Investigating the market for inter-modal freight technologies

Freight carried by rail has traditionally been mainly low value bulk commodities. The market for transport of such commodities appears at best static and is forming a smaller proportion of the total demand for freight transport. There is thus an urgent need for rail operators to develop practical and cost effective inter-modal systems, which offer high quality services to consignors of consumer goods whose premises are not usually connected to the rail network. Much long-haul traffic of this type is international. In continental Europe, a number of inter-modal technologies—including swapbodies and piggyback—have long been in use. Development of similar technologies for use within the more constrained loading gauge of Great Britain, has received a great boost from the impending opening of the Channel Tunnel. The alternative technologies are discussed, before turning to ways of stimating the market for them. A large part of the paper is devoted to reporting on a computerised survey using our LASP (Leeds Adaptive Stated Preference) technique. The reason for using hypothetical Stated Preference data is the inadequate nature and extent of data on actual choice decisions, particularly in circumstances in which confidential freight rates are individually negotiated and little general merchandise goes by rail. By bringing together the results of this survey with information on costs and quality of service, the likely future market for inter-modal freight technologies is assessed. It is seen that the potential for inter-modal services within Britain is very limited, although there should be a good opportunity on the major corridor from London to Scotland through the West Midlands and the North West. When the Channel Tunnel is opened, however, the potential for services between Britain and continental Europe will be enormous, provided that an adequate quality of service can be offered.