Reference no: EM132450905

Response 1:

Inland ports can benefit from learning how to better utilize integrated transportation and distribution systems because the more connected a port of embarkation or debarkation is to the global transportation network of hubs, the more business that the port will see and profit that will be generated. In a hub and spoke concept, hubs are the central point of activity in the transportation network, which act as a conduit to smaller locations (spokes) and other hubs within the transportation system. Spokes on the other hand are essentially the outstations. The smaller ports which facilitate the handoff to the last-mile delivery services and provide a portal to connect consumers with the logistics enterprise (Bonsor, n.d.).

For inland ports, this correlates back to the idea that many inland seaports ports are most likely primarily spokes within the transportation network, facilitating the movement of goods between the local economy and the larger transportation infrastructure (the hubs). Rather than hand delivering packages to the coastal maritime ports that connect one country with another, inland ports can help bridge the gap by providing a shuttle service type capability to move packages from the inland port to the coastline or even enable the direct pickup and drop off from container ships for inland ports large enough to handle the capacity of the vessels. As a result of this, if inland ports are able to embrace the ability to either provide shuttle services to coastline ports or improve their capabilities enough to facilitate the movement of large maritime vessels, the demand for services at that particular port will drastically increase. This not only provides a necessary service to the local economy, but also improves business at the inland port itself.

Response 2:

Over the years improved integrated transportation systems has become a leading model for freight distribution. Rodrigue (2020b) explains there are several ways in which integrated transport systems could advance "capacity, efficiency, and reliability," for all modes (p.

Maritime Industry Hub and Spoke Impacts

Ports tend to use a point-to-point or a hub and spoke network. Rodrigue (2020a) compared the cost of each and found that a hub and spoke concept is usually cheaper. This occurs because the cost is reduced due to the network structure (Rodrigue, 2020a). The loading and unloading time and cost may not change, but the transport distances and the economies of scale for point-to-point services are usually higher (Rodrigue, 2020a). Unquestionably, a hub port usually has larger advantages than other locations and limits the competition (Rodrigue, 2020a).

Response 3:

Since shipping the industry carries 80% of the global economy. It must find ways of making itself as efficient as possible. However, the problem is getting the product from the port to the customer. Because once the product arrives at the port, it is then transported from the port either by rail or road. In 2008 the International Maritime Organization (IMO) projected the rise of global warming of a temperature of 2-degrees greenhouse gases needed to reduce the amount between 50% and 85%. One of the issues facing shipping is environmental, and for the industry to continue to profit, it has to address the issue. Another reason it is becoming not only an environmental issue but a social issue that brought to the forefront.

In the EU, many of the companies are looking at the location and, in some instances, are moving the business to ports. It allows for fewer uses of the rail or roads, and the products are brought from the major shipping ports to smaller ports by feeder ships, which can carry more than what can be moved on land. Some of the ports have become major urban cities. Europe is using the wheel and spoke in moving cargo from the road to the water, which will reduce congestion on the roadways and maintenance cost. It will allow for more accessible transportation of cargo without having many barriers. It will allow for a more convenient door to door service. Last it will reduce travel costs because once the freight is switched to road and rail, it will have a shorter distance, which will reduce cost in tolls and taxes.