Multioutput analysis of cargo handling firms: An application to a Spanish port

Cargo handling in ports is a multioutput activity, as freight can arrive in many forms such as containers, bulk, rolling stock, or non-containerised general cargo. In this paper, the operation of cargo handling firms in a Spanish port is analysed through the estimation of a multioutput cost model that uses monthly data on three representative firms located at the Las Palmas port. This permits the calculation of product specific marginal costs, economies of scale (general and by firm) and economies of scope, which help identifying optimal pricing policies and the potential cost advantages of increasing production.     

A multioutput cost function for the services of Spanish ports' infrastructure

A long run multioutput cost function for the infrastructure services of Spanish ports is estimated using 286 observations on 26 ports during 11 years. Cargo specific marginal costs and the degree of economies of scale and scope are calculated up to a port level. Results show that liquid bulk and non-containerised general cargo present the lowest and largest marginal cost, respectively. Increasing returns to scale are present in general and for each and every port. A scope analysis indicates that port specialisation is not appropriate from the viewpoint of infrastructure.     

A maximum entropy-least squares estimator for elastic origin-destination trip matrix estimation

In transportation subnetwork-supernetwork analysis, it is well known that the origin-destination (O-D) flow table of a subnetwork is not only determined by trip generation and distribution, but also a result from traffic routing and diversion, due to the existence of internal-external, external-internal and external-external flows. This result indicates the variable nature of subnetwork O-D flows. This paper discusses an elastic O-D flow table estimation problem for subnetwork analysis. The underlying assumption is that each cell of the subnetwork O-D flow table contains an elastic demand function rather than a fixed demand rate and the demand function can capture all traffic diversion effect under various network changes. We propose a combined maximum entropy-least squares estimator, by which O-D flows are distributed over the subnetwork in terms of the maximum entropy principle, while demand function parameters are estimated for achieving the least sum of squared estimation errors. While the estimator is powered by the classic convex combination algorithm, computational difficulties emerge within the algorithm implementation until we incorporate partial optimality conditions and a column generation procedure into the algorithmic framework. Numerical results from applying the combined estimator to a couple of subnetwork examples show that an elastic O-D flow table, when used as input for subnetwork flow evaluations, reflects network flow changes significantly better than its fixed counterpart.     

Hub location with flow economies of scale

A characteristic feature of hub and spoke networks is the bundling of flows on the interhub links. This agglomeration of flows leads to reduced travel costs across the interhub links. Current models of hub location do not adequately model the scale economies of flow that accrue due to the agglomeration of flows. This paper shows that current hub location models, by assuming flow-independent costs, not only miscalculate total network cost, but may also erroneously select optimal hub locations and allocations. The model presented in this paper more explicitly models the scale economies that are generated on the interhub links and in doing so provides a more reliable model representation of the reality of hub and spoke networks.     

Marginal costs of freeway traffic congestion with on-road pollution exposure externality

The health cost of on-road air pollution exposure is a component of traffic marginal costs that has not previously been assessed. The main objective of this paper is to introduce on-road pollution exposure as an externality of traffic, particularly important during traffic congestion when on-road pollution exposure is highest. Marginal private and external cost equations are developed that include on-road pollution exposure in addition to time, fuel, and pollution emissions components. The marginal external cost of on-road exposure includes terms for the marginal vehicle’s emissions, the increased emissions from all vehicles caused by additional congestion from the marginal vehicle, and the additional exposure duration for all travelers caused by additional congestion from the marginal vehicle. A sensitivity analysis shows that on-road pollution exposure can be a large portion (18%) of marginal social costs of traffic flow near freeway capacity, ranging from 4% to 38% with different exposure parameters. In an optimal pricing scenario, excluding the on-road exposure externality can lead to 6% residual welfare loss because of sub-optimal tolls. While regional pollution generates greater costs in uncongested conditions, on-road exposure comes to dominate health costs on congested freeways because of increased duration and intensity of exposure. The estimated marginal cost and benefit curves indicate a theoretical preference for price controls to address the externality problem. The inclusion of on-road exposure costs reduces the magnitudes of projects required to cover implementation costs for intelligent transportation system (ITS) improvements; the net benefits of road-pricing ITS systems are increased more than the net benefits of ITS traffic flow improvements. When considering distinct vehicle classes, inclusion of on-road exposure costs greatly increases heavy-duty vehicle marginal costs because of their higher emissions rates and greater roadway capacity utilization. Lastly, there are large uncertainties associated with the parameters utilized in the estimation of health outcomes that are a function of travel pollution intensity and duration. More research is needed to develop on-road exposure modeling tools that link repeated short-duration exposure and health outcomes.     

Tradable credits scheme and transit investment optimization for a two‐mode traffic network

This paper proposes an optimization model to minimize the “system costs” and guide travelers' behavior by exploring the optimal bus investment and tradable credits scheme design in a bimodal transportation system. Travelers' transport mode choice behavior (car or bus) and the modal equilibrium conditions between these two forms of transport are studied in the tradable credits scheme. Public transport priority is highlighted by charging car travelers credits only. The economies of scale presented by the transit system under the tradable credit scheme are analyzed by comparing the marginal cost and average cost. Numerical examples are presented to demonstrate the model. Furthermore, the effects of tradable credits schemes on bus investment and travelers' modal choice behavior are explored based on scenario discussions. Copyright © 2016 John Wiley & Sons, Ltd.     

An econometric analysis of motorway renewal costs in Germany

The analysis of motorway renewal costs presented in this paper was driven by two research questions: First, to analyse the economic process of motorway renewal work and to identify whether there exist economies of scale; and second to identify the influence of traffic volume on renewal costs and to derive an estimate of marginal infrastructure costs as part of optimal road user charges. The analysis is based on cross-sectional data for motorway renewal costs and traffic volume in Germany during the period 1980–1999. Two translog models were estimated, each of them including the factor input prices for labour, material and capital, and a set of regional dummy variables as well as dummy variables for the type of material used for renewal. The first model includes in addition to these variables the sqm of renewed road as explanatory variable. The second model was constructed to analyse the relationship between traffic volume and renewal costs and contains the average annual daily traffic volume of trucks and passenger cars as independent variables. Two main results were derived from the models: First, motorway renewal work is characterised by substantial economies of scale. Second, the relationship between renewal costs and traffic volume is expressed by a cost elasticity, i.e., the ratio between marginal and average costs, which ranges from 0.05 up to 1.17 with a digressive increase of marginal costs.     

Alternative methods for estimating full marginal costs of highway transportation

This paper presents various methods of estimating the full marginal cost (FMC) of highway passenger transportation. First, the computation of FMC is performed using the marginal cost functions, most of which were developed by Ozbay et al. [Ozbay, K., Bartin, B., Berechman, J., 2001. Estimation and evaluation of full marginal costs of highway transportation in New Jersey. Journal of Transportation and Statistics 4 (1)]. FMC is defined and calculated as “total cost per trip” as explained in this paper. However, in multiple origin-destination and multiple route highway networks, the practical application of the network-wide FMC concept is complicated. These issues are addressed in detail in this paper. Therefore, in the second method, a multiple route based FMC approach is proposed for a given origin-destination pair in the network. It is observed that the marginal values of different paths vary as much as 28%. Third, a comparison of FMC estimation results of two distinct measurement tools is presented. The FMC estimation is performed between a selected OD pair using the static transportation planning software output (TransCAD). The same analysis is repeated using the stochastic traffic simulation software output (PARAMICS). The differences in FMC values estimated by static transportation planning software and microscopic traffic simulation software are discussed.     

Intermodal hub-and-spoke network design: Incorporating multiple stakeholders and multi-type containers

This paper develops a mathematical program with equilibrium constraints (MPEC) model for the intermodal hub-and-spoke network design (IHSND) problem with multiple stakeholders and multi-type containers. The model incorporates a parametric variational inequality (VI) that formulates the user equilibrium (UE) behavior of intermodal operators in route choice for any given network design decision of the network planner. The model also uses a cost function that is capable of reflecting the transition from scale economies to scale diseconomies in distinct flow regimes for carriers or hub operators, and a disutility function integrating actual transportation charges and congestion impacts for intermodal operators. To solve the MPEC model, a hybrid genetic algorithm (HGA) embedded with a diagonalization method for solving the parametric VI is proposed. Finally, the comparative analysis of the HGA and an exhaustive enumeration algorithm indicates a good performance of the HGA in terms of computational time and solution quality. The HGA is also applied to solve a large-scale problem to show the applicability of the proposed model and algorithm.     

Impacts of trade related sustainability strategies on freight transportation: Modelling framework and application for France

The circular and functional economies are being presented in the literature as potential strategies for future sustainable societies. In terms of the consequences for supply chains, they will promote a much more dispersed and diversified, local and network based usage of goods than the current economy, which is comparatively linear, concentrated, long distance oriented and scale economy based. A gap in the literature is the assessment of the effects of these systems on freight transport flows. In our paper, we present a first attempt at estimating this impact using freight transport scenario building and quantitative modelling. In order to translate the main parameters that characterize these systems into factors determining freight transportation volumes, we develop a framework based on a typology of goods categories describing functional and spatial proximity between producers and consumers. In order to simulate changes in the economy, we develop scenarios for the shifting of goods from one category to another and, additionally, include internalization policies that should guide their realization. We calculate the impacts on freight flows using a new interregional transport model for France that includes distribution chains and produces estimates of external costs of transport. Our results show that circular and functional economies could lead to a 2–5% reduction of air pollutant emissions and up to a 14–26% reduction if combined with the internalization of external costs. The scenario with ongoing mass production for differentiated demand is found to lead to a 5% increase of environmental impacts compared to the baseline.     

Technical characteristics and efficiency of urban bus companies: The case of Spain

The aim of the present study is twofold. First, to provide new information concerning the technical characteristics of urban bus companies on the basis of a sample of medium and large-size cities in Spain. Second, to analyze the degree of efficiency of those companies and to quantify the reasons for this efficiency. The results should be useful in evaluating possible changes in public policies relating to urban transport, specifically changes in the way the market is organized and in pricing.The analysis is carried out by estimating a cost function. The sample is made up of a panel data set consisting of observations of nine Spanish companies that operated during the period 1983–1995. The specified functional form is translogarithmic. The output unit of measure adopted is bus*kms run. The cost function includes the network length for each company, thus permitting evidence concerning economies of density and economies of scale.The use of panel data allows us to estimate the cost function, taking into account that each company is affected by the specific characteristics of each individual city, the different features of the network in question and by different levels of efficiency. The economies of scale have been calculated, taking into account that the features of the network and of the city – represented by their specific individual effect – will vary with the company's level of output.Finally, an analysis is made of the relative productive efficiency of the companies, as well as of the variables likely to influence that efficiency.     

Traffic assignment in a two-dimensional continuous representation of a traffic network with flow-dependent speeds

The work deals with the assignment of traffic to a two-dimensional continuous representation of a traffic network. An important aspect of the treatment is that the reciprocal of the speed on each road in the network is at all times a linear function of the flow on that road. This speed-flow relationship is generalized to two-dimensional space using travel intensities and taking account of road densities, so that there is direct dependence of speeds upon flows at all points regardless of their location. There is also dependence of flows upon speeds at all points because Wardrop's first assignment principle is adopted. That is, for a given O-D pair, journey times on all routes actually used are identical, and less than journey times on all other possible routes. This results in the identification for each O-D pair of an “assignment zone”, an area within which all trips between that O-D pair are made, and beyond which no such trips are made. For a single O-D pair the assignment zone is identified by ?_m, the maximum angular divergence of a path from the straight line between O and D. Paths are then assumed to be bilinear so that for a single O-D pair the assignment zone is a parallelogram. Journey times, speeds, lateral displacement and other related quantities are obtained as functions of the flow Q between O and D. The work is extended to three O-D pairs located at the extremities of an equilateral triangle and four O-D pairs located at the corners of a square. At low flows these two configurations are trivial extensions of the single O-D pair problem because assignment zones do not overlap. At higher flows account is taken of this tendency to overlapping, so that although they do not overlap they do touch, becoming kite-shaped. Origins and destinations are assumed to be at the periphery of small circles of arbitrary radius. The work is inelegant to the extent that it involves a numerical integration but it is possible that this might eventually be circumvented.     

Economies of scale in the road haulage system: Some evidence from the Nigerian economy

Economies of scale are said to exist if the long run average costs decline as output scales increase. The traditional view on economies of scale in the road haulage industry is that costs are constant irrespective of output scales. This view is supported by a number of studies in various countries. However, some recent studies in a number of countries also suggest that scale economies exist in the road haulage industry. This paper reports the results of an empirical investigation in the Nigerian economy. Our analyses indicate that only very weak or no significant overall scale economies exist in the Nigerian trucking industry. The study also throws some light on the minimum optimum scale, and the economies of vehicle size.     

External costs of the Belgian interurban freight traffic: a network analysis of their internalisation

The strong expansion of freight road transports throughout Europe is an important source of congestion and pollution, as well as a cause of many accidents. To solve this problem will require the conjunction of many different remedies. One element of solution would be the promotion and substitution of transportation modes with less negative effects. This paper is focused on this solution. It presents some results obtained from a detailed GIS modelling of the Belgian multimodal freight transport network inserted within the overall trans-European network. It outlines the results of a simulation of the flows over the Belgian network in 1995 which allows to estimate some of the costs of several external effects of freight transports: the costs of pollution, congestion, accidents, noise and road damages. This paper provides also the simulated impacts on modal choice of a marginal external cost internalisation, and an estimation of the corresponding external cost savings.     

The marginal external costs of urban transport

A necessary input for the analysis of efficient transport policies is the marginal external cost of each transport mode. This paper studies the marginal external costs of urban transportation. These include the marginal external cost of congestion, accidents, air pollution and noise. The costs are computed for cars, buses, trams, metro and trucks. The methodology is described and applied to the urban area of Brussels for the year 2005.     

Economies of scale in bus transit: A review of concepts and evidence

The issue of returns of scale in bus transit continues to be a subject of debate among transportation analysts. From a public policy perspective, returns to scale are relevant to many policy areas such as transit service pricing, cost allocation, productivity and organization of the industry. Empirical studies conducted during the past decade have generated conflicting results. Constant, decreasing and increasing returns to scale have all been reported.This paper identifies the sources of these conflicting results: confusion regarding the concept of scale economies, variable definition, assumptions regarding the shape of the cost function, and certain characteristics of the data base. The paper also discusses the theoretical concept of scale economies, and an interpretation of the concept for bus transit is presented. It is concluded that recent studies which have utilized generalized cost functions more accurately represent the economic structure of bus transit, and provide a stronger basis for transit policy analysis.     

Comparison of results of two models of transportation demand in Hong Kong: CDAM and a version of microTRIPS

CDAM is a new computer program for solving the combined trip distribution and assignment model for multiple user classes, which enables transport planners to estimate consistent Origin-Destination (O-D) matrices and equilibrium traffic flows simultaneously if the trip production and attraction of each user class at zone centroids are available. This paper reports an application of CDAM to the central Kowloon study area in Hong Kong. The coefficients of the model related to the components of generalized costs are calibrated on 1986 travel data. A comparison of results of CDAM and a version of MicroTRIPS models of transportation demand in Hong Kong are presented. Finally, some conclusions are drawn and the advantage of the CDAM are discussed.     

Estimation of urban bus transit marginal cost without cost data

We develop a method to study the industrial structure of urban bus transit without using cost data. To do so, we estimate the marginal cost function under the assumption that firms compete on frequency and adjust frequency to maximize profits. Our methodology is applied to Santiago, Chile. In this case, demand is modeled with a simplified model of transit network assignment. The goal is to consider how frequency, capacity, and on-board passengers affect the bus line’s demand. The marginal cost function is estimated by using the first-order conditions of the firm’s profit maximization problem, using the results of the demand model as data. We conclude that the urban bus transit industry in Santiago exhibits increasing returns to scale for low levels of demand and that these returns are exhausted rapidly at a moderate demand level. Additionally, firms exhibit economies of network expansion, on average.     

基于客户满意度的货运动车组开行方案研究

高铁货运逐渐兴起,本文对货运动车组开行方案优化进行了研究。针对高铁运输安全、快捷、运输成本较低等特性,提出以货运动车组及客货混编动车组为主,客运动车组捎带运输为补充的开行模式,结合运输需求、线路通过能力等限条件,以运输成本最小和货主满意度最大为目标,建立多目标综合优化模型,运用线性加权组合法,以lingo软件为依托进行求解。通过算例给出具体开行方案,并对同一运输区间各种运输方式的单位成本及用时进行对比分析。结果表明,相对于传统运输方式,高铁货运综合运输成本较低,用时更短,能够兼顾运输企业与货主的双重要求;所建模型优化效果明显,可为未来货运动车组的开行提供参考。     

A comparison of the sustainability of public and private transportation systems: Study of the Greater Toronto Area

A macroscopic assessment of the impacts of private and public transportation systems on the sustainability of the Greater Toronto Area (GTA) is undertaken from economic, environmental and social perspectives. The methodology draws upon the urban metabolism and sustainability indicators approaches to assessing urban sustainability, but compares modes in terms of passenger-kms. In assessing the economic sustainability of a city, transportation should be recognized as a product, a driver and a cost. In 1993, the traded costs of automobile use in the GTA were approximately balanced by the value of the automobile parts and assembly industry. But local transit costs 1/3 to 1/6 of the auto costs per person-km, in traded dollars, mainly because local labour is the primary cost.Public transportation is more sustainable from an environmental perspective. Automobile emissions are a major contributor to air pollution, which is a serious contemporary environmental health problem in Toronto. Public transportation modes are less energy intensive (including indirect energy consumption) and produce CO₂ at an order of magnitude lower, although these benefits are partially undermined by under-utilization of transit capacity and the source of electricity generation.The social benefits of automobile use are likely more significant than costs in determining GTA residents' preferential mode choice. The speed and access of auto use provide important economic benefits, e.g. relating to employment and product choice. Nevertheless, offsetting the service attributes of private transportation are large social costs in terms of accidents. The costs of automobile insurance provide one tangible measure of such negative impacts.In order to improve the sustainability of the GTA, innovative approaches are required for improving the performance level of public transportation or substantially reducing the need for the service level provided by automobiles. Efforts such as greater integration of bicycles with public transit, or construction of light-rail systems in wide roadways, might be considered. But to be sustainable overall, a transportation system has to be flexible and adaptable and so must combine a mixture of modes.