres are closely located in one area. Consequently, it leads to reduced cost, decreased transportation time, human resources and lowers the carbon emission. Due to the cost efficient approach, more businesses would be attracted to the hub and may lead to bigger terminal and possibility of greater transportation of goods. There is a need of strategic planning to reduce the multiple handling. The plan should represent the circulation of freight and flow of goods in the city and how under the given scenario the infrastructures services would be used.  Implementing better transportation management practices will ensure efficient utilisation of vehicles with lower empty trips and higher average load factors. Using vehicles of different sizes for different purposes may address the issues of multiple handling.

Multiple handling

Conclusion

The new logistics hub introduced in Moorebank ensures efficient logistics network in NSW. The huge project is big innovation expecting to resolve the issues existing in the current logistics system of NSW. Qube along with other organisations investing in the project have acknowledged the problem and are showing their interest in the project. Similar systems are implicated in other cities and are supported by several researchers are supporting the project and it positive outcomes.  In future, the Moorebank intermodal terminal is expected to achieve success.

There are growing public concerns related to the intermodal terminal such as increase in traffic congestion when the trucks arrive Moorebank from Port Botany. However, Qube claims that the traffic congestion would be reduced as the distance travelled by the trucks would be reduced. Moreover, replacing the trucks with rails would further reduce the congestion due to increased load capacity.

Many organisations such as NSW Government, SIMTA (Sydney Intermodal Terminal Alliance), Aurizon, and World Bank are supporting the huge project. Since it is a massive project it needs a strong financial backup, stakeholders support and strategic planning otherwise it may not be completed in the expected span of time. More number of stakeholders and agencies can be attracted to the new logistics by creating awareness to ensure safety.

References

Aschauer, G & Starkl, F 2010, ‘Time4trucks - cooperative time regulation of road freight transportation in urban areas for reducing bottlenecks’, Procedia Social and Behavioral Sciences (2):6242–6250. doi:10.1016/j.sbspro.2010.04.034.

Benjelloun, A & Crainic, T 2009, ‘Trends, Challenges, And Perspectives In City Logistics’, Simulating The Impact Of New Australian “Bi-Modal” Urban Freight Terminals “BI-MODAL” URBAN FREIGHT TERMINALS. (4): 45-51. Available at : https://www.researchgate.net/profile/Teodor_Gabriel_Crainic/publication/266270528_TRENDS_CHALLENGES_AND_PERSPECTIVES_IN_CITY_LOGISTICS/links/5475b84c0cf29afed612b1e8.pdf  .

Duin, J.H.R Quak, H & Mun?uzuri, J 2010, ‘New challenges for urban consolidation centres: A case study in The Hague’, Procedia Social and Behavioral Sciences. (2):6177–618. doi:10.1016/j.sbspro.2010.04.029.

Kayikci, Y 2010, ‘A conceptual model for intermodal freight logistics centre location decisions’, Procedia Social and Behavioral Sciences.(2):6297–6311. doi:10.1016/j.sbspro.2010.04.039.

Nordtømme, M Bjerkan, K & Sound, M 2015, ‘Barriers to urban freight policy implementation: The case of urban consolidation center in Oslo’. DOI: 10.1016/j.tranpol.2015.08.005.

Russo, F & Comi, A 2012, 'City characteristics and urban goods movements: A way to environmental transportation system in a sustainable city', ' Procedia - Social and Behavioral Sciences', vol.39.

Tseng,Y Yue,W Taylor,M 2005, ''The Role Of Transportation In Logistics Chain', 'Proceedings of the Eastern Asia Society for Transportation Studies', vol.5, pp. 1657 - 1672.

Windt, K Böse, F Philipp, T 2005, 'Criteria and Application of Autonomous Cooperating Logistic Processes', 'Bremen Institute of Industrial Technology and Applied Work Science at the University of Bremen'.

Non-academic resources

Moorebank Intermodal Company (2013). Frequently Asked Questions. Retrieved on 12 May 2016, from https://www.micl.com.au/faq.aspx#1691

Qube Holdings Limited Investor Presentation, June 2015 Moorebank Integrated Precinct. Retrieved on 18 May 2016, from https://www.qube.com.au/downloads/announcements/Moorebank_Investor_Presentation.pdf

Ticky Fullerton (12 June 2015). Qube's Moorebank intermodal hub a major infrastructure boost. Retrieved from: https://www.abc.net.au/news/2015-06-12/qube-moorebank-intermodal-hub-infrastructure/6541514