Unit 4

Unit 4

INTERMODAL TRANSPORT

INTRODUCING NEW INFORMATION

Ex. 1. a) Read the text and find 2 or 3 sentences that express the main idea.

INTERMODAL TRANSPORT

What is intermodal transport?

The definition is given below.

"Intermodal" means movements by cargo containers interchangeably between transport modes, i.e. motor, water and air carriers, and where the equipment is compatible1 within the multiple system.

The term "multi-modal transport" was first used during the prepara­ tion for the UN Convention on Multi-modal Transport which was held in 1980. The Convention is not in force as only eight states so far have be­ come Contracting Parties. Thirty contracting parties are required to bring the Convention into force.

The Convention reads: "International intermodal transport means the carriage of goods by at least two different modes of transport on the basis of a multi-modal transport contract from a place in one country at which goods are taken in charge by the multi-modal transport operator to a place designated for delivery." A contract should be concluded between the ship­ per (consignor) and the multi-modal transport operator (carrier), by which the latter undertakes to carry out an intermodal transport operation him­ self or through other parties.

The international multi-modal transport system functions through one company offering combined or multi-modal transport services provided that:

a)the transport operation is international in that it crosses the borders of two or more countries,

b)the transport operation uses at least 2 modes of transport,

compatible — совместимый

Intermodal Transport	83

c)the transport operation is from the exporter's stores to the consumer's stores,

d)the responsibility for the whole transport operation in all stages is shoul­ dered by the multi-modal transport operator.

Multi-modalism in many countries is still in an infant stage1. Opera­ tors are often faced with heavy bureaucracy, insufficient regulatory frame­ work2, poorly developed infrastructure, etc. The acceptance of multi-mo­ dalism by a number of countries has been very slow because the shippers and receivers of cargo are not aware of their potential benefits in terms of gains in time and costs.

b)Re-read the text again and say if the statements below are true or false. Correct the false statements.

1.Intermodal transport means carriage of goods by 2 or 3 transport op­ erators.

2.The UN Convention on Multi-modal Transport is in force now.

3.In intermodal transport one operator is responsible for the delivery of the cargo to the final destination.

4.You have to cross the borders of 2 or more countries within the frame­ work of the multi-modal transport operation.

5.Multi-modalism is well-developed in many countries.

6.Transport operators are faced with heavy bureaucracy, insufficient reg­ ulatory framework, etc.

Ex. 2. Look through the text again and say what was mentioned In the text about:

a)the UN Convention on Multi-modal Transport;

b)the conditions under which the system can function efficiently;

c)difficulties multi-modal transport operators are faced with.

DEVELOPING READING TECHNIQUES

Ex. 3. Listen to the text "Intermodal Transport" and follow it with your eyes.

Ex. 4. Listen to the text again and repeat it sentence by sentence.

Ex. 5. Read the text aloud, approximate time of reading is 1.5 min.

1	in an infant stage - в зачаточном состоянии
2	Insufficient regulatory framework - недостаточно развитая система контроля

Unit 4

LEARNING NEW WORDS

Ex. 6. a) Find the words in bold type and try to guess their meaning. Check up the translation of the words in the vocabulary (p. 102). Write them out in your vocabulary.

b) Write down all the words unknown to you In your vocabulary.

Ex. 7. Translate the following phrases from the text:

1)to move containers interchangeably

2)compatible equipment

3)to take goods in charge

4)a place designated for delivery

5)to undertake to carry out a transport operation

6)to be in an infant stage

7)to face heavy bureaucracy

8)poorly developed transport infrastructure

9)to gain time and money

10)to offer multimodal transport services

Ex 8. Match the verbs on the left with the noun phrases on the right and translate the expressions they make into Russian:

a) to conclude	1) combined transport services
b) to bring	2) with heavy bureaucracy
c) to shoulder	3) a place for delivery
d) to be aware	4) a contract with a carrier
e) to undertake	5) a convention into force
0 to be faced	6) of potential benefits
g) to designate	7) responsibility for transport operations
h) to provide	8) an intermodal transport operation

Ex. 9. Fill in the gaps with the words given in the box changing the form of words if necessary.

infant provides subsidizing imposing subsidize grants controls limiting impose imported taxes

One way a country can control its economy is by imposing import restrictions (or controls). If an industry is just starting up (when it is called

m		industry), the government may help it because it makes the
country richer and			employment. The government can help it

Intermodal Transport

85

by

it or by

import restrictions. To

an

industry means to give it loans or

. Import

pro­

tect it from competition by

importation of the goods the in­

fant industry produces. The government might also

taxes on

goods. These

are called duties or tariffs.

Ex. 10. Complete the sentences choosing the right word and changing its form if necessary.

1.When we started this new service we didn't expect (to win, to gain) much.

2.Who (won, gained) the last match?

3.They were not aware of their (wins, gains).

4.The Blue Berets (won, gained) the battle.

5.He decided to open a bank (invoice, account).

6.The firm didn't receive our (invoice, account) last week.

7.Many (accounts, invoices) were frozen in August.

8.\№ should send them our (invoice, account) at the revised price.

9.Our vessel was wrecked on the Chinese (seaside, coast, shore, bank).

10.The master went (to the bank, the seaside, ashore, the coast) but the crew remained on board.

11.Many people going to the Black (coast, shore, bank, seaside) en­ joy their holiday there.

12.A new terminal has been built on the (shore, bank, coast, seaside) of the lake.

Ex. 11. Check yourself. Give English equivalents of the following Russian word com­ binations:

1)ввести соглашение в действие

2)пересекать границу двух государств

3)принимать обязательства по перевозке грузов

4)при условии заключения контракта

5)развивать мультимодальные перевозки

6)принимать ответственность за хранение груза

7)выигрывать во времени

8)осознавать потенциальные выгоды

9)смешанные перевозки

10)доставить на склад заказчика

11)сталкиваться с трудностями

Unit 4

REVIEWING GRAMMAR

Ing-fonns of the Verbs

Ex. 12. Study the table given below.

Formula		Ving
Forms	Active		Passive
Simple	producing		being produced
Perfect	having produced		having been produced

Ex. 13. Translate the word combinations into Russian paying attention to fog-forms of the verb:

1)after sharing investments

2)increasing transport costs

3)the committee arranging the show

4)trucks operating at the terminal

5)a letter giving information

6)having covered the insurance

7)forwarders handling door-to-door deliveries

8)derricks shifting containers

9)new equipment being designed at our department

10)when working on a new project

Ex. 14. Change the following sentences using Participle I.

Model: Vehicles which carry containers are not often met here. = Vehicles carrying containers are not often met here.

1.Vehicles which carry containers were bought last month.

2.They promised to take over even goods which require certain temper­ ature conditions.

3.Rusavto who operate on our market are well-known all overthe world.

4.The company which offers us spare parts is one of the leading manu­ facturers of trailers in Europe.

5.A company which develops its control system can increase produc­ tivity.

6.We have just placed a big order with a Dutch company which manu­ factures refrigerated semi-trailers.

Intermodal Transport	87

7.Now our company is dealing with the Spanish forwarders who intro­ duced the new service between Barcelona and Madrid.

8.The Finnish-Russian joint venture which deals with groupage con­ signments has opened a new office in St. Petersburg.

Ex. IS. Complete the sentences using fog-forms of the verbs in brackets, put in prepositions where necessary and translate the sentences into Russian.

1. At the talks our general manager strongly objected

(to in­

sure) the goods with Ingosstrakh.

2. What's the purpose

(to reduce) supplies to our British part­

ners?

3. These wagons are capable

(to carry) any cargoes through­

out Europe.

4. I just can 4 think

(to make) even a small concession to them

as they always let

us down.

5. It's worth

(to deal) with well-known companies though

their prices

can be higher.

6. They were interested

(to open) a new shuttle service to

Warsaw.

7. They are dreaming

(to raise) productivity by

(to

restructure) the port.

8. We are looking forward

(to hear) from you as soon as pos­

sible.

9. The new terminal was equipped

(to handle) general cargo

and timber.

10. He left without

(to say) a word.

Ex. 16. Translate the following senences into English.

1.Мне кажется, нам не стоит назначать такие высокие цены. Мы можем потерять выгодных клиентов.

2.Экспедиторская фирма, организующая доставку грузов в конеч­ ный пункт назначения, известна нам как очень надежный парт­ нер в течение многих лет.

3.Мы открыли еще одну контору с целью улучшить обслужива­ ние, так как объем перевозок постоянно растет.

4.Мы предпочитаем отправить эту партию грузов самолетом, так как это значительно сократит время доставки.

5.Американский бизнесмен, обсуждающий сделку с нашим ди­ ректором, очень доволен работой нашей фирмы.

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Unit 4

6. Число фирм, работающих на рынке транспортных услуг, резко сократилось.

7. Недавно мы закупили новую партию прицепов, способных пе­ ревозить любые грузы.

8.Фирма Toyota, продающая автомобили на российском рынке в течение многих лет, предлагает отличное послепродажное об­ служивание.

9.Вы видите человека, заполняющего таможенную декларацию? Пожалуйста, передайте ему этот коносамент.

10.С нетерпением ждем вашего ответа.

Ex. 17. Complete the sentences putting the verbs in brackets into the correct form.

1.The firm (to take) the goods in charge at the Russian-Finnish border (to be) our partner for 2 years.

2.I think you (to gain) a lot if you (to conclude) a new contract with them.

3.Before (to draw up) a new contract the firms (to settle up) all previous debts.

4.Why multi-modalism (to make) slow progress?

5.The invoice (to pay) by (to transfer) the money to their bank account at the end of the month.

6.This forwarding company (to undertake) to carry our goods to the consumer's warehouses.

7.A negotiable Bill of Lading (to issue) when a transport operation (to carry out) by 2 or more transport operators.

8.What difficulties Russian forwarders (to face) with when they (to come) into the European market?

9.The Convention on Multi-modal Transport (not to bring) into force yet as there (to be) heavy bureaucracy in many countries.

Ex. 18. Put in articles where necessary. Be ready to discuss the text.

VR Cargo's cooperation with

Kombiverker is growing from

year to

year.

cargo can be delivered in

same loading unit1

from

Helsinki to

Paris for example.

Intermodal transport

is

important area of

development in

goods transportation

of

integrated Europe, and no wonder -

roads are rilled with

cats,

trucks and

trailers. One solution to

problem is

loading unit — весовая единица

Intermodal Transport

to switch

trailers

containers and vehicle combinations from

road

rail.

Kombiverker specializes in

intermodal

transport

and uses

German Huckepack transport tubes in which

goods are

carried in

same loading unit from

teiminal to

terminal and

finally

delivered

to

consignee by

trucks.

Italy is one of

most important countries in

cooperative

venture, as

great deal of

exports and imports to and from

Finland are carried out with

semi-trailers and

swap-bodies'.

VR Cargo's aim is to offer

continues transport link between

Finnish and Italian terminals.

Ex. 19. Put in prepositions where necessary.

1. Neither Bill

Lading nor Customs Declaration has been filled

2. I think he'll make the necessary arrangements

placing trucks

loading.

3. While the president was

I was

charge

invoicing customers.

4. The young man came here

the purpose

getting

more experience

logistics.

5. The new transport operator was faced

bureaucracy

the Customs.

6. Many businessmen are not aware

the gains

multi-modal transport operations.

7. A multi-modal contract should be concluded if the cargo crosses the

borders

two or more countries.

8. They settled

packing the goods

wooden

boxes.

9. A negotiable Bill

Lading is signed when two or more trans­

port operators carry

the transport operation.

the western coast

10. Stonehaven is a small town

the North

Sea.

Ex. 20. Translate the following sentences into English.

1. Мне кажется, довольно трудно дать определение тому, что та­ кое логистика.

1swap-body — съемный кузов (единица перевозки груза, размеры, которой со­ ответствуют габаритам автотранспортного средства н которое оборудовано погрузо-разгрузочными средствами)

90

Unit 4

2.Вы отвечаете за все, что будет происходить в мое отсутствие.

3.Соглашение вступает в силу с 1 января.

4.К сожалению, контракт все еще не заключен, хотя все пробле­ мы были решены на прошлой неделе.

5.Когда и где планируется пересечение границы?

6.При перевозке леса мы столкнулись с большими трудностями, вызванными отсутствием перегрузочных терминалов.

7.Экспедитор, предложивший нам свои услуги по доставке груза в конечный пункт, просил дополнительные 5% за срочность.

8.Одним из наилучших способов найти делового партнера — это воспользоваться Интернетом.

9.Мне кажется, этот принцип не сработает. Они не смогут орга­ низовать перевозку к этому времени.

10.В конечном счете, выиграют все: и перевозчики, и производи­ тели, и потребители.

LEARNING ТО LISTEN AND ТО SPEAK

Ьх. i J. Listen to the telephone conversation and say which route (given in the pic­ ture) is being discussed.

a )	b)
Truck -> train	Truck -> ship	truck
Korea (Seoul) -> Moscow	Korea (Kesor) -> Hamburg -> Moscow

c) Plane

Seoul -> Moscow

DISCUSSING T H E M O D E OF TRANSPORTATION

Ell & Co., a Russian company, are buying electronic equipment from Korea. Mr. Somov is calling Euro Log to find out the best way of trans­ porting the goods to Moscow.

Brown: Euro Log. Good morning.

Somov. Good morning. My name's Oleg Somov of Ell & Co. I'm send­ ing some electronic equipment from Kesor, Korea to Moscow

Intermodal Transport	91

and I'd like to know the best mode of transportation. I think the best way is to send the goods by sea, is that right?

Brown: Just a moment. You see, you can't send your goods directly from Kesor to Moscow by sea. Neither Kesor nor Moscow is on the coast.

Somov: Oh, Kesor is on the coast though, isn't it?

Brown: It is, but it is not a port. There is a port in Inchon and you can send your goods to the port by road or rail. They can travel from Inchon to one of the European ports, say to Hamburg, and then by truck to Moscow. Or they can travel from Inchon to Nakhod­ ka by sea and then to Moscow by rail. It's much cheaper.

Somov: And which of these is the best route?

Brown: It depends on how big your consignment is. It might be better and cheaper to send the goods by air.

Somov: Which airport do the goods travel from in this case?

Brown: The nearest airport is in Seoul. You'll have to transport the goods to Seoul by road or by rail.

Somov: I see. Perhaps I'll send you the details and you will arrange the cheapest route. Could you do that?

Brown: Certainly. That's just what we are here for. \\fe'd be delighted to help.

Ex. 22. Listen to the dialogue again and say if the following sentences are true or false. Correct those which are false.

1.Euro Log is a big forwarding firm.

2.Mr. Somov wanted to export electronic equipment to Korea.

3.The best way of transporting the goods to Moscow is to send them by rail.

4.Kesor is the biggest Korean port.

5.Mr. Somov and Mr. Brown settled the problem of transportation.

Ex. 23. Listen to the conversation and repeat it sentence by sentence.

Ex. 24. Rearrange the conversation.

.Somov: My name's Oleg Somov of Ell & Co. I'm sending some electron­ ic equipment from Kesor, Korea to Moscow and I'd like to know the best mode of transportation.

Brown: Certainly. That's just what we are here for. We'd be delighted to help.

Somov: Oh, Kesor is on the coast though, isn't it?

92 Unit 4

Brown: Just a moment. You see, you can't send your goods directly from Kesor to Moscow by sea. Neither Kesor nor Moscow is on the coast.

Somov: I see. Perhaps I'll send you the details and you will arrange the cheapest route. Could you do that?

Brown: It depends on how big your consignment is. It might be better and cheaper to send the goods by air.

Somov: And which of these is the best route?

Brown: It is, but it is not a port. There is a port in Inchon and you can send your goods to the port by road or rail. They can travel from Inchon to one of the European ports, say to Hamburg, and then by truck to Moscow. Or they can travel from Inchon to Nakhod­ ka by sea and then to Moscow by rail. It's much cheaper.

Ex. 25. Complete the conversation.

Black:

Ivanov: Good morning. I'd like to send 5 boxes of spare parts from St. Pe­ tersburg to Paris. I think the best way is to send the goods by rail.

Black:

Ivanov: What mode could you suggest?

Black:

Ivanov: And which of these is the best?

Black:

Ex. 26. Have a conversation with your partner using the information below.

Your company imports mobile telephones from Sweden to your subsidiary in Rostov-on-Don. The goods are to be sent from the Helsinki distribution cen­ tre. The forwarders have two routes to destine the consignment.

Discuss these routes with the forwarders and find out the best one.

LEARNING TO WRITE

Ex. 27. You work for a transport company carrying goods throughout Europe. Read the following letter sent to your company and explain to your boss in Rus­

sian what the letter is about and ask him if the Information is of interest to your company. If yes, enumerate the points that are most important to you.

Intermodal Transport	93
Dear Delegate,

Established in 1988 INTERMODAL is now recognized as the an­ nual ' conference for the intermodal industry worldwide.

If your business is in organizing, shipping or handling consign­ ments in containers, swap-bodies or any other multi-modal load units, you will be interested to leam how to make intermodal trans­ port work to your advantage.

Major issues2 dealt with this year include ocean shipping deregula­ tion \ European domestic intermodalism and learning how to share and optimize limited infrastructure resources. Intermodalism is no longer a European or American phenomenon. It is fast becoming a reality in China, India and Latin America and concerns shippers, shipping lines, ports, railways, freight forwarders and road hauliers4.

With over 90 speakers from 20 different countries representing an authoritative cross-section of the global spectrum INTERMODAL is the leading event of this year's transport calendar.

I look forward to welcoming you in Amsterdam during "Intermodal Week" in October.

Yours faithfully

Alex von Stempel

Conference Editor

P.S. Remember INTERMODAL is the only truly international event that brings together all parties involved in shipping car­ go by land and sea.

Ex. 28. Read the letter again and say what the letter says about:

a)the main problems for discussion at the Conference;

b)the Conference as the leading transport event of the year;

c)Intermodalism.

1 annual — ежегодный

1 issue = problem

' ocean shipping deregulation—сокращение вмешательства государства в регули­ рование морских перевозок

4 haulier = carrier

94

Unit 4

Ex. 29. Write a reply to the letter accepting the invitation and asking for further information about the program of the Conference.

'.30. You represent FIATA organizing annual conferences on Intermodal Trans­ port and Logistics. Write a circular letter to would-be participants inform­ ing them of the event which is to take place in Geneva from the 7th to the 11th September 200....

Ex. 31. Role-play. You are entrusted with getting in touch with the representative of

your company in Germany. Inform him of the conference and try to con­ vince him to take part in it though you are aware that he-is against such

events as he thinks they are a waste of time and money.

LEARNING TO READ AND TO ANALYSE

Intermodal Transport	95
Ex. 33. Read the advertisement and say who it is intended for,
MERZARIO
EUROPE
The quality choice for full load door-to-door
Services to and from Europe.
Daily departures.
Austria, Belgium, France, Germany, Spain
and other European destinations.
Driver accompanied Trailers.
Intermodal Services with swap-bodies or
Containers up to 26 ton payload.

Ex. 32. Read this text and compare the European and American transport infra­ structure. Find as many differences as possible.

The first intermodal service started in 1969 in the USA when fast con­ tainer trains between Chicago and Los Angeles were introduced. During this short period of time intermodal transport turned to be a great success in the USA, medium success in Europe, while in other areas the progress is only in its initial stages. /•

The Americans define intermodal move as a haul,1 of sea container along a distance that is longer than 500 miles usually by rail. The Europe­ an situation is quite different. In Europe intermodal transport is usually named "combined transport". Smaller distances between ports and in­ land destinations, many different nations, slow investments in the trans­ port infrastructure, tough regulations, and lack2 of unified rail systems eliminated the possibility to build an intermodal transport system similar to the American one.

Intermodal transport in Europe is first of all the process of containerization of general cargo. The forecast to the year 2010 says that more than two thirds of the global general cargo trade will move in containers and this is good news for intermodal transport.

haul — перевозка

kefc (of) — недостаток, нехватка

Own offices throughout Europe.

For your Pan European Requirements contact our sales team.

A N D R E A MERZARIO LIMITED

44 Broadway, Stratford, London E15

Tel: [phone]

Fax: [phone]

Ex. 34. Read the advertisement again and answer the following questions.

1.Where does the company operate?

2.How big is it?

3.What means of transport do they use to carry cargo?

Ex. 35. You represent Merzario. Describe the services of your company to a poten­ tial customer.

Ex.36. Read the text and say whether it is:

a)an advertisement

b)a passage from a textbook

c)an encyclopedia article

d)a newspaper article

96

Unit 4

EMERY SETS UP NEW M U L T I - M O D A L SERVICE

E M E R Y Worldwide has setup a multimodal transport and logistics service facility at Vienna Airport's International Cargo Centre. It marks the company's first major presence in Austria after 23 years operating through agents. Austrian general manager Waiter Wildner will oversee1 op­ erations and report to Steve Soukup, Emery's divisional manager for eastem Europe, Switzerland and Austria. Through Emcon, the company's tracking and tracing system2, Emery can promote its full range of services. Austria is the tenth country in two years in which Emery has converted agent operations into wholly-owned company units.

Ex. 37. Read the text again and answer the questions.

1.How had the company worked on the Austrian market before they set up a new office?

2.What will help Emery to promote a full range of services?

3.How big is Emery?

Ex. 38. Say what yon remember from the article about Emery Worldwide and the services they offer.

Ex. 39. You are Walter Wildner. Speak about your firm and your future job.

Ex. 40. Read the following texts in order to determine the main idea of each of them. Find the text most interesting for you and prepare a detailed plan of it. Speak on the problems touched upon in the text you have chosen using your plan.

TRANSPORTATION INDUSTRY RESPONSE

TO BUSINESS REQUIREMENTS

By and large, the transportation needs emphasize reliable, fast freight transportation service. In all industries, cost is an important component. Low transportation cost is actually the key requirement for most indus­ tries in all sectors, with the exception of industries producing high value and perishable products as well as industries that rely on JIT (just-in-time). Economies become more service-oriented and more integrated into the global economy, and as manufacturing processes are increasingly decen-

1	owersee — зд. следить
1	tracking and tracing system - система слежения

Intermodal Transport	97

tralized at the multinational locations, business requirements have then become more complex, requiring transportation from and to a more di­ verse list of origins and destinations. Furthermore, businesses now require a greater variety of services to meet more specific needs rather than the historical emphasis on similar large volume moves between the same ori­ gins and destinations.

Transportation carriers and other service providers in the transporta­ tion industry are responding to the changing needs of businesses by broad­ ening their service offerings, so that one company can be held accountable for the overall service and cost.

The transportation industry is broadly defined to include: Railroad Transportation; Local and Interurban Transit; Trucking and V^rehousing; Wfoter Transportation; Air Transportation; Pipelines and Transport Services. The transportation industry has been growing at an annual rate of 3% from 1995. The growth of railroad, truck and air transportation is related to the increased demand generated by other economic activity, in­ creased leisure time, economic deregulation (that lowered costs and pric­ es), and to the increasing importance that users place on speed, reliability and increased service levels.

As a resuh of deregulation and other industry trends, modal distinc­ tions are disappearing. Many of the services provided by all transportation companies now include multi-modal movements and/or inter-modal con­ nections that cannot be identified separately or disaggregated using the available international data. For example, die overnight delivery industry includes both trucking firms, air carriers, as well as integrated carriers that operate both trucks and aircraft.

At the same time that modal distinctions are becoming less relevant, the role of carriers, shippers, and middlemen or intermediaries is evolving and their distinctions are also disappearing. In any freight transportation move, there have been typically at least two players, the shipper and the carrier. Depending on the size of the shipment, the type of cargo move­ ment, the origin and destination, whether domestic or international, and other factors, there might have been several other players involved. These other participants include additional carriers, and what are typically re­ ferred to as "third party agents, brokers or middlemen". In addition, the shipper can also own a carrier, and in such situations, the department within the company in need of transportation service is typically required to use the company-owned or private carrier.

In many industries, transportation had been an integral part of many companies businesses, e.g. many shippers built their own railroads, orop-

7-8»

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Unit 4

erated their own trucks, vessels or airlines, In recent years, the overall trend then has been towards outsourcing transportation services and relying on one or a limited number of outside carriers and firms to manage and control transportation costs and services. Even the administrative and logistics functions are being increasingly outsourced to one or a limited number of logistics companies.

An increasing number of firms have then contracted the management of transportation services, including arrangements with travel agencies for business travel needs, as well as contracting out freight transportation and logistics services.

PRESSURE MOUNTS AS EXPORTS SLIDE

Cost-efficiency has long been the watch-word for efficient exporters but for many Dutch shippers it has become a necessity if they are to survive the game. A fallback in export volumes to traditional markets last year took its toll on the country's manufacturers, with many looking closely at their total supply chain to see where costs could be saved.

For many years The Netherlands has been in the vanguard of Europe's reforming economies, being the model among many of its European neighbours in controlling unemployment. However, this model has proved less than effective in dealing with the shocks to its exports, notably to southeast Asia and Brazil.

According to the Central Planning Bureau, the Dutch government's think-tank, the economy will grow by just 2.25% this year due to the knockon effects of the global slowdown.

In spite of weaker export prospects, The Nether land's current account surplus is estimated to have registered 5.8% of G D P last year and is expected to slip only slightly to 5.7% of G D P this year.

Many exporters were suffering from the after-effects of the Asian crisis, with exports of waste paper—the traditional Bar Eastern import — now starting to dry up. Shippers have to cut costs if they are to stay operating in the market. But in re-examining their supply chains, shippers are not only looking to secure the cheapest transport options possible, but are outsourcing more of the physical transport operations to third-party operators.

Pressures of time and cost in getting cargoes to the market have encouraged many companies to consider mixing and matching transport modes — with shortsea shipping and inland waterway transportation as obvious choice. If an exporting company can cut its transport costs by using different modes, it will consider it. It is often attractive to avoid ex-

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pensive warehousing costs by storing cargoes at sea as it is shipped from one port to another. If a shipper has a choice, he will definitely give shortsea shipping a chance, mainly because his supply chain is not being interrupted and also because using shortsea shipping gives out a positive image.

Heavy congestion on the roads is forcing many Dutch shippers to reconsider alternative modes of transport. Major producers like Heineken and some of the large chemical companies are heavy users of inland waterway systems to and from the port of Rotterdam.

The Dutch government has placed such an importance on inland waterways as a transport mode that it, together with its near neighbour Belgium, liberalised the sector at the beginning of December 1998 = two yeara ahead of the official deadline. Through liberalisation, inland vessel operation is more organised and potentially more cost-effective for shippers.

Instead of cargo owners waiting for available inland barges, liberalisation has encouraged inland waterway operators to run more dependable services offering more service guarantees than before. Improvements are reflected in the level of freight rates charged.

Inland waterways remain an important transport mode for cargo destined for the two Groningen Seaports of Delfzijl and Emshaven.

The ports, which handled 5.5 m tons of chemicals, timber products and general cargo last year, mainly serve their local import and export markets.

Groningen Seaports is looking to boost its handling of containers this year through the construction of a new roll-on, roll-off ramp at the port, which is due to be completed by May. The drive towards moving freight off the roads and onto more environmentally friendly modes of transport will have knock-on effects for hauliers.

According to the project manager at Holland Transport, the association of Dutch hauliers, growing competition from eastern bloc hauliers is having more of a detrimental effect on the earnings of Dutch drivers. Hauliers from these countries can apply for licences to operate as Dutch companies to the market but it is not the same for Dutch truck drivers in the Polish or Hungarian markets. But these eastern European drivers are driving for rates that would hardly cover the cost of the fuel they put in their vehicles. It is easier for prices to go down than for them to rise. Dutch hauliers need to have easy entry to eastern European markets while professional and educational qualifications for entry the Dutch market should be upgraded.

The problem is not only to do with the amount of available cargo on the market, but the rates being paid to hauliers.

v

100 Unit 4

ECONOMIC TRENDS

AND MULTIMODAL TRANSPORTATION REQUIREMENTS

The U.S. economy is being transformed as a result of many global demand and supply forces that affect the competitiveness of U.S. industry. Recent trends in distribution and logistics, shipper requirements, and busi­ ness location patterns are also revolutionizing the private transportation industry. These trends also have significant complications for the types of infrastructure and government supported transportation programs that will be required in the future.

Economic forces and free trade policies that are generating increased worldwide trade tend to generate transportation demand, as products move longer distances and regions specialize in products which can be distribut­ ed competitively.

Economic trends and globalization of the economy are also forcing industries to restructure operations and become more competitive. Indus­ tries restructuring also tends to generate increased transportation demand, because, for example, businesses tend to disperse their manufacturing around the world to reduce labor costs, and/or increase transportation re­ quirements by concentrating distribution out of one or a few distribution centers serving the entire nation. Traditional large-scale manufacturers have become more competitive over the past decade, partly by instituting just- in-time inventory control systems that reduce their manufacturing, distri­ bution and inventory costs, and increase demand for higher levels of trans­ portation service. These companies then are not only searching for ways to reduce transportation costs, but also are purchasing integrated logistics systems that reduce transit times and improve reliability.

Just-in-time systems are increasingly being used not only by manu­ facturing, but also by retailing and service industries. In general, JIT sys­ tems consume more transportation assets than conventional shipping ar­ rangements. They require more trucks on the road, not to move more freight, but to move it quicker. The flexibility of U.S. transportation ca­ pacity may be constrained, as highway volumes may increase faster than the cargo tonnage that is being carried.

Some of the most competitive sectors of the U.S. economy include the newer high technology and knowledge based industries that are gener­ ating changes in the nature of transportation demand, since they rely on shorter product cycles that can quickly become obsolete, as well as more frequent shipments of smaller, lighter products.

The competitiveness of American companies is dependent on wheth­ er their products can be transported and delivered reliably at a competitive

Intermodal Transport

101

price from a manufacturing plant or distribution center to a larger hinter­ land, including both domestic and foreign destinations.

Improved reliability of transportation service and the ability of a com­ pany to reduce its product inventory increase the firm's competitive ad­ vantage, both because of their ability to respond to changing customer demand faster and to reduce their costs. If enough U.S. manufacturers improve on their supply chain logistics efficiency, the whole economy is affected positively. This can be seen most clearly during an economic slow­ down where a less severe downturn is expected than in the past due to more efficient manufacturers. In the past, inefficiencies in the supply chain worsened recessions. However, if the supply chain is efficient, there are not many goods in the pipeline, and as demand falls, production will in­ crease accordingly, thereby saving business losses from over production and over inventory. As such, the benefits of increased transportation reli­ ability include contributing to U.S. competitiveness, business profitabili­ ty, and overall economic stability.

SOME BASIC ENGLISH TERMS

economic deregulation — дерегу­ лирование (уменьшение государственного регули­ рования экономики)

integrated carriers — компании, занимающиеся перевозкой грузов автомобильным и авиатранспортом

intermediary п — посредник

cost efficiency—рентабельность, эффективность затрат

current account — текущий пла­ тежный баланс; текущий счет

supply chain — цепочка поставок short-sea shipping — морская пе­ ревозка на короткие рас­ стояния (между европей­ скими портами, а также

между ними и портами не­ европейских стран, омы­ ваемых морями, по кото­ рым проходит граница ев­ ропейских стран)

deep sea shipping — морское (океаническое) судоходст­ во

warehousing cost — складские расходы

congestion п — чрезмерное скоп­ ление {грузов, судов и т.п.);

чрезмерная перегрузка

(склада, порта и т.п.)

to boost handling of containers — ускорять обработку кон­ тейнеров

to disperse (the) manufacturing — рассредоточение произ-