The impact of distance on mode choice in freight transport

Abstract

Purpose

The purpose of this paper is to examine the impact of distance on choosing between intermodal rail-road and unimodal road transport and to examine the hypothesis that distance is an important factor influencing the mode choice in freight transport.

Methods

In order to make comparisons between the two options, the ideas and elements of the analytical transport system modelling found in the literature are used. The calculation of break-even distances is based on a Monte Carlo simulation that takes randomly generated shipper and consignee locations in two separated market areas, independently of a certain transport corridor, into account.

Results

The results confirm the importance of distance for the mode choice and show there is not only one but in fact many break-even distances between the two options. They vary considerably depending on different travel plans, and the transport infrastructure conditions.

Conclusions

Despite assumptions inevitable in such general analysis, the results show that intermodal transport can provide a competitive alternative to unimodal road transport, even over relatively very short distances if the drayage costs are not too high. We believe the paper can help improve understanding of competitiveness in the freight transport sector and may also be useful for policy- and other decision-makers to better evaluate the opportunities and competitiveness of intermodal rail-road transport.