Magnetic Levitation Cargo Ransport Role in World Economy

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Introduction

The magnetic levitation technologies over the recent years have acquired a special significance for the scientific and technical society. Discussions around them do not cease, and this is caused considerable improvement of these technologies and their practical application in a number of states (China, South Korea, Japan). The results of introduction of maglev-based technologies to transport industry vary depending on country peculiarities and influence on functioning of other modes of transport.

 Currently, maglev is used only in passenger transit. Transportation of cargo is provided by car, water, railway, air and pipeline transport. Other modes of cargo transport have lost their importance (e.g. horse-driven transport) or did not acquire widespread application (e.g. conveyor transport). Cargo transportation can be of either mass or single scale [1, 2, 3].

Analysis

Each type of cargo transport has its competitive advantages that ensure the most effective application of a transport at each stage of logistic chain. In some cases transport modes can be interchangeable, and be integrated into multimodal transportation having very high efficiency.

The most considerable features of various types of cargo transport are listed in the Table 1. The main difference between the types of cargo transport lies in the infrastructure used. The infrastructure performs an important role in logistic chains and affects cargo transportation economics [4, 5].  

 

Table 1. Characteristic features of cargo transport types

Characteristics of cargo transport	Type of cargo transport
	Car	Water	Railway	Air	Pipeline
Infrastructure peculiarities	Common roads	Basically, natural waterways; ports required	Special infrastructure, weight limits	Natural way; airports required	Special infrastructure
Transportation peculiarities	Door-to-door without special schedule	Between ports, considering port of call schedule	Between cargo stations, according to strict schedule	Between airports, according to strict schedule	Between input and output points, continuous
Transport mode peculiarities	Wide range with different load capacities and container volumes	Large capacity	Standardised rolling stock	Standardised transport means of limited nomenclature	No transport means
Nomenclature of goods transported	Wide, limited by sizes and lifting capacity	No limitations	Wide, limited by sizes and lifting capacity	Wide, limited by sizes and lifting capacity	Liquid, granular cargo, gases
Traffic peculiarities	Free schedule	As per navigation conditions	As per train schedule	Timetable	Continuous
Stability	Dependence on weather and road conditions	Dependence on weather conditions	Dependence on weather conditions	Dependence on weather conditions	High
Safety	High accident risks	Relatively high	Mean	Relatively high	High
Sustainability	Large emission volumes	Mean emission volumes	Mean emission volumes	Mean emission volumes	Low emission volumes

 

Examples of cargo logistics and transport infrastructure, which is a technological complex for organisation of cargo traffic and rendering of transport and logistic services, are illustrated in Fig. 1.

 

Fig. 1. Examples of cargo transport and logistics infrastructure

 

The configuration of logistic chains is formed by transport and logistic infrastructure types, and transportation conditions and requirements. From the point of view of logistics, the most complicated stages are those touching distribution of cargo, and the major transport is often not in the focus of attention [6]. This is explained by the necessity to achieve local operational efficiency, which dominates in the classical approach towards cargo transportation economics (Fig. 2).

The classical approach towards cargo transportation economics takes into account the main cost centres and various effects that influence the transport costs. The effects are divided into a group of additive effects and a group of multiplicative effects (Fig. 2). Additive effects concern extensive transport costs factors, that enable improvement of service quality, but require additional capital investment and operational costs.

 

Fig. 2. Cargo transportation economics

 

The main idea is that the price for logistic chain is added up with all of its stages. The stage price is influenced by its main characteristics. For transport echelons, it is a distance, for warehouses it is storage life.

The multiplicative effects are of different nature and have interest rate as their main rate. These effects have a greater influence on the final product price. For instance, the single month transport interest rate makes up to 0.5% out of the cargo price. At the distribution stages that follow, both increase of interest rate and value added tax is observed, which leads to increase of the final product price. It is these effects that this study focuses on.

The configuration of the transport market participants is given in Fig. 3. In consideration of the market on a broader scale, the number of participants is much bigger, than the number of participants directly involved in the transportation process. The integral participants of the transport market are also the sender and the receiver.

 

Fig. 3. Transport market participants

 

The market participants interact with each other in the issues relating to transport and logistics infrastructure, rolling stock and vehicles, resources, and raw materials. The market is regulated by regulatory framework, which determines its development and peculiar features of operational activity [7, 8].

The interests of operating companies, on the one hand, and those of service companies, manufacturers and suppliers, on the other hand, are the opposite. The conflicts are observed in the following aspects:

• infrastructure stability;
• availability of rolling stock and vehicles;
• life cycle of rolling stock and vehicles;
• resources and raw materials.

 

There is also a potential conflict connected with extension of transport and logistics infrastructure. The situations when one and the same company operates, services the infrastructure and thus takes all internal conflicts are not considered. All conflicts are compromise point where all companies seek appropriate balance. The rest of the companies are not involved in the process and, despite the rules, suffer from transaction costs.

The final product price is determined by a group of various interconnected costs. The multiplicative effect manifests itself in the increase of price for each following stage of transportation process due to increase of price for each of the preceding stages.

Each transport echelon includes the costs of various types of services, including the profitability of service companies. The cost of service includes the cost of raw materials and resources, including the manufacturers’ rate of return and the cost of transportation, as well as the rate of return of transport companies.

Transportation costs are clearly not the largest part of the cost of the final product, but they can lead to a rise in costs by several per cent.

Thus, at first glance, the problem described negatively influences the economy. However, further analysis shows that the situation is much more complex.

The role of transport in the Gross Domestic Product (GDP) as the main factor characterising the final price for all services rendered and products manufactured in the country, is extremely high (Fig. 4).

 

Fig. 4. GDP and cargo transportation

 

The share of cargo transportation in GDP may reach 25 %, transport costs in the product price – 10 %. The transport itself consumes up to 25 % of production capacity.

The essence of economic growth is presented in Fig. 5. Traditionally, economic growth is the mirror of GDP growth. At the same time, irrespective of the approach used to calculate GDP (whether it is cost or value added based (production method), the result is the same value.

 

Fig. 5. Economic growth

 

The economic efficiency of cargo transportation influences the overall economic efficiency. However, inefficient system, from the viewpoint of transaction costs, leads to GDP growth (Fig. 6). Notwithstanding the employment rate and consumption from the viewpoint of prices and increase of investment are observed, the negative side is the lower quality economic growth and different level of efficiency of the market participants [10].

 

Fig. 6. GDP growth due to market participants’ interests

 

The influence of maglev transport on the cargo transportation market and, consequently, on GDP considerably differs from the same influence of the currently operated modes of transport (Table 2). Measurement of positive effects, such as economic growth quality and intermediate consumption, is a complicated task [11]. Whereas, the level of negative outcomes (reduction of wages fund in service field, investment, depreciation, company’s profit in maintenance and construction, and resources consumption) is calculated.

 

Table 2. Level of interaction of maglev transport with other participants of operation as compared to other types of cargo transport

Object / stakeholder	Rolling stock maintenance	Rolling stock maintenance
Infrastructure operation company	Higher stability	Lower risks of emergency situations
Transportation operation company	Optimal routes	Less maintenance of rolling stock
Manufacturing and construction company	Less contracts	Less maintenance
Rolling stock maintenance company	Less damage to rolling stock	Less maintenance
Infrastructure maintenance company	Less maintenance	Less damage to infrastructure
Supplier	Lower demand	Lower demand

 

Thus, the economic growth issue in terms of transport industry and its contribution to national economy requires searching for a combination of the most efficient modes of transport. This, in its turn, requires changing the economic paradigm to a resource-based one, where the long-term interests providing social proliferation will be brought to the foreground. The model in which the short-term interests are stood for, which damage economy and society, should belong to the past, as not viable from the strategic standpoint [12, 13, 14, 15].

Conclusion

The volume of consumption of resources by humanity has long outweighed their recovery capacities. In this regards, one of the most significant tasks of transport and industry is to minimise consumption of natural resources, as well as to minimise the impact of emission on environment. This requires structural modifications in the transport industry, that is implementation of innovative modes of transport.

The need to reduce consumption of resources so as to eliminate the emerging problems in the ecosystems, will inevitably foster broad implementation of maglev transport, that possesses relevant advantages over other means of cargo and passenger transport. Since economic characteristics of maglev transport, including that being operated in several countries, and that whose technical and technological parameters are being developed, already now excel economic properties of the most types of transport, it can be stated that during transition to resource-based economy maglev transport will be the main transport in both cargo and passenger transportation.

Acknowledgment

The work has been completed with support of Scientific Educational and Engineering Cluster “Russian Maglev”.

About the authors

Sergey A. Smirnov

Emperor Alexander I St. Petersburg State Transport University

Author for correspondence.
Email: noc-pgups@yandex.ru
ORCID iD: 0000-0002-2096-6967
SPIN-code: 3042-2910

Leading Researcher

Russian Federation, St. Petersburg

Olga Yu. Smirnova

Emperor Alexander I St. Petersburg State Transport University

Email: noc-pgups@yandex.ru
ORCID iD: 0000-0002-2239-4384
SPIN-code: 9083-2984

Senior Researcher

Russian Federation, St. Petersburg

References

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