Only a few studies exist on coordination and management in hinterland transport (eg van der Horst and de Langen, 2008). However, the supply chain management literature has, for a long time, recognized the need to address challenges of coordination in inter-organizational settings such as hinterland transport systems. Van der Horst and de Langen (2008, p 3) identify four general factors that lead to coordination problems:
1 Unequal distribution of costs and benefits of coordination. If actors believe that there is an imbalance between contributions to the collaboration, eg in risk, investments etc as compared to the experienced benefits, there might be a lack of incentive for coordination and collaboration.
2 Lack of resources or willingness to invest. In collaborations where small firms are involved, it might be difficult to get the necessary financial commitment for investments which hinder coordination.
3 Strategic considerations. If competitors also gain benefits from improved coordination, actors might become reluctant to participate.
4 Risk-averse behaviour and short-term focus. If the implementation cost and efforts of the collaboration are high and the benefits uncertain, actors might be reluctant to engage.
These are important factors to keep in mind when setting up a logistics collaboration and relationship, such as designing and implementing a hin- terland transport system, both in an informal and formal context, such as contractual agreements. Van der Horst and de Langen (2008) identify some general and mode-specific coordination problems in hinterland chains (see Table 5.4).
After identifying the important factors behind coordination problems and the common coordination problems in the hinterland transport chain, it is possible to link them together in order to identify suitable solutions for addressing the issues of coordination. A number of concepts can be applied for dealing with the most common coordination problems (van der Horst and de Langen, 2008; Bergqvist and Pruth, 2006):
● Incentives. By introducing incentives, the balancing of the collaborative structure is formalized, eg bonuses, penalties, tariff differentiation, warranties, capacity regulations, deposit
arrangements, tariffs linked to cost drivers.
● Formalization. By formalizing the cooperation and linking the actors closer together, communication, trust and commitment are facilitated.
Formalization of the cooperation limits risk on how uncertainties will be addressed by the actors in the cooperation. Examples of formalization include subcontracting, project specific contracts,
Hinterland Logistics and Global Supply Chains 83
TaBLE
5.4Examples of coordination problems in hinterland transport chains
Coordination problem actors involved General. Insuffi cient information
exchange regarding container data makes planning more diffi cult
Shipping line, terminal operator at the seaport, forwarder, hinterland transport operator, inland terminal operator
General. Long-term planning horizon for hinterland terminal investments and development
Forwarder, inland terminal operator, hinterland transport operator
General. Introduction of new hinterland transport services requires a basic volume to which ‘cargo- controlling’ parties are unwilling to commit
Forwarder, shipping line, shippers
General. Insuffi cient planning on transporting and storage of empty containers
Forwarder, shipping line, customs, hinterland transport operator, inland terminal
General. Limited customs declarations, physical and administrative inspection causes delay
Forwarder, customs, hinterland transport operator
General. Limited planning for physical and administrative inspection
between customs and inspection authorities causes delay
Customs and inspection services
General. Insuffi cient information about customs clearance of a container
Forwarder, customs, shippers
Truck. Peak load in arrival and departure of trucks at deep-sea terminals causes congestion and delays
Terminal operator at the seaport, trucking company, infrastructure manager
Truck. Lack of information of truck drivers leads to insuffi cient pick-up process at terminals
Forwarder, inland terminal operator, trucking company
(Continued)
Introduction 84
Coordination problem actors involved Barge. Insuffi cient planning
coordination of terminals and quays with respect to sailing schedules of barge and deep-sea vessels (increases crane utilization)
Barge operator, terminal operator at the seaport, forwarder, inland terminal operator
Rail. Peak loads on terminals, few terminal slots available
Rail operator, terminal operator at the seaport, forwarder, inland terminal operator, infrastructure manager
Rail. Limited exchange of traction and marshalling/shunting recourses
Rail operator
SOuRCE van der Horst and de Langen (2008)
TaBLE
5.4Examples of coordination problems in hinterland transport chains (Continued )
defi ned standards for quality and service, formalized procedures, offering a joint product/service, and a joint capacity pool.
● Creating collective action . Introducing public governance by a government, port authority, public–private partnership, branch associations, etc facilitates long-term focus and stability in a context that normally might be uncertain and unstable.
The next section provides a case study describing how the hinterland logis- tics system in Scandinavia, related to the functions of the Port of Gothen- burg, was developed.
The development of integrated hinterland transport has been extensive in Scandinavia over the last decade. The Port of Gothenburg is the principal port in Scandinavia, and early on the port authorities recognized
the importance of a well-developed hinterland transport system. The possibilities for transport using inland waterways are limited in Scandinavia, so focus was put on rail- based intermodal transportation. Currently, the hinterland transport system comprises 24 direct rail shuttles to inland terminals in Scandinavia (see Figure 5.8). The rail shuttles are operated by eight different rail operators, proof that competition exists in the system.
Over the years, the number of shuttles and the frequencies of the shuttles have varied
CaSE STuDy Scandinavian Railport system
Hinterland Logistics and Global Supply Chains 85
over time. Most services operate five to seven days a week, and the most frequent one, which supports H&M’s central warehouse in Eskilstuna, operates 14 times a week in each direction. As the system has developed, so have the inland terminals. Some have developed sophisticated systems for information sharing, customs clearance, etc, and can be regarded as dry ports (similar functions are offered inland directly at the seaport).
fIgurE 5.8 Port of Gothenburg and its hinterland transport system as of March 2014
Our rail shuttle system is based on well-developed cooperation betwen the Port of Gothenberg, the RAILPORT terminals, several rail operators, goods owners and the National Rail Administration.