TRANSPORTATION

TERMINALS
 CONCEPT
NUMBER 1
 THE
THE FUNCTION
FUNCTION OF
OF
TRANSPORT
TRANSPORT TERMINALS
TERMINALS
NATURE OF TRANSPORT TERMINALS
A terminal is a facility where passengers and freight are
assembled or dispersed. Passengers travel in batches through bus
terminals and airports, while freight is consolidated at ports or rail
yards before shipment. Terminals serve as interchange points for
the same mode of transport (e.g., train changes in Brussels) or
different modes (e.g., rail to ship in New York). They act as central
and intermediate locations in the movement of passengers and
freight.
 THE
THE FUNCTION
FUNCTION OF
OF
TRANSPORT
TRANSPORT TERMINALS
TERMINALS
NATURE OF TRANSPORT TERMINALS
Transport terminals serve as interchange points within and
between transport modes, ensuring continuity of flows in air, rail,
and maritime systems. They function as obligatory transit points
due to their strategic locations, either by centrality or
intermediary position in transport networks. Large terminals,
especially ports, act as gateways or hubs, playing a vital role in
global trade and logistics.
 THE
THE FUNCTION
FUNCTION OF
OF
TRANSPORT
TRANSPORT TERMINALS
TERMINALS
3 major attributes of
transport terminals

location
Transport terminals are placed near high population or
industrial areas to serve market demands. Some terminals, like
ports and airports, have specific locational constraints, while
others are placed outside cities to reduce costs and congestion.
 THE
THE FUNCTION
FUNCTION OF
OF
TRANSPORT
TRANSPORT TERMINALS
TERMINALS
3 major attributes of
transport terminals

accessibility
The effectiveness of a terminal depends on how well it
connects to other terminals and transport systems. A terminal
that handles maritime traffic must also have good inland
connections like rail or roads.
 THE
THE FUNCTION
FUNCTION OF
OF
TRANSPORT
TRANSPORT TERMINALS
TERMINALS
3 major attributes of
transport terminals

infrastructure
Terminals handle and transfer passengers or cargo, requiring
large spaces, technology, and management. They must adapt to
traffic demands and future growth, with optimal utilization at
75-80% to prevent congestion.
 THE
THE FUNCTION
FUNCTION OF
OF
TRANSPORT
TRANSPORT TERMINALS
TERMINALS
3 major attributes of
transport terminals

infrastructure
Terminals handle and transfer passengers or cargo, requiring
large spaces, technology, and management. They must adapt to
traffic demands and future growth, with optimal utilization at
75-80% to prevent congestion.
 Transport terminals use intermodal infrastructures to enhance accessibility to
local, regional, and global markets, with maritime terminals relying on specific port
locations and local conditions, while airport terminals are more flexible but still
constrained by location.
Connectivity: refers to transport terminals as key points where networks are
accessed or exited, such as subway stations in transit systems.

Interface: highlights terminals as transition points between transport modes,

like ports and airports facilitating cargo and passenger transfers.

Buffer: refers to transport terminals balance different transport modes, like

ports managing infrequent ships and frequent truck movements.
 CONCEPT
NUMBER 2
PASSENGER
PASSENGER TERMINALS
TERMINALS
Passenger Terminals and Airport
Complexity
Passenger terminals require minimal equipment for buses, ferries, and trains.
Airports are highly complex due to security, baggage handling, customs, and
flight scheduling.
Require extensive infrastructure like check-in halls, baggage facilities, and
maintenance areas.
Airport activity is measured by passenger counts and aircraft movements.
Hub airports benefit from transfer passengers.
Aircraft movement data can be misleading as it does not reflect aircraft
capacity differences.
 FREIGHT
FREIGHT TERMINALS
TERMINALS
Freight handling requires specific loading and unloading equipment based on the type of
cargo.
Facilities include berths for ships, loading bays for trucks, and freight yards for trains.
Terminals are functionally differentiated by the transport mode and commodity type.

TYPES
TYPES OF
OF CARGO
CARGO
Bulk: Large, unpackaged goods (e.g., ores, coal, crude oil) requiring specialized equipment
like grabs and conveyor belts.
General Cargo: Varied in shape, size, and weight (e.g., machinery, processed materials);
labor-intensive due to difficulty in mechanization.
Containers: Standardized units designed for efficiency; require minimal labor but large
storage space and specialized cranes for handling.
 TERMINAL
TERMINAL COSTS
COSTS
Terminal costs represent an important component of total transport costs. They are fixed costs that
are incurred regardless of the length of the eventual trip, and vary significantly between modes. They
can be considered as:

Infrastructure costs. Include construction and maintenance costs of structures such as

piers, runways, cranes and facilities (warehouses, offices, etc.).
Transshipment costs. The costs of loading and unloading passengers or freight.
Administration costs. Many terminals are managed by institutions such as port or airport
authorities or by private companies (e.g. terminal operators). In both cases
administration costs are incurred.
 KEY
KEY CONCEPTS
CONCEPTS
Relative Location: The position of a terminal in relation to other locations, which can
change over time due to trade and economic shifts.

Terminal as an Intermediate Location: Despite implying an "end," terminals are usually

transfer points in global flows.

Differentiation of Terminals: Passenger terminals and freight terminals have distinct

requirements and locations.

Spatial Relationships & Competition: Terminals compete based on location, accessibility,

and connectivity.
 TERMINAL
TERMINAL FUNCTIONS
FUNCTIONS
CENTRALITY: INTERMEDIACY: GATEWAY:
Terminal serves as an origin or Terminal acts as an intermediate Connects two circulation systems.
destination of traffic. point between two locations. Often involves a mode transfer
Related to the level of economic Can provide advantages for trade (e.g., port to rail).
activity in the area. and transshipment.
Examples: Heathrow Airport
Example: Dubai as a Middle
Examples: Anchorage Eastern transit hub.
(London), Port of New York, Port of
(transpacific flights), Gander
Shanghai.
(transatlantic flights).

HUB (INTERCEPTION): HUB (TRANSCALAR):

Located at a convergence of long- Serves as a connection between
distance routes. different transport scales
Captures traffic due to its (regional vs. international).
strategic location. Common in air transportation
Examples: Algeciras (Spain), (hub-and-spoke model).
Singapore (maritime corridors). Examples: Major air hubs, cross-
docking freight centers.
 HINTERLANDS
HINTERLANDS &
& FORELANDS
FORELANDS
HINTERLAND:
The land area a transport terminal (e.g., a port) serves, drawing and distributing traffic.
Represents the regional market share of a terminal.
Connected via roads, railways, or feeder sea routes.
Types of hinterlands:
Main (Fundamental) Hinterland: The primary market for a terminal, where it is the
closest and most convenient option.
Competitive Hinterland: Areas where multiple terminals compete for market share.

FORELAND:
The ocean-ward counterpart of hinterland.
Refers to ports and overseas markets connected through shipping routes.
Expanded through feeder services and hub ports, allowing ports to extend their reach via
maritime links.
 DIFFERENCES
DIFFERENCES IN
IN HINTERLANDS
HINTERLANDS
(Passenger vs. Freight Terminals)

PASSENGER TERMINALS (E.G., AIRPORTS):

Hinterland is commuter-based, defined by a few hours of accessibility.
Influenced by population density, income levels, and service-based economies.

FREIGHT TERMINALS (E.G., PORTS):

Hinterland depends on land dynamics, economic activities, and transport accessibility.
Inbound traffic: Mostly consumption-based (except for raw materials used in
manufacturing).
Outbound traffic: Comes from extraction (e.g., mining, agriculture) or production industries.

HINTERLAND SIZE VARIES BY COMMODITY:

Bulk products: Small hinterlands due to high transport costs (e.g., minerals, wood, grain).
Manufactured goods: Larger hinterlands due to efficient intermodal transport (e.g.,
containers).
 HINTERLANDS
HINTERLANDS &
& FORELANDS
FORELANDS
NORTH AMERICA:
Economic activity is concentrated on the coasts.
Long-distance rail corridors (landbridges) connect coastal gateways to the continental
hinterland (e.g., Chicago as a major hub).
WESTERN EUROPE:
Hinterlands are strongest in the interior (e.g., along the Rhine River).
Accessed from ports like Rotterdam, Antwerp, Hamburg, and Le Havre via multi-modal
transport (road, rail, barge).
EAST & SOUTHEAST ASIA:
Coastal gateways dominate economic activity.
Large hinterlands exist, but rail freight services are weak, making inland transport
challenging.
 CHANGING
CHANGING NATURE
NATURE OF
OF HINTERLANDS
HINTERLANDS
Traditional well-defined hinterlands are being replaced by overlapping, flexible hinterlands
due to containerization.
Port competition has increased because multiple ports now serve the same market areas.

HINTERLAND EXPANSION FOLLOWS TWO MAIN TRENDS:

Vertical integration: Ports control inland terminals.
Horizontal integration: Expansion through transport corridors.
 RAIL
RAIL TERMINALS
TERMINALS
Purpose: Designed for passenger and freight transport.
Advantage: Less space constraints than airports or ports.
Challenges: Many terminals were built in the 19th century and are now surrounded by urban
development, limiting expansion.

1. LOCATION DIFFERENCES
Passenger Rail Terminals:
Usually located in central urban areas.
Define urban centrality and serve as major commuter hubs.
Freight Rail Terminals:
Located in exurban areas for expansion.
Require larger spaces for freight handling.
 RAIL
RAIL TERMINALS
TERMINALS
2. TERMINAL CHARACTERISTICS
Rectangular-shaped due to the linear nature of rail.
Capacity depends on track spurs (hard to expand after construction).
Example: In Chicago, combined rail freight yards cover more space than airports.
3. TYPES OF RAIL FREIGHT TERMINALS
Bulk Terminals
Serve agriculture, mining, and forestry industries.
Examples: Grain elevators for storage and loading grain into railcars.
Usually have unidirectional flows (either loading or unloading, not both).
Roll-on/Roll-off Terminals
Used for transporting vehicles (cars, trucks, construction equipment).
Require large parking spaces for vehicle storage.
Act as distribution hubs for regional markets.
Intermodal Terminals
Handle containerized cargo (loading/unloading unitized freight).
Containerization has increased productivity but requires more trackside space.
Can be part of a port (on-dock or near-dock) or standalone inland terminals.
Shunting Yards
Function: Sorting, assembling, and breaking freight trains.
Unit trains (coal, cars, containers) require less shunting.
Example: Bailey Yard (Nebraska, USA) is the world’s largest classification yard, handling 10,000 railcars per day.
 AIRPORTS
AIRPORTS
Impact of Globalization:
Airports have expanded in size, volume, economic impact, and environmental concerns.
Increased traffic has led to political debates and local conflicts over land use and pollution.

1. GLOBAL IMPORTANCE OF AIRPORTS

Key Functions:
Centrality: Acts as an origin/destination gateway for a region.
Intermediacy: Connects different world regions.
Example: Dubai has grown into a major hub due to its strategic position and ultra-long-range
aircraft (A340-500) enabling global connections.

2. LOCAL IMPACT OF AIRPORTS

Economic Role:
Major airports generate thousands of jobs (directly and indirectly).
Attract businesses like hotels, distribution centers, offices, and convention centers.
Environmental & Social Issues:
Noise pollution, land consumption, and urban congestion.
Example: Schiphol Airport (Netherlands) is a key economic hub but also a source of
pollution.
 AIRPORTS
AIRPORTS
3. MAJOR GLOBAL AIRPORT HUBS
Three main global airport clusters:
Eastern North America (New York).
Western Europe (London).
Japan (Tokyo).

Emerging Hubs:
Beijing & Dubai are challenging traditional supremacy in air travel.
Air traffic and urban importance:
High passenger traffic correlates with a city’s global significance.
 CONCEPT
NUMBER 3
 TRANSPORT
TRANSPORT TERMINAL
TERMINAL GOVERNANCE
GOVERNANCE
NATURE OF GOVERNANCE
• Governance is about effectively managing resources in both public and private sectors.
• Transportation governance is crucial for efficient resource allocation, financing, and operations of infrastructure like
ports, airports, rail terminals, and logistics zones.
• Public and private sectors both play roles, depending on the type of infrastructure and economic interests involved.

2. COMPONENTS OF TERMINAL GOVERNANCE

A. OWNERSHIP
Public Ownership
• Common for passenger rail terminals, airports, and ports due to their economic and strategic importance.
• Example: State-owned railways in China, Europe, and North America.
• Investment is often financed by public funds or government-backed loans.

Private Ownership
• Less common but exists in certain sectors, such as road freight, rail freight in North America, and privatized ports and
airports in the UK and New Zealand.
• Private capital is used for infrastructure development and operation.
 TRANSPORT
TRANSPORT TERMINAL
TERMINAL GOVERNANCE
GOVERNANCE
2. COMPONENTS OF TERMINAL GOVERNANCE
B. Operational Models
Public Operations
• Typical in state-controlled rail networks, public ports (e.g., Singapore, Hampton Roads), and airports (e.g., the U.S.).
• The government manages terminal operations, hires labor, and provides handling equipment.
Private Operations
• Found in privately owned terminals and public facilities under concessions.
• Concessions allow private companies to operate terminals under contracts of 15–30 years.
• Example: Canada’s non-profit airport and port corporations, which must operate commercially without public
funding.

3. PRIVATIZATION & PUBLIC-PRIVATE PARTNERSHIPS (PPP)

Many governments privatized transport terminals to improve efficiency and reduce public expenditure.
Reasons for privatization:
• Private operators are seen as more efficient in managing terminals.
• Reduces the financial burden on governments.
Trends:
• Full privatization (e.g., UK ports).
• Partial privatization through operational concessions (common in ports and airports).
• Public-private partnerships (PPP) keep ownership public while granting operational control to private firms.
 TRANSPORT
TRANSPORT TERMINAL
TERMINAL GOVERNANCE
GOVERNANCE
4. PORT DEVOLUTION & GLOBAL TERMINAL OPERATORS

• In the 1980s, most ports were publicly owned and operated, but they struggled to meet the efficiency demands of
containerization and global trade.
• Port devolution: Governments transferred port operations to private companies while retaining ownership.
• Result: A shift toward operational concessions for container terminals.

RISE OF GLOBAL TERMINAL OPERATORS

Initially, port concessions were handled by local companies in Northern Europe and the U.S.
Now, a few global players dominate terminal operations, particularly from Asia:
• Hutchison Port Holdings (HPH) – Hong Kong-based, owns 51 terminals worldwide (e.g., Rotterdam, Shanghai).
• Port of Singapore Authority (PSA) – Government-owned, expanding in China and Europe (e.g., Antwerp).
• Dubai Ports World (DPW) – Owned by a sovereign wealth fund, acquired P&O Ports and CSX World Terminals.
• AP Moller Terminals (APM) – Owned by Maersk, the world’s largest shipping line
 CASE STUDY
A NEW ROLE FOR
INLAND TERMINALS
1. SHIFT TOWARDS INLAND FREIGHT TERMINALS
• Increased trade and containerization shift focus from ports to inland logistics.
KEY DRIVERS:
• Need for intermodal and co-modal transport.
• Addressing port congestion and capacity issues.
• Logistics efficiency through hinterland connectivity.

2. WHAT IS AN INLAND PORT?

• A rail or barge terminal linked to maritime ports.
• Supports freight distribution with logistics hubs (e.g., warehouses, container depots).

3. CHARACTERISTICS OF INLAND TERMINALS

• INTERMODAL TERMINAL – RAIL/BARGE-BASED CONNECTIONS.
• PORT CONNECTION – HIGH-CAPACITY TRANSPORT CORRIDOR LINKS.
• LOGISTICS CLUSTERS – CO-LOCATED DISTRIBUTION CENTERS AND WAREHOUSES.

4. DRIVING FORCES BEHIND INLAND TERMINALS

• LAND VALUE – LIMITED EXPANSION SPACE AT PORTS DRIVES INLAND FACILITY GROWTH.
• CAPACITY & CONGESTION – INLAND TERMINALS EASE CONTAINER MOVEMENT AND AVOID BOTTLENECKS.
• HINTERLAND ACCESS – INLAND PORTS REDUCE TRANSPORT COSTS BY LINKING DISTANT REGIONS.
• SUPPLY CHAIN MANAGEMENT – ACTS AS A BUFFER IN DISTRIBUTION (TEMPORARY WAREHOUSING, CUSTOMS
CLEARANCE).

5. LOGISTICS & INLAND TERMINAL DEVELOPMENT

• INLAND TERMINALS LEAD TO LOGISTICS CLUSTERING (E.G., LOGISTICS ZONES).
• PORT-CENTRIC LOGISTICS ZONES SUPPORT MARITIME TRADE WITH ADJACENT SUPPLY CHAIN SERVICES.
• INTERMODAL INDUSTRIAL PARKS DEVELOP NEAR TERMINALS BUT ARE NOT CO-LOCATED.
THANK
YOU!