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Determining optimal frequency at ferry crossings

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  • Jørgensen, Finn
  • Solvoll, Gisle

Abstract

The paper derives a model that shows how welfare optimal frequency at a ferry crossing depends on its level of traffic, ferry users' time costs, the cost structure of ferry operations, and the length of the crossing. The model takes into account the fact that travellers may not arrive randomly at the ferry terminals due to long headways, and it demonstrates in a clear way the influences of crossing and ferry fleet characteristics on optimal frequency. Using Norwegian data for ferry users' time costs and for the costs of operating ferry services, the model's results indicate that the authorities recommend too low a frequency, especially on high-traffic ferry crossings. The results also emphasise that the length of the crossing has a great impact on optimal frequency; optimal frequency at long crossings is less than half that of short crossings for all levels of traffic. Lastly, the model shows that it is more serious from a welfare perspective to undersupply frequency with X units than to oversupply it with X units.

Suggested Citation

  • Jørgensen, Finn & Solvoll, Gisle, 2018. "Determining optimal frequency at ferry crossings," Transport Policy, Elsevier, vol. 63(C), pages 200-208.
    • Handle: RePEc:eee:trapol:v:63:y:2018:i:c:p:200-208
    DOI: 10.1016/j.tranpol.2017.12.017
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    References listed on IDEAS

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    Cited by:

    1. Odeck, James & Høyem, Harald, 2021. "The impact of competitive tendering on operational costs and market concentration in public transport: The Norwegian car ferry services," Research in Transportation Economics, Elsevier, vol. 90(C).
    2. Clark, Derek J. & Mathisen, Terje Andreas, 2020. "Salience in a simple transport market," Research in Transportation Economics, Elsevier, vol. 82(C).
    3. Høyem, Harald & Odeck, James, 2020. "Optimal public transit frequency under stochastic demand and fixed vehicle size: Application in the Norwegian car ferry sector," Research in Transportation Economics, Elsevier, vol. 82(C).
    4. Sandberg Hanssen, Thor-Erik & Larsen, Berner, 2020. "The influence of waiting time on the value of headway time on a ferry service in Norway," Research in Transportation Economics, Elsevier, vol. 82(C).
    5. Thor-Erik Sandberg Hanssen & Finn Jørgensen & Berner Larsen, 2020. "Determinants affecting ferry users’ waiting time at ferry terminals," Transportation, Springer, vol. 47(4), pages 1711-1732, August.
    6. Díez-Gutiérrez, María & Tørset, Trude, 2019. "Perception of inconvenience costs: Evidence from seven ferry services in Norway," Transport Policy, Elsevier, vol. 77(C), pages 58-67.
    7. Høyem, Harald, 2022. "Public transport frequency and risk-taking behavior," Economics of Transportation, Elsevier, vol. 30(C).

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