Liedtke, Gernot, Hanno Friedrich, Patrik Jochem, Daniel Keultjes and Stefan Schröder (2010)

Estimation of the Benefits of Shippers from a Multi-Modal Transport Network

in: Selected Proceedings of the WCTRS Conference on Transportation Research 2010, (2010).

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Abstract: This paper estimates the shippers‟ reactions and their economic benefits from a multimodal transport network called LOGOTAKT. For this purpose, an econometric shipper model is being estimated in which the major factor influencing logistics decisions – the balance between warehouse and storage cost – is explicitly taken into account. The functional form is being deduced from the first order condition of Total Logistics Cost function minimization. Transport cost is expressed in form of a complex function depending on order size and the transport distance in order capture the effect of economies of scale in transportation. It is estimated based on empirical data of distribution obtained from two major German companies. Simulations show that the new multimodal transportation system has a significant impact on shipment size distributions changing them in favor of smaller shipments. This leads especially to significant reductions in warehouse costs. Finally, some implications of the analytical results on transport policy are provided: To achieve further modal shift from road to rail, public financial support and the regulatory framework must put railways into the position to consolidate shipments and to exhaust economies of scale.

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