The Future of Transportation

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1 The Future of Transportation Land, Sea, and Air By the Enterprise and Land-Bridge Company

2 Components of a Global Cargo Transportation System 2

3 Over the Next 20 Years, while Truck Freight Is Expected to Double, International Containers Are Expected to Quadruple Freight movement will be one of the major challenges for the years ahead. American Association of State Highway and Transportation Officials

4 New Ultra Large Carriers The new megaships will be 1500 feet long Unloading the new 18,000 container ships will need car double stack trains. And don t forget that it will also need car trains to reload the ship. Supplemented with Trucks. Will need 20 parallel tracks alongside the ship Now can you imagine the infrastructure needed? 4

5 Consumer Satisfaction

6 World Container Forecast to 2024 in TEUs (186% Increase in Next 20 Years)

7

8

9

10 Daewoo Shipbuilding & Marine Engineering Won a US$2 Billion Order from A P Moeller-Maersk to Build 30 Vessels of 18,000 TEU Capacity Each. Daewoo received a total order worth $6 billion, Korean firm's biggest ever single order Source: Cargonews Asia e-cargo news Asia February 18, 2011 Slide Created by John Vicerman

11 A.P. Moller-Maersk s 30 18,000 TEU Container Vessels Largest in the World Source: Cargonews Asia e-cargo news Asia February 18, 2011 Slide Created by John Vicerman

12 Today s Main Container Shipping Routes John Vicerman 2011 Source: Containerization International and MDS Transmodal 12

13 Mega Transshipment Ports: In Order of Annual Number of TEU s Shanghai and Shenzhen - China Hong Kong - China Singapore - South East Asia Los Angeles/Long Beach North America Newark, NJ - North America (50 feet) Panamá City - Panama Hamburg- Germany- Rotterdam Holland under expansion Jebel Ali- Dubai Robert s Banks Super Port - BC Canada Prince Rupert - BC Canada Mundra, India - under construction Except for Newark NJ all these ports can handle ships with 65 foot/ 20 meter draft or better 13

14 Cost of Moving a TEU Remember it is estimated over the next 20 years the volume of TEU s will again quadruple. In January 2009 it cost $350 to transport a 20 foot container from Asia to Europe or the West coast of America. By early 2010 the price has risen to $1,500 For a container ship to negotiate the Panama Canal now cost up to $360,000 Note: Average life of a container is 18 years 14

15 Vessel Cargo Handling from? up to 1965 Slide Created by John Vicerman

16 More than 98% of Everything We Consume, Wear, Eat, Drive, and Construct Is Brought to Us via Ships through the North American Port System. Slide Created by John Vicerman

17 Quality of Life is Directly Related to Our Participation in Global Trade & Transportation Slide Created by John Vicerman

18 Vessel Size Expansion - Terminal Impacts Slide Created by John Vicerman 2011 Increased Terminal Throughput Boom Outreach Super Post Panamax 18,000 to 22,000 TEU Height Above Deck New Panamax (2014/15) 12,600 TEU Storage Area Impacts Current Panamax 4,800 TEU Depths 48 to 54 ft Source: Georgia Ports Authority and Vickerman & Associates 18

19 Hapag-Lloyds 21,000 TEU Ultra Large Twin Engine Container Ship Containers Wide Source: Alphaliner Newsletter Volume 2011 Issue 4 Slide Created by John Vicerman

20 Panama Maritime Authority Becomes A Major Trans-shipment Center Slide Created by John Vicerman

21 Emerging Major Inland Port Logistics Centers Throughput Capacities in Millions of TEUs Southern AZ Proposed Slide Created by John Vicerman

22 Air Freight Air cargo is presently a 55 billion a year business with nearly 2000 cargo planes in the air. (Lufthansa and Air France being the biggest players) the fleet of planes World Wide is estimated to double within 10 years. There are about 20,000 commercial Passenger airliners flying today 22

23 The World s Largest Transport Plane The Russian Antonov 225 Specs CREW: six: pilot, co-pilot, four cabin crew PASSENGERS: 70 ESTIMATED COST: $300 million [2005$] THIS AIRPLANE WAS AT THE NIAGARA FALLS AIRPORT RECENTLY (TWICE) TO LOAD COMPRESSORS TO FLY DIRECTLY TO SAUDI ARABIA The following pictures are of the Russian behemoth when it came into Medford, OR, to pick up two Sikorsky fire fighting helicopters to take overseas -- $1,000,000 to transport them. It is amazing something this huge can stay in the air. The Wright brothers would never have dreamed it.

24 Wingspan ft (88.40 m)

25 Wing Area 9,742 ft² ( m²)

26 Length ft (84.00 m)

27 Cargo Bay

28 Empty 628,315 lb (285,000 kg)

29

30 Height ft (18.20 m)

31 Fuel Capacity 661,375 lb (300,000 kg)

32 Max Payload internal: 440,925 lb (200,000 kg)

33 Max Payload external: 551,150 lb (250,000 kg)

34 32 wheels!

35 How to Relieve Border Congestion Replace Trucks with Trains which does not need to stop at the Border

36 History of Truck Transportation Trucks arrived on the scene in 1900 replacing horse drawn wagons. A truck could pick up any commodity and deliver it to the consumer whereas a train had to stay on the track. 36

37 Trains By 1996, U.S railroads were again prospering. Traffic set a record at 1.35 trillion ton- miles. Intercity ton-miles improved 40%, up 2% from Capital spending exceeded $6 billion. The US railroads were deregulated in A train carrying all the containers from a TEU ship would be 71 km or 44 miles long. 37

38 Trucking Companies Flourished for Three Decades after the Freeway System Was Completed By 1996, U.S railroads were again prospering Traffic set a record at 1.35 trillion ton- miles. Intercity ton-miles improved 40%, up 2% from 1993 Capital spending exceeded $6 billion The US railroads were deregulated in 1980 A train carrying all the containers from a TEU ship would be 71 km or 44 miles long

39 Typical Double Stack Train

40 Typical Border Congestion

41 Suggested Border Decongestion

42 The Mexico Super Port Would Depend On Multiple Tracks To Move the Goods

43 Super Trans -Shipment Sea Ports 43

44 Transportation Cost Comparison Cost of transporting one Container in relation to fuel. Ships 12% Trains 18% Trucks 25% 44

45 North South Corridors number 1 NASCO from Huston to Chicago and number 2 the Canamex corridor shown here from Mexico City all the way to Fairbanks 45

46 Natural Disasters St. Andreas Fault The last time It shifted was in 1905 and devastated San Francisco. 46

47 Questions and Answers Curt Pedersen has over 50 years experience in world wide transportation Land Sea and Air, member SAE since 1958 Tucson resident since 1999 and has studied Border congestions at the AZ Mexico border points since 2005

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