the destination. The long distance travelled by the container trucks makes the scheduling of trucks, especially rescheduling of
trucks and utilisation of the trucks' return journeys, difficult and hence results in a relatively low truck utilisation rate and
high cost and CO2 emissions. This can be illustrated by Fig. 6, where the left side of the figure indicates the current “area
coverage” for vehicle routing requirements, while the right side shows the two “to-be” scenarios. It can be observed that the
area for the “as-is” scenario is much larger than that of the “to-be” scenarios and hence any inefficiency in vehicle routing
would have a higher impact on the overall system performance. In the “to-be” scenarios, it can be guaranteed that the
journeys from the port to the ICH are always fully utilised.
In the proposed HPFV and train distribution options, the ICH can act as a buffer point so that scheduling and traffic control
(night shifts for container transportation between container terminal and ICH) can be relatively easier to achieve. The “last
kilometre” issue is also easier to address since the trucks only move within a relatively small region for the final delivery.
Dispatch and communications between ICH and end users will be possible and the delivery times will be more predictable.
As mentioned earlier, the re-design of logistics systems and supply networks has long-term financial and environmental
impacts. Therefore, time has to be taken into consideration when planning such systems. In terms of cost structure, road
transport has higher percentages for labour and fuel consumption than rail transport (BITRE, 2009; Coyle et al., 2011). With
fuel price at its current level and the projection for future increase (IEA, 2010), the high labour costs in Australia, as well as the
high increase in the rate of labour costs, the existing gap between the HPFV and rail transport options might be quickly
narrowed down or even eroded over 5e10 years, not to mention the potential environmental benefits which will accrue from
the use of rail transport.
the destination. The long distance travelled by the container trucks makes the scheduling of trucks, especially rescheduling of
trucks and utilisation of the trucks' return journeys, difficult and hence results in a relatively low truck utilisation rate and
high cost and CO2 emissions. This can be illustrated by Fig. 6, where the left side of the figure indicates the current “area
coverage” for vehicle routing requirements, while the right side shows the two “to-be” scenarios. It can be observed that the
area for the “as-is” scenario is much larger than that of the “to-be” scenarios and hence any inefficiency in vehicle routing
would have a higher impact on the overall system performance. In the “to-be” scenarios, it can be guaranteed that the
journeys from the port to the ICH are always fully utilised.
In the proposed HPFV and train distribution options, the ICH can act as a buffer point so that scheduling and traffic control
(night shifts for container transportation between container terminal and ICH) can be relatively easier to achieve. The “last
kilometre” issue is also easier to address since the trucks only move within a relatively small region for the final delivery.
Dispatch and communications between ICH and end users will be possible and the delivery times will be more predictable.
As mentioned earlier, the re-design of logistics systems and supply networks has long-term financial and environmental
impacts. Therefore, time has to be taken into consideration when planning such systems. In terms of cost structure, road
transport has higher percentages for labour and fuel consumption than rail transport (BITRE, 2009; Coyle et al., 2011). With
fuel price at its current level and the projection for future increase (IEA, 2010), the high labour costs in Australia, as well as the
high increase in the rate of labour costs, the existing gap between the HPFV and rail transport options might be quickly
narrowed down or even eroded over 5e10 years, not to mention the potential environmental benefits which will accrue from
the use of rail transport.
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