The economic impact of logistics infrastructure: the case of PLAZA – the Zaragoza Logistics Platform

Abstract

The economics literature offers many examples of studies of the economic impact of transportation infrastructure such as highways, ports, and airports; however, little attention has been paid to other types of infrastructure such as logistics platforms. This article is a first assessment of the economic effects of the largest logistics platform in Europe – PLAZA, the Zaragoza Logistics Platform – located in Spain. More precisely, this paper analyzes the economic significance of PLAZA on the economy of the Aragon region where it is located. The methodology is based on the application of input–output analysis to the final demand of logistics platform-based companies in a manner that is similar to well-established studies of the economic impacts of tourism on tourist expenditure. This makes it possible to quantify the various levels of economic effects (direct, indirect, and induced) in terms of jobs, salaries, and wages, turnover, gross operating surplus (GOS), and gross value added (GVA). The conclusions reveal the economic importance PLAZA has for the regional economy of Aragon, representing just over 2% of total GVA and 3% of turnover.     

Transportation and land-use preferences and residents’ neighborhood choices: the sufficiency of compact development in the Atlanta region

This paper analyzes the transportation and land-use preference and actual neighborhood choices of a sample of 1,455 residents of metro Atlanta. We develop a stated-preference scale on which desires for neighborhood type are gauged, from preferences for low-density, auto-oriented environments to desires for compact, walkable, and transit-oriented neighborhoods. This scale is then related to desires for change in one’s own neighborhood characteristics after a hypothetical move. If all neighborhood preferences were equally likely to be satisfied, then neighborhood preferences would not be correlated with a desire for change. By contrast, in the current study, stronger preferences for a more walkable environment are associated with greater desire for change in one’s neighborhood characteristics. This suggests an undersupply of compact, walkable, and transit-friendly neighborhood types relative to current demand.

The development of a mobility index based on a factor analysis of the socio‐economic characteristics of households

Anthony J. Faria is an associate professor and Chairman of Marketing in the Faculty of Business Administration at the University of Windsor. A graduate of Michigan State University, he received his Ph.D. degree in 1974. Dr. Faria is a member of the American Marketing Association, Southern Case Research Association, the Association for Business Simulation and Experiential Learning, and the North American Simulation and Gaming Association. Dr. Faria has authored a marketing simulation game entitled COMPETE: A Dynamic Marketing Simulation and has published in the Journal of Marketing, Journal of Small Business Management, Pittsburgh Business Review, Traffic Quarterly, Retail Control, Atlanta Economic Review, Retail Directions, Department Store Economist, The Southern Business Review, Business and Society, and the Marquette Business Review. In addition, he has participated in various seminars for the business community.     

The underground economy: Tracking the higher-order economic impacts of the São Paulo Subway System

Over one million workers commute daily to São Paulo City center, using different modes of transportation. The São Paulo subway network reaches 74.2 km of length and is involved in around 20% of the commuting trips by public transportation, enhancing mobility and productivity of workers. This paper uses an integrated framework to assess the higher-order economic impacts of the existing underground metro infrastructure. We consider links between mobility, accessibility and labor productivity in the context of a detailed metropolitan system embedded in the national economy. Simulation results from a spatial computable general equilibrium model integrated to a transportation model suggest positive economic impacts that go beyond the city limits. While 32% of the impacts accrue to the city of São Paulo, the remaining 68% benefit other municipalities in the metropolitan area (11%), in the State of São Paulo (12.0%) and in the rest of the country (45%).     

Donor states and donee states: investigating geographic redistribution of the US federal-aid highway program 1974–2008

In 2009, the US government spent more than $42 billion on the federal-aid highway program. Most of this money was raised from motor vehicle taxes, whose proceeds are deposited in the highway trust fund. Federal motor vehicle user taxes flow into the fund and aid expenditures flow out from it to build and maintain highways and other transportation infrastructure. With so much money at stake it should be no surprise that expenditure decisions are the subject of intense political debate. Chief among these debates is the conflict between donor states, whose residents pay more in highway user taxes than the state receives in federal highway aid and donee states, whose residents pay less in highway user taxes than the state receives in highway aid. While this geographic redistribution has been masked recently by infusions of general fund revenue into the trust fund, the debate nevertheless continues. This paper attempts to understand why some states are donors and others are donees by simultaneously testing four hypotheses about the geographic redistribution of federal highway dollars that relate to a state’s highway need, economic condition, level of urbanization, and representation on the key Congressional oversight committees. The analyses show that redistribution does not favor states with larger highway systems, more highway use, or lower median incomes, all of which are different indicators of need. Instead, states that are less urban and better represented on the four key Congressional committees generally benefit from redistribution. These findings indicate that the user tax revenues are not used in places where they are most needed. Thus they provide little empirical support for any compelling policy argument for continued geographic redistribution of federal highway user tax dollars.     

Mapping spatial accessibility of public transportation network in an urban area – A case study of Shanghai Hongqiao Transportation Hub

Accessibility is a key metric when assessing the efficiency of an urban public transportation network. This research develops a methodology for evaluating spatial accessibility of a system with multiple transportation modes in an urban area, Shanghai Hongqiao Transportation Hub (SHTH) and its surrounding area. The method measured total traveling time as an accessibility indicator, which summed the time people spent on walking, waiting, transfer and transportation in a journey from the SHTH to destinations. Spatial accessibility was classified into five levels from very high to very low. The evaluation was conducted at a cell-by-cell basis under an overall scenario and three specific scenarios. Evaluation results were presented in a series of maps. The overall accessibility scenario shows a concentric-ring trend decreasing from the SHTH to the fringe of the study area. Areas along the metro lines generally have a much higher accessibility than those along the bus lines with some exceptions where bus routes play a more important role. Metro stations identified as either time-saving or time-consuming points are mainly distributed around the urban center. Some suggestions are proposed for improving accessibility of public transportation network in the study area. The results from this study provide a scientific basis and useful information for supporting decision-making on urban planning, and assisting dwellers to travel in a time-efficient manner. The methodology offers a simple, flexible way to the spatial evaluation, metro station identification and network modification of accessibility of public transportation systems with multiple transportation modes.     

Data Review of Transportation Infrastructure Public–Private Partnership: A Meta-Analysis

The limited understanding of public–private partnerships (P3s) for transportation infrastructure finance has been generally attributed to a lack of data. The more fundamental question of how P3 data are utilized in the literature is more relevant and critical, but remains unclear. This study investigates this question by examining the linkages between research objectives and data characteristics through a meta-analysis of infrastructure P3 studies using multinomial regressions. It analyzes 95 empirical studies that adopt actual data, selected from a P3 research database that includes over 345 studies and are classified into five categories including performance, contract, risk, value for money, and institutional factors. Results show that the case studies are less frequently utilized to understand P3s' institutional issues compared to those that focus on P3s' performance or VFM. Survey data are more frequently used to study P3 contracts rather than issues related to P3 project risk. We highlight the need for policy-makers to require continuing disclosure of P3 performance for validating the effectiveness of the procurement model and to improve the practice.     

Analysis of the optimal length of road expansion – A case study of the Taipei metropolitan area

This study explores the optimal investment in the length of an expanded section of road to mitigate the congestion on a transportation corridor. It is assumed that one end of the road is in the central business district (CBD) and that the households are uniformly distributed along the road. Each individual makes trips from his/her residence to the CBD. Trip demand is elastic and depends on the cost of the trip (including congestion costs). During the first stage, the government determines the length of the expanded section given the width of that section. In the second stage, road users determine their trip demands by taking into consideration the trip cost function. In the process of solving this problem, the equilibrium traffic volume is first solved using differential equations. The optimal length of the expanded section is then solved by maximizing the social welfare. The analysis is then applied to the case of the Tucheng city – Banciao city – Taipei CBD corridor in the Taipei metropolitan area. The scheme of road expansion without tolling performs closely to the first-best scheme for the case of a high potential demand. This study’s approach can serve as valuable reference for city planners engaged in road planning in a transportation corridor between the CBD and satellite cities in a metropolitan area.     

Service quality––developing a service quality index in the provision of commercial bus contracts

The measurement of service quality continues to be a challenging research theme and one of great practical importance to service providers and regulatory agencies. The key challenges begin with the identification of the set of potentially important dimensions of service quality perceived by passengers, current and potential. We then have to establish a way of measuring each attribute and identifying their relative importance in the overall calculation of satisfaction associated with existing service levels. Once a set of relevant attributes has been identified, this information can be integrated into programs such as monitoring and benchmarking, and even in contract specification. This paper, building on earlier research by the authors, investigates ways of quantifying service quality and comparing the levels within and between bus operators. The importance of establishing suitable market segments and the need to scale the service quality index for each operator to make meaningful comparisons is highlighted.     

Where to dispose of urban green waste? Transportation planning for the maintenance of public green spaces

Urban green spaces provide various social and environmental benefits that strongly improve the quality of life in a city. Municipalities are responsible for maintaining their green spaces in order to preserve these potentials. This paper supports municipalities in planning the transportation and disposal logistics of the green waste that is produced by the maintenance activities. The approach combines ecological issues like the seasonality of green waste generation and different types of biomass with economically driven decision making. We show how to determine cost efficient transportation plans for the disposal logistics and how to capture the seasonality of green waste generation when booking capacities at disposal facilities. It is also shown how a municipality can select the disposal facilities to cooperate with in a competitive environment where facilities offer capacities at differing conditions, as is the case for disposal sites that dump the green waste and for conversion plants that use the biomass for producing renewable energy. We illustrate the approach using case data of a major city in Germany.     

On the electrification of road transportation – A review of the environmental,economic, and social performance of electric two-wheelers

Electrification is widely considered as a viable strategy for reducing the oil dependency and environmental impacts of road transportation. In pursuit of this strategy, most attention has been paid to electric cars. However, substantial, yet untapped, potentials could be realized in urban areas through the large-scale introduction of electric two-wheelers. Here, we review the environmental, economic, and social performance of electric two-wheelers, demonstrating that these are generally more energy efficient and less polluting than conventionally-powered motor vehicles. Electric two-wheelers tend to decrease exposure to pollution as their environmental impacts largely result from vehicle production and electricity generation outside of urban areas. Our analysis suggests that the price of e-bikes has been decreasing at a learning rate of 8%. Despite price differentials of 5000 ± 1800 EUR₂₀₁₂ kW h⁻¹ in Europe, e-bikes are penetrating the market because they appear to offer an apparent additional use value relative to bicycles. Mid-size and large electric two-wheelers do not offer such an additional use value compared to their conventional counterparts and constitute niche products at price differentials of 700 ± 360 EUR₂₀₁₂ kW⁻¹ and 160 ± 90 EUR₂₀₁₂ kW⁻¹, respectively. The large-scale adoption of electric two-wheelers can reduce traffic noise and road congestion but may necessitate adaptations of urban infrastructure and safety regulations. A case-specific assessment as part of an integrated urban mobility planning that accounts, e.g., for the local electricity mix, infrastructure characteristics, and mode-shift behavior, should be conducted before drawing conclusions about the sustainability impacts of electric two-wheelers.     

Design and evaluation of a grade-separated intersection: a case study of the proposed Belgrade ‘Hipodrom’

This paper presents the evaluation results of three traffic solutions for the complex grade-separated intersection located in the old part of Belgrade at the junction with the new bridge over the Sava River. The corridor to which the intersection belongs together with the new river bridge are parts of a great urban artery called the Inner Half Semi-Ring Road (IHSRR). The traffic solutions that are evaluated are defined in the preliminary design phase, based on two opposed concepts: a complete grade separation of all intersection legs (the CPV alternative – ‘grade-separated’) and a grade separation designed to minimise construction costs (DMC 1 and 2 alternatives – ‘minimise cost’). The evaluation procedure is conducted in three steps: first, the score based on expert assessment of the functionality of the design solutions is determined; second, the alternatives are ranked according to the value of a set of state indicators obtained by micro-simulation using PTV–VISSIM 4.10; and third, the final score is obtained by multi-criteria evaluation using the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method. The results of the first evaluation step show a small advantage for DMC 2, a sub-alternative of the DMC 1 alternative. The results of the micro-simulation give advantage to the DMC 1 alternative. The multi-criteria evaluation provides a better ‘goodness factor’ for the CPV alternative against the DMC 1 alternative. At the same time, the least construction cost favours alternative DMC 1.     

Analysis of the effect of charging needs on battery electric vehicle drivers’ route choice behaviour: A case study in the Netherlands

Electric travelling appears to dominate the transport sector in the near future due to the needed transition from internal combustion vehicles (ICV) towards Electric Vehicles (EV) to tackle urban pollution. Given this trend, investigation of the EV drivers’ travel behaviour is of great importance to stakeholders including planners and policymakers, for example in order to locate charging stations. This research explores the Battery Electric Vehicle (BEV) drivers route choice and charging preferences through a Stated Preference (SP) survey. Collecting data from 505 EV drivers in the Netherlands, we report the results of estimating a Mixed Logit (ML) model for those choices. Respondents were requested to choose a route among six alternatives: freeways, arterial ways, and local streets with and without fast charging. Our findings suggest that the classic route attributes (travel time and travel cost), vehicle-related variables (state-of-charge at the origin and destination) and charging characteristics (availability of a slow charging point at the destination, fast charging duration, waiting time in the queue of a fast-charging station) can influence the BEV drivers route choice and charging behaviour significantly. When the state-of-charge (SOC) at the origin is high and a slow charger at the destination is available, routes without fast charging are likely to be preferred. Moreover, local streets (associated with slow speeds and less energy consumption) could be preferred if the SOC at the destination is expected to be low while arterial ways might be selected when a driver must recharge his/her car during the trip via fast charging.     

External Costs of Domestic Container Transportation: Short‐Sea Shipping versus Trucking in Taiwan

Abstract

This paper explores the external costs of domestic container transportation in Taiwan by analysing the origin and destination of current container cargoes. After reviewing an extensive literature survey of methods of external cost, a comparison of external costs between trucking and short sea shipping (SSS) by corridor is made by using a model developed in this paper. Based on the findings that external costs of SSS are considerably lower than truck transport and can be a viable alternative to current domestic container cargo transportation, we discuss the significance and managerial implications of SSS from the perspective of green logistics. In so doing, a top‐down approach is employed for developing government policies, which aim to not only reduce the external costs of domestic container transportation but also promote SSS in Taiwan.     

The effect of road traffic noise on the prices of residential property – A case study of the polish city of Olsztyn

The key factors that determine the prices of real estate are location, technical standard of property as well as the local environment. In urban agglomerations, road traffic noise has a considerable impact on the purchasing decisions made by apartment buyers. This is a widespread problem in Central-Eastern Europe. The main objective of this study was to verify the working hypothesis that apartment prices are correlated with traffic noise levels in Olsztyn, the capital city of the Region of Warmia and Mazury in north-eastern Poland.The study was carried out in four principal stages. Firstly, traffic noise intensity was determined for apartments (objects of real estate transactions concluded in 2013), based on an acoustic map for the city of Olsztyn. The map was developed in line with the provisions of Directive 2002/49/EC of the European Parliament and of the Council of 25 June 2002 relating to the assessment and management of environmental noise. Secondly, the values of the Noise Depreciation Sensitivity Index (NDSI) were calculated. NDSI determines the percentage change in property prices per dB increase in noise levels. The distribution of unit prices of apartments was mapped relative to noise levels, and the relationships between the analyzed variables were assessed. Thirdly, linear correlations between the unit prices of apartments and noise levels were analyzed. The strength and direction of relationships between the analyzed parameters were determined based on Pearson’s correlation coefficient. In the last stage, the distribution of the unit prices of apartments was mapped by ordinary kriging, a geostatistical estimation method. The research hypothesis was confirmed by comparing the spatial distribution of traffic noise levels measured in stage 1 with the spatial distribution of apartment prices.     

Attitudes towards the role of Cost–Benefit Analysis in the decision-making process for spatial-infrastructure projects: A Dutch case study

This paper provides a systematic overview of the attitudes of key actors in the Dutch Cost–Benefit Analysis (CBA) practice towards the role of CBA in the decision-making process for spatial-infrastructure projects. The main aim of this paper is to scrutinize the extent to which there is agreement among these Dutch actors in regard to the role of the CBA in the decision-making process. A secondary goal is to provide possible explanations for agreements and controversies among key actors in the Dutch CBA practice. In this study two research methods are combined to study the key actors’ attitudes. Firstly, 86 key actors (e.g. consultants, scientists, policy makers) were interviewed in-depth. Secondly, 74 of them completed a written questionnaire. The most important conclusion of this paper is that in the Dutch CBA practice there is agreement that CBA must have a role in the appraisal process of spatial-infrastructure projects. However, there is a lot of controversy among economists and spatial planners in the Dutch CBA practice concerning the value that is and should be assigned to CBA in the decision-making process. Economists predominantly believe that not enough value is assigned to the CBA in the decision-making process, whereas spatial planners predominantly think that too much value is assigned to the CBA. Both economists and spatial planners believe that this controversy is problematic as it results in debates about the pros and cons of CBA instead of the pros and cons of the spatial-infrastructure projects. This paper analyzes some solutions for this controversy.     

Environmental impacts of high-speed rail links in cost–benefit analyses: a case study of the Dutch Zuider Zee line

Since 2000 it has been formally required in the Netherlands to evaluate major infrastructure projects according to a standard manual. Here the focus is on its application to the Zuider Zee line, a possible rail link to run from the west to the north of the country, starting at Schiphol Airport and ending at the northern towns in the province of Groningen. We put a major emphasis on environmental impacts of the line, including the methods used to estimate impacts and the results. Ways to improve current practice are discussed. A major advantage has been that the environment has been put on the research and policy agenda at an early stage, although insights into the effects of rail infrastructure on the landscape and nature are limited.     

“Bottom line” business standards versus public service obligations: The case of the German federal railway

The publicly-owned German Federal Railway Corporation (DB) is technically very proficient but economically very inefficient. The financial burden that is revenue shortfall has imposed on the State has become nearly intolerable. There are external and internal reasons for the DB's financial problems. External factors include: competition from other modes, changes in demand for bulk goods, and a shift in national traffic flows from east-west to north-south. Internal causes are: low productivity growth, confused regulations about reimbursing costs for public service burdens and lack of freedom for management to pursue cost-lowering measures. The article describes four different periods of policy aimed at consolidating and modernizing the German Rail System. The latest set of proposals for a financial cure involve a transfer of the track and infrastructure to direct government responsibility and putting transport operations into a for-profit corporation. The debate still continues over precise details of a proposed remedy but the political interests involved will likely prevent a novel or clear-cut solution.