Globalization and Intermodal Transportation: Modeling Terminal Locations Using a Three-Spatial Scales Framework

During the last decade the influences of globalization have shaped our countries. The meaning of the word globalization has changed from a ‘catch all’ term used in economics to a much broader meaning of describing the impact of increased international integration across a range of fields — from literature to sociology, to technology (Ruane and Sutherland 2002). In the early 1990s some companies in Europe began to integrate operations across national boundaries. The removal of trade barriers increasingly enabled geographical integration and thus operations spanning country borders in creating economies of scale (Bowersox et al. 1996). In order to sustain economic growth, many companies felt the need to develop new markets outside their home countries. New manufacturing plants and distribution centers were established in Asian countries. Not only the market conditions but also manufacturing conditions seemed to be favorable. Low labor wages, good employment and expansion opportunities were the main motives for these companies to invest. As a result relocation and re-allocation of existing manufacturing activities were set-up (Vos 1993). This global shift of manufacturing activities caused a tremendous pressure to change the distribution structures. To guarantee the delivery demands, the organization of distribution channels became of importance. While maintaining the speed of delivery, the price of delivery, and the flexibility of demand, the distribution channels needed to adjust the logistic activities in their structure. Activities of transshipment became important value-adding links to the distribution channel (Porter 1996).