Intermodal Freight Transport Management

This assignment delves into the complexities of intermodal freight transport planning. It examines academic literature, case studies (including Aurizon's operations in Australia), and recent developments in multi-agent cooperative transport planning. Students are tasked with analyzing the challenges and opportunities within this field, highlighting the importance of managing time-based attributes for improved service quality.

RUNNING HEAD: LOGISTICS MANAGEMENT
1
Logistic Management
Intermodal International
Submitted by:

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Contents
Introduction.................................................................................................................................................2
Company Overview.................................................................................................................................2
Important Features of Intermodal................................................................................................................3
Reduced cost...........................................................................................................................................3
Reduced carbon emission........................................................................................................................4
Reduced fuel cost....................................................................................................................................4
Improved safety and security...................................................................................................................4
Reduces highway congestion...................................................................................................................4
Truck driver Shortage..............................................................................................................................4
Situational analysis......................................................................................................................................4
Strategies to overcome issues......................................................................................................................5
Government Intervention.............................................................................................................................7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

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Introduction
Company Overview
Aurizon is a publicly listed rail freight company in Australia. The company was formally owned
by the Government of Queensland and the company’s assets were transferred to QR National
Limited, in July 2010. It is Australia's major rail freight company. The company was established
in 2004/05 financial year after Queensland Rail's coal, bulk and containerised business units
were brought under one name. The company is formed with a motive to function freight services
in Queensland and around Australia. They are constantly expanding by forming business
contracts by the acquisition of new businesses. QR National was rebranded in December 2012 as
Aurizon (Company Overview, 2017).
The company on an average move more than 700,000 tonnes of coal, iron ore and other minerals
across the nation. They have operations across five states in Australia, and manage the 2,670
kilometre Central Queensland coal network linking mines to coal ports at Bowen, Gladstone and
Mackay. The company has four main product lines for customers i.e.: Network, Coal, Bulk, and
Intermodal. Moreover they are providing with a range of expert services in rail design,
engineering, building, organization and protection, and offer extensive supply chain solutions to
miscellaneous variety of clientele (Murdoch, 2017).
The success and future growth of Aurizon largely depend upon key demand drivers of the
Australian capital division in international market. This has helped in enhancing continuing
power of the Australian economy. Aurizon is well-placed to assist a continuous long-standing
expansion in demand for coal and iron ore. It is forming business alliances with the expanding
Asian economies such as China and India. They have implemented a chief improvement and
business alteration agenda since its privatisation and listing on the ASX in November 2010.
Through the company transformation the company is able to manage– security, customer service,

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operational brilliance, efficiency, and innovation. They are striving for world-class performance
through an effective program.
Important Features of Intermodal
Reduced cost
The long haul domestic intermodal services provide with a cost saving process compared to
over-the –truck services. The total saving in this process is greater than any other form of benefit
(Christopher, 2016).
Reduced carbon emission
This process provides an environmental benefit compared to the other services. A truck
transporting cargo on a long distance releases an excess of carbon footprint. The same amount
of cargo when transported via intermodal services releases less carbon. This will help companies
in gaining their sustainable corporate goals (Rushton, Croucher and Baker, 2014).
Reduced fuel cost
By shipping intermodal by rail is 2 times more fuel efficient than by the truck. The railroad can
move a ton of freight over 400 mingles on one gallon of fuel. This creates effectiveness in terms
of gaining business goal (Fernie and Sparks, 2014).
Improved safety and security
The rail services are safer than over-the –truck services. The number of accidents through the
rail road is lesser than the truck. The rail roads have an outstanding track record of safely
transporting the goods. Additional, rail transportation is safer than any other mean of
transportation (Brindley, 2017).
Reduces highway congestion
One intermodal train do takes around 300 long haul trucks off of the crowded highways (Waters
and Rinsler, 2014).

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Truck driver Shortage
There is shortage of truck drivers which is likely to increase in coming years. The capacity of
long haul truck drivers is also reduced affecting the supply chain. The capacity of drivers is more
likely to be affected in coming years creating a wide gap in demand and supply (Brandenburg,
Govindan, Sarkis and Seuring, 2014).
Situational analysis
The coal hauler and railway owner Aurizon Holdings is willing to cut down a job of 250 people
outside Queensland due to underperformance of intermodal freight business. They have closed
their intermodal business by selling the business to Pacific National and Lindsay Fox’s Linfox to
focus on its core business. The announcement came out due to its first full year loss from
Queensland Rail in 2010. The organization has signed a deal with the buyer companies which
involve 350 people working on it. It is due to a challenging intermodal market and the
abandonment of the overhaul system that led to impairment in the first half (Layt, 2017).
Challenges i the intermodal have created a loss with a loss of a $162 Million. Despite of the
recent challenges within the intermodal market there are impacts on the cost side of the business
causing an overall decline in the profitability. The company has abandoned a $ 91 million
freight management Transformation project launched in 2014 with an aim of consolidating 18
separate legacy system for logistic planning, scheduling, ordering and billing(Chambers,2017).
They are also facing redundancy cost due to the continuous loss faced in the recent time-period.
Team Aurizon is planning to get back to the status quo by developing core competencies. In this
way they are planning to incorporate changes in a systematic way. The future of intermodal
business is based on managing situation in an appropriate way and by designating a solution
(Ghaderi, Namazi-Rad, Cahoon and Fei, 2015). The problem faced by Aurizon has multiple
impacts on the future of logistic management and control. The system coordinated project is not
delivering value for the business creating a high risk of over spend and delay. It is only through
the undertaken of review the company is receiving at present through which they can create
future value and position (Abc.net, 2017).

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Strategies to overcome issues
Data availability is an important part in the decision making process. It influences the preference
of most suitable technique and feature to state the accuracy. The pressure for efficiency and
effectiveness creates a necessity to provide quality services and product at a reduced cost. Mass
invidualization is a product of the reduction in shipment sizes creating an increase in the
services. The intermodal function in today’s market scenario is to serve multiple purposes to
achieve goals (Bhattacharya, Kumar, Tiwari and Talluri, 2014). It aims is to manage the
shipment on the international basis within a reasonable time and a competitive basis. The
performance of the framework is to enhance the overall capabilities. It is related to the location
of the cost structure and location transfer point. Some of the concern related to the business
structure is playing an appropriate role in handling situation. In managing such a critical situation
it is important to manage the cost structure in an appropriate way. For the reason it is evident to
manage the loss that is caused due to ineffectiveness of the process (Li, Negenborn and De
Schutter, 2015). Any model need to consider the reverse flow necessary to recall and return
warranty claim. It is however important to ensure a regular logistic flow. Intermodal is an
efficient model that is been used to manage the various inter-related factors. The purpose is to
gain the relevancy in case of carrying goods from one place to other (Woxenius, Macharis,
Meers and Woodburn, 2017). Intermodal transport is applied to transportation of goods to some
hinterland. This operating system allow in managing logistic operations. The purpose can only
be met if the extra operating cost included in the operations can be reduced. This allow in
managing the excess cost attached to the operator. While integrating the approach related to
intermodal concept is to manage the excess cost attached by shifting the negative impact of road
transport especially on the road. Moreover it can focus on developing venture with the private
sector in order to enhance the productivity. In addition to transportation, Intermodal is operating
one of the world’s largest coal rail networks with 2,700 kms of heavy haul rail infrastructure. In
the existing context it is connecting mining customers in the Queensland coalfields with key
ports. There are possibilities that the company can excel in the given context if made available.
The Operations business should range from specialist services to service the industry as well as
rail design engineering. This will ensure the company in managing the loss. By diversifying the

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technology and effectiveness through applicable enhancement and knowledge development, it is
able to manage the changes in a better way. They need to offer large scale supply chain solutions
in order to provide a diverse range of customers Australia-wide (Mathisen and Hanssen, 2014).
There is a restricted scope in the intermodal industry due to a heavy expense. In order to manage
the operation it is important to allow effectiveness not only in the respective model but also in a
wider section allowing growth. Expansion in the field is only possible if the production is
carried with an effective project management plan. In this way they are able to take care of the
stakeholders as well. In a wider prospect it is relevant for business to justify its existence by
managing the operations (Santos, Limbourg and Carreira, 2015; Ghaderi, Cahoon and Nguyen,
2015). It is widely acceptable in the current context to develop effective tools that will allow in
managing the comprehensive plans that are attached with the growth and development. It isn’t
just about transporting freight, but also to provide assurance to the employees regarding the
growth and development. It’s also concerning employees and changing the communities (Li,
Negenborn and De Schutter, 2014). It should constantly strive to develop an effective culture to
deliver a dynamic environment to people and vigorously encouraging equal opportunity
employment in all areas. The rail rods have an outstanding track record of safely transporting the
goods. Additional, rail transportation is safer than any other mean of transportation.
Government Intervention
There is wide range of actions taken by the NSW government to resolve efficiency issues and
take away barriers in order to gain innovation. The government has a policy to improve the
intermodal system through better information. The short term vision is to develop a strategic
vision for NSW freight logistic and to draw the agendas in order to manage the attention. It is the
requisite possibilities to manage the freight database for the movement of goods within Sydney.
On a medium term, the purpose is to improve freight modelling capabilities and work in order to
develop a comprehensive integrated freight model. The project aim to approve Austin projects in
order to investigate short term solutions and to examine the feasibility attached to a project. They
work with state and federal government to standardise the rail gauges, to develop a long term
plan for the container double stacking lastly by prioritising development of an intermodal rail

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freight terminal. The government is increasing the efficiency of the transport system through an
effective infrastructure and planning provisions. This can only be managed through developing
partnership to identify the ground to identify and address freight issues. However it is further
recommended to check the feasibility at outside hub.
There is a role for both Government and industry:
It has developed further competitiveness by closely working with the transport commission. This
will allow in harmonizing the situation and attain accreditations and approval through an
effective mechanism. The purpose is to address the critical issues taking place at the location of
empty containers park, improving an ability to match the slot and to investigate into the matter.
The company can gain possible outcome by arranging the global technology. Research and
technology is helping n setting the desired goals and allowing in managing the frequencies in a
better way. It is possible to examine the taxation incentives in order to support investment and to
allow gaining an appropriate solution to promote productivity. This can only be managed by
aligning the goals with the sustainable projects/ the ongoing innovation system help in allocating
the desirable possibilities in managing the ill-effects associated with the project. In order to
manage the situation, it is the possibility to gain desired sight to manage the task in an
appropriate way out. The long term purpose of this model is to manage the operational cost
associated with the approach. It is recommended that an agenda must be prepared for actions that
help government to device appropriate steps in this sector. The following action need to be taken
in an effective form by managing the actions in the best possible way and to arrange the desired
result in the most appropriate way. It is therefore applicable to gain a definite result by allocating
the appropriate insight to manage the wide approach into the sector in managing the functions.
The foundation of the industry largely depends upon the growth and development of
infrastructure. A strengthen infrastructure will allow in an easy flow of intermodal system. In this
way they are able to gain effectiveness through deployment of effective process development on
a long run. . Any model need to consider the reverse flow necessary to recall and return warranty
claim. It is however important to ensure a regular logistic flow. Intermodal is an efficient model
that is been used to manage the various inter-related factors. The purpose is to gain the relevancy

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in case of carrying goods from one place to other. It is possible to gain appropriate results and to
manage the effectiveness associated with the system in the best possible way.
Conclusion
To conclude, the intermodal is an effective way to manage the logistics across the country. It is
necessary to manage the challenges that are taking place in the current context by allocating the
resources and by managing the work. It is important to gain preciseness in the logistics
management and control. This will allow in managing the activities in the best possible way and
by allocating the functions in order to maintain the regular supply of goods in Australia. The
changing business scenario and rising necessity of an effective intermodal mechanism is
important for gaining the efficiency. In this way the organization will be able to manage the
excessive resources. For the reason the NSW Government is also contributing in managing the
resources. This is applicable in managing the system in the best possible way. It is therefore
necessary in managing the logistic supply through a better intervention and opportunities. This
will allow in gaining an effective function and ability on a long run. The function will help in
managing activities in the best possible way. This has helped in enhancing continuing power of
the Australian economy. Aurizon is well-placed to assist a continuous long-standing expansion
in demand for coal and iron ore. For managing the changes in the environment, Intermodal is an
effective function used to manage the functions . The intermodal is an effective tool to
overcome issues occurring at an individual level. The number of accidents through the rail road
is lesser than the truck. The rail road’s have an outstanding track record of safely transporting
the goods. The overall purpose related to the process is to guarantee cost structure and location
transfer point. Some of the concern related to the business structure is playing an appropriate role
in handling situation.

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References
Abc.net, 2017. Aurizon to close Rockhampton workshop, 180 employees affected. Online.
Available at: http://www.abc.net.au/news/2017-06-01/aurizon-to-close-rockhampton-workshop/
8581366 Accessed on: 19 Sept. 2017
Bhattacharya, A., Kumar, S.A., Tiwari, M.K. and Talluri, S., 2014. An intermodal freight
transport system for optimal supply chain logistics. Transportation research part C: Emerging
technologies, 38, pp.73-84.
Brandenburg, M., Govindan, K., Sarkis, J. and Seuring, S., 2014. Quantitative models for
sustainable supply chain management: Developments and directions. European Journal of
Operational Research, 233(2), pp.299-312.
Brindley, C. ed., 2017. Supply chain risk. Taylor & Francis.
Chambers, M.2017. Aurizon to shut intermodal business as it swings to loss, plans buyback.
Online. Available at: http://www.theaustralian.com.au/business/companies/aurizon-swings-to-
loss-plans-buyback/news-story/cabe97dcca1e76933036cbd528ef2ff4 Accessed on: 19 Sept. 2017
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Company Overview,2017. Online. Available at : https://www.aurizon.com.au/company/overview
Accessed on: 19 Sep. 17
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.

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Ghaderi, H., Cahoon, S. and Nguyen, H.O., 2015. The symbiosis nexus between infrastructure
provision and freight activity: the case of intermodal terminal system in Australia.
In International Symposium for Next Generation Infrastructure (pp. 1-8).
Ghaderi, H., Namazi-Rad, M.R., Cahoon, S. and Fei, J., 2015. Improving the quality of rail
freight services by managing the time-based attributes: the case of non-bulk rail network in
Australia. World Review of Intermodal Transportation Research, 5(3), pp.203-220.
Layt,S.2017. Aurizon to shut Rockhampton rail workshop. Online. Available at:
http://www.news.com.au/national/breaking-news/aurizon-to-close-central-qld-rail-workshop/
news-story/49bd5a5f7031f5b91b2a9275223167e6 Accessed on: 19 Sept. 2017
Li, L., Negenborn, R.R. and De Schutter, B., 2014, October. Multi-agent cooperative transport
planning of intermodal freight transport. In Intelligent Transportation Systems (ITSC), 2014 IEEE
17th International Conference on(pp. 2465-2471). IEEE.
Li, L., Negenborn, R.R. and De Schutter, B., 2015. Intermodal freight transport planning–a
receding horizon control approach. Transportation Research Part C: Emerging
Technologies, 60, pp.77-95.
Mathisen, T.A. and Hanssen, T.E.S., 2014. The academic literature on intermodal freight
transport. Transportation Research Procedia, 3, pp.611-620.
Murdoch,S.2017. G&W, Macquarie in race for Aurizon’s intermodal business. Online. Available
at: http://www.theaustralian.com.au/business/dataroom/gw-macquarie-in-race-for-aurizons-
intermodal-business/news-story/1cb8d079e839f21e3f5681f083c0356a Accessed on: 19 Sept.
2017
Rushton, A., Croucher, P. and Baker, P., 2014. The handbook of logistics and distribution
management: Understanding the supply chain. Kogan Page Publishers.
Santos, B.F., Limbourg, S. and Carreira, J.S., 2015. The impact of transport policies on railroad
intermodal freight competitiveness–The case of Belgium. Transportation Research Part D:
Transport and Environment, 34, pp.230-244.

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Waters, D. and Rinsler, S., 2014. Global logistics: New directions in supply chain management.
Kogan Page Publishers.
Woxenius, J., Macharis, C., Meers, D. and Woodburn, A., 2017. Intermodal freight transport
management.