Transport and the location of foreign logistics firms: The Chinese experience

Based on conditional logit models and recent census data, this paper attempts to study the influence of transport and other factors on the location of foreign logistics firms across Chinese cities. The results suggested that the location of foreign logistics firms depended on transport conditions in terms of roadway, railway and waterway, as well as market size, labor quality, agglomeration economies and government incentives. The importance of transport was found to vary with some firm-specific characteristics. Provincial roadway transport was more important for independent logistics firms and overseas Chinese firms compared to their counterparts. New logistics establishments were more sensitive to roadway transport infrastructure than mature firms. The implications for policy-makers are given in the end.     

Power unit ‐ Cargo space link in inland waterway navigation

This paper deals with transportation technology regarding links between power unit or motor ship and ship cargo space. These links can be divided into two groups: rigid and flexible. Rigid link, established between power unit and cargo space, is dominant in maritime and road transport (sea ships and trucks), and occasionally in transport on inland waterways (self‐propelled barges). Flexible link is used in railroad transport (between the locomotive and railroad units), partially in road transport (systems with trailers and semitrailers), and in inland waterway transport (push‐towing, pulling systems and combinations of these systems). The main goal of this research is determination of possible link types and organization of fleet for transport on inland waterways in case of flexible link.     

A Stated preference freight mode choice model

Transport policy aims to assist the transport system to work more efficiently and effectively. An understanding of the reasons why people choose to move freight in a certain manner is critical to the development of appropriate policies. This article outlines a data collection approach and the development of a disaggregate mode choice model applicable to the analysis of freight shipper decision making. It focuses on the choice between rail and road in Java, Indonesia. The model indicates that safety, reliability and responsiveness are major attributes influencing rail/road freight mode choice. Transport policies aimed at improving these dimensions should increase the attractiveness of rail transport.     

Estimation and validation of a microscopic model for spatial economic effects of transport infrastructure

The spatial economic effects in integrated land use and transport models are increasingly disaggregate and can benefit from improved knowledge into the effect of accessibility and agglomeration on the spatial behaviour of firms. This article strives to contribute to this knowledge by first analysing the influence of accessibility and agglomeration on firm behaviour with exceptionally detailed firm data for the province of South Holland in The Netherlands. Next the added value of incorporating such effects in urban simulation models is tested with two series of validation runs with a microscopic model for firm dynamics.The presented Spatial Firm-demographic Micro-simulation (SFM) model simulates transitions and events in the firm population, including firm relocations, firm growth, firm dissolution and firm formation. Accessibility is measured with proximity to infrastructure access points and logsums of business and commuting trips from a transport model. Agglomeration measures are based on theories from urban economics and integrate travel time range bands into measures for specialisation and diversification. Estimation results confirm a significant influence of accessibility and agglomeration on the choice behaviour of firms. Application of these measures prove to increase the validity of the firm-demographic simulation model to a significant but modest extend.     

Accompanied versus Unaccompanied Transport in Short Sea Shipping between Spain and Italy: An Analysis from Transport Road Firms Perspective

Short sea shipping (SSS) is called to play a key role in ensuring sustainable mobility in the European context. In the past years several studies tried to define the SSS requirements and also to identify the SSS lines that were economically viable. However, no studies approach the profile of their users—the road transport firms—and the organizational patterns adopted by them, in order to gain a better understanding of this transport modality. This research, on the basis of a sample of 81 international road transport firms that use SSS between Spain and Italy, analyses the profile of these firms and certain elements inherent to their relationship with the shipping firms, according to the two modalities of organizing their SSS transport operations: accompanied versus unaccompanied.     

On appropriate microstate descriptions in entropy modelling

Using an information-theoretic approach to entropy modelling, expressions for the possible number of microstates are derived from the sets of choices available to households and firms in given location/transport planning situations. In planning applications, the urban space is usually subdivided into discrete zones, and various classes of householders and firms are grouped into separate activities. Nevertheless, the location sites within zones may vary considerably in accessibility, price and quality, and amenity v. cost trade-offs between location and travel many differ markedly between individuals within the same activity group. The inclusion of such variations within a random utility framework is demonstrated to be equivalent to maximizing entropy with the microstates disaggregated to the level where these variations occur. Using constraints based on spatial conditions, observed behaviour and planning policy, entropy maximization is used to determine the most probable macrostate according to each choice set specification. The resulting distributions are compared and their revelance discussed.     

Should subsidies to urban passenger transport be increased? A spatial CGE analysis for a German metropolitan area

In many countries passenger transport is significantly subsidized in a variety of ways for various reasons. The objective of this paper is to examine efficiency, distributional, environmental (CO₂ emissions) and spatial effects of increasing different kinds of passenger transport subsidies discriminating between household types, travel purposes and travel modes. The effects are calculated by applying a numerical spatial general equilibrium approach calibrated to an average German metropolitan area. In extension to most studies focusing on only one kind of subsidy, we compare the effects of different transport subsidies within the same unified framework that allows to account for two features not yet considered simultaneously in studies on transport subsidies: endogenous labor supply and location decisions. Furthermore, congestion, travel mode choice, travel related CO₂ emissions and institutional details regarding the tax system in Germany are taken into account. The results suggest that optimal subsidy levels are either small or even zero. While subsidizing public transport is welfare enhancing, subsidies to urban road traffic reduce aggregate urban welfare. Concerning the latter it is shown that making investments in urban road infrastructure capacity or reducing gasoline taxes may even be harmful to residents using predominantly automobile. In contrast, pure commuting subsidies hardly affect aggregate urban welfare, but distributional effects are substantial. All policies cause suburbanization of city residents and (except for subsidizing public transport) contribute to urban sprawl by raising the spatial imbalance of residences and jobs but the effect is relatively small. In addition, the policies induce a very differentiated pattern regarding distributional effects, benefits of landowners and environmental effects.     

Context-dependent influence of road attributes and pricing policies on route choice behavior of truck drivers: results of a conjoint choice experiment

In this paper, we report the results of a stated choice experiment, which was conducted to examine truck drivers?? route choice behavior. Of particular interest are the questions (i) what is the relative importance of road accessibility considerations via-a-vis traditional factors influencing route choice behavior, (ii) what are the influences of particular personal and situational variables on the evaluation of route attributes, (iii) how sensitive are truck drivers for possible pricing policies, and (iv) is there a difference in impact if environmental concerns are framed as a bonus or as a pricing instrument. The main findings indicate that road accessibility characteristics have a substantial impact on route preferences which is of the same order of magnitude as variation in travel times. This suggests that provision of adequate travel information in itself can be an effective instrument to prevent negative externalities of good transport associated with shortest routes. Furthermore, the results indicate that truck drivers/route planners when choosing a route are relatively sensitive to road pricing schemes and rather insensitive to environmental bonuses.     

The joint estimation of respondent-reported certainty and acceptability with choice

In the stated choice literature, increasing attention has been paid to methods that seek to close the gap between the choices from these experiments and the choices experienced in the real world. Attempts to produce model estimates that are truer to real market behaviours are especially important for transportation, where many important policy decisions rely on such experiments. A recent approach that has emerged makes use of a certainty index whereby respondents report how certain they are about each choice they make. Additional literature also posits that when making decisions, people first identify an acceptable set of alternatives (alternative acceptability) such that a consideration set if formed and it is from this reduced set that the ultimate choice is made. This paper presents two models that jointly estimates choice and choice certainty and choice and alternative acceptability. This joint estimation allows the modeller to overcome potential endogeneity that may exist between these responses. In comparing choices of differing certainty, surprisingly little difference in marginal sensitivities are found. This is not the case in the alternative acceptability models however. An important finding of this research is that what could be interpreted as preference heterogeneity may in fact be more closely linked to scale. The ramifications of these results on future research are discussed.     

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.     

Induced road traffic in Spanish regions: A dynamic panel data model

Distinguishing between traffic generated exclusively from the expansion of the road network (induced demand) and that resulting from other demand factors is of crucial importance to properly designed transport policies. This paper analyzes and quantifies the induced demand for road transport for Spain’s main regions from 1998 to 2006, years that saw mobility in Spain attain its highest growth rate. The lack of research in this area involving Spain and the key role played by the sector, given its high level of energy consumption and the negative externalities associated with it (accidents, noise, traffic congestion, emissions, etc.), endow greater relevance to this type of research. Based on a Dynamic Panel Data (DPD) reduced-form model, we apply alternative approaches (fixed and random effects and GMM-based methods) for measuring the induced demand. The results obtained provide evidence for the existence of an induced demand for transport in Spain, though said results vary depending on the estimating method employed.     

Importance and exposure in road network vulnerability analysis

The reliability and vulnerability of critical infrastructures have attracted a lot of attention recently. In order to assess these issues quantitatively, operational measures are needed. Such measures can also be used as guidance to road administrations in their prioritisation of maintenance and repair of roads, as well as for avoiding causing unnecessary disturbances in the planning of roadwork. The concepts of link importance and site exposure are introduced. In this paper, several link importance indices and site exposure indices are derived, based on the increase in generalised travel cost when links are closed. These measures are divided into two groups: one reflecting an “equal opportunities perspective”, and the other a “social efficiency perspective”. The measures are calculated for the road network of northern Sweden. Results are collected in a GIS for visualisation, and are presented per link and municipality. In view of the recent great interest in complex networks, some topological measures of the road network are also presented.     

Analysis of factors affecting the choice of route of pedestrians

Pedestrians as compared to vehicular traffic enjoy a high degree freedom of movement even in heavily congested areas. Consequently, there are more alternative links available to pedestrians between a given origin‐destination (O‐D) pair. This paper describes a study done by the University of Calgary to evaluate the factors affecting the choice of route on intra‐CBD trips or trips within the Central Business District (CBD).

An origin destination survey conducted in downtown Calgary, Alberta enabled the identification of the most significant factors influencing the choice. These factors were analyzed in relation to the physical characteristics of the location, personal characteristics of the trip maker and the type of the trip.

It appears that most people chose the shortest link and factors such as the level of congestion, safety or visual attractions were only secondary. This suggests that the length should be made a major consideration when planning and designing pedestrian links.     

Large-scale road network vulnerability analysis: a sensitivity analysis based approach

Traditionally, an assessment of transport network vulnerability is a computationally intensive operation. This article proposes a sensitivity analysis-based approach to improve computational efficiency and allow for large-scale applications of road network vulnerability analysis. Various vulnerability measures can be used with the proposed method. For illustrative purposes, this article adopts the relative accessibility index (AI), which follows the Hansen integral index, as the network vulnerability measure for evaluating the socio-economic effects of link (or road segment) capacity degradation or closure. Critical links are ranked according to the differences in the AIs between normal and degraded networks. The proposed method only requires a single computation of the network equilibrium problem. The proposed technique significantly reduces computational burden and memory storage requirements compared with the traditional approach. The road networks of the Sioux Falls city and the Bangkok metropolitan area are used to demonstrate the applicability and efficiency of the proposed method. Network manager(s) or transport planner(s) can use this approach as a decision support tool for identifying critical links in road networks. By improving these critical links or constructing new bypass roads (or parallel paths) to increase capacity redundancy, the overall vulnerability of the networks can be reduced.     

Discrete choice with spatial correlation: A spatial autoregressive binary probit model with endogenous weight matrix (SARBP-EWM)

Discrete choice modeling is widely applied in transportation studies. However, the need to consider correlation between observations creates a challenge. In spatial econometrics, a spatial lag term with a pre-defined weight matrix is often used to capture such a correlation. In most previous studies, the weight matrix is assumed to be exogenous. However, this assumption is invalid in many cases, leading to biased and inconsistent parameter estimates. Although some attempts have been made to address the endogenous weight matrix issue, none has focused on discrete choice modeling. This paper fills an existing gap by developing a Spatial Autoregressive Binary Probit Model with Endogenous Weight Matrix (SARBP-EWM). The SARBP-EWM model explicitly considers the endogeneity by using two equations whose error terms are correlated. Markov Chain Monte Carlo (MCMC) method is used to estimate the model. Model validation with simulated data shows that the model parameters can converge to their true values and the endogenous weight matrix can be reliably recovered. The model is then applied to a simplified firm relocation choice problem, assuming that similar size firms influence one another. The model quantifies the peer effect, and takes into consideration other independent variables including industry type and population density. The estimation results suggest that peer influence among firms indeed affect their relocation choices. The application results offer important insights into business location choice and can inform future policy making. The sample size for applying the model is currently limited to hundreds of observations. This paper contributes to the existing literature on discrete choice modeling and spatial econometrics. It provides a new tool to discover spatial correlations that are hidden in a wide range of transportation issues, such as land development, location choice, and various travel behavior. Those hidden spatial correlations are otherwise difficult to identify and estimation results may be biased. Establishing a new model that explicitly considers endogenous weight matrix and applying the model to a real life transportation issue represent a significant contribution to the body of literature.     

Distance and time in intermodal goods transport networks in Europe: A generic approach

This paper is about distance and time as factors of competitiveness of intermodal transport. It reviews the relevance of the factors, evaluates time models in practice, compares network distances and times in alternative bundling networks with geometrically varied layouts, and points out how these networks perform in terms of vehicle scale, frequency and door-to-door time. The analysis focuses on intermodal transport in Europe, especially intermodal rail transport, but is in search for generic conclusions. The paper does not incorporate the distance and time results in cost models, and draws conclusions for transport innovation, wherever this is possible without cost modelling. For instance, the feature vehicle scale, an important factor of transport costs, is analysed and discussed.Distance and time are important factors of competitiveness of intermodal transport. They generate (direct) vehicle costs and – via transport quality – indirect costs to the customers. Clearly direct costs/prices are the most important performance of the intermodal transport system. The relevance of quality performances is less clarified. Customers emphasise the importance of a good match between the transport and the logistic system. In this framework (time) reliability is valued high. Often transport time, arrival and departure times, and frequency have a lower priority. But such conclusions can hardy be generalised. The range of valuations reflects the heterogeneity of situations. Some lack of clarity is obviously due to overlapping definitions of different performance types.The following parts of the paper are about two central fields of network design, which have a large impact on transport costs and quality, namely the design of vehicle roundtrips (and acceleration of transport speed) and the choice of bundling type: do vehicles provide direct services or run in what we call complex bundling networks? An example is the hub-and-spoke network. The objective of complex bundling is to increase vehicle scale and/or transport frequency even if network volumes are restricted. Complex bundling requires intermediate nodes for the exchange of load units. Examples of complex bundling networks are the hub-and-spoke network or the line network.Roundtrip and bundling design are interrelated policy fields: an acceleration of the roundtrip speed, often desirable from the cost point of view, can often only be carried out customer friendly, if the transport frequency is increased. But often the flow size is not sufficient for a higher frequency. Then a change of bundling model can be an outcome.Complex bundling networks are known to have longer average distances and times, the latter also due to the presence of additional intermediate exchange nodes. However, this disadvantage is – inside the limits of maximal vehicle sizes – overruled by the advantage of a restricted number of network links. Therefore generally, complex bundling networks have shorter total vehicle distances and times. This expression of economies of scale implies lower vehicle costs per load unit.The last part of the paper presents door-to-door times of load units of complex bundling networks and compares them with unimodal road transport. The times of complex bundling networks are larger than that of networks with direct connections, but nevertheless competitive with unimodal road transport, except for short distances.     

Extending the Scope of Highway Planning: Accessibility,Negative Externalities and the Residential Context

The objectives of this review-based paper were twofold. Firstly, we aimed to explore the need and possibilities for broadening the scope of highway planning by taking account of the residential context, including residential satisfaction. Satisfaction appears to be an interesting, and in our opinion, valuable mediating planning concept between road infrastructure planning and the accompanying external effects on the one hand and household coping strategies on the other. Households living near highway infrastructure are influenced by both positive (i.e. accessibility gains) and negative road-related factors (e.g. noise nuisance and air pollution). Changes in these factors may trigger people to accept the new situation, adjust preferences, try to influence plans and/or even relocate. The second aim was to gain a greater understanding of the influence of both accessibility characteristics and negative externalities on the residential context of households. With respect to context, we make a distinction between residential satisfaction, housing prices and residential relocation. We see changes in residential satisfaction as a potential early predictor of opposition to plans, not only from active opposers but also from the more ‘silent majority’, and as a predictor of housing price changes and residential migration. Insights into residential satisfaction around highways may help transportation planners to relieve locational stress and may also prevent protests and relocations. Our literature review indicated that households prefer to live close to highways to benefit from high regional accessibility, but do not want to contend with the nuisances. This is also reflected in property values. However, the literature appears to put more emphasis on studying the impact of (regional) accessibility and externalities on location behaviour than on residential satisfaction. Because of the added value that the concept of residential satisfaction may provide in road planning, and the limited scientific insights, it is important to gain greater insight into how residential satisfaction is influenced by negative and positive externalities and into how residential satisfaction changes over time—from the stage when new road projects are discussed through to concrete planning, realization and the period after completion. Moreover, it would be worthwhile to gain a deeper understanding of the extent to which house prices, location behaviour and residential satisfaction near highways interrelate.     

Inferring origin–destination trip matrices from aggregate volumes on groups of links: a case study using volumes inferred from mobile phone data

The origin–destination matrix is an important source of information describing transport demand in a region. Most commonly used methods for matrix estimation use link volumes collected on a subset of links in order to update an existing matrix. Traditional volume data collection methods have significant shortcomings because of the high costs involved and the fact that detectors only provide status information at specified locations in the network. Better matrix estimates can be obtained when information is available about the overall distribution of traffic through time and space. Other existing technologies are not used in matrix estimation methods because they collect volume data aggregated on groups of links, rather than on single links. That is the case of mobile systems. Mobile phones sometimes cannot provide location accuracy for estimating flows on single links but do so on groups of links; in contrast, data can be acquired over a wider coverage without additional costs. This paper presents a methodology adapted to the concept of volume aggregated on groups of links in order to use any available volume data source in traditional matrix estimation methodologies. To calculate volume data, we have used a model that has had promising results in transforming phone call data into traffic movement data. The proposed methodology using vehicle volumes obtained by such a model is applied over a large real network as a case study. The experimental results reveal the efficiency and consistency of the solution proposed, making the alternative attractive for practical applications. Copyright © 2011 John Wiley & Sons, Ltd.     

Institutional structure of New Zealand licensed road freight carriers

Road freight transport in New Zealand has operated under government regulations since 1936, primarily to protect the freight revenue of the New Zealand Railways. In 1983 an Act was passed to deregulate the freight transport industry and to switch over to a qualitative licensing system. This is expected to have some impact on competition within the road freight industry as well as between road and rail. This paper analyses the institutional structure of the road freight industry at the pre‐deregulation phase. The trend over the last few years, shows that the number of single vehicle owners (mostly owner‐drivers) and their share in the industry is growing at a faster rate than others. The vehicle authority distribution varies widely from one region to another in the country. Economic factors like employment, population, urbanization etc. could not explain this variation. The segregation of demand by existing government regulations appears to be the main reason for such diversity in vehicle authority distribution. Apparently there is no monopoly trend in the aggregate nor in the regional distribution. However, many owner drivers work closely with large firms, which may change the concentration observed in the distribution of vehicle authorities.

Productivity is relatively high for one person operations, i.e., mainly owner drivers. It then goes down and then rises to a certain limit. This gives an indication of the possibility of economies of scale, the single vehicle firms being an exception.     

Flexible substitution patterns in models of mode and time of day choice: new evidence from the UK and the Netherlands

Modelling the temporal response of travellers to transport policy interventions has rapidly emerged as a major issue in many practical transport planning studies and is recognised to hold particular challenges. The importance of congestion and its variation over the day, together with the emergence of time-dependent road user charging as a policy tool, emphasise the need to understand whether and how travellers will change the timing of their journeys. For practical planning studies, analysts face a major issue of relating temporal changes to other behavioural changes that are likely to result from policy or exogenous changes. In particular, the relative sensitivity of time and mode switching has been difficult to resolve. This paper describes a study undertaken to determine the relative sensitivity of mode and time of day choice to changes in travel times and costs and to investigate whether evidence exists of varying magnitudes of unobservable influences in time of day switching. The study draws on data from three related stated preference studies undertaken over the past decade in the United Kingdom and the Netherlands and uses error components logit models to investigate the patterns of substitution between mode and time of day alternatives. It is concluded that the magnitude of unobserved influences on time switching depends significantly on the magnitudes of the time switches considered. With time periods of the magnitude generally represented in practical modelling, i.e. peak periods of 2–3 hours, time switching is generally more sensitive in these data than mode switching. However, the context of the modelling and the extent to which relevant variables can be measured will strongly influence these results.