LOGISTICS AND INTERMODAL TRANSPORT

- JASON MONIOS -

- RICKARD BERGQVIST -

- FIRST EDITION –

- COPYRIGHT - By Dr. Luis ALFARO, YEAR 2024

LOGISTICS AND INTERMODAL TRANSPORT

PART II:
OPERATIONS

SECTION I:

CHAPTER 4:
INLAND WATERWAY OPERATIONS
“In accordance with the copyright provisions, the content of this
material has been modified for teaching purposes only, specifically to
support the instruction of the subject Port Logistics Information
Systems.”

The authorized entity solely permitted to use this material is:

SouthStar Management Institute, Da Nang, Vietnam.

This course is designed for the undergraduate level/program."

 "Copyright Notice:
Any other party wishing to access this
POWERPOINT PRESENTATION must request
the information directly via email at:"

Dr. Luis Alfaro

Director of Ports, Logistics and SCM
DUY TAN UNIVERSITY
The SouthStar Management Institute (SMi)
254 Nguyen Van Linh St., Danang, Vietnam
T: (+84) 236.365.0403 (Ext. 606) - (+84) 236.382.7111
E: luisdtusci@gmail.com │ alfaroluisalfredo@dtu.edu.vn
W: http://smi.edu.vn/
Chapter Outline 01 INTRODUCTION

02 INLAND WATERWAY
INFRASTRUCTURE
OPERATIONS

03 INLAND WATERWAY
TRANSPORT AND
TERMINAL OPERATIONS

04 INLAND WATERWAY
MANAGEMENT
OPERATIONS
Chapter Outline 05 INLAND WATERWAY
CHALLENGES INFLUENCING
OPERATIONS

06 CONCLUSION
 01 INTRODUCTION

In intermodal freight transport and logistics, inland waterway (IWW) operations also play
an important role. In this chapter, IWW operations are classified into four related
categories: (1) infrastructure; (2) transport, port and terminal operations; (3) management
operations; and (4) challenges influencing operations.
02 INLAND WATERWAY INFRASTRUCTURE OPERATIONS

WHAT ARE INFRASTRUCTURE OPERATIONS?

Infrastructure operations refer to operations involved in

designing, building, financing and maintaining IWW
infrastructure. IWW infrastructure consists of rivers, canals,
locks, bridges and intermodal terminals (both inland and deep-
sea).

Table 4.1 shows the main relations between infrastructure

elements and operations.
02 INLAND WATERWAY INFRASTRUCTURE OPERATIONS

Table 4.1 Relations between infrastructure elements and operations

02 INLAND WATERWAY INFRASTRUCTURE OPERATIONS
TRANSPORT AND ENVIRONMENT

The global freight traffic is increasing more and more – meanwhile it is

possible to buy every product online o in a shop. Thanks to express
deliveries, products are “just a mouse click away“. This leads to a congestion
of the transport infrastructure.

Road transport in particular is increasingly reaching ist limits, which is

reflected in increasing congestion. Environmental pollution is also increasing:
Increasing CO2 emissions, fine dust pollution and noise pollution.
02 INLAND WATERWAY INFRASTRUCTURE OPERATIONS

CO2
Particulate
matter

Din

Source: https://pixabay.com/de/autobahn-stau-baustellenstau-pkw-1338440/
02 INLAND WATERWAY INFRASTRUCTURE OPERATIONS

INFRASTRUCTURE ELEMENTS AND OPERATIONS

In general, the design and construction of rivers are not

necessary as they already exist in nature. River maintenance
is a crucial activity that is financed by public sources and
managed by the Ministry of Transport. Canals, locks and bridges
are also funded and managed in the same way. In addition,
capacity problems can emerge for canals, locks and bridges.
For instance, due to vessel enlargements and traffic growth,
canals might become too narrow.
02 INLAND WATERWAY INFRASTRUCTURE OPERATIONS

RIVER INFRASTRUCTURE

Image 1. The Mekong River, Vietnam

02 INLAND WATERWAY INFRASTRUCTURE OPERATIONS
DISCUSSION QUESTIONS:
1. Which influence does consumer behavior have on freight transport, provide some
examples?

2. Regarding Danang city; which sector are the most affected by freight transport and
what kind of contribution can an individual citizen make in order to reduce such
freight traffic?

3. What type of ICT innovation could be applied in the freight transport sector from
Danang to minimize the issue of freight traffic and logistics?
02 INLAND WATERWAY INFRASTRUCTURE OPERATIONS

LOCK INFRASTRUCTURE

A lock is part of the infrastructure network and the skipper

often needs to slow down (or sometimes wait) to pass a
lock. The lock separates waterways due to a difference in
water level or salinity (saltwater/freshwater). A lock can
consist of one or more chambers with certain dimensions
(length, width and allowed vessel depth).
02 INLAND WATERWAY INFRASTRUCTURE OPERATIONS

LOCK INFRASTRUCTURE

Source: https://www.sacyrinfraestructuras.com/en/panama-canal-third-set-of-locks
02 INLAND WATERWAY INFRASTRUCTURE OPERATIONS

LOCK INFRASTRUCTURE

This interactive video introduce how the expanded Panama VIDEO:

PANAMA CANAL LOCKS
Canal operates. The Expansion Program consists of two
new sets of locks, one in the Pacific and one in the Atlantic,
which will add a third lane allowing the passage of bigger
vessels with more tonnage capacity. The new locks will
have water-saving basins to help preserve the freshwater
resources along the waterway.
02 INLAND WATERWAY INFRASTRUCTURE OPERATIONS

CHALLENGES OF LOCK INFRASTRUCTURE

Several challenges exist for locks, such as:

1. The mix of freight and recreational water travel leads to safety issues;

2. A lock might be tide dependent (loaded deep draught vessels can only enter
a lock during high tide); and

3. Traffic and vessel size growth might lead to increasing waiting times at locks.
02 INLAND WATERWAY INFRASTRUCTURE OPERATIONS

SOME REMARKS OF LOCK INFRASTRUCTURE

Usually, these investments are quite large and difficult to

realize due to a lack of political support.

All together (canals, locks and bridges) compose the IWW network.
02 INLAND WATERWAY INFRASTRUCTURE OPERATIONS

SOME REMARKS OF LOCK INFRASTRUCTURE

In general, the majority of freight flows transported by IWW

are dry bulk. The second most important sector is liquid
bulk (such as oil, chemicals and refined products) and these
products are often transported in tank vessels. A relatively
small but rising sector is containers.
02 INLAND WATERWAY INFRASTRUCTURE OPERATIONS

SOME REMARKS OF LOCK INFRASTRUCTURE

In general, the majority of freight flows transported by IWW

are dry bulk. The second most important sector is liquid
bulk (such as oil, chemicals and refined products) and these
products are often transported in tank vessels. A relatively
small but rising sector is containers.
02 INLAND WATERWAY INFRASTRUCTURE OPERATIONS

SOME REMARKS OF LOCK INFRASTRUCTURE

In general, most vessels are designed in the country within

which they are going to operate. The building of the vessels
is often executed in low-cost countries (such as China or
Eastern European countries). The maintenance of the
vessels takes place in the country of operation.

Financing the vessels is one of the most critical points as these vessels
can cost millions of dollars to construct (China, Europe, the United States).
02 INLAND WATERWAY INFRASTRUCTURE OPERATIONS

SOME REMARKS OF LOCK INFRASTRUCTURE

Source: Length of major inland waterway systems, 2000.

(From Jean-Paul Rodrigue, Dept. of Global Studies & Geography,
Hofstra University, 2012.)
03 INLAND WATERWAY TRANSPORT AND TERMINAL OPERATIONS

DRY BULK: TRANSPORT AND TERMINAL OPERATIONS

One of the major tendencies in the IWW dry bulk transport

market is that of overcapacity. In general, dry bulk transport
and terminal operations can be characterized by regular
transport flows and thus smooth operations.

The export of dry bulk flows often begins in the hinterland

where dry bulk (e.g. coal, ores, grain) is loaded into a vessel
and transported to a deep - sea port.
03 INLAND WATERWAY TRANSPORT AND TERMINAL OPERATIONS

DRY BULK: TRANSPORT AND TERMINAL OPERATIONS

Source: https://www.royalhaskoningdhv.com/en-gb/markets/dry-bulk-terminals/5993
03 INLAND WATERWAY TRANSPORT AND TERMINAL OPERATIONS

LIQUID BULK: TRANSPORT AND TERMINAL OPERATIONS

Liquid bulk operations often begin in the deep-sea port.

Liquid bulk loads consist mainly of oil and chemicals.

Deep-sea ships often arrive with large liquid bulk volumes

at large deep-sea ports.

The freight is unloaded and stored in the port area…

03 INLAND WATERWAY TRANSPORT AND TERMINAL OPERATIONS

LIQUID BULK: TRANSPORT AND TERMINAL OPERATIONS

In the port area, additional production activities are often

executed in order to further upgrade liquid bulk products
(e.g. oil is upgraded to gas, diesel, liquefied natural gas
[LNG], etc.

After these production activities in deep-sea port areas, the

liquid bulk is transported further inland by IWW to other
production facilities
03 INLAND WATERWAY TRANSPORT AND TERMINAL OPERATIONS

CONTAINERS: TRANSPORT AND TERMINAL OPERATIONS

Transport and terminal operations in container transport are

diverse in terms of origins, destinations and other variables.

If IWT is involved in such transport chains, road transport is

then replaced by IWT.
03 INLAND WATERWAY TRANSPORT AND TERMINAL OPERATIONS

CONTAINERS: TRANSPORT AND TERMINAL OPERATIONS

BUSINESS MODEL OPERATION

Source: Containers transported by IWW to and from deep-sea ports

03 INLAND WATERWAY TRANSPORT AND TERMINAL OPERATIONS

CONTAINERS TRANSPORTED BY IWW FROM DEEP-SEA

PORTS: EXTENDED GATE CONCEPT

The Extended Gate Concept (EGC) makes use of

inland terminals (dry ports) as extension of the main
ports.

The EGC for example, means that customs are

conducted at these inland terminals instead of at
“X” port, decreasing the waiting times at the port and
thus increasing throughput and revenues (sometimes
the rail and barge modalities are also included to
decrease road congestion).
03 INLAND WATERWAY TRANSPORT AND TERMINAL OPERATIONS

CONTAINERS TRANSPORTED BY IWW TO DEEP-SEA

PORTS: HUB-AND-SPOKE NETWORK
03 INLAND WATERWAY TRANSPORT AND TERMINAL OPERATIONS

CONTAINERS TRANSPORTED BY IWW TO DEEP-SEA

PORTS: HUB-AND-SPOKE NETWORK

A hub-and-spoke network system is characterized by barges that

would have previously been required to visit multiple terminals but
now only need to visit one terminal.

In the hub terminal, the containers on vessels coming from the

hinterland to the port area (and also the container flows from the
port area into the hinterland) are sorted according to their
destination terminal.
03 INLAND WATERWAY TRANSPORT AND TERMINAL OPERATIONS

CONTAINERS TRANSPORTED BY IWW TO DEEP-SEA

PORTS: HUB-AND-SPOKE NETWORK

The advantages of a hub-and-spoke system include

shorter vessel port turnaround times, more reliable
barge services and higher crane and quay productivity
for terminal operators due to the larger call sizes.
However, sorting and exchange operations in the hub
can incur additional costs and time.
03 INLAND WATERWAY TRANSPORT AND TERMINAL OPERATIONS

CONTAINERS TRANSPORTED BY IWW TO DEEP-SEA

PORTS: HUB-AND-SPOKE NETWORK
03 INLAND WATERWAY TRANSPORT AND TERMINAL OPERATIONS

IWW PALLETIZED TRANSPORT HUB-AND-SPOKE SYSTEM

The transport or palletized goods via IWW is also a new

trend that shows clear potential for palletized building
materials and fast-moving consumer goods.
This content is an extracted portion from the electronic and/or printed textbook. Due to
electronic rights restrictions, certain third-party content may have been omitted.
Editorial review has determined that the content in this POWERPOINT
PRESENTATION does not significantly impact the overall learning experience.

The published PowerPoint has been modified and reserves the right to remove content
from this title at any time if subsequent rights restrictions require such action.

ALL RIGHTS BELONG TO:

DR. LUIS ALFARO
DIRECTOR OF PORTS, LOGISTICS AND SCM
SOUTHSTAR MANAGEMENT INSTITUTE, DA NANG, VIETNAM
SUMMARY
 STUDY QUESTIONS

CHALLENGE QUESTIONS
THANK YOU!