Longer and heavier vehicles in Belgium: A threat for the intermodal sector?

To achieve transport cost reductions and to reduce the environmental impact of road transport, different European countries are allowing or testing longer and heavier vehicles on their road network. In Belgium, the Flanders region started a trial in 2015 allowing a limited number of longer and heavier vehicles on a selection of approved routes. A concern among intermodal operators is however that an allowance of longer and heavier vehicles could trigger a reverse modal shift away from rail and inland waterways container transport. Starting from experiences in other European countries, this paper discusses the potential spatial impact of allowing longer and heavier vehicles on the market areas of intermodal transhipment terminals using a geographic information systems-based location analysis model. In a second step, external transport costs are incorporated in this model, to quantify the spatially diversified societal costs of a potential reverse modal shift.     

September 11 and the World Airline Financial Crisis

Abstract

This paper analyses the effectiveness of policy measures aimed at triggering a modal shift in the freight transport market. The analysis is based on the inventory‐theoretic framework that studies modal choice from a business logistics viewpoint. The crux of the inventory‐theoretic approach lies in the fact that explicit attention is paid to all costs in the supply chain that are affected by the choice of transport mode. After a brief literature review on the inventory‐theoretic framework, the framework is used to calculate the market shares of different freight transport modes for a hypothetical transport market. In a second step, the impact of some policy measures on the market shares of the transport modes is calculated. By way of illustration, the analysis is applied to the market for container transport from a seaport to its hinterland. It is shown that a combination of certain policy measures can lead to significant modal shifts from road transport to intermodal transport.     

Traffic Noise in Europe: A Comparison of Calculation Methods,Noise Indices and Noise Standards for Road and Railroad Traffic in Europe

The demand for inland freight transport in Europe is mainly met by road transport, leading to unsustainable impacts such as air pollution, greenhouse gas emissions and congestion. Since rail transport has lower externalities than road transport, a modal shift from road to rail is an accepted policy goal for achieving a more sustainable and competitive transport system. However, intermodal road–rail transport is mainly competitive for long-distance transport, and as a consequence, the potential for modal shift is limited. The cost efficiency of road–rail intermodal transport is particularly sensitive to pre- and post-haulage (PPH) costs, since this activity typically has a larger cost compared with its share of the total distance in the transport chain. For intermodal transportation over shorter distances, for example, below 300 km and where there are substantial PPH activities at both ends of the chain, the competitiveness of the intermodal transport system compared with that of direct road is low. Improving the efficiency of PPH activities is, therefore, of utmost importance for the competitiveness of the intermodal transport system. This paper looks into the issue of improving the cost efficiency of an intermodal transport chain by implementing an innovative and flexible legal framework regarding the PPH activities in the chain. By extending the legal framework with exemptions for longer vehicles in PPH, the cost efficiency could be greatly improved. The purpose of such a framework is to allow and enable, for PPH exclusively, the use of 2?×?40 foot or even two semi-trailers using only one vehicle in the context of the Swedish regulatory framework. This paper develops a strategic calculation model for assessing and investigating the consequences of such a framework and investigates the framework's potential in terms of cost efficiency. The model in combination with a sensitivity analysis of input variables gives a comprehensive understanding of the effects of PPH under different circumstances. From the results, it is evident that there are substantial positive effects associated with a PPH framework of longer vehicles. Results indicate that a typical shipper may experience cost reductions of about 5–10% of the total costs of the intermodal transport chain. In summary, a more innovative and flexible legal framework regarding vehicle length in the PPH links can contribute to a greater modal shift, improved cost efficiency and more environmentally friendly transportation systems.     

A decision analysis framework for intermodal transport: Comparing fuel price increases and the internalisation of external costs

This paper presents the impact of fuel price increases on the market area of intermodal transport terminals. Aim of this research is to determine whether an increase in fuel prices is sufficient enough to raise the market area of intermodal transport to the same degree that would be accomplished by stimulating intermodal transport through policy instruments. Therefore, several fuel price scenarios are analysed in order to verify the impact of different fuel price evolutions on the market area of unimodal road transport compared to intermodal transport in Belgium. The LAMBIT-model (Location Analysis for Belgian Intermodal Terminals), which is a GIS-based model (Macharis and Pekin, 2008), is used to analyse the different fuel price increases and enables a visualisation of the impact on the market area. The LAMBIT model incorporates the different network layers for each transport mode by setting up a GIS network that includes four different layers: the road network, the rail network, the inland waterways network and the final haulage network. The geographic locations of the intermodal terminals and the port of Antwerp are added as nodes in the network and the Belgian municipality centres are defined and connected to the different network layers. Based on the different fuel price scenarios representing respectively a fuel price increase with 10% (low price case), 50% (business as usual case) and 90% (high price case), the results of the LAMBIT model show that the market areas rise in favour of intermodal barge/road and intermodal rail/road. Depending on the scenario, the degree of modal shift however differs. Additionally, in order to compare policy measures with the effect of a fuel price increase, the internalisation of the external costs is analysed with the LAMBIT model. For some years, the European Commission is supporting the idea that transportation costs should reflect the true impacts on environment and society, and is relentlessly pushing towards the so called ‘internalisation of external costs’ as a policy instrument in order to establish fair and efficient pricing of different transport modes. This requires monetarizing the external effects of transport and adding them to the already internalized costs in order to give the correct price signals. Results of this comparative analysis performed with the LAMBIT model are also presented in this paper.     

An assessment of the performance of the European long intermodal freight trains (LIFTS)

Intermodal rail/road freight transport has always been considered as a competitive alternative to its road freight counterpart in the European medium- to long-distance corridors (markets). Such consideration has been based on the increasing competitiveness of some innovative rail services and the existing and prospective performance of both modes in terms of the full social – internal or operational and external – costs. The most recent innovation of rail technologies and related services launched by some European railway companies, still at the conceptual level, is the Long Intermodal Freight Train (LIFT). This is supposed to be a block train operating in long-distance corridors (markets) with a substantial and regular freight demand.This paper develops analytical models for assessing the performance of the LIFTs, the already-operating Conventional Intermodal Freight Trains (CIFTs), and their road counterpart as well. The performance consists of the full – internal (private) and external – costs of the door-to-door delivery of loading units – containers, swap-bodies, and semi-trailers. The internal costs embrace the operational costs of the transport (rail and road) and intermodal terminal operators. The external costs include the costs of the impacts of door-to-door delivery of loading units on society and the environment. These negative externalities include noise, air pollution, traffic accidents, and congestion.The models are applied to a simplified version of intermodal and road transport system using inputs from the European freight transport sector. The aims are to compare the full costs of particular modalities in order to investigate the potential of the LIFTs as compared with the CIFTs in improving the internal efficiency of the rail freight sector and its competitiveness with respect to its road counterpart. In addition, the paper attempts to assess some effects on the potential modal shift of EU (European Union) transport policies on internalizing transport externalities.     

Integrating intermodal transport with logistics: a case study of the UK retail sector

Retail traffic is one of the main drivers for the growth of intermodal transport services in the UK. This paper examines the key factors underpinning this modal shift in order to learn lessons for other market and geographical contexts. Since successful retail intermodal logistics involves many actors, this paper is based on semi-structured interviews with major UK retailers, third-party logistics providers (3PLs) and rail operators, supplemented by document analysis. The qualitative data are analysed via a conceptual framework derived from the literature. Despite past successes and the presence of drivers for future growth, the paper identifies many operational issues without current solutions and the presence of ongoing public subsidy. The major conclusion is that the importance of 3PLs, aggregation and multi-user platforms must be recognised by transport planners in supporting the use of intermodal transport by retailers and other large shippers.     

Economic organization of intermodal transport

The paper considers in detail strategic changes occurring in the organizational context of intermodal transportation and discusses the application of economic approaches (primarily transaction-cost economics) for assessing the effectiveness of the appropriate governance structure in organizing the intermodal transport economic system. The paper reviews the developments in intermodal transportation, particularly in the context of logistics and supply chain management, and recognizes the trend for the formation of one-stop shopping megacarriers spurred by deregulation and market requirements. This culminates in the need to consider how companies should organize the economic governance of the intermodal transport system. The main governance structures include market (subcontracting) or hierarchy (internal organization). The transaction-cost economics approach is reviewed and applied at a conceptual level to provide the core basis upon which the assessment of the optimal governance structure in intermodal transport can be based. The review of the core economic principles indicates that the governance structure in intermodal transport is dependent on transaction costs, production costs and strategic considerations that a particular structure might entail and the policy implications thereof. The potential for empirical research in the application of the transaction-cost economics approach to intermodal transport is discussed and detailed direction for further empirical research is provided as well as discussion of policy implications particularly with respect to competition and antitrust.     

Modelling the full costs of an intermodal and road freight transport network

This paper develops a model for calculating comparable combined internal and external costs of intermodal and road freight transport networks. Internal costs consist of the operational-private costs borne by the transport and intermodal terminal operators, and the time costs of goods tied in transit. The external costs include the costs of the impacts of both networks on society and the environment such as local and global air pollution, congestion, noise pollution, and traffic accidents. The model is applied to the simplified configurations of both networks using the inputs from the European freight transport system. The objective is to investigate some effects of European Union policy, which aims to internalise the external costs of transport, on the prospective competition between two networks from a social perspective.     

Intermodal transport in freight distribution: a literature review

There has been significant growth in research on intermodal transport in freight distribution since the 1990s. Differentiating itself from previously published literature reviews, this paper evaluates the current state of this research using Systematic Literature Review methodology. The complementary aims are: (a) to identify the research lines developed and to propose a criterion for classifying the literature, and (b) to discuss the empirical evidence that identifies existing interrelationships. The analysis has enabled three main lines of research to be identified. The first research line, basic principles of intermodal transport, groups together works related to the definition of intermodal transport and the results obtained using this transportation system. The second, improvements to the way that intermodal transport systems work, frames elements and variables that impact intermodal transport systems’ logistics efficiency, such as quality of service, information and communication systems, and freight planning and linkages among system operators to provide an adequate service. Finally, the third line, intermodal transport system modelling, identifies the main variables used to optimise these transport systems, the different focuses and approaches used in modelling, and the advantages and disadvantages of each focus. These research lines take in more specific sublines that incorporate articles that develop related research questions. Lastly, the discussion of the content of each of these research sublines enables us to identify gaps in the literature and comment on directions for future research.     

Estimating potential reductions in externalities from rail-road substitution in Trans-European freight transport corridors

This paper develops a method for analysing and estimating savings in externalities that could be achieved by substituting truck with rail freight services in a given Trans-European freight transport corridor. The externalities affected include energy consumption, emissions of greenhouse gases, noise, congestion, and traffic incidents/accidents. The European Commission transport policy aims to provide an institutional framework for the medium- to long-term sustainable development of the transport sector. An important aspect of this policy is to stimulating the modal shift from truck to rail freight transport in inland Trans-European corridors.     

Breakthrough innovations in intermodal freight transport

Breakthrough innovations, whether technological, organizational or both, are a necessity if the market share of intermodal freight transport is to expand. The main growth potential lies in the markets for flows over short distances, for perishable and high-value commodities, for small consignments, and for flows that demand speed, reliability and flexibility. It will take radical innovations to produce a breakthrough in the modal split and allow these new markets to be conquered. This special issue is based on papers presented at an international conference on freight transport automation and multimodality, held in Delft in May 2002, that are illustrative of the direction of breakthrough research and development (R&D) aimed at increasing the market share for intermodal transport.     

The impact of transport policies on railroad intermodal freight competitiveness – The case of Belgium

This paper discusses the impact of three freight transport policies aiming to promote railroad intermodal transport in Europe, and examines the case of Belgium as a testing ground. These policies consist in subsidizing intermodal transport operations (such as in Belgium, to stimulate rail transport), internalizing external costs (as recommended by the European Union in order to foster cleaner modes), and adopting a system perspective when optimizing the location of inland intermodal terminals. The study proposes an innovative mixed integer intermodal freight location-allocation model based on hub-location theory and deals with non-linear transport costs in order to replicate economies of distance. Our analysis suggests that subsidizing has a significant impact on the volumes transported by intermodal transport, and, to a lesser extent, that optimizing terminal location increases the competitiveness of intermodal transport. On the other hand, according to our assumptions, internalizing external costs can negatively impact the promotion of intermodality. This finding indicates that innovative last-mile transports are needed in order to reduce the external impacts of drayage operations.     

Modal split in offshore supply network under the objective of emissions minimization

We study modal split under the objective of emissions minimization in the transportation of cargo from centralized vendors in the oil and gas industry to decentralized supply bases on the Norwegian coast. The supply network includes direct road transport and a sea route along the coast. To gain insight into modal split decisions between road and sea transport from the shipper’s perspective multi-period mixed integer optimization models are formulated. Particularly the models give possibilities to examine how weekly demand patterns at supply bases, cargo commitments to sea transport, storage possibilities at supply bases, and shipper’s responsibility for a certain share of vessel capacity may effect the emissions and the modal split. Experiments on real data from an oil and gas company operating offshore show that the size of the share of vessel capacity and the possibility for storage at supply bases are the major determinants for a larger shift to environmentally friendly sea transport. The models can be used as means for making decisions regarding how a shipper can commit to sea transport to achieve less emissions.     

Achieving transport modal split targets at intermodal freight hubs using a model predictive approach

The increase of international freight commerce is creating pressure on the existing transport network. Cooperation between the different transport parties (e.g., terminal managers, forwarders and transport providers) is required to increase the network throughput using the same infrastructure. The intermodal hubs are locations where cargo is stored and can switch transport modality while approaching the final destination. Decisions regarding cargo assignment are based on cargo properties. Cargo properties can be fixed (e.g., destination, volume, weight) or time varying (remaining time until due time or goods expiration date). The intermodal hub manager, with access to certain cargo information, can promote cooperation with and among different transport providers that pick up and deliver cargo at the hub. In this paper, cargo evolution at intermodal hubs is modeled based on a mass balance, taking into account hub cargo inflows and outflows, plus an update of the remaining time until cargo due time. Using this model, written in a state-space representation, we propose a model predictive approach to address the Modal Split Aware – Cargo Assignment Problem (MSA–CAP). The MSA–CAP concerns the cargo assignment to the available transport capacity such that the final destination can be reached on time while taking into consideration the transport modality used. The model predictive approach can anticipate cargo peaks at the hub and assigns cargo in advance, following a push of cargo towards the final destination approach. Through the addition of a modal split constraint it is possible to guide the daily cargo assignment to achieve a transport modal split target over a defined period of time. Numerical experiments illustrate the validity of these statements.     

The private and social cost efficiency of port hinterland container distribution through a regional logistics system

Increasingly, the debate on freight transport and logistics involves the challenge of sustainable development. Key objectives of sustainable or “green” freight logistics systems are the mitigation of negative environmental and human health effects of distribution operations and the realization of a major modal shift in transport preferences, while at the same time achieving internal generalized cost efficiency and quality of services. Pursuing these goals requires the introduction of a range of measures. These measures call for private and public actors to take up various initiatives and adopt policies. Usually, it is more effective to combine different actions into an integrated package of measures than to introduce single instruments in isolation.This article explores the nexus between sustainability and port hinterland container logistics. In particular, the methodology and results of an empirical analysis based on applications of a network programming tool called the “interport model” are presented and discussed. The model enables an examination of all possible effects on inland container flows and their associated internal and external costs due to public and private initiatives in the field of port hinterland container logistics. The empirical analysis aims to evaluate the impact of a set of simultaneous policy options and operational measures on the competitiveness and sustainability of hinterland multimodal distribution of import and export containers handled at the seaports of the Campania region located in Southern Italy. The loading units can transit through the dry port facilities (the so called “interports”) located in the same region and/or through extra regional railway terminals, before reaching their ultimate inland destinations or the seaports. The integrated package of measures simulated by means of the model includes: (i) infrastructure policy, (ii) improvements of rail services, (iii) regulatory changes in terms of customs authorizations and procedures, (iv) removal of technical and legal barriers to fair and non-discriminatory competition in the market of rail traction between regional seaports and interports, (v) new business models integrating container logistics operations between seaports and interports, and (vi) social marginal cost charging of transport operations. Once this package of instruments is introduced, higher private and social cost efficiency of port hinterland container distribution through the investigated regional logistics system can be achieved. For instance, it has been estimated an annual saving of the order of about 12,660 tonnes of CO₂ equivalent emissions from transport corresponding to an external cost reduction of 0.27 million euros from the observed real life situation, whereas the estimated saving in terms of air pollution (CO, NO_x, PM, SO₂, VOC) from transport is approximately 220 tonnes per year corresponding to an external benefit of 1.31 million euros.The most immediate priority appears to be the customs and intermodal logistics integration of seaports and interports by means of full implementation of the “extended gateway” concept as a way to increase the rail share of modal split and improve the overall cost efficiency of the system. In addition, the simultaneous introduction of a social marginal cost charging policy can contribute to make the regional interports a viable solution to expand the hinterland reach of the regional seaport cluster.     

Intermodal freight transport planning – A receding horizon control approach

This paper investigates intermodal freight transport planning problems among deep-sea terminals and inland terminals in hinterland haulage for a horizontally fully integrated intermodal freight transport operator at the tactical container flow level. An intermodal freight transport network (IFTN) model is first developed to capture the key characteristics of intermodal freight transport such as the modality change phenomena at intermodal terminals, physical capacity constraints of the network, time-dependent transport times on freeways, and time schedules for trains and barges. After that, the intermodal freight transport planning problem is formulated as an optimal intermodal container flow control problem from a system and control perspective with the use of the proposed IFTN model. To deal with the dynamic transport demands and dynamic traffic conditions in the IFTN, a receding horizon intermodal container flow control (RIFC) approach is proposed to control and to reassign intermodal container flows in a receding horizon way. This container flow control approach involves solving linear programming problems and is suited for transport planning on large-sized networks. Both an all-or-nothing approach and the proposed RIFC approach are evaluated through simulation studies. Simulation results show the potential of the proposed RIFC approach.     

Free public transport: A socio-cognitive analysis

In this study, the modal shift potential of introducing a free alternative (free public transportation) and of changing the relative prices of transportation is examined. The influence of a cognitive analysis on the zero-price effect is also analyzed. The data used for the analysis stem from a stated preference survey with a sample of approximately 670 respondents that was conducted in Flanders, Belgium. The data are analyzed using a mixed logit model. The modeling results yield findings that confirm the existence of a zero-price effect in transport, which is in line with the literature. This zero-price effect is increased by the forced cognitive analysis for shopping trips, although not for work/school or recreational trips. The results also demonstrate the importance of the current mode choice in hypothetical mode choices and the importance of car availability. The influence of changing relative prices on the modal shift is found to be insignificant. This might be partially because the price differences were too small to matter. Hence, an increase in public transport use can be facilitated by the introduction of free public transport, particularly when individuals evaluate the different alternatives in a more cognitive manner. These findings should be useful to policy makers evaluating free public transport and considering how best to target and promote relevant policy.     

An agent-based framework for cooperative planning of intermodal freight transport chains

The recent development of Intelligent Transportation Systems offers the possibility of cooperative planning of multi-actor systems in a distributed framework, by enabling prompt exchange of information among actors. This paper proposes a modeling framework for cooperation in intermodal freight transport chains as multi-actor systems. In this framework, the problem of optimizing freight transportation is decomposed into a suitable set of sub-problems, each representing the operations of an actor which are connected using a negotiation scheme. A Discrete Event model is developed which optimizes the system on a rolling horizon basis to account for the dynamics of intermodal freight transport operations. This framework allows for an event driven short/medium term planning of intermodal freight transport chains. The proposed methodology is evaluated using a realistic case study, and the results are compared against the First-Come-First-Served strategy, highlighting the significance of cooperation in systems operating close to capacity.     

Economic valuation of Well-To-Wheel CO2 emissions from freight transport along the main transalpine corridors

CO₂ emissions are one of the main externalities related to freight transport. Their evaluation is extremely difficult, due to the presence of several scientific and economic uncertainties. This paper discusses the approaches currently adopted by literature to deal with CO₂, proposing a methodology based on a Well-To-Wheel quantification and an economic valuation deriving from a meta-regression. A freight transport analysis is then provided for one of the most critical areas of Europe, the Alps. Here, the different approaches adopted by the single nations determine divergent results in terms of modal shift towards rail and, consequently, CO₂ emissions. An integrated and transnational strategy could lead to better results, avoiding detoured traffic and increasing the share of railway traffic. To this aim, the carbon impacts of three specific alpine-wide measures are evaluated: namely, Alpine Crossing Exchange, Emissions Trading and Differentiated Toll System. In comparison with business-as-usual scenario, the case study reveals a potential CO₂ saving up to more than 600,000 tons and 38 M€ for the year 2030, thus providing policy makers with an integrative transnational tool able to evaluate the long-term carbon impact of their transport decisions.     

Emission rates of intermodal rail/road and road-only transportation in Europe: A comprehensive simulation study

Intermodal rail/road transportation combines advantages of both modes of transport and is often seen as an effective approach for reducing the environmental impact of freight transportation. This is because it is often expected that rail transportation emits less greenhouse gases than road transportation. However, the actual emissions of both modes of transport depend on various factors like vehicle type, traction type, fuel emission factors, payload utilization, slope profile or traffic conditions. Still, comprehensive experimental results for estimating emission rates from heavy and voluminous goods in large-scale transportation systems are hardly available so far. This study describes an intermodal rail/road network model that covers the majority of European countries. Using this network model, we estimate emission rates with a mesoscopic model within and between the considered countries by conducting a large-scale simulation of road-only transports and intermodal transports. We show that there are high variations of emission rates for both road-only transportation and intermodal rail/road transportation over the different transport relations in Europe. We found that intermodal routing is more eco-friendly than road-only routing for more than 90% of the simulated shipments. Again, this value varies strongly among country pairs.