LTC, Jack R. Widmeyer Transportation Research Conference, 11/04/2011, Ardavan Asef-Vaziri

Impact of Inland Ports on Southern California’s

Freight Transportation Network

Ardavan Asef-VaziriSystems and Operations Management

College of Business and Economics

Mansour RahimiIndustrial and Systems Engineering

University of Southern California

Robert HarrisonCenter of Transportation Research

University of Texas

Container Handling 2007: World Total 450 MTEUsRANK PORT (Country) Million TEUs

1 Singapore (Singapore) 27.9

2 Shanghai (China) 26.2

3 Hong Kong (China) 24

4 Shenzhen (China) 21.1

5 Los Angeles & Long Beach (US) 15.7

6 Yingkou/Liaonian (China) 13.7

7 Busan (South Korea) 13.3

8 Rotterdam (Netherlands) 10.8

9 Dubai Ports (UAE) 10.7

10 Kaohsiung (Taiwan) 10.3

11 Hamburg (Germany) 9.9

12 Qingdao (China) 9.4

13 Ningbo (China) 9.3

14 Guangzhou (China) 9.2

15 Antwerp (Belgium) 8.2

16 Port Kelang (Malaysia) 7.1

17 Tianjin (China) 7.1

18 Tanjung Pelepas (Malaysia) 5.5

19 New York / New Jersey (US) 5.3

20 Bremen (Germany) 4.9

Container Handling SPB Ports: US Total 23 MTEUs

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

1990 1995 2000 2005

Million TEUs LA Million TEUs LB Million TEUs Total

Strategic Positioning, Essence of Process Flow,

Operational Performance Measures

Process competencies

Customer Value Proposition Customer satisfactionCustomer

expectations

Financial performance

•Flow time reduction is the most

important dimension in the

customer value proposition.

•Straightforward capacity

increases such as more

highways and larger ports, do

not work anymore.

US-China Alternative Routes

Narvik, Norway

Vostochny, Russia

Hong Kong, China

Singapore

Rotterdam, Netherlands

Savannah

NorfolkNew York

Prince Rupert, Canada

Savannah

NorfolkNew York

Los Angeles

Colima, Mexico

Ensenada, Mexico

Four Characteristics of Forecasts

Forecasts are usually (always) inaccurate (wrong).

Forecasts should be accompanied by a measure of

forecast error.

Aggregate forecasts are more accurate than individual

forecasts. Aggregate forecasts reduce the amount of

variability – relative to the aggregate mean demand. StdDev

of sum of two variables is less than sum of StdDev of the two

variables.

Long-range forecasts are less accurate than short-range

forecasts. Forecasts further into the future tends to be less

accurate than those of more imminent events. As time

passes, we get better information, and make better.

prediction.

Strategic Positioning and Smooth Flow

3-4 days

14 days

2-3 days

22 days

31 days

Container Movement in Southern California

Current Practice

220K daily truck VMTs

Inland Port Concept

120K daily truck VMTs

Clean air locomotive/maglev/etc.

Zero-emission vehicles

Inland Port’s Primary Functions

Modal Change

Truck to Train

Unsorted

Containers

on Train

Decreased

Truck VMT

I710, I110

Mobility

Safety

Sustainability

Increased

Port Capacity

Current DS Route

Secondary DS Route

Current Single Stack Route

•Next Day Service to Columbus

•Reduce Transit to Chicago by 1 Day

•Will Shave Approx. 225 Route Miles Off Each Container Move to Chicago

•Greater Efficiencies

•High Speed Double Stack

Heartland Corridor Route

Port-Heartland High

Speed Doublestack

Corridor

99,000 SF Available

DC/PCs Locations in Southern California

Single Facility Location Model

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Minimize:

Six Inland Port

Location-Allocation Model

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Subject to:

DC/PCs Allocated to Each Inland Port

Impact of Inland Ports on Daily VMT

0

50000

100000

150000

200000

250000

0 1 2 3 4 5 6

Inland Ports in Operations

Dail

y V

MT

VenturaN. of PortE. of LA

Orange

Mira Loma

Commerce

A Decision Support Tool

ASRS/AGVS Technology at Inland Port