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.     

European freight transport and the environment: empirical applications and scenarios

Environmental issues have received a prominent place in transport policies of most European countries. The coordination of such policies however, is fraught with many difficulties. The increasing freight flows after the European integration are a source of concern, but have not yet led to straightforward and effective environmental strategies.The paper focuses on the Trans Alpine freight transport systems in the light of the future integration of single national transport systems into the European transport network. The environmental, social and institutional peculiarities of this ‘region’ have favoured—in the past—the development of strong nationally-oriented policies, partly in contrast with the goals promoted by the European Union. The present analysis aims to highlight opportunities, and limits inherent, in the implementation of various infrastructure projects oriented towards a drastic change of the Alpine transport systems structure. The Alpine countries, viz. Austria and Switzerland, play a central role in the promotion of environmental benign modes of transport of goods, with a clear focus on rail. The route choice and modal split of freight flows in Europe are taking place simultaneously. In this paper the results of European freight flow models (based on logit analysis and neural networks) will be presented. An important exercise is then to assess the consequences of various types of eco-taxes on road transport in Europe. In this context, several policy scenarios will be dealt with.     

Container Railfreight Services in North‐west Europe: Diversity of Organizational Forms in a Liberalizing Environment

Abstract

The institutional environment of rail transport has changed as a result of recent European directives, but the changes have taken different forms from one country to another. In the case of international maritime chains, the development of door‐to‐door services makes inland haulage from the loading and discharging ports extremely important, and it highlights the need to reshape the rail freight industry. This paper analyses the degree of involvement of different actors drawn from the maritime industry in developing and commercializing rail services in the changing regulatory environment. Several maritime operators, shipping lines, port‐handling companies and port authorities have been involved in some container rail services since the early days of liberalization. Their commitments take very different forms, however. Whereas contracts are mainly used for the provision of service, particularly for train haulage, integration by means of shareholding or creating subsidiaries or joint ventures is used for marketing. Important differences between France, the UK, Germany and the Netherlands are detailed. In the latter two countries, there is more involvement in the provision of rail services. Marketing rail services appear to be the main strategic issue for the maritime operators in all four countries     

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.     

Rail freight efficiency and competitiveness in Australia

In 1994/95, the Australian rail freight task was approximately 100 billion tonne kilometres (btkm). This freight task included some 37 btkm for the haulage of iron ore in Western Australia, 28 btkm for coal haulage in Queensland and New South Wales and about 16 btkm for interstate rail freight. This paper mainly concerns how improvements can be made to the efficiency and competitiveness of interstate rail freight services through the upgrading of sections of mainline track that currently have severe speed‐weight restrictions. Recent improvements in rail freight efficiency are discussed, with emphasis on two indicators: average unit revenues (cents per net tonne km), and average energy efficiency (net tonne km per MJ). Rail freight efficiency is high for the Western Australia iron‐ore operations, Queensland coal operations and Adelaide‐Perth general freight operations. However, between Australia's three largest cities of Melbourne, Sydney and Brisbane, some 36% of the mainline track fails to meet basic fast freight train standards with a ruling grade of 1 in 66 and no curve radius less than 800 m. The contraints on efficient rail freight operations imposed by severe terrain, and how the effects of terrain may be reduced by improved track alignment, are discussed. Some economically warranted rail track investment measures are outlined, including those identified for a National Transport Planning Taskforce. These measures have the potential to reduce liquid fuel use by over 250 million litres a year. Factors affecting competitive neutrality between road and rail freight that are outside of the present scope of Australia's National Competition Policy are broadly considered. These factors include the extensive upgrading of the National Highway System with full Federal funding, and low levels of road cost recovery from heavy trucks operating over long distances.     

Developing intermodal transport for small flows over short distances

Intermodal road-rail freight transport works best within markets with relatively large flows occurring over long distances, which corresponds poorly to the current demand for transport in the European Union. The purpose of this paper is to compare the capabilities of conventional European intermodal transport, with special reference to the competitiveness in markets with small flows over short distances, and to explore innovative concepts. Using a technological systems approach, key functions are identified as being the inducement and blocking mechanisms that affect the development and diffusion path of this 'small flows over short distances' (SFSD) system, providing a tool for empirical delineation of the system. These concepts are illustrated and analysed through a case study of the Swedish development project Light-combi. The results show that market and financial uncertainties, insufficient network connectivity and policies favouring the existing technology paradigm, severely hamper the development and diffusion of SFSD systems.     

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

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

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 European freight railway system as a hub-and-spoke network

This paper addresses a hub-and-spoke network problem for railroad freight, where a central planner is to find transport routes, frequency of service, length of trains to be used, and transportation volume. Hub-and-spoke networks, often found in air freight, have not been favoured by railways in the past. Such a structure could be profitable, however, if there exist concentrated freight flows on some service links. We formulate a linear integer programming model whose objective function includes not only the typical operational cost, but also cost due to the transit time spent by freight in the network. We then develop heuristic algorithms to solve large scale instances occurring in rail freight systems in France plus Italy; Germany; and a 10-country European network. By assuming that every node is equipped with consolidation capability, we let the final solution naturally reveal potential hub locations, the impact of several of which is studied by sensitivity analysis.     

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

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

A cost and CO2 comparison of using trains and higher capacity trucks when UK FMCG companies collaborate

Companies working in a collaboration are able to achieve higher vehicle capacity utilisation and reduced empty running, resulting in lower costs and improved sustainability through reduced emissions and congestion. Collaboration produces higher volumes of goods to be moved than individual companies which means that further efficiencies may be possible by relaxing the freight mode constraints and considering rail and higher capacity vehicles. This paper explains how real world data has been used in a model to quantify the economic and environmental benefits in the FMCG sector delivered through collaboration utilising road and rail freight modes. Data for one month was provided by 10 FMCG companies and included freight transport flows between depots and customers, inter depot movements, and supplier collections. Detailed road and rail costs and operating characteristics were obtained and, with the transport flows, applied to a network design model which was used to validate the company data sets. A strategy examining the potential use of alternative higher capacity vehicles and rail for the flows between nine regional consolidation centres showed cost and CO₂ savings. Just under half the inter-regional flows benefited from double deck trailers, longer heavier vehicles for 30% of the flows and rail with different wagon configurations for the rest. In summary there was a 23% reduction in cost with 58% fewer road kilometres and a 46% reduction in CO₂ emissions. The ability to backhaul the same mode of transport between most of the regional centres was one of the strengths of this strategy.     

Public financing of private freight rail infrastructure to reduce highway congestion: A case study of public policy and decision making in the United States

As goods movement continues to increase it is expected to outpace infrastructure capacity in the United States. Moving a larger share of goods by rail rather than truck is a potentially cost effective part of a solution. Freight rail not only offers a substitute for truck trips but is a cleaner, more energy efficient, and safer alternative. Recently a number of private freight rail projects have received public funding. The public funds are aimed at increasing freight rail capacity with the goal of diverting some goods currently moved by truck to rail. While the benefits of moving goods by rail are relatively clear, it is unclear if public decision makers can effectively identify strategic rail investments that will achieve their policy goals. This study critically examines the analytical methods, models, and data that are commonly used to support decisions to provide public funds for private freight rail projects. This is accomplished through a case study of California’s Trade Corridors Improvement Fund program which provided $680 million for 11 freight rail projects. The study’s contributions include identifying critical analytical flaws and challenges affecting the benefit estimates that public funding decisions rely on. Improvements to current evaluation methods are also identified as are regulatory reforms and policy interventions that may offer more effective and reliable outcomes.     

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.     

Freight Data Assembling and Modeling: Methodologies and Practice

Abstract

In comparison to personal travel, freight movements within large metropolitan areas are much less studied. Most conventional transportation models and planning analysis that disregarded freight flows have been criticized on the plausibility of their results and conclusions. To alleviate these problems, this study proposes a non-survey based approach to assemble and process freight data in a systematic way. A freight origin–destination (OD) matrix of freight flows can be developed using secondary data sources. The estimated freight flows can be loaded together with conventional passenger flows onto the regional highway network of a large metropolitan area. As a case study, this non-survey based approach was applied to build a freight OD and study the traffic flows in Los Angeles. It concluded that this approach can be used to analyze urban freight movement in a low-cost way in which planning agencies can overcome the common omission of freight flow information in their transportation plans.     

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.     

High-Speed Rail Operations on an Existing Network: An Assessment Model for China

High-speed rail operations have the potential to reduce the long-term decline in rail passenger travel demand for the medium to long distance inter-urban markets. Such decline has been evident through most of the industrialized countries where air and road transport tend to be the dominant modes. In China, the operations of long distance high-speed rail on fully dedicated track is not very easy to implement, due to the high proportion of passengers who travel between high-speed and conventional railways. An alternative approach would be to allow for mixed operations with trains of various speeds on the same track. This article puts forward a simulation model designed to allow an evaluation of the most efficient distance for high-speed rail operations under mixed train speed scenarios. The model takes into account the main operating parameters such as passenger volumes, train speeds, capital and maintenance costs, train operating costs and energy consumption. The distance of high-speed train running on conventional rail that will yield the most economic benefit can be estimated using the model. The article includes the results of using the model for a specific example. It is concluded that large-scale high-speed trains have the potential to be successfully operated on conventional rail networks.     

Positive impact of distribution centres on the environment

The transport sector in general, and trucks in particular, generates a significant amount of emissions in Australia. It appears the trend will escalate unless different measures are taken to reduce the reliance of freight transport on trucks. This paper discusses the benefits of distribution centres as a means to reduce road congestion, increase safety, protect the environment by reducing atmospheric pollution and improve freight distribution. It also provides the effective use of the existing rail network and its infrastructure and improves the lead-time as well as lowering the cost of transportation of cargo. It also investigates the positive impact of distribution centres located near to manufacturing and farming production units. A simulation model has been developed and used to help determine the amount of atmospheric pollution produced by two modes of land transport, rail and road, for the movement of containers between port and destination. Results derived from the model provide evidence about a preferred land-transport regime. The paper has two sections: (1) the role of distribution centres in the chain of transport and (2) the impact of distribution centres on the environment. The first section investigates the feasibility of the implementation of distribution centres in the State of Victoria with respect to rail line capacity and location allocation. The second section presents an additional simulation model that investigates the role of a distribution centre in relation to the amount of atmospheric pollution produced by rail and road, while containers are carried between port and destination.     

Stochastic freight flow patterns: implications for fleet optimization

Trucking, rail and other types of transportation networks share the common feature of moving equipment and crews between spatially separated terminals to accommodate the transportation of goods or people. This paper develops measures for temporal and spatial imbalances in freight flows, and applies these measures to a major trucking network. Fundamentally, the randomness inherent to a system of terminals is mitigated by pooling freight flows among terminal groups, and by pooling freight flows over many time periods. In the terminal network that we examined, long-run freight imbalances ensure that empty equipment movements must equal or exceed 13.3% of loaded movements at individual terminals and 8.2% of loaded movements at terminal groups. Due to short-run freight imbalances, the number of empty movements could increase by about 50% over the long-run average; greater increases would occur if equipment flows must be balanced on each travel lane. ©     

An analysis of rail freight operational efficiency and mode share in the British port-hinterland container market

The growth in container shipping poses considerable challenges to efforts to reduce the negative externalities associated with freight transport. There are particular concerns about the impacts of the associated port-hinterland freight flows. Through empirical research, this paper examines trends in the operational efficiency of the British port-hinterland container rail freight market and to assess the impacts of any changes on the overall sustainability of this market. Original survey work conducted in 2007 and 2015 has allowed longitudinal and cross-sectional analysis of the characteristics of this market.The survey findings reveal that rail’s mode share of port container throughput (in TEU) has increased from 14.7% in 2007 to 16.6% in 2015 and it is likely that its share of the associated hinterland activity has also risen. Rail was carrying 25% more TEU by 2015 without an increase in train service provision. Increases in mean train capacity and mean load factor were observed, leading to growth in the mean train load from 44 TEU in 2007 to 55 TEU in 2015. This considerable improvement in operational efficiency is expected to have reduced the negative externalities per unit of transport activity associated with the rail-borne hinterland container flows, though scope is identified for further improvements in sustainability.     

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

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