Tecnologias de Gestão

A GLOBAL TRANSPARK

INFRASTRUCTUREO

ADVANTAGEJohn D. Kasarda

The Global TransPark is an advanced multimodal industrial infrastructure that provides the logistical environment

for successful 21 st century manufacturing and distribution. Integrating just-in-time manufacturing with air cargo,

surface transportation and advanced telecommunications systems, it is designed to improve supply-chain

management, increase productivity, and boost exports in the new economy where speed and agility are

becoming criticai to competitive success. A Global TransPark holds the potential to make Brazil the

hemispheric hub for industrial air commerce and catapult the country into a leadership position in JIT

manufacturing and global distribution.

Dramatic changes are occurring inthe way businesses are operatingaround the world. Underlying this isthe emergence of a new competitiveenvironment where price and qualityare necessary but no longer sufficientfor commercial success. Increasingly,speed-to-market and agile responseare assuming essential roles, as well.

RAE Light • v.5 • n.2 • p.7-11

Custorners from both advanced andemerging markets are demanding fastand reliable deli very of products withdistinctive and personalized features.Competitive advantage is beinggained by those firms that respondflexibly and rapidly to suchopportunities and deli ver lower-cost,qu al ity products quickly and

efficiently to their dornestic and globalcustomers.

Staying at the c o m p e t iti v eforefront is also re qu ir ing moreeffi c i en t global su pp IY-c ha inmanagemeut. Manufacturers rnustbe able to draw on an internationalnetwork of supp li er s of Ta wmateriais and sub-asse mb ler s in

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A global transpark in Brazil: logistical infrastructure for competitive advantage

Tecnologias de Gestão

order to assure the best quality product atthe lowest possible price. At the same time,increased flows of information worldwideare leading to ever-faster changes in marketdemands. Goods-producing firms that candetect these changes, design andmanufacture the desired products, anddeliver them more quickly than otherproducers will capture these markets. Speeda180 reduces warehousing and inventorycosts, stock-outs, and remaindered goods.So, the speed advantage becomes a costadvantage, as well.

Brazilian firms will not be able to meetthe challenges of the new speed-driven,global economy without dramatic changes inhow they organize their flows of inforrnation,component materials and finished products.The ability of Brazil 's industries to respondto global competitors will increasinglydepend not only on internal operationalchanges but also on the creation of theexternal infrastructure that makes new globalsupply-chain practices possible. It isbecoming increasingly clear that these new

supply ch ain pr acti ces will require thedevelopment of new logistics infrastructuresthat synthesize information technology andmultimodal transportation systems tofacilitate the quick and efficient delivery ofmateriaIs and goods from suppliers tomanufacturers and from manufacturers tocustomers. The Global TransPark (GTP)! isone such infrastructure designed specificallyto improve supply-chain management andboost the competitiveness of firms by makingthem faster and more agile.

WHAT 15 A GLOBAL TRAN5PARK?

In many respects, the GTP utilizes provenelements of a modem industrial park. But whatsets the Global TransPark apart is the fusionof just-in-time (JIT) manufacturing anddistri bu ti on facili ties with muI timodaltransportation, advanced telecommunications,and sophisticated materials handling systemsto foster fast, flexible links of tenants to theirsuppliers and customers, domestically andworldwide.

8 © 1998, RAE Light / EAESP / FGV, São Paulo, Brasil.

A well-equipped international cargoairport with runways capable of handling fullyloaded wide-body air freighters lies at theheart of the GTP. Manufacturing anddistribution facilities can be located directlyalong customized taxiways and ramps,allowing air freighters to come virtually to the"factory door" (see Figure 1).

A cornputer-guided Cargo Transfer System(CTS) carries materials, components, andfinished products throughout the GTP on aninternal tram network of dedicated rights-of-way. This network links off-ramp industrialtenants to the Central Cargo Facility (CCF), astate-of-the-art intermodal complex locatedalong the airfield's main taxiway, providingaccess to air freighters, trucks, and automatedmaterials-handling systems. The CCF alsoprovides off-ramp and off-site factories,warehouses, and distribution centers withautomated sorting capability, customsc1earance, and air freighter access. Since mostGTP tenants wilJ not have the cargo scale (loadfactors) to justify direct air-freighter docking,

Figure 2 - Global transpark central cargo facility

A GLOBAL TRANSPARKIN BRAZIL

the Central Cargo Facility offers them airaccess via the Cargo Transport System and/ordirect truck cross-docking at the rear of thefacility (see Figure 2).

In addition, the Cargo Transfer Systemconnects both on- and off-ramp industrialtenants and the Central Cargo Facility to anInterrnodal Rai 1 Facility (IRF) containingmultiple rail sidings, loading platforms, andtruck cross-docking. The IRF will primarilyhandle bulk and heavy cargo, and will be aparticularly valuable connection to ri ver andsea port facilities (see Figure 3).

Along with its multimodal transportation andautomated cargo-handling systems, the GTPwill support its users with comprehensiveelectronic-commerce capabilities. Electronicdata interchange (EDI) and othertelecommunications systems utilizing the latesttechnologies, including fiber optics, multi medianetworks, and on-site digitized satellite uplinksand downlinks, will offer tenants superiorelectronic access to the global commercialworld. EDI will expedi te customs clearance and

KEYINCOMING OUTGOINGSHIPMENTS SHfPMENTS

.lmmediatcImminent

RAE Líght • v. 5 • n. 2 9

Tecnologias de Gestão

improve supply-chain management as it tracks,coordinates, and controls materiais and productflows across transportation modes, bothdomestically and internationally. Plug-insoftware systems will allow tenants real-timeaccess to suppliers', distributors', andcustomers' databases, worldwide.

GTP OPERATIONAL ANO NETWORKPRINCIPLES

Cycle-time reduction and just-in-timesourcing and distribution practices underly GTPoperational logistics with response replacinginventory and flows replacing stocks. Onceorders are placed, raw materiaIs or componentparts will be acquired regionally via water orsurface transportation and by cargo planes frommore distant locations. Manufacturers willassemble products on site or near the TransParkand deliver them to regional and global markets,frequently via air freight.

The TransPark will feature express customsclearance technologies and procedures to speedinternational sourcing and exporting processes.It will also have state-of-the-art intermodal and

cross-docking facilities that wilJ substantiallyaccelerate materiais handling and transfersamong factories, aircraft, trucks, rail cars, andships, thereby providing speedy global accessand other significant competitive advantages toindustries located throughout Brazil,

Multimodal transportation and integratedtelecommunications capabilities of the GTPshould be complemented by commercial andknowledge support services providing acomplete business environment for competitiveadvantage (see Figure 4). Commercial supportwould include export processing zone or freetrade zone status enabling firms to bring inforeign parts, components, and othermanufacturing inputs duty-free and to exportwith a rninimum of bureaucratic or govemmentred tape. GTP firms must have virtual accessto financiaI institutions, marketing, sales andemployment agencies. legal services, trade andexposition centers, and third-party logisticsproviders. One-stop govemment service centersare necessary to provide foreign direct investorswith ali required licences, permits, andinvestment promotional privileges withoutinvestors having to go to a half dozen or so

Figure 3 • Intermodal interfaces at the global transpark central

Intermodal r.il facilities

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10 RAE Ught • v.5 • n.2

governmentagencies to receive these approvals.In addition, Brazilian and foreign investors'ability to attract professional managers andskilled workers to major industrial sites reguiresa fulI array of community amenities includinginternational schools, shopping centers,restaurants, recreational and cultural facilities.

Finally, knowledge support services arerequired to generate or stimulate innovation andprovide a reliable source of trained workers andmanagers. Among the most importantknowledge-based organizations on whichBrazil's most competitive firms depend arelaboratories engaged in technology developmentand vocational schools, community colleges,and universities providing well-trained workers,rnauagers, and professionals. They also needconsultancy organizations that helpcommercialize technology, develop newproducts, and help manage internationalactivities more effectively and specializedtraining facilities. For example, a distanceeducation and training facility drawing on theintegrated telecommunications network could

Figure 4 - Business enviroment 01 the global transpark central

A GLOBAL TRANSPA RK IN BRAZIL

provide real-time audio, video and tactileworker training on-site in Brazil from anyindustry located anywhere in the world, bringingspecialized worker training resources fromthroughout the world, as needed, to the GlobalTransPark site.

The TransPark in Brazil will be linked tosimilar GTP facilities being developed in theUnited States, Asia, and Europe, providing aglobal air commerce network connectingBrazilian firms to major economic regions ofthe world (see Figure 5). Multiple TransParksare envisioned to ultimately form a globalnetwork for industrial air commerce Thisnetwork, which will also include rnu ltimoda!regional webs of interconnected hubs, satellitesand feeders, will offer integrated domestic andworldwide logistical infrastructures formanufacturing agility and supply-chainmanagement (see Figure 6). Each TransParkhub will be linked to its sister hubs by dedicatedcargo flights and al l infr astr uctu re andtechnology harmonized (e.g., intermodalconnectors, containerization, EDI). Thus,

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Tecnologias de Gestão

whether an air freighter lands at a GTP in Brazil,Asia, Europe or the United States, materials-handling conditions will be identical.

The internationa1 network of TransParkscan be an important strategic tool for Brazilianfirms requiring quick and efficient globalreach. The synthesis of transportation andinformation technologies across the networkwill allow seamless, flexible and visible flowsof goods and materiaIs among suppliers andmanufacturers, and, through distributioncenters, to customers worldwide. The GlobalTransPark network will provide maximum 36-hour delivery time between any two pointsacross the globe and, in most cases,considerably less.

SUMMARY ANO CONCLUSIONS

A Global TransPark holds the potential tomake Brazil the hemispheric hub for 21stcentury industrial air commerce and catapult tbecountry into a leadership position in JITmanufacturing and global distribution. Withintermodal connections to highway, sea, rail,and river, aIJ four modes of transportation (air,

Figure 5 - GTP global network

water, rail, and higbway) will be broughttogether to form a seamless and integratedsystem that will provide BraziI with logisticalcapabilities unmatched in Latin America. AGTP hub (preferred site to be determined) willbe linked to satellite GTPs at strategic locationsthroughout Brazil fostering backward economiclinkages and offering firms near these satellitelocations far greater accessibility to regional andglobal markets. Such logistical capability willmake Brazil's indigenous industries much moreproductive, serve to attract substantial foreigndirect investment, and greatly increase exportpotential of firms throughout Brazil.

In summary, the Global TransPark is aoinnovative logistical infrastructure that:

targets global markets and tirne-basedcompetition as thekeys to business success;

• features full integration of air, sea, road,rail, and river transportation modes;

utilizes state-of-the-art materials handlingand information technology systems toimprove supply chain management;

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Figure 6 - Ultimate GTP Network

A GLOBAl TRANSPA RK IN BRAZIL

• recognizes that air cargo is the fastestgrowing mode for international trade andthe need for multimodal ai r-mdu strralinfrastructure and technologies to leveragethat capability;

achieves unprecedented integration ofmanufacturing and distribution activitieswith direct airfield access, allowing cargoaircraft to come virtually to the "factorydoor";

• links Brazil in to an emerging internationalGTP network that will give the countrysmanufacturers quick and efficient accessto suppliers and customers around theworld.

Discussions are currently taking place withappropriate Federal and State transportationofficials, government agencies, and private-sector leaders to explore the steps needed toimplement a GTP hub and satellite system inBrazil. This involves, among others,assessing its (1) commercial, technological,

and financial feasibility, (2) likely econornic,environmental, and social impacts, and (3)optirnal sites in Brazil for the GTP hub andGTP satellites. I:l

1. Global Transf'ark", Transf'ark" and GTp® areregistered service marks of lhe North CarolinaGlobal TransPark Authority. The concepl anddesign were developed by Dr. John D. Kasarda,Direclor of lhe Kenan Institule of PrivaleEnterprise of the University of North Carolina(USA).

John D. KasardaKenan Distinguished Professor and Director

Kenan Instítute of Private EnterpriseKenan-Flagler Business School

University 01 North Carolinae-mail: john_kasarda @une.edu

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