Deregulation in Polish Rail Transport

Abstract

A phenomenon new to the Polish situation—the deregulation of rail transport—is presented. Despite its primarily legal nature, deregulation also implies various economic, socio‐political and spatial consequences. The relatively short period over which partial deregulation of public transport in Poland has been in effect (i.e. since 2000) ensures that the issue has not been taken up by Polish geographers as a research field. However, it has been of interest to Polish economists. Deregulation is a phenomenon of primary importance, with direct implications for the character, quality, type, intensity and spatial differentiation of transport (including freight and passenger traffic) within the market economy. This paper, therefore, presents the impact of the recent changes in the legal system (as regards deregulation) on the current pattern of railway connections of the major carriers. As the majority of these originate beyond the Polskie Koleje Państwowe (Polish State Railways) Group, they can be said to be independent of the main former state carrier.     

Decoupling of Road Freight Transport and Economic Growth Trends in the UK: An Exploratory Analysis

Abstract

Between 1997 and 2004, gross domestic product increased in real terms in the UK by one‐fifth, while the volume of road freight movement remained stable. This suggests that the long‐awaited decoupling of economic and freight transport growth has begun, possibly leading to a new era of sustainable logistics. This paper reviews previous research on the decoupling issue and recent trends in gross domestic product/freight tonne‐km elasticities in Europe and the USA. It then examines 12 possible causes of the observed decoupling in the UK using published statistics from a wide range of British and European sources. This analysis indicates that around two‐thirds of the decoupling is due to three factors whose impact can be quantified: the increased penetration of the British road haulage market by foreign operators, a decline in road transport’s share of the freight market, and real increases in road freight rates. Several other factors, most notably the relative growth of the service sector, the diminishing rate of centralization, and the off‐shoring of manufacturing, appear to be having a significant effect, though this finding cannot be measured on the basis of available statistics. The paper concludes that, while the decoupling is in the right direction from a public policy standpoint, the net environmental benefits are likely to be quite modest.     

Evaluation of Rail Freight Facilities Grant Funding in Britain

Abstract

Rail freight has been generally in decline in many European Union countries in recent years, contrary to European transport policy. State support for railway operations is commonplace in most countries, and this paper establishes the background to targeted rail freight grant funding in Britain. Through desk‐based analysis of Freight Facilities Grant (FFG) awards, together with a survey of recipient companies, the paper assesses the extent to which the planned flows expected from these awards have materialized and it evaluates the role of the grants in influencing rail freight volumes. The evidence suggests that FFG funding has been largely successful, attracting considerable private sector investment. Overall, FFGs have played an important role in developing or retaining rail freight flows, although the processes could be made more transparent and consistent. As other European countries liberalize their rail freight markets as a result of European Union legislation, such targeted funding may be an appropriate alternative to more general government subsidy of freight operations.     

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.     

Transport bottlenecks and Tanzania's economic problems

Abstract

The paper discusses Tanzania's transport problems in the context of the prevailing acute economic crisis. It looks at the development of the transport system, especially the rail and road network, from the German days to the new Chinese‐built Tanzania‐Zambia Railway. The East‐West orientation of the major parallel rail lines and roads reflects the dependency of the economy on export‐import trade. A major challenge to the transport system is the haulage of agricultural products, mainly for export but also for the internal market, not to mention the haulage of imported commodities.

The provision and utilization of transport services is discussed in the context of the historical, and institutional setting of the road haulage industry, particularly its public and private sector configurations. Due to scarcity of foreign exchange, both sectors, especially the private, are starved of vehicles and spare parts.

The operation of ocean and lake shipping services and Air Tanzania are discussed. It is recommended that the latter should concentrate on essential domestic services plus some limited regional services. External financing of transport projects and its implications are also considered.

It is concluded that despite the break‐up of the East African transport system, the Tanzanian transport system, although shaky, has avoided major breakdowns and in some cases, especially in trade, has provided the foundation for at least medium‐term improvements. More attention is recommended to organizational problems of track use by freight and passenger carriers and to making the best use of existing facilities.     

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.     

Comparison of road freight transport trends in Europe. Coupling and decoupling factors from an Input–Output structural decomposition analysis

Decoupling road freight transport from economic growth has been acknowledged by the European Union as a key means to improving sustainability. It is therefore important to identify both the coupling and decoupling drivers of road freight transport demand in order to determine possible factors that may contribute to reduce road transport in the future without curbing economic development. This research proposes an Input–Output (IO) structural decomposition analysis (SDA) to explain road freight transport in terms of a set of key factors that have strongly influenced road freight demand in recent decades in European countries—such as economic growth, economic structure and the evolution of road transport intensity (including improvements in both supply and transport systems). This methodological approach allows us to quantify and compare their contribution in different European countries to either increase or decrease road freight transport demand. The empirical basis for this analysis is a dataset of nine European countries which have IO tables and road transport data available from 2000 to 2007, comprising data on domestic production, imports and exports as well as tonne-kms for 11 types of commodity classes. The results show that, as a whole, aggregate road transport demand has grown—driven mainly by economic activity—but this growth has been strongly curbed in some countries by changes in road freight transport intensity and moderately by the dematerialization of the economy. International transport has been also proven to be a key factor driving road freight transport volumes. Moreover, the increased penetration of foreign operators in national haulage markets appears to have reinforced the final decoupling levels observed in some cases.     

An Institutional Analysis of Coordination in Liberalized Port-related Railway Chains: An Application to the Port of Rotterdam

Abstract

The European railway market has gone through a period of liberalization over the last two decades. The liberalization of the railway market has also affected port-related railway transport. Efficient port-related transport chains are key in the competition among ports, however providing this efficiency is to a large extent a coordination challenge. Many forms of coordination are needed to ensure that the railway chain operates efficiently, including the bundling of cargo, and good organization between railway companies, terminal operators and the infrastructure managers to realize an efficient use of assets. From the literature, it appears that less attention has been paid to the economic organization of port-related railway transport in general, and specifically in the new liberalized institutional environment. The goal of this paper is to come up with a framework to better understand the issue of coordination in port-related railway chains in a liberalized institutional environment. This paper presents a conceptual framework rooted in Transaction Cost Economics (TCE). Based on an in-depth study into coordination in liberalized container railway market at the Port of Rotterdam, empirical illustrations are used to adjust the TCE approach toward a dynamic model influenced by Douglas North's theory on economic and institutional change. Empirics from the port of Rotterdam show that new players have entered the railway market and their role has changed. This paper shows that coordination of railway operations has become more complex after the regime change. From a port perspective, liberalization does not lead to an optimal allocation of resources in a process that is highly operationally interdependent. In the liberalized environment, coordination arrangements are necessary to enable efficient coordination of railway operations in Rotterdam.     

The evolution and competitiveness of air cargo transportation: the case of Israel's airborne trade

Abstract

Air freight traffic has grown rapidly in the last decade. Although, in terms of volume carried, air cargo represents only a small fraction of the total trade, in value terms, its share is very significant. Against the background of the development of the world's air freight traffic and the factors behind it, this paper reviews the growth of air cargo movements in Israeli international trade and analyses the major components of this transport mode. Because of Israel's geopolitical position, air transport is a significant mode in the country's foreign trade. Air and sea transport are the only modes available for any trade going to and from Israel. The proportion of airborne trade in the total Israeli foreign trade is reviewed in light of the factors affecting the competition between air and sea transport.     

Experiences with Competitive Tendering of Bus Services in Germany

Abstract

After a long transition period with only a few isolated procedures for competitive tendering, the market for German public transport bus services has seen numerous such tenders in recent years. The results are complex. From the public transport authorities’ point of view, the main effects are a decrease in subsidy payments, with relatively low expenses relating to the tendering process (allocation, contract management). The overall level of competition is high, with five to seven bidders on average, although this has been declining in recent years. Entry barriers have been identified at significant levels for several parameters, especially with respect to the volume tendered and the revenue risk to be borne by the operator out of net‐cost contracts. Demonstrably small‐ and medium‐sized transport operators have been able to increase their market share in the starting phase of introducing tendering, with diminishing success rates in recent years. Due to the increased quality requirements in competitive tendering, the quality of public transport available has improved considerably, and environmental standards have been better implemented and sustained. As far as employees are concerned, a trend towards wages below the wage rate of private operators cannot be observed. However, their level is well below the level of public incumbent operators.     

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.     

Framing the Nexus of Globalisation,Logistics and Manufacturing in Europe

Abstract

Under the ongoing influence of globalisation, supply chains have changed significantly. New logistics and manufacturing systems have emerged, causing longer transport distances and increasing transport emissions. The existing research into the sustainability impacts of freight transport has largely viewed it as being a macro-level economic and political phenomenon and has ignored the interdependencies amongst micro-level economic actors, including firms and businesses in the private sector. In this paper, we presume that the lack of conceptualisation of freight transport in relation to wider institutional contexts and firm behaviour results in the lack of a holistic approach to understanding freight governance in the face of globalisation. We argue for the use of institutional economic geography lenses to elucidate the distribution networks of emerging logistics and manufacturing practices and its implications for freight transport. We illustrate our argument through a broad look at the European logistics and manufacturing practices and global production.     

The implications of the sharing economy for transport

ABSTRACT

The sharing economy has gained a lot of attention in recent years. Despite the substantial growth in shared services, its impact overall on transport is unclear. This paper analyses the literature on sharing in transport and includes government and consultant reports, websites and academic journals. The drivers of ride-sharing, car-sharing, car-pooling and freight-sharing are largely economic and convenience related for participants. Trust, technology platforms and the trend to avoid ownership of assets are facilitating factors in its growth. Over-regulation, inconsistent quality of service and the need for recommendation are potential barriers. The transport journals in particular are relatively slow to research this topic with more focusing on bike-sharing than other modes of vehicle sharing. The paper discusses the impact of sharing on transport suggesting it is likely to be part of a solution to transport problems and congestion perhaps in combination with other developments such as driverless vehicles. It also warns of the dangers of over-regulation and under-regulation. The future will require holistic transport strategies that consider sharing options and will require government departments to work cooperatively.     

Evaluation of the policies in British local transport plans with regard to the promotion of rail freight

Over the last couple of decades there has been a trend in Western Europe and North America towards making the railway industry more able to compete successfully with road for freight haulage through deregulation and/or structural change. This trend has been drive, partly, by a concern to produce more commercially viable railway industries, but also by concerns to reduce the environmental impacts of road haulage through modal shift. The latter in particular has led to the development of public policies supportive of rail freight, particularly at the national or international levels. This paper reports on qualitative research that analysed public policy aimed at promoting rail freight in Britain but, unusually, the focus was on local rather than national policy. The research was an investigation of the approach of local authorities to the encouragement of rail freight as evidenced through their Local Transport Plans. The paper concludes that in Britain there has been a significant amount of local policymaking for rail freight and that although national policy matters are of overriding importance, the role of local policy is significant and can be developed further.     

Determinants of modal choice in freight transport

In the next few years, exciting developments in the field of freight transport are likely to occur. The Channel Tunnel will be perceived as giving railways much greater distance of operation, compared to the current train ferry to/from Great Britain. The further development of swap-body technology will allow easier modal transfer and the creation, in 1992, of a single market in Europe will transform the pattern of trade. All of these are likely to have significant impacts on modal choice, and hence modal split, in freight transport. Reappraisal by many firms of the modes of transport used is likely but will it result in a net transfer of freight from road to rail and, if so, to what extent? To answer such questions, an accurate and reliable method of predicting modal split is required. Research in the past has concentrated on the development of modal split models based on generalised costs. These fail to explain adequately the prevalence of road freight in the UK. From surveys of freight managers within industry, it is clear that models to date rely too heavily on the economic cost factor and too little on behavioural factors (Jeffs 1985). This paper derives from a recent study of freight transport modal choice from the standpoint of the transport decision-maker within the firm. It attempts to shed light on the actual parameters which should be incorporated into a modal split model. Many variables appear to exert an influence on modal choice decision-making process. However, it is possible to categorise them into six main groups, namely: customer-requirements; product-characteristics; company structure/organisation; government interventions; available transport facilities; and perceptions of the decision-maker him/herself. It is the interactions and inter-relationships between these which ultimately determine freight modal split. This study has shown that the relationship between the outcome of the transport decision process and the values of particular determinants of modal split is not straight-forward, due to the complexity and variety of interactions involved. Perhaps one of the main reasons for researchers' failure hitherto to develop a successful modal-split model has been the preoccupation with techniques that rely on the development of common metric (e.g. generalised cost), which has led to the exclusion of some important explanatory variables along quite different dimensions. Another important issue concerns the appropriate level of aggregation. In order not to reduce the explanatory power of the key variables, it is important to work at a disaggregate level, although this does make substantial demands on data. The use of factor analysis enables both the aggregation of information without loss of behavioural reality and the specification of variables in terms of a common metric. In conclusion, freight transport has usually been examined within too narrow a framework. It must be placed firmly within the context of the total industrial process. The demand for freight transport is directly influenced by the level, composition and geographical distribution of production and consumption activities. Freight flows are complex and so it is highly unlikely that a universal mode-choice model can ever be developed. Future research should, therefore, be directed towards developing partial models in response to specific needs of those involved in decision-taking in the freight sector.     

Energy conservation and intercity freight transport

In this paper, the characteristics of intercity freight modal operations are investigated to evaluate the potential for achieving energy savings. It is determined that the greatest opportunities for conserving energy appear to rest with achieving modal shifts and operational improvements in truck and rail transport. To test this hypothesis, intercity truck and rail freight operations are analyzed to determine the relationships between energy consumption and the delivery of transport service. The energy consumption impact of alternative conservation measures are calculated, and in turn, evaluated in light of a series of institutional constraints. As such, this study goes beyond the characteristic cataloging of alternative energy conservation measures by conducting a disaggregated assessment of the effectiveness and feasibility of implementing such measures. This paper concludes that the potential for achieving energy conservation in the movement of intercity freight in general, and by truck and rail systems in particular, is limited, as well as shrouded by the complexity of the nature of the commodity itself, the commodity flow characteristics, and the market and institutional structure.     

The Impact of Urban Freight Transport: A Definition of Sustainability from an Actor's Perspective

Abstract

This paper presents a definition of sustainable urban freight transport (SUFT), based on the existing theories and concepts, and develops an indicator set that describes SUFT. The definition of SUFT makes a categorisation of actions possible which enables actors to select effective strategies towards SUFT. The indicator set consists of two levels: impact indicators – which describe how the urban freight transport violates the principles of sustainability; and performance indicators – which describe different categories determining the characteristics and performance of the urban transport system. A literature study analyses the characteristics determining the performance of actors in the urban freight transport chain. Knowing the current state and improvement potential of the urban freight transport system are prerequisites for defining successful strategies and implementing effective actions.     

Resilience in railway transport systems: a literature review and research agenda

ABSTRACT

Critical infrastructure networks, such as transport and power networks, are essential for the functioning of a society and economy. The rising transport demand increases the congestion in railway networks and thus they become more interdependent and more complex to operate. Also, an increasing number of disruptions due to system failures as well as climate changes can be expected in the future. As a consequence, many trains are cancelled and excessively delayed, and thus, many passengers are not reaching their destinations which compromises customers need for mobility. Currently, there is a rising need to quantify impacts of disruptions and the evolution of system performance. This review paper aims to set-up a field-specific definition of resilience in railway transport and gives a comprehensive, up-to-date review of railway resilience papers. The focus is on quantitative approaches. The review analyses peer-reviewed papers in Web of Science and Scopus from January 2008 to August 2019. The results show a steady increase of the number of published papers in recent years. The review classifies resilience metrics and approaches. It has been recognised that system-based metrics tend to better capture effects on transport services and transport demand. Also, mathematical optimization shows a great potential to assess and improve resilience of railway systems. Alternatively, data-driven approaches could be potentially used for detailed ex-post analysis of past disruptions. Finally, several rising future scientific topics are identified, spanning from learning from historical data, to considering interdependent critical systems and community resilience. Practitioners can also benefit from the review to understand a common terminology, recognise possible applications for assessing and designing resilient railway transport systems.     

The Benefits for Rail Freight Customers of Vertical Separation and Open Access

Abstract

This paper reviews and analyses the benefits for rail freight customers of the two principal models for introducing competition in main line railway networks: (1) the vertical separation of infrastructure from operations; and (2) the introduction of competition providing other operators with open access to the network. The paper shows that traffic growth has generally been higher in those European countries that have liberalized most. It then examines in detail the impact of restructuring in Great Britain in terms of the competition, freight rates and traffic growth. The paper concludes that vertical separation benefits freight customers more than just open access.