From vertical to horizontal collaboration in the air cargo sector

Transcription

1 MASTER THESIS FINAL REPORT: APPENDICES From vertical to horizontal collaboration in the air cargo sector A system analysis of the value of horizontal collaborative logistics applied on inner airport air cargo transport movements at Schiphol. Steven Ankersmit, , s.ankersmit@student.tudelft.nl Schiphol, May 2013 (All rights reserved 2013 ) 0 Faculty of Technology, Policy and Management

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3 LIST OF FIGURES D - Figure 1: SADT of decomposing of A1 process (forwarder) D - Figure 2: SADT of decomposing of A2 process (forwarder) D - Figure 3: SADT of decomposing of A3 process (forwarder) D - Figure 4: SADT of decomposing of A4 process (forwarder) D - Figure 5: SADT of decomposing of A5 process (forwarder) D - Figure 6: SADT of decomposing of A1 process (air cargo handler) D - Figure 7: SADT of decomposing of A2 process (air cargo handler) D - Figure 8: SADT of decomposing of A3 process (air cargo handler) D - Figure 9: SADT of decomposing of A4 process (air cargo handler) D - Figure 10: SADT of decomposing of A5 process (air cargo handler) D - Figure 11: SADT of decomposing of A6 process (air cargo handler) E - Figure 1: Overview of main information flows and transport flows between different modeled locations E - Figure 2: Main simulation logic for collecting and delivering shipments inner airport transport system J - Figure 1: Percentage of shipments within range between 50 and 1000 kilo (import NL) equal to 61% of all AWB s J - Figure 2: Shipments weight share in regards to total amount of shipments within kilo range (import NL) 36 J - Figure 3: Percentage of shipments within range between 100 and 1000 kilo (export NL) equal to 76% of all AWB s J - Figure 4: Shipments weight share in regards to total amount of shipments within kilo range (export NL) 38 J - Figure 5: Average AWB weight for 18 largest origins excluding UIO to the Netherlands based on amount of shipments (import NL) J - Figure 6: Average AWB weight for 18 largest destinations from Netherlands based on amount of shipments (export NL) J - Figure 7: Overview of shipment weight of shipments ( y-axes) in relation to amount of shipments for key export destinations from NL ( x-axes) J - Figure 8: Percentage of shipments with max weight of 1000, 2000 and 3000 for key export destinations and system (within shipment range of 50 to kilo)

4 LIST OF TABLES A - Table 1: Key identified factors for airport selection of airlines... 5 A - Table 2: Possible key identified factors for airport selection of airlines A - Table 3: Minor identified factors for airport selection of airlines... 5 B - Table 1: Overview of total cargo and passenger numbers of 2010 of major airports around the world C - Table 1; Part 1 of 2 of stakeholder analysis on key stakeholders for air cargo transport system at major airport (Schiphol)... 9 C - Table 2: Part 2 of 2 of stakeholder analysis on key stakeholders for air cargo transport system at major airport (Schiphol) E - Table 1: Part 1 of main simulation parameters basis and assumptions E - Table 2: Part 2 of main simulation parameters basis and assumptions F - Table 1: Replication data used to determine 95% confidence interval of simulation based on 10 runs F - Table 2: Calculated confidence interval based on 10 replications for different process times G - Table 1: Key simulation parameters with their related impact and uncertainty and how they were defined G - Table 2: Overview of the selected simulation parameters that were assessed for the sensitivity analysis H - Table 1: Amount of cargo transported by individual transport for specific flows of shipments (30 days simulation). 31 H - Table 2: Truck rates, operating hours and amount of transport used within the simulation model for costs calculation H - Table 3: Overview of used transport costs per kilo based on operating times of involved companies and amount of transport processed within single transport simulation model, defined with hourly truck rate ( 45 euro for c1 and 50 for c2/c3) H - Table 4; Overview of simulated amount of cargo that is processed within single transport simulation model based on cargo weights of analyzed companies for a certain period and derived from average percentage of cargo for specific forwarder H - Table 5: Overview of combined transport costs per kilo based on 18 hours operation and 30 days period (90% allocation of cargo for all flows for collaboration transport) H - Table 6: Overview of combined transport costs per kilo based on 18 hours operation and 30 days period (55% allocation of cargo for all flows for collaboration transport) I - Table 1: Comparison of air handling capacity at major air cargo airports (AMS/HGK and CDG for all general air cargo handlers)

5 CONTENTS LIST OF FIGURES... 2 LIST OF TABLES... 3 APPENDIX A: AIRPORT SELECTION FOR AIR CARGO OPERATIONS)... 5 APPENDIX B: TOP AIR CARGO AIRPORTS OF 2010 COMPARED TO SCHIPHOL... 8 APPENDIX C: STAKEHOLDER ANALYSIS OF SCHIPHOL AIRPORT CARGO SYSTEM... 9 APPENDIX D: SADT MAIN AIR CARGO TRANSPORT PROCESSES Main transport related processes for a freight forwarder Relevant transport related processes for a specific air cargo handler APPENDIX E: MODEL STRUCTURE, LOGIC AND MAJOR ASSUMPTIONS Model structure of simulation model Important simulation model logic Main model assumptions APPENDIX F: SIMULATION REPLICATION SETTINGS & SIMULATION LENGTH APPENDIX G: SIMULATION PARAMETER ASSESSMENT FOR SENSITIVITY ANALYSIS APPENDIX H: TRANSPORT COST CALCULATION AND POTENIAL TRANSPORT MOVEMENT REDUCTION Transport cost calculation single and combined transport Transport movement reduction potential APPENDIX I: HANDLING COMPARISON BETWEEN (AMS/HGK/CDG) APPENDIX J: DATA SET # 2 FURTHER ANALYSIS

6 APPENDIX A: AIRPORT SELECTION FOR AIR CARGO OPERATIONS) In this appendix the different factors that were defined based on the literature review on aiprort selection of cargo airlines that have impact on the selection of an airport are shown in three different tables, which group the defined factors based on the importance of factors for selection (key, possible key factor and minor factor). Next to this A - Table 1 shows the total list of factors and if they can be directly (internal) indirectly (external) influcenced by the airpot and finally A - Table 2 useses the key indeitief factors to rank and compare Schiphol airport with other major cargo airports on these factors. Factors for choosing airport Key factor forwarder aspect Amount of forwarders at airport [12] Airport aspect Operational conditions related cargo operator needs [16] collaboration with business to attract air cargo [10/18] Airline aspect Operating competitors airlines at airport (amount/frequency) [13/14] Transport time flying time from connected airport(s) (location) [5] Demand near airport local air cargo demand [7] (yield and volume stability) Handling aspect handling time aircraft cargo (airport infrastructure stability) [11] [23] (Push)factors for switching large demand switch, better facilities, lower charges, request of large customer[4], bilateral restrictions [2], night airport restrictions/ noise restrictions [20] and emission costs [19] A - Table 1: Key identified factors for airport selection of airlines Factors for choosing airport possible key factor forwarder aspect partnerships with integrators [12] Airport aspect night flights / reputation of airport [9] cost incentives for services [8] infrastructure conditions [3] weather conditions [1] Airline aspect possibility of combination of passenger services [13] amount of cargo airlines operating at airport [14] Transport time onward transport time to key cargo destinations [3] Demand near airport industrial production near airport [18] amount of large distribution centres [22] Handling aspect Handling time cargo from aircraft arrival until the moment its ready for further transport [11/17] (Push)factors for switching airport government decision, more demand at other location, more attention to cargo other airport [10] A - Table 2: Possible key identified factors for airport selection of airlines. Factors for choosing airport minor factor forwarder aspect feeder operations to other hubs [12] Airport aspect airport charges [8] airport marketing [9] Airline aspect partner airlines operating at airport [13/14] Transport time costs of road transport [17] frequency intra airport shuttles [6] handling facilities near airport [21] Demand near airport total demand/volume air cargo at airport [23] Handling aspect (waiting time at handler handler space [15] handler capacity)[11] (Push)factors for switching airport other environmental restrictions [20], higher charges [8], limited room for expansion A - Table 3: Minor identified factors for airport selection of airlines 5

7 nr factor internal/external 1 weather conditions airport external 2 airport's government support/involvement in flight agreements with third countries external 3 Quality and extensiveness of regional / national infrastructure (landside) external 4 Large costumer of air cargo request to move to airport external 5 Airport location external 6 Amount of intra airport truck shuttles external 7 Amount of local demand for air cargo external 8 airport charges internal 9 airport reputation internal 10 airport dedication to air cargo internal 11 airport infrastructure efficiency internal 12 freight forwarder active around the airport internal 13 amount of passenger destinations with cargo potential internal 14 amount of full cargo flights internal 15 airside possibilities for forwarders internal 16 airport capacity (short/long term) internal 17 extent and quality of airport road access (landside) internal 18 active engagement with business for air cargo use at the airport internal/external 19 environmental costs of operating at airport internal/external 20 environmental restrictions related to operations internal/external 21 intermodal transhipment facilities near/at airport internal/external 22 amount of value added logistic activities near airport internal/external 23 total demand of transit cargo internal/external A - Table 1: list of key identified factors for airport selection of airlines and the related direct influence airport has on the different factors 6

8 Europe USA Asia nr factor internal/external Schiphol Frankfurt Paris Mem LAX BKK HGK 1 weather conditions airport external airport's government support/involvement in flight agreements with third countries external Quality and extensiveness of regional / national infrastructure (landside) external Large costumer of air cargo request to move to airport external 5 Airport location external Amount of airport truck shuttles external Amount of local demand for air cargo external airport charges internal airport reputation internal airport dedication to air cargo internal airport infrastructure efficiency internal freight forwarder active around the airport internal amount of passenger destinations with cargo potential internal amount of full cargo flights internal airside possibilities for forwarders internal airport capacity (short/long term) internal extent and quality of airport road access (landside) internal active engagement with business for air cargo use at the airport internal/external environmental costs of operating at airport internal/external environmental restrictions related to operations internal/external intermodal transhipment facilities near/at airport internal/external amount of value added logistic activities near airport internal/external total demand of transit cargo internal/external total score rank actual rank cargo A - Table 2: ranking of major competing airports against Schiphol airport on the key identified factors for airport selection A - Table 2 above shows the ranking of different airports on the most important internal and external factors that define the selection of airport of air cargo services operations in general. The scoring is applied in the same way as had been conducted in the report, a 5 point scoring scale is used, where 1 is the lowest (worst) score and 5 is the highest score (best). The actual rank that is shown is the rank of the airport based on the amount of air cargo that was transported in 2012 based on the worldwide ranking of the analyzed airports in the table. 7

9 APPENDIX B: TOP AIR CARGO AIRPORTS OF 2010 COMPARED TO SCHIPHOL airport passenger / cargo processing figures for year 2010 totals passenger/ nr airport cargo volume difference to AMS passenger numbers difference to AMS ton ratio top cargo top pax 1 ATL % % 135, HGK % % 12, MEM % % 1, PVG % % 12, ICN % % 8, ANC % % 1, CDG % % 24, FRA % % 23, DXB % % 20, NRT % % 15, SFD % % 1, SIN % % 22, MIA % % 11, LAX % % 32, TPE % % 14, LHR % % 42, ORD % % 46, JFK % % 34, BKK % % 32, CAN % % 35, IND % % 7, EWR % % 38, SZX % % 33, HND % % 79, KIX % % 13, LUX % % 2, CGN % % 15, LGG % % 0, LEJ % % 3, IST % % 68, AMS an na 31, cargo volumes passenger numbers passenger/cargo ton ration average number of average 26, average cargo ,29 passengers maximum 135,5298 total number of minimum 0, total cargo passengers B - Table 1: Overview of total cargo and passenger numbers of 2010 of major airports around the world. B - Table 1 above shows the largest air cargo airports around the world and compares the total number of passengers and cargo to Schiphol airport. It shows the most comparable airports to Schiphol based on passenger/cargo ratio outside Europe (in red), and within Europe (in blue) and large cargo to passenger ratio airports in Europe (yellow). 8

10 APPENDIX C: STAKEHOLDER ANALYSIS OF SCHIPHOL AIRPORT CARGO SYSTEM The tables below show the conducted stakeholder analysis for the Schiphol airport system. Air Cargo system Schiphol type of stakeholder stakeholder(s) interest desired situation/ objective existing or expected situation and gap causes possible solutions government related handling companies freight forwarders Dutch Government Balancing growth of air cargo and European Commission other transport means Province North Holland General handlers global (Menzies, Skylink, Aviapartner, WFS, Swissport) Home carrier handler KLM Cargo Specialized handlers (Freshport. Viggo, DHL Aviation) Global freight forwarders with airside access (1nd line) (DHL, CEVA) Global freight forwarders with no airside access (2nd line) Rhenus, Expeditors, DB Schenker,, UPS Global, Uti Medium sized freight forwarders with no airside access (2nd line) Cyber freight, Ziegler, Best global, VCK Small general freight forwarders, local with network Burger Group etc. Growing the Dutch economy by development of air cargo operations within NL Supporting economic developments of the region with the development of air cargo. Growth of air cargo operations of AF-KLM group and partners airlines Growth of their specific cargo focus at Schiphol Growth of freight forwarding business at Schiphol in their segment Maintaining competitive logistic infrastructure systems within the Netherlands Having effective transport axes in place that supports logistics systems for whole Europe Union To balance economic benefits for the region with the negative environmental effects of aviation As much air cargo as possible is Handling as much cargo as possible at Schiphol going via their facility at Schiphol airport within a cost effective way Growth of freight forwarding business at Schiphol in their segment Growth of freight forwarding business at Schiphol in their segment Growth of personal/quality focused freight forwarding business at Schiphol Handling the cargo of AF-KLM and its partner airlines in most effective way compared to other handlers and maximize the home carrier/handling advantage To realize maximum profitability and operational effectiveness in their cargo segment Being able to offer the most effective service to their costumers with least amount of costs and maximizing the use of airside accesses Being able to offer the most effective service to their global costumers with least amount of costs and high operational flexibility via road side transport to handlers Being able to offer the most effective service to their costumers with least amount of costs and balancing size and personal attention. Being able to offer the most effective and high quality air cargo services to their costumers with least amount of costs Schiphol and other airports in the Netherlands may become less attractive for air cargo operations. Aviation growth will conflict more with the objectives of European Union related to the environment Existing infrastructure at Schiphol during peak operations will not be able to handle flow air services and related transport and will cause major negative external effects during certain times Consolidation and entry of new air cargo handlers could make the system more competitive and uncertain. Import and export volumes of air cargo are also less certain and forwarders are bypassing the use of handlers Growth of air cargo volume for home carrier handler will become less certain as competing airport and handlers at the airport will become more competitive Highly depended on specific costume(s) services with no direct influence on demand. Given the increased uncertain it will be more difficulty to maintain profitability as import volumes are under pressure. Consolidation within the freight forwarding sector is expected in the future, this will give possibility for the development of more large freight forwarders with air side access plans. Other freight forwarders can also come up with competing concepts that limit the advantage of having airside access. Handling facilities could also be less supportive in providing airside Consolidation within the freight forwarding sector is expected in the future. This will make it more difficult for large freight forwarders to maintain there competitive advantage without airside connections. The gap between services and price that can be offered by larger freight forwarder and medium sized will increase, which will make it harder to stay competitive. The difference between price and services that can be offered by small freight forwarders in relation to medium and large forwarders will more often not be compensated enough by personal attention and support. growth of lower costs airports, shift of logistic activities to the east, environmental restrictions within the Netherlands. growth of aviation in general, stricter regulation in future related to environmental outputs, growing urbanization around major airports Growth of air cargo operations on the road and by air, combined with lower budget for infrastructure developments at Schiphol and for the province Airlines can easily switch between air cargo handlers at Schiphol, new cargo markets and airports are developing rapidly. Environmental restrictions and labor costs will make it difficult to support investments in handling facilities for operational and quality improvement. profitable parts of their business services are also offered by major competitors, Specialized cargo shipments can be shipped by other modes of transport. Low margins make costumers reluctant to pay for the provided services. Lower operating margins for freight forwarders, will cause more companies to consolidate or go bankrupt. Major users of air cargo services will be demand more services and attention for competitive prices. Operating difficulties for air cargo handlers can become big that they focus on other forms of collaboration than airside delivery. Lower operating margins for freight forwarders, will cause more companies to consolidate or go bankrupt. Over capacity at air cargo handling facilities will be more often utilized by offering inhouse services for freight forwarders to retain profits for both the forwarder and handler. Global demands of international companies and legal requirements will make it difficult for medium sized freight forwarders to offer right services and right price. In house collaboration and other landside collaboration practices will manly benefit the larger freight forwarders making all forms transport within the Netherlands more efficient, reliable and environmental friendly. Having an integrated long term transport policy in place. making key transport systems more efficient and reliable realizing a higher share of intermodal transport producing more aviation carried products within the EU Investing in infrastructure with private parties, making transport policy more efficient by collaborating with industry. Having a long term focus on the development of infrastructure lower margins of air cargo, opening of air markets and establishment of new carriers, Making cargo handling operations more efficient, offering consolidation of handlers and development of additional services to costumers, intensiving the new airport hubs with less restrictive investments collaboration with partner and competing airlines and major freight forwarders at Schiphol airport Alternatives to air transport for small shipments by integrators, higher operating costs due to fuel and larger economies of scale of major freight forwarders, limits the ability to form partnerships with airlines/ handlers based on size and volume of small freight forwarders is a big challenge. Making air cargo handling operations more efficient, offering additional services to costumers, supporting collaboration with airlines and freight forwarders at Schiphol airport offering their services to more costumers, widening the value added activities they provide and collaborating with key costumers on long term development of their business. making freight forwarding services more efficient, establishing collaboration with competitors and also improving the benefits of collaboration for air cargo handlers that support air side delivery. Offering of new value added services for costumers that cannot be offered non air side competitors. Being the first to move to large airside access location in the near future. Start sharing part of the benefits of airside location with collaborating air cargo handlers and possibly even with competitors. Looking at alternative landside collaborations with competitors, air cargo handlers and transport companies. making freight forwarding services more efficient, establishing collaboration with competitors and offering of new value added services for costumers that are difficult to realize by larger freight forwarders or becoming a bigger freight forwarder by takeover of consolidation. making freight forwarding services more efficient, establishing collaboration with competitors and offering of new value added services for costumers that compensate for higher costs. Focusing on specialized services that require personal attention and high quality operations. Specialized freight forwarders Zoo logistics etc. Growth of specialized freight forwarding business at Schiphol in their segment Being able to offer the most effective service to their costumers with least the amount of costs Alternative forms of transport for specialized transport will become more competitive based on price/services and this will make the specialized air cargo market more expensive. changes in type of cargo that is transported by air, government regulations that make air cargo transport for specialized shipments more complex and increased use in complete build up ULD's by large forwarders. making freight forwarding services for air cargo more efficient, establishing collaboration with competitors and offering of new value added services for costumers that offer quality and services that cannot be provided by alternative forms of transport C - Table 1; Part 1 of 2 of stakeholder analysis on key stakeholders for air cargo transport system at major airport (Schiphol) 9

11 airlines transport companies Shippers & Consignees Cross sector organization Home carrier airlines KLM, Martinair None home carrier airlines Airbridge, Singapore Airlines, Cathay Pacific ect General transport companies, Thomson select, Kamerman transport, s Schiphol Group Air Cargo Netherlands Realizing growth and maintaining of air cargo services to and from its operated airports Realizing growth and maintaining of air cargo services to all air cargo airport in the Netherlands Being able to offer the most effective air cargo services for their costumers with an extensive network at high frequency transport companies providing value added services Jan de Rijk, Rutges, Van Swieten Growth of intra airport and Schiphol cargo transport of cargo To offer competitive transport services from Schiphol related to direct transport and provide profitable value added services Regular users of air cargo, (large) Regular users air cargo (small) Growth of air cargo demand from Schiphol (import/export) Growth of air cargo demand from Schiphol (import/export) Growth of cargo transport volume and trips at Schiphol Sufficient guaranteed and flexible capacity at low price to key destinations Flexibility of capacity on short term for low price Being able to offer the most effective frequency of service and capacity to local/regional and global costumers with least amount of costs To realize maximum profitability and operational effectiveness of the trucks that are operating To realize maximum profitability and operational effectiveness of shipments logistics that involve air cargo To realize maximum profitability and operational effectiveness of shipments logistics that involve air cargo To let Schiphol be Europe's preferred cargo airport To let Schiphol be Europe's preferred cargo airport and support cargo development at other Dutch airports Competitive position of Air France KLM cargo hub at Schiphol in relation to alternative airports in world is likely to become less positive Schiphol airport will become more difficult to operate profitable from as non home carriers, As higher operational charges than competing airports and lower growth for import and export compared to other markets is expected Competition between transport companies at Schiphol will increase as profits for air cargo services will remain low and shipments size will stay small, so operating profitable will become more difficult Competition on national and regional air transport trucking will increase and airport shuttle services by truck will be used more often in the future More large frequent shippers will become aware of options that can improve air cargo shipment price, flexibility and capacity, This will reduce the advantage of individual large shippers. It will be difficult to maintain these advantages by working alone Digitalization and transparency in the air cargo value chain will make it easier for small shippers to obtain lower price rates for air cargo shipments, but this will put their relationship with traditional forwarders under pressure. Effectiveness and efficiency of air cargo operations at Schiphol compared to competing airports is expected to become lower Effectiveness and efficiency of air cargo operations at Schiphol compared to competing airports is expected to become lower Alternatives to air transport by home carrier are becoming faster, cheaper and more frequent. Starting up cargo flight operations and alternative transport from other competing airports to Schiphol is becoming more accepted and used. Other airports are becoming more efficient and better positioned. Night friendly flight policies of secondary airports in Europe. More environmental restrictions within Western Europe and production facilities shift to east. Lower economic growth in the West and high labor costs. Improved infrastructure in Eastern Europe will make alternatives to air cargo transport more attractive Overcapacity at airlines, air cargo handlers and transport companies will make competition more severe. Lower operating margins for air cargo puts transport charges under pressure. systems of global freight forwarders are more linked than before making freight arrive from different airports via gateways. Smaller shipments of cargo and lower value cargo will put pressure on regional and national transport prices Digitalization of air cargo, booking options rising in fuel prices and lower operating margins for air cargo operators Shippers are forced to reduce their operational costs in all possible ways. Declining operating margins of air cargo operations at Schiphol combined with the shift of air cargo demand and more investments in competitive airports development Declining operating margins of air cargo operations at Schiphol and other airports combined with the shift of air cargo demand and more investments in competitive airports making air services more efficient, establishing collaboration with other airlines operating from Schiphol and offering of new value added services that offer more value than non home carries can offer based on routes, frequency and services level of operations that home carrier can provide Making flight operations to/from Schiphol more efficient, focusing on the most import/export markets from Western Europe. Focusing on route development that does not require extensive use of night operations. Using trucking services from alternative airports to Schiphol for part of flight operations. offering more than expected services and flexibility and trying to increase truck loads and lower costs by combining more transport. Working with handlers, competitors and freight forwarders to optimize waiting and handling times at facilities and thus lower transport cost. offering more than expected services and flexibility and trying to increase truck loads and lower costs by combining more transport. Working with handlers, major freight forwarders with gateways and airlines to optimize transport on both inner airport and intra airport services Being proactive with innovative collaboration projects that involve direct collaboration with different stakeholders in the air cargo value chain. Considering collaboration with direct competitors on air cargo transport. Digitalization of air cargo booking options, rising in fuel prices and lower operating margins for air cargo operators Shippers are forced to reduce Being proactive with innovative collaboration projects that their operational costs in all possible ways. involve direct collaboration with different stakeholders Increasing collaboration on air cargo effectiveness and efficiency problems, focusing on air cargo growth markets and partner airports, investment in infrastructure improvements that are crucial for long term growth of the sector Increasing collaboration on air cargo effectiveness and efficiency problems, focusing on air cargo growth markets and cargo airports in NL, investment in infrastructure improvements that are crucial for long term growth of the sector type of stakeholder stakeholder(s) interest desired situation/ objective existing or expected situation and gap causes possible solutions C - Table 2: Part 2 of 2 of stakeholder analysis on key stakeholders for air cargo transport system at major airport (Schiphol) 10

12 APPENDIX D: SADT MAIN AIR CARGO TRANSPORT PROCESSES In this appendix the high level SADT diagrams of chapter 7 are further decomposed into a more detailed level for both the freight forwarder and air cargo handler processes that relate to air cargo transport processes for on airport transport. Main transport related processes for a freight forwarder The main transport processes related to air shipment processing for a forwarder are defined below, which relate to the five identified sub processes. Truck & Driver & Access Card trailer Cargo shipments & Documents in trailer Transport order Accepting truck for cargo transport A1 Transferred shipment documents Driver Accepted export delivery truck with trailer & access card Accepted export collection truck with trailer & access card A1 accepting truck for cargo transport Trailer Truck & Driver & Access Card Cargo shipments & Documents Accepting truck at entrance A1-1 Accepted Truck with trailer Docking truck at facility A1-2 Driver Accepted delivery truck with trailer & access card Accepted loading truck with trailer & access card driver Shipment documents Transfering shipment documents A1-3 Transferred shipment documents A1 decomposed D - Figure 1: SADT of decomposing of A1 process (forwarder) D - Figure 1 above shows the further decomposing of process A1, it consists of three processes that are needed to accept a truck for air cargo transport at a forwarders warehouse. 11

13 Accepted export delivery truck with trailer & access card Unloading truck with shipments A2 Truck, driver, trailer & access card picking up export cargo Truck & Driver with used access card trailer excluding delivered shipments Non-export shipment related documents Unloaded export shipments A2 Unloading truck with shipments Accepted delivery truck with trailer & access card Unloading of truck shipments Transport shipments away from dock location Truck, driver, trailer & access card collecting shipments Unloaded shipments trailer excluding delivered shipments A2-1 A2-3 Non-unloaded shipment related documents Handover of shipments A2-2 A2 Decomposed D - Figure 2: SADT of decomposing of A2 process (forwarder) 12

14 D - Figure 2 above shows the decomposed processed that take place to unload shipments of a truck at the forwarder, shipments for unloading in this research will only related to import flows, as export shipments are generated within the forwarders warehouse and therefore previous transport is not taken into account. The unloading of shipments from a truck consist of three main sub processes, which are the unloading of the actual shipments, the handover moment and the transport away from the dock of the shipments to other location within the warehouse. D - Figure 3: SADT of decomposing of A3 process (forwarder) D - Figure 3 above shows the decomposition of preparing shipments for onward transport, in the research this will only relate to export shipments, as onward import transport is not considered as part of the inner airport transport system. The preparing of shipments for onward transport consists of three different processes, which relate to documentation, custom agency information and shorting the shipments for further transport. 13

15 D - Figure 4: SADT of decomposing of A4 process (forwarder) D - Figure 4 above shows the decomposition of planning shipment transport at a freight forwarder, it relates to four different sub processes and relates to both import and export shipments, where the checking of shipments at air cargo handler (import) depend on information obtained from air cargo handler in order to assess if shipments can be combined. 14

16 D - Figure 5: SADT of decomposing of A5 process (forwarder) D - Figure 5 above shows decomposition of loading a truck with shipments, in this research this will relate to export shipments only as it will not relate onward transport from freight forwarder to locations outside the airport. The loading of a truck with shipments consist of three sub process, which are transport of shipments to dock, the handover of shipments and loading of shipments. 15

17 Relevant transport related processes for a specific air cargo handler The main transport processes related to air shipment processing for an air cargo handler are defined below, which relate to the five identified sub processes. D - Figure 6: SADT of decomposing of A1 process (air cargo handler) D - Figure 6 above shows the decomposition of process of accepting trucks for cargo transport, it relates to four different sub processes from the air cargo handlers. Trucks are accepted for both export and import shipments in the same way. Trucks and shipments can only be accepted with the right documents and an assigned dock for transport. 16

18 D - Figure 7: SADT of decomposing of A2 process (air cargo handler) D - Figure 7 above shows decomposed process of unloading a truck with shipments at an air cargo handler, which relates to 3 sub processes that are similar to the processed that have been defined for forwarder. At the air cargo handlers this unloading of shipments will only relate to export shipments as import shipments are not considered 17

19 D - Figure 8: SADT of decomposing of A3 process (air cargo handler) D - Figure 8 above shows the decomposition of preparing shipments for onward transport at an air cargo handler, in this research this will only relate to import shipments, as preparing that are done for export consolidation or transport from an air cargo handler are not included in the scope. The three defined sub processes are the same as have been defined for the forwarder. 18

20 D - Figure 9: SADT of decomposing of A4 process (air cargo handler) D - Figure 9 above shows the decomposition of planning of transport to the forwarder, this actually a process that is currently only applied at one air cargo handler, but is similar to process that is used by forwarders to organize their own transport for shipment collection and delivery. It consists of five sub processes, it also relates to communication with forwarder about shipments that is different from the way normal transport is planned by a forwarder and relates to both import and export transport of shipments. 19

21 D - Figure 10: SADT of decomposing of A5 process (air cargo handler) D - Figure 10 above shows the decomposition loading of a truck with shipments at an air cargo handler, again this a similar process to loading of shipments at forwarders, whereas it will within this research at the air cargo only relate to loading of import shipments. 20

22 D - Figure 11: SADT of decomposing of A6 process (air cargo handler) D - Figure 11 above shows the decomposition of receiving shipments from airside at an air cargo handler, these shipments are all coming from aircraft that have arrived at the airport and have been thus been unloaded by one of the air cargo handling companies at Schiphol. The processes consists of six sub process that are not always preformed for all shipments, when shipments have to be transported between different air cargo handlers transport between air cargo handlers is also realized. Some shipments will have to be broken down or stored before they are collected by the forwarder that is in charge of the shipments. 21

23 APPENDIX E: MODEL STRUCTURE, LOGIC AND MAJOR ASSUMPTIONS Model structure of simulation model In chapter 8 a brief overview was given of the simulation model structure, in this section the model structure will be discussed in more detail. E - Figure 1: Overview of main information flows and transport flows between different modeled locations E - Figure 1 above shows both the import/export transport and information flows between the different locations that have been modeled in the simulation. Only for combined transport information also affects processes at the handling facility, as holds for combined transport are allocated to a certain transport as soon as it leaves, to ensure that a dedicated dock is ready and that new shipments will be allocated to next available transport. All transport regardless of company or type of shipments enters the facilities it will collect or deliver shipment via the same gate for arrival and separate gate for departure. Important simulation model logic In chapter 9 the process of transport system, import shipments and export shipments have been briefly explained the assumptions and logic used in the simulation will now be described in more detail. In E - Figure 2 below a more detailed sequence of main process within that are constructed in the model are shown. The process of collecting shipments at either a forwarder for export shipments or import shipments at the handling facility are the same, the only differences are; the amount of docks that have been defined for single/combined loose transport and the process times of loading loose cargo shipments. The main assumption that has been used here is that forwarders are better able load shipments into awaiting truck, due to more excess capacity, which has been derived from statements made by forwarding companies and the fact that on average less trucks are expected to be at the facility at any given time. Shipments that will be collected will be awaiting transport arrival and will only be realized when transport has arrived, this has been based on the actual current situation at handling facility, it could however be the case that shipments for collection at forwarder facility are already placed in front of the dock door, this could result in lower processing times. This has however not been included in the model. One other important relation that has not been taken into account in the model is the relation between amount of cargo loaded and the loading time, in reality it can be assumed that the more to be loaded the longer loading process will take. With the lack of data available to model this logic, the processing time of loading shipments at 22

24 the different facilities therefor has not been linked to the amount of shipments or weight to be loaded. Shipment delivery at forwarding facilities for import or air cargo handling facility for export have also been defined structured in similar way, with the only major differences being again; the amount of docks for delivering the process time of E - Figure 2: Main simulation logic for collecting and delivering shipments inner airport transport system Transport system logic Based on the interviewed forwarding companies for the pilot project it became clear that most medium and large forwarding companies at Schiphol use fixed transport that operates based on shifts. Given the general notion that export cargo has preference over import cargo, which has also been based on information provided by forwarding companies involved in the pilot, it assumed that transport entities will start from the base of forwarder as this will give the shortest distance to forwarding warehouse for export shipment collection or import documents. With the observed uncertainty at Schiphol related when shipments are ready and are ready for collection and delivery, transport will only be generated if one or more shipments is are ready for collection. Due to lacking information about the actual logic regarding collection of either import/export shipments it is assumed that chance based allocated can be used. Routing of transport is direct for transport of single companies from its base to the collection point and from there directly to the delivery point, for combined transport as has been explained before a fixed sequences is used. This logic behind the sequence is to avoid complexity of routing without having any solid arguments to base a more complex logic on. Inner facility transport and process Once in a specific facility the transport will allocate a dock based on type of transport and type of shipments it is carrying, which is explained in more detail below 23

25 Dock allocation For single company transport, no dock is allocated after transport is generated based on awaiting shipments. Only when transport arrives at either handling or forwarding warehouse will it allocate the first available dock that can be used given its type of shipments. At the handling and forwarding facilities all company transport that either collect or delivers ULD cargo are treated in the same way, for loose cargo this only is defined in this way for single company transport. Combined loose transport will have already allocated a specific dock for collection and delivery of shipments at the facilities that have cargo shipments awaiting at the moment of departure from the transport base. This logic is applied to ensure that when transport arrives at a facility for collection or delivery shipments, the requested dock is free and no new cargo shipments are allocated to the collection process. This logic has been applied in to ensure fast loading and unloading of cargo shipments. Main model assumptions The most important model assumptions made for this simulation model are described below in a two part table below, for each simulation parameter the following is described; how its modeled, where this has been based on and how this can be justified. Most of these parameters have already been explained in chapter 9, however several additional parameters are been described in E - Table 1 and E - Table 2 below. 24

26 nr simulation parameter modelled as based on justification log normal 1 weight distribution of loose shipments distribution for cargonaut data/ company data researches applied log normal and dataset Poisson process with dynamics of air cargo system are suitable for 2 Amount of shipments loose shipments per day 3 different arrival cargonaut data/ company data poison process cargonaut data/ company data / Normal destruction gives a very stable 3 weight distribution of ULD shipments Normal distribution handler data spread weight Poisson process with dynamics of air cargo system are suitable for 4 Amount of shipments ULD shipments per day 3 different arrival cargonaut data/ company data poison process Priority given for export shipments in relation to import priority given to export in general No more complex decision logic support 5 cargo based on chance (interviews) information at hand Poisson process with Schiphol data arrivals/departures a No more specific company arrival / 6 Arrival part of shipments during the import/export 3 different arrival day combined with deadline times departure data of shipments arrival Companies have been selected on basis of 7 Size difference of involved companies in collaboration shipments/weight cargonaut data/ company data pilot fixed percentage non basis (expect for import based No more complex decision logic support 8 Percentage of loose cargo offered to collaboration based on chance on pilot companies preference) information at hand fixed times start end based on pilot preference for import In order to limit cost keep operating times 9 Operating times of combined transport of operations used same for export for export / import same fixed times start end based on pilot company operations Weekend times vary every week based on 10 Operating times single transport companies of operations during weekdays demand so not suitable to use based on only >= max weight single Shipments to be collected with combined Weight restrictions fixed and variable capacity equal share each shipment and equal share variable transport should fit in variable capacity at 11 combined company => 2500 least 12 Amount of companies involved In collaboration 3 13 Process time of loading/unloading cargo loose single transport (import/export) handler exponential distribution Process time of loading/unloading cargo loose exponential 14 combined transport (import/export) handler distribution based on pilot preference and other experience with horizontal experience in warehouses of WFS/Menzies/Avia interviews non basis only based on lower times due to dedicated support / rational Only data at hand of three companies, so no more where analyzed No specific data at hand and large actual variety of handling times observed No specific data at hand and large actual variety of handling times observed 15 Process time of loading/unloading cargo loose single transport (import/export) forwarder triangular distribution experience in warehouses of forwarders / interviews No specific data, more resources and less problems with variety of process times 16 Process time of loading/unloading cargo loose combined transport (import/export) forwarder triangular distribution experience in warehouses of forwarders / interviews No specific data, more resources and less problems with variety of process times 15 Amount of transport at hand for combined transport fixed amount based on common use of transport by medium/ large forwarders In order to compare both single and combined both will be using fixed capacity 16 Amount of transport at hand for single transport fixed amount 5 to 30 minutes 17 Congestion time import at handler for single transport uniform 5 to 30 minutes 18 Congestion time export at handler for single transport uniform Waiting times at transport base before checking demand 17 holding fixed 5 minutes delay Waiting times at transport base before checking demand 18 arriving transport peak fixed 5 minutes delay based on common use of transport by medium/ large forwarders based on interviews and import peak at Schiphol and experience at based on interviews and import peak at Schiphol and experience at non basis delay included to make model more realistic higher load non basis delay included to make model more realistic higher load In order to compare both single and combined both will be using fixed capacity No specific data at hand and large actual variety of waiting times No specific data at hand and large actual variety of waiting times Relative high amount of transport capacity for each company transport Relative high amount of transport capacity for each company transport E - Table 1: Part 1 of main simulation parameters basis and assumptions Simulation parameters 17 and 18 have not been used in the final version of simulation model, as this congestion times has been included in the loading and unloading time at the handler for single company loose cargo shipments. Given the amount of parameters only the most parameters will be discussed in more detail below the second part of the table below. 25