European intermodal freight transport network: Market structure analysis

The analysis of market structure and concentration measures for the Intermodal Freight Transport (IFT) market is important to avoid market failure and to find the areas for policy making to promote IFT market share. This analysis can be performed for separate segments, for example, the market for transshipment service or the market for main-haulage service. However, due to the multistage characteristic of IFT service, the segmental analysis gives an incomplete view of the IFT market at the network level. In a previous paper (Saeedi et al., 2017), we present the Intermodal Freight Transport Market Structure (IFTMS) model to conduct a network-based study of the IFTMS in which distinctive actors (i.e., pre/post haulage operators, terminals, rail/barge operators, transport chains, and corridors) are competing at different levels inside distinctive markets to deliver an integrated IFT service. There are two main challenges in the application of IFTMS model in real cases, for example, the European IFT network. First, the definition of the geographical and spatial border of the transshipment market areas is needed to determine which actors are potentially competing for a specific service demand. The second challenge is the lack of disaggregated data and the consistency of existing data in nodes (i.e., the transshipment areas) and links (i.e., the rail and barge operators). To cope with these challenges, we develop a four-step methodology in which a model-based approach is used to define the geographic boundaries of the transshipment submarkets and provide detailed and consistent data for market analysis. We also apply the IFTMS model to study the market structure of European intermodal network. Our analysis shows that the majority of transshipment markets as well as main-haulage markets are highly concentrated markets. The corridor markets – which include the IFT chains – are unconcentrated markets. Furthermore, the majority of corridors in the European Union are inside highly concentrated origin-destination markets.     

Optimizing the aerodynamic efficiency of intermodal freight trains

We develop an aerodynamic loading assignment model for intermodal freight trains based on an integer-programming framework to help terminal managers make up more fuel-efficient trains. This is the first use of optimization modeling to address the aerodynamics and energy efficiency of railroad intermodal trains. Several recommendations regarding railway equipment use, operations, and policy are proposed to improve fuel-efficiency and reduce emissions from intermodal transportation. Analysis of one major railroad intermodal route reveals the potential to reduce fuel consumption by 15 million gallons per year with corresponding savings of $28,000,000. Greater benefits are possible through broader implementation of the model.     

The relative importance of factors that influence the break-even distance of intermodal freight transport systems

The break-even distance of an intermodal freight system is a crucial piece of information for shippers as they decide whether to choose a specific freight transport system. It is also important for policy makers who want to demonstrate to shippers that the intermodal system is substantially more beneficial over a certain distance and encourage shippers to use it. However, the break-even distance is highly dependent on market situations. In other words, it is not possible to estimate the definitive break-even distance that is generally applicable. To date, the literature has addressed factors, including costs and distances, that impact the break-even distance without considering the relative importance of each of these factors. This study attempts to address this gap in knowledge by evaluating the relative importance of geometric and cost factors. The former includes drayage distances (i.e., pre- and post-haulage by trucks), truck-only distance, rail distance, the shape of the market area, and the terminal location, while the latter includes the drayage truck rate, the long-distance truck rate, the rail rate, and the terminal handling rate. Finally, by developing a Monte Carlo-based simulation model, the relative importance can be evaluated. The key finding is that the geometric factors and terminal handling costs are not more significant than the transport costs (i.e., rail costs and long-distance trucking costs) in general. Specifically, to shorten the break-even distance, either reducing the rail rate or increasing the truck rate is the most effective strategy. A 1% change in these factors is almost seven times, three times, and twice as effective as a 1% change in the handling costs at terminals, rail distance, and drayage cost, respectively. Furthermore, neither the oval-shaped market area nor a terminal relocation attracts customers to intermodal systems in general. When two options are combined, the synergic effect is significant.     

Integration of inland waterway transport in the intermodal supply chain: a taxonomy of research challenges

This paper identifies research opportunities which will enable the further integration of inland waterway transport in the intermodal supply chain. Intermodal transport may be interpreted as a chain of actors who supply a transport service. Inland navigation can play a crucial role in increasing supply chain service performance. A first group of research challenges lies in the evolving relationship between transport geography and logistics activities. The next set of research challenges has the objective to encourage efficient operations in IWT: development of a system wide model for IWT, integration of operational planning systems and analysis of bundling networks. A third group of research efforts is directed towards shippers and consignees who use the intermodal transport chain to send or receive their goods: further development of models that integrate intermodal transport decisions with supply chain decisions and creation of green supply chains. A fourth cluster of research challenges concerns the problem domain of external cost calculations. Finally detailed time series data on freight transport should be collected to support these future research tracks.     

The directional development of intermodal freight corridors in relation to inland terminals

This paper examines the spatial development of freight infrastructure, developing a conceptual model that draws attention to the directional development of intermodal corridors in relation to inland terminals. Two concepts of vertical control of the development process are proposed in this paper, beginning with Inside-Out, whereby inland intermodal terminals seek greater integration with their sea ports, often driven by public body intervention. By contrast, Outside-In development is displayed by the conscious use of an inland node as a tool for sea port actors (whether port authorities or terminal operators) to expand their hinterland and capture discretionary cargo.One of the key distinctions between the two models is the role played by different government approaches to the development of inland terminal facilities. Therefore three national examples are discussed: Sweden, where the public sector is directly involved in development; Scotland, where the private sector is left to develop terminals but government encourages the process through spatial planning and modal shift funding; and the USA, where the national government has traditionally taken little action.The primary contribution of this paper is the research agenda developed out of the conceptual model above, which should be applied to additional case studies in future work. Arising from the conceptual model and the examination of the role of public bodies is a debate on the role of regulation. However the subject of regulation is only touched upon in this paper, therefore more research is required on the government’s role in infrastructure planning and regulation in order to determine the best approach in this policy area.     

Analysis of intermodal freight from China to Indian Ocean: A goal programming approach

This paper presents an intermodal network optimization model to examine the competitiveness of 36 alternative routings for freight moving from China to and beyond Indian Ocean. The proposed model, which is built upon the principles of goal programming, is able to handle multiple and conflicting objective functions such as minimizing transportation cost, transit time and transit time variability while ensuring flow continuity and transit nodes compatibility among the rail, road, ocean vessel, airplane and inland waterway transports. Transportation time and cost obtained from comprehensive industry sources are then fed into the intermodal transport network connecting two important Chinese origins and four Indian destinations, from which the most attractive routes are identified. In addition, the paper investigates several non-dominated transportation cases through sensitivity analysis tests, and analyzes the potential competitiveness and possible influences of future route developments to current transportation patterns in Asia.     

Competition and horizontal integration in maritime freight transport

This paper models competition for freight transport between the road and maritime sectors. Operators offer differentiated services and there are economies of scale in the oligopolistic shipping line sector. Two types of integration between shipping lines are considered: in one of them the liners production processes remain separate (like in an alliance); in another economies of scale are further exploited. Typically maritime freight post-merger goes down. However, it may increase if the merger exploits further economies of scale, they are important and transport services are sufficiently differentiated. An empirical application to the routes Valencia–Antwerp and Valencia–Genoa is undertaken to confirm the predictions of the model. It is shown that, for both types of merger, user surplus increases when transport services are weakly differentiated and economies of scale are sufficiently small. These conditions also guarantee that a merger is socially beneficial.     

Investigating the impact of demand amplification on freight transport

Despite freight transport operations being influenced by supply chain dynamics, there has been only a very limited investigation into the impact of demand amplification on this function, with almost no analytical research. This paper aims, through spreadsheet simulation of a generic production control system, to quantify the impact of demand amplification on transport performance. Performance measures evaluated include both transport cost and efficiency. The results in general find a negative relationship between transport performance and demand amplification. It is also found that the ratio of vehicle capacity to average demand affects these results.     

Vertical integration and exclusivities in maritime freight transport

A key recent theme in maritime freight transport is the involvement of shipping lines in terminal management. Such investments are costly but allow liners to provide better service. Most of these new terminals are dedicated terminals but some are non-exclusive and let rivals access them for a fee. In this paper, we show that a shipping line that builds its own terminal finds it strategically profitable (i) to continue routing part of its cargo through the open port facilities, and (ii) to keep its terminal non-exclusive. In this way, the liner investor pushes part of the rival’s freight from the open to the new terminal. Besides, under non-exclusivities, the shipping lines offer a wider variety of services, total freight increases and the resulting equilibrium fares are higher than with a dedicated terminal.     

On structural inelasticity of modal substitution in freight transport

At the European level there is an increasing focus on how freight transport can be moved from trucks on roads to more environmentally friendly modes such as rail and ship. A large proportion of the transport services between OD pairs, however, cannot be substituted since there is only one alternative available. The paper investigates the magnitude of this “structural inelasticity” of modal substitution in freight transport due to a sparser layout of rail and ship-based freight networks compared to road. In the analysis we use a recent Scandinavian freight demand model covering more than 800 zones. We find that the structural inelasticity is very significant - in particular for transportation over less than 500 km. Moreover, the inelasticity varies greatly with commodity groups and between OD pairs, and it depends strongly on the port and rail infrastructure. The results suggest that pure charging instruments (road pricing for trucks) in many regions will have limited mode substitution impacts. However, if combined with structural changes in terms of improved infrastructure for rail and ship, impacts may be greater.     

The transport geography of logistics and freight distribution

Goods movement and freight distribution are widely underrepresented in regional science and geographical research. This is surprising since a large body of traditional spatial theory has been developed with respect to transportation costs or to trade areas: those aspects that were originally closely connected with the exchange of goods. Growing attention is being paid in geography to related subjects, such as the emergence of global production networks, to structural changes in retail or to the commodification of modern consumption. To a certain extent, these processes depend upon the efficient transfer of information, finance and physical goods. Yet, with a few exceptions, the freight sector appears to be neglected in contemporary research. This paper provides an overview of the emerging transport geography of logistics and freight distribution. It challenges the traditional perspective where transportation is considered as a derived demand with the idea that logistical requirements underline transportation as a component of an integrated demand. The paper provides an analysis of the evolution of logistics as it pertains to the core dimensions of transport geography (flows, nodes/locations and networks). The concept of logistical friction is also introduced to illustrate the inclusion of the multidimensional notion of impedance in integrated freight transport demand.     

The dynamics of modal split for freight transport

The paper presents a dynamic model of modal split in a multimodal freight transport system, which supposes that the evolution over time of transport demand is accompanied by a corresponding evolution of transport modes, and that users react with delay to cost variations. Starting with these hypotheses, and following the paradigm of random utility, a recursive equation is obtained, whose iterated application furnishes the sequence of the demand fractions on the various transport modes in the successive epochs of the time period during which the evolution of the transport system is studied and enables forecasting the future modal split evolution.     

New SP-values of time and reliability for freight transport in the Netherlands

This paper discusses the methods used in a study on the values of time and reliability in freight transport in the Netherlands. SP surveys were carried out among more than 800 shippers and carriers. A novel feature is that both for the value of time and reliability two additive components are distinguished: a transport cost and a cargo component. Specific instructions were given to make sure that the carriers provide the former and shippers that contract out the latter component. The resulting values that will be used in CBA in The Netherlands are presented and compared against the international literature.     

Differential pricing strategies of air freight transport carriers in the spot market

The single pricing approach fails to reflect different demand changes in response to its cargo space prices at different sales periods. This might be an obstacle to maximize the cargo space revenue of air freight carriers. This paper conducts the empirical analysis on pricing strategies in the spot market for two competitive air freight transport carriers operating on the same segment. It concludes that two carriers gain more revenues with the optimized differential pricing approach than with the single pricing approach. In theory, the research enriches the current literature in terms of pricing strategy optimization under the competition of two parties. In practice, it provides references for air freight transport carriers in their decision-making of applying the differential pricing strategy.     

A meta-model for passenger and freight transport in Europe

On the basis of the outcomes of five disaggregate national models for passenger transport, four national models for freight transport and two European transport models, a fast and approximate meta-model for passenger and freight transport in Europe has been developed. The meta-model for passenger transport includes a detailed segmentation of the population, which makes it possible to investigate the impact of policies on many different groups of the population. The meta-model for passenger and freight transport has been applied for a reference scenario for 2020 and to simulate many elements of the European Commission's Common Transport Policy. These policy measures were also assessed in terms of the consequences on the internal and external cost of transport.     

Exploring the social and spatial potential of an intermodal approach to transport planning

Gilbert and Perl (2007 Gilbert, R., &; Perl, A. (2007). Transport revolutions: Moving people and freight without oil. London: Earthscan. [Google Scholar]) established how different epochs in human history came with specific “transport revolutions.” Our research suggests that intermodal approaches could constitute an invisible transport planning revolution.

Based on a review defining “social” sustainability as it applies to urban passenger transportation, we consider the potential of an intermodal focus to better integrate non-motorized (walking-cycling) and public transportation. We start from the premise that rather than being a primary “mono-mode” such as buses or trains, sustainable transport is best understood as an ecology of modes with specific strengths and complementarities that can be mobilized through planning.

Using data from Metropolitan Santiago (Chile), we explore this potential, from a conceptual, mainly social, and spatial perspective. We find that paying more attention to different formats of cycling, public transport integration could significantly improve low-cost alternatives for individual and feeder trips. Moreover, adjusting land use to non-work trip purposes could yield substantial benefits. This approach also offers the possibility of developing relatively simple tools helpful for improving the deliberative aspects of participatory planning, thereby increasing buy-in as well as improving health, efficiency, safety, and other benefits of sustainable transport.     

Interregional trade network analysis for road freight transport in Greece

This paper suggests a flexible decision support framework for the strategic planning of a freight transport hub network in Greece. The proposed methodology treats practical aspects related to the optimal number, location and geographical covering of hubs, through the network analysis of interregional trade, based on original survey data for road freight flows during 2004–2012. The results offer insights into the hierarchical structure of the network and related investment priorities, as the hub role of a prefecture is found to be strongly influenced by high population densities and manufacturing specialization, and its location along highway corridors.     

Assessing policy measures for the stimulation of intermodal transport: a GIS-based policy analysis

Intermodal transport is the combination and integration of several transport modes (such as rail, inland waterways with road transport). In order to make the transhipment easy and efficient standard loading units are used, such as containers or swap-bodies. As for the main haul, more environmental friendly modes are used (rail and inland waterways) and a modal shift towards these modes can help in reducing the congestion. Therefore several policies are directed to stimulate the intermodal transport market.In this paper, a location analysis model for Belgian intermodal terminals (LAMBIT) is developed and used to assess different policy measures in Belgium. The simulations show that the different policy measures oriented towards the rail/road and inland waterways/road combinations should be incorporated in a coherent, integrated vision, in order to not create a modal shift between the different intermodal transport options. The methodology can easily be extended towards a European scale.     

Searching for policy priorities in the formulation of a freight transport strategy: a canonical correlation analysis of freight industry attitudes

An efficient and effective freight transport strategy can be aided by early professional contributions from key stakeholders. One broad group who have historically been given limited opportunity to influence the drafting of a freight strategy, are commercial road users and shippers who manufacture and distribute goods. Utilising a data set collected in Australia in 1996 from a sample of organisations involved directly and indirectly in road freight transportation, views were sought on road infrastructure changes, new road infrastructure, non-road infrastructure needs and transport policies. An optimal scaling approach using non-linear canonical correlation is implemented to search for structural relationships between the underlying policy and infrastructure dimensions and the various industry categories. This framework provides a powerful mechanism for identifying differences among stakeholders in terms of their support for or opposition to specific policies. Results reveal the considerable differences in attitudes associated with the component parts of the freight industry.     

Analysis of greenhouse gas emissions of freight transport sector in China

Due to the increasing commercial activities in China, the rapid growth of energy consumption and greenhouse gas (GHG) emissions in the freight transport sector has alarmed the Chinese central government. However, there is a lack of standard measure for evaluating GHG emissions generated from freight transport operations. To improve this situation, Chinese policy makers need to evaluate GHG emissions for energy saving and pollution reduction. This background leads us to examine the GHG emission trajectories and features of Chinese freight transport patterns in the last decade, i.e. between 2000 and 2011. In this study, we examine different regions’ freight turnover and energy consumption by various transport modes (i.e. railway, highway, waterway, aircraft, and oil pipeline) in China. Our results show that the total amount of GHG emissions caused by the Chinese freight transport sector reached 978 million tons in 2011, indicating an average annual growth of 74 million tons CO₂e for the last decade. Shandong, Anhui, and Henan are the main provinces producing GHG emissions, representing 11.7%, 10.3%, and 10% of total emissions generated from the freight transport sector in China, respectively. This study also compares the regional GHG emissions from different freight transport modes including railway, highway, waterway, air transport, and oil pipeline. Based on the findings, policy implications are provided on how to mitigate freight transport emissions among different Chinese regions.