Freight systems

The North American and European can be said to be walking in different paths in terms of how the logistics and transportation systems are configured through the frame work setting and the operational decisions.  However, the two transportation systems have various similarities show in their convergence in terms of infrastructure, technology, terminals and modes (Furtado, 2013).  A major comparison between the two systems is containerization which is a very strong force behind the standardization of distribution of freight systems globally. The two freights systems also share commonalities in terms of advanced systems of freight distributions which connect them to trade flows globally.  Gateways are very important and considerable logistical clusters where terminal infrastructures such as rail terminals, sports and centers for freight distribution have accumulated together with activities relating to supply chain management. This ensures continuity in all the global supply chains (Bardi, Gibson,Novack & Cycle ,2010). In regard to regulatory framework, both regions have experienced liberalization which has lowered entry barriers in terms of intermodal and modal activities and ownership structures being shifted to the private sector. This has taken place across the both regions and all modes (Bookbinder, 2013).

The two systems also differ in various ways. To begin with, function of the gateways and related corridors vary in accordance with geographical setting and this affects the operational and modal considerations. In the North America regions the activities are majorly concentrated along the coastal areas with land bridge being the main connections (Bookbinder, 2013). Gateways appear to be the major markets and here the Gulf Coast serves a big marginal role more so for the containers. There relatively smaller number of gateways and the ports are less developed ports play a smaller role in the global shipping networks. Moreover, the North America regions have many long distance corridors of rails systems which usually in terms of land bridges (Bookbinder, 2013). This serves a continental hinterland informed by industrial hubs and major transportation.  Therefore, this region has rail freight system of transport that serves inland parts in large scale, something which is very unique globally. It has few new ports apart from Prince Rupert. In terms of policy and regulation, the approach in North America happens as a paradigm shift in that after new policies are enacted, changes become profound and sudden. The major market players take part in the development of such policies.

 On the other hand, European, more so the Western Europe sees concentration of activities mostly being in land and coastal gateways are many here. The gateways in these regions are major markets and intermediary locations even though most serves as essential industrial centers. The European hinterland is accessible from coastal gateways and distance medium corridors which involves combination of various modes such as barge, road and railway services (Caldwell, Tulipa. Rawling, Penne, Meyer,Llort, Honefanger & Halvorson, 2002). The region has many terminals and new ports which covers expansive areas in order to take advantage of better accessibility of hinterland. EU enlargement has benefited the Northern ports. There have also been developments in the East Europe which have increased the trade flows which has stretched the coastlines all the way to northern Italy from southern parts of Spain. In regard to regulation and policy development, the process is quite incremental given that compromise must be reached among the member states. These tend to give priority to their respective interests (Caldwell, Tulipa, Rawling, Penne, Meyer,Llort, Honefanger & Halvorson, 2002).

The North America and European regions are expected to converge in terms of transportation systems in future as the markets continue to be connected due to globalization. Future research is likely to focus on the manner in which freight systems and the policies will continue be determined by international trades and alliances.

Reference

Furtado,F.(2013).U.S. and European Freight Railways:The Differences That Matter. Journal of the Transportation Research Forum, Vol. 52, No.2. Retrieved from : http://www.trforum.org/journal

Bookbinder, J. H. (2013). Handbook of global logistics: Transportation in international supply chains. New York: Springer. 239

Caldwell, H., Tulipan, G., Rawling, G., Penne, L., Meyer, M. D., Llort, Y., Honefanger, J. G., Halvorson, R. K. (2002). Freight transportation: the European market. 29

 Bardi E., Gibson, B.Novack, R., Cycle J.(2010).Transportation: A Supply Chain Perspective. Cengage Learning.368.