research papaers

7/29/2019 research papaers

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Logistics, Inter modal and transport Costs

A Research Project Presented to

MR.WOODROW ROY C. TUMULAK ED.D. (CAR)

Faculty

University of Cebu Lapu Lapu and Mandaue

Cebu

In Partial Fulfillment of the Requirements for the course

English 2M (Writing in the Discipline)

Submitted by:

Gilbert Allaa

Jan Michael Caete

Ray Martin Dimpas

Second Semester, 2012-13


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APPROVAL SHEET

This Research Project entitled Logistics, Intermodal and Transport Costs is prepared and

submitted by Group___in partial fulfillment of the requirements in English 2M (Writing in the

Discipline) has been examined, accepted and approved.

MR.WOODROW ROY C. TUMULAK ED.D. (CAR)

Instructor

Date: 21 March 2012


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ACKNOWLEDGEMENT

Foremost, we would like to express my sincere gratitude to my Instructor Mr.Woodrow

Roy C. Tumulak for the continuous support of our research study, for his patience,

motivation, enthusiasm, and immense knowledge. His guidance helped me in all the

time of research and writing of this thesis. I could not have imagined having a better

advisor and mentor for my research study.

To the light, our god, who guided us through the way, And Mr.Woodrow Roy C.

Tumulak, for his great efforts of supervising and leading us, to accomplish this fine

work.To our friends and families, they were a great source of support and

encouragement, we thank them all and wish them all the best in their lives.To our

mothers and fathers, for their warm, kind encourage, and love.To every person gave us

something to light our pathway, we thank them for believing in us.Keep your dreams

alive. Understand to achieve anything requires faith and belief in yourself, vision, hard

work, determination, and dedication. Remember all things are possible for those who

believe.

And to my group mates who helped to finish this work as possible as they can.
http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/http://www.searchquotes.com/quotation/Keep_your_dreams_alive._Understand_to_achieve_anything_requires_faith_and_belief_in_yourself%2C_vision/18811/


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DEDICATION

This Research Paper is lovingly dedicated to our respective parents who have been our constant

source of inspiration. They have given us the discipline to tackle any task with enthusiasm and

determination. Without their love and support this project would not have been made possible.


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TABLE OF CONTENTS

CHAPTER I INTRODUCTION PAGES

A. RATIONALE OF THE STUDY 1-3

B. SIGNIFICANCE OF THE STUDY 4

CHAPTER II CONTENT OF THE STUDY

A. FACTS & FIGURE 5-10

B. ILLUSTRATIONS 11

CHAPTER III SUMMARY,RECOMMENDATION & CONCLUSION

A. SUMMARY 12

B. RECOMMENDATION 13

C. CONCLUSION 14-15

CHAPTER IV BIBLIOGRAPHY 16

CHAPTER V CURRICULUM VITAE 17-19


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CHAPTER I

THE PROBLEM AND ITS SCOPE

Logistics, Inter modal and transport Costs

Introdution

A.Rationale of the study

Fierce competition in todays market has forced business enterprises to invest in

and focus on supply chains. The growth in telecommunication and transportation

technologies has led to further growth of the supply chain. The supply chain, also known

as the logistics network, consists of suppliers, manufacturing centers, warehouses,

distribution centers and retail outlets, as well as raw materials, work-in-process

inventory and finished products that flow between the facilities.

The location of factories, warehouses and supply points in general, to serve

customers distributed over a network of cities is often influenced by transports costs.If

transport cost are uniform and linear with respect to distance, the total transport cost is

proportional to the sum of the distances from the supply points to the cities served, each

weighted by the volume of shipments.

Intermodal transport reflects the combination of at least two modes of transport in

a single transport chain, without a change of container for the goods, with most of the

route traveled by rail, inland waterways or ocean-going vessel, and with the shortest

possible initial and final journeys by road. Operational Research has focused mostly on

transport problems of uni-modal transport modes. We argue that intermodal freight

transportation research is emerging as a new transportation research application field,

that it still is in a pre-paradigmatic phase, and that it needs a different type of model


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than those applicated to uni-modal transport. In this paper a review is given of

the operational research models that are currently used in this emerging field and the

modeling problems, which need to be addressed.

people looking to ship goods (or move people) are likely to realize that it doesn't

always make sense to stick to just one mode of transportation. For example, cargo may

be offloaded from a ship onto a truck, which transfers it to a railyard, from which it will

be moved across the country by train.

Intermodal transportation may be more efficient and cheaper; in some cases,

however, it does have pronounced disadvantages in terms of speed and reliability.They

are too slow to operate at peak efficiency, intermodal transportation must also reduce

the amount of time spent waiting in depots for a new carrier to arrive or for cargo to be

unloaded.

The lack of reliability, Because of its reliance on more than one mode of transit,

intermodal transportation is also subject to lower overall reliability; as the chain of

different modes grows, the possibility of any link in the chain breaking down also

increases. This is particularly problematic when one of the modes of transport is rail;

railroads are more susceptible to delays introduced by bad weather or equipment

failure. For this reason, as well as concerns over speed, shippers that require reliable,

high-speed transportation are less likely to consider intermodal systems.

The other reason is the damage, Whenever cargo has to be shuffled around,

shippers risk the possibility of damage as the freight is transferred from one method of

transportation to another. Fortunately, this danger can be mitigated, but doing so


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generally involves overpacking by adding more bracing and protective material than

would normally be deemed sufficient.

This added weight and expense partially counteracts the advantages intermodal

transportation has in terms of energy efficiency and cost.The High infrastructure Costs

of Intermodal freight transportation also suffers from comparatively high infrastructure

costs. Containerization has lowered the cost and difficulty of transporting goods by

standardizing their form; shippers can easily move the same container from a ship to a

train to a truck. Handling these containers, however, requires that shippers have the

heavy-duty cranes and equipment necessary to manipulate large containers; this

infrastructure may not exist in all places, particularly in developing countries.

The reasons why we conduct this study is to know the advantages and

disadvantages of logistics and how to make a strategies for the safe and fatest delivery

of the cargo to the consumer.and the reason of how to improve the delay of the

products and the reasons that products are being delayed due to the calamities.


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B.Significance Of The Study

This study is significance because logistics and intermodal services play

important roles in transportation. Logistics refers to a company's program for efficiently

delivering goods to the customer. Intermodal pertains to the use of more than one type

of transportation to ship the goods.

It takes specialized skills, education and experience to work in the various

logistics and intermodal transportation careers. Logistics is the one important function in

business today. No marketing, manufacturing or project execution can succeed without

logistics support. For companies, 10 per cent to 35 per cent of gross sales are logistics

cost, depending on business, geography and weight/value ratio.

Logistics is comparatively a new term, but not the operation. Logistics has

existed since the beginning of civilisation. Raw material and finished products had

always to be moved, though on a small scale. Things began changing with the advance

in transportation.

Population began moving from rural to urban areas and to business centres. No

longer did people live near production centres, nor did production take place near

residence centres. The geographical distance between the production point and

consumption point increased. And logistics gained importance.

Another factor has come into play recently. Since the early 1990's, the business

scene has changed. The globalization, the free market and the competition has required

that the customer gets the right material, at the right time, at the right point and in the

right condition at the lowest cost.


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refinements and sophistication by the introduction of the so-called "trailer train" which uses the

same trailer as a vehicle on the road and a rail vehicle on the rail. In other words, the trailer

moves on its wheels as a truck on the road but the wheels can be retracted by an air suspension

system and connected to a rail bogie for movement by rail. At the end of the rail journey, the

conversion back to being road vehicle is effected for delivery of the goods to the customers. Sea

train: This is another innovation in the multimodal transport system involving the use of rail and

ocean transport. It is similar to the Ro-Ro system except that in the place of the Ro-Ro vehicle a

rail car is used so that geographically separated rail systems can be connected by the use of an

ocean carrier. Typically these vessels are long and thin and consist of one main deck running the

length of the ship. They are quicker at loading trains than general cargo vessels since the trains

carriages do not need to be detached from one another.


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The Principal Issues

For developing an efficient intermodal/multimodal transport system, the need of the hour is to look

into the three principal issues infrastructure development, regulatory / policy reforms and

investment in technology.

1.Infrastructure development: Intermodal/Multimodal transport builds on the operational efficiencies

of the transport system. Without adequate infrastructure, the incremental benefits of intermodal

transport will be negligible.Necessary infrastructure development to provide for compatibility between

modes, less friction costs, low dwell times, less pilferage and increase in containerization is basic to

growth of intermodal transport.

2.Regulatory reforms: Intermodal/Multimodal transport operations need to be appropriately regulated

with an objective of controlled development of the sector, driving growth while mitigating possible risks.

Generally, controls may be placed on licensing, pricing, contracting and service standards. For the

growth of international intermodal transport, necessary changes may be required in the customs

procedures and export-import procedures among others. For domestic transport, changes in Cabotage

laws, octroi levies, privatization of railways and such moves.

3. Investment in technology: An Intermodal/Multimodal operator enters into a single contract with the

shipper, but multiple contracts with transporters, customs agents, ports / airports, railways, warehouse

operators and other related entities. The voluminous documentation requirements and need to

coordinate with a number of parties creates a need for appropriate information technology support.

Additionally, the transport and warehousing technology must itself be up-to-date to facilitate accurate

tracking of shipments and reduce logistics cost and time.


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Service Highlights

Door-to-door, door-to-ramp, ramp-to-door, and ramp-to-ramp services.

Exclusive access to APLs growing pool of Ocean53 containers and related

equipment for domestic shipments.

Long-term contracts with all U.S. Class 1 railroads.

Established relationships with experienced and reliable drayage partners.

Seamless rail integration at APLs global ocean gateways in Los Angeles,

Oakland and Seattle.

Leader in the U.S./Mexico cross-border intermodal transportation market.

Broad pool of container types and sizes, including 20, 40, 45, 48 and 53 .

Large, growing investment in domestic 53-foot containers and related

Equipment.

Domestic and cross-border transportation management solutions.

Consolidated invoicing.

Standard and Expedited truckload services.

Refrigerated/temperature controlled options.

Dedicated asset solutions.


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Customer-Focused Service

Experienced customer service teams provide local expertise and business

Relationships.

Door-to-door management of shipments throughout the NAFTA region.

Close coordination with all parties involved including shipper, consignee,

forwarder, customs broker, railroad and motor carrier.

Regular analysis of the intermodal market and your transportation needs to

ensure the most competitive services and pricing available.

Box Car management, including consolidation, tracking, cross-dock and

Delivery.

Benefits to Your Business

Reduced carbon footprint when moving via intermodal stack versus longhaul

truck service.

Seamless integration of your global transportation and logistics programs .

Route optimization ensures the most time and cost-effective solution moving

from point A to B.

Advanced technology provides end-to-end product visibility from origin to

Destination.

Outsourced convenience with single source accountability.

Proven excellence from an established leader in logistics services.

Cost advantages over traditional truck transportation.


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TABLE 1 SUMMARY OF TRUCK WAITING COST

Hourly Rate Opportunity cost

of hourly

Hourly truck rate 26.55 50.00

Waiting time (min) 72 72

Number of lanes 3 3

Holding pen size (trucks) 40 40

One truck waiting cost (72 min) 31.86 60

40 trucks waiting cost/hour 1,274 2,400

Weekly cost of the 72 min waiting time 6,372 12,000

Annual waiting cost of friday 66,269 124,800

Annual cost of 72 mins of waiting 331,344 624,000

Annual cost of 8 hour of waiting 2,548,000 4,800,00


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B. ILLUSTRATIONS


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B. RECOMMENDATION

The companies will try a effective intermodal transport so that there goods will

never delayed. And the shipping company will be resposible for the safety of the

cargoes.


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C. CONCLUSION

The exploratory results suggest that in the specific case under investigation initial

investment in a full-service intermodal transportation and logistics facility would

not be well received and would be difficult to justify from a short-term financial

and economic return standpoint. Rather, an approach focused on initial provision

of specific transportation services seems to make more sense. Provision of

intermodal services that link motor carriage, rail, and air transportation would

present a focused marketing strategy centering on services that could more

readily be sold to a broader market. Additionally, freight terminal facilities that

provide opportunities for consolidating inbound and outbound freight and

interlining with local cartage and drayage and short-line rail service also seem to

fit the profile of a measured approach to service roll-out. Warehousing and

information services that facilitate international shipping may also find a profitable

market niche.

Public and private investors and service providers pursuing regional market entry

should identify the firms that comprise the "favorable" segment. Based upon the

interviews conducted for this study, one or more high image finns in the target

area that would be receptive to using a handful of focused services available at a

regional facility may provide the volume for economies of scale in the early going.

As the facility proves its value to well-known customers, it might then be feasible

to expand capabilities to include more of the integrated service offerings. Growth

could come from expanding revenues from existing customers as well as by


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attracting new customers encouraged by the successes of established

relationships. The respondents indicated, however, that optimism must be

accompanied by a pragmatic realization that changes in shipping and supply

chain patterns are slow in coming. Success ultimately depends upon service

providers' ability to implement quality service offerings that provide real value:

improving customer service levels at competitive cost.


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CHAPTER IV BIBLIOGRAPHY

WEBSITES:

http://en.wikipedia.org/wiki/Logistic_function

http://www.englandlogistics.com/intermodal-transportation

http://www.apllogistics.com/wps/portal/apll?WCM_GLOBAL_CONTEXT=/APLL_ContentLib/APL

L/APLL_SA_Home/SA-SupplyChainServices/SA-GlobalFreightManagement/APLL-SA-

LandTransportServices/APLL_SA_IntermodalTransportation

http://www.trglogistics.com/

http://www.bnsf.com/intermodal/intermodal-for-logistics-providers.html

http://www.oceancareers.com/2.0/view_program.php?program_id=48

http://www.sciencedirect.com/science/article/pii/S1366554503000723

http://www.ehow.com/info_8018455_logistics-intermodal-transportation-careers.html

http://www.roarlogistics.com/

http://www.globaltrade.net/f/market-research/text/Mexico/Transportation-and-Storage-

Logistics-and-Intermodal-Transportation-Sectors-in-Mexico.html
http://en.wikipedia.org/wiki/Logistic_functionhttp://en.wikipedia.org/wiki/Logistic_functionhttp://www.apllogistics.com/wps/portal/apll?WCM_GLOBAL_CONTEXT=/APLL_ContentLib/APLL/APLL_SA_Home/SA-SupplyChainServices/SA-GlobalFreightManagement/APLL-SA-LandTransportServices/APLL_SA_IntermodalTransportationhttp://www.apllogistics.com/wps/portal/apll?WCM_GLOBAL_CONTEXT=/APLL_ContentLib/APLL/APLL_SA_Home/SA-SupplyChainServices/SA-GlobalFreightManagement/APLL-SA-LandTransportServices/APLL_SA_IntermodalTransportationhttp://www.apllogistics.com/wps/portal/apll?WCM_GLOBAL_CONTEXT=/APLL_ContentLib/APLL/APLL_SA_Home/SA-SupplyChainServices/SA-GlobalFreightManagement/APLL-SA-LandTransportServices/APLL_SA_IntermodalTransportationhttp://www.apllogistics.com/wps/portal/apll?WCM_GLOBAL_CONTEXT=/APLL_ContentLib/APLL/APLL_SA_Home/SA-SupplyChainServices/SA-GlobalFreightManagement/APLL-SA-LandTransportServices/APLL_SA_IntermodalTransportationhttp://www.trglogistics.com/http://www.trglogistics.com/http://www.bnsf.com/intermodal/intermodal-for-logistics-providers.htmlhttp://www.bnsf.com/intermodal/intermodal-for-logistics-providers.htmlhttp://www.oceancareers.com/2.0/view_program.php?program_id=48http://www.oceancareers.com/2.0/view_program.php?program_id=48http://www.sciencedirect.com/science/article/pii/S1366554503000723http://www.sciencedirect.com/science/article/pii/S1366554503000723http://www.ehow.com/info_8018455_logistics-intermodal-transportation-careers.htmlhttp://www.ehow.com/info_8018455_logistics-intermodal-transportation-careers.htmlhttp://www.roarlogistics.com/http://www.roarlogistics.com/http://www.globaltrade.net/f/market-research/text/Mexico/Transportation-and-Storage-Logistics-and-Intermodal-Transportation-Sectors-in-Mexico.htmlhttp://www.globaltrade.net/f/market-research/text/Mexico/Transportation-and-Storage-Logistics-and-Intermodal-Transportation-Sectors-in-Mexico.htmlhttp://www.globaltrade.net/f/market-research/text/Mexico/Transportation-and-Storage-Logistics-and-Intermodal-Transportation-Sectors-in-Mexico.htmlhttp://www.globaltrade.net/f/market-research/text/Mexico/Transportation-and-Storage-Logistics-and-Intermodal-Transportation-Sectors-in-Mexico.htmlhttp://www.roarlogistics.com/http://www.ehow.com/info_8018455_logistics-intermodal-transportation-careers.htmlhttp://www.sciencedirect.com/science/article/pii/S1366554503000723http://www.oceancareers.com/2.0/view_program.php?program_id=48http://www.bnsf.com/intermodal/intermodal-for-logistics-providers.htmlhttp://www.trglogistics.com/http://www.apllogistics.com/wps/portal/apll?WCM_GLOBAL_CONTEXT=/APLL_ContentLib/APLL/APLL_SA_Home/SA-SupplyChainServices/SA-GlobalFreightManagement/APLL-SA-LandTransportServices/APLL_SA_IntermodalTransportationhttp://www.apllogistics.com/wps/portal/apll?WCM_GLOBAL_CONTEXT=/APLL_ContentLib/APLL/APLL_SA_Home/SA-SupplyChainServices/SA-GlobalFreightManagement/APLL-SA-LandTransportServices/APLL_SA_IntermodalTransportationhttp://www.apllogistics.com/wps/portal/apll?WCM_GLOBAL_CONTEXT=/APLL_ContentLib/APLL/APLL_SA_Home/SA-SupplyChainServices/SA-GlobalFreightManagement/APLL-SA-LandTransportServices/APLL_SA_IntermodalTransportationhttp://en.wikipedia.org/wiki/Logistic_function


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CURRICULUM VITAE

Ray Martin Dimpas

Address: Consolacion, Cebu

Contact #:09234115187

PERSONAL BACKGROUND

Age:Sex:

Birth Date:Birth Place:Religion:Height:Weight:EDUCATION BACKGROUND

TERTIARYSchool Name:Course:Year:

SECONDARYSchool Name:Year:

PRIMARYSchool Name:Year:


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CURRICULUM VITAE

Gilbert Allaa

Address: Consolacion, Cebu

Contact #:09234115187

PERSONAL BACKGROUND

Age:Sex:Birth Date:

Birth Place:Religion:Height:Weight:EDUCATION BACKGROUND

TERTIARYSchool Name:Course:Year:

SECONDARYSchool Name:Year:

PRIMARYSchool Name:Year:


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CURRICULUM VITAE

Jan Michael Caete

Address: Lilo-an, Cebu

Contact #:09232324790

PERSONAL BACKGROUND

Age: 18Sex: maleBirth Date: March 26, 1994

Birth Place: cebuReligion: Roman CatholicHeight: 54Weight: 56 LbsEDUCATION BACKGROUND

TERTIARYSchool Name: UCLMCourse: BSMTYear: 2012-2013

SECONDARYSchool Name: La Consolacion CollegeYear: 2011-2012

PRIMARYSchool Name: Our Lady Of Carmel Children Learning CenterYear: 2007-2008


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