IDEAS home Printed from https://ideas.repec.org/a/pal/marecl/v23y2021i3d10.1057_s41278-020-00182-3.html
   My bibliography  Save this article

Barriers to intermodal freight diversion: a total logistics cost approach

Author

Listed:
  • Khandaker Rasel Hasan

    (University of Tasmania
    Bangabandhu Sheikh Mujibur Rahman Maritime University)

  • Wei Zhang

    (University of Tasmania)

  • Wenming Shi

    (University of Tasmania)

Abstract

This paper analyses the intermodal freight diversion from road to inland water transport (IWT) for domestic transportation through ports in Bangladesh, aiming to identify barriers to diversion and examine possible measures to make such modal shift possible. We find that the most significant factors are cost, time, reliability, flexibility and environment, while advisable measures include operational, organisational, fiscal and regulatory moves. To reveal the advantages of IWT, the total logistics costs of road, rail and IW transportation along the main trade corridor, namely Dhaka–Chittagong, are compared based on the inventory theoretic model. Empirical results indicate that IWT performs better than road transport in terms of lower costs, although longer transit time is the consequence. More importantly, by further improvement of infrastructure and service quality, we argue that IWT can gain more competitive advantages in reducing cost and time, thus making this mode more attractive vis à vis road and rail transport. The research findings have practical implications for decision-makers by redesigning freight movement through the IWT corridor. Further, service providers and policymakers can identify areas of improvement, such as service reliability and frequency, or efficiency and required infrastructure to facilitate the intermodal diversion from road to IWT, and achieve the goal of reducing transport costs and time.

Suggested Citation

  • Khandaker Rasel Hasan & Wei Zhang & Wenming Shi, 2021. "Barriers to intermodal freight diversion: a total logistics cost approach," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(3), pages 569-586, September.
  • Handle: RePEc:pal:marecl:v:23:y:2021:i:3:d:10.1057_s41278-020-00182-3
    DOI: 10.1057/s41278-020-00182-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41278-020-00182-3
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/s41278-020-00182-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fedele Iannone, 2012. "A model optimizing the port-hinterland logistics of containers: The case of the Campania region in Southern Italy," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 14(1), pages 33-72, March.
    2. Behzad Behdani & Bart Wiegmans & Violeta Roso & Hercules Haralambides, 2020. "Port-hinterland transport and logistics: emerging trends and frontier research," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(1), pages 1-25, March.
    3. Francesco Parola & Anna Sciomachen, 2009. "Modal split evaluation of a maritime container terminal," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 11(1), pages 77-97, March.
    4. Izabela Kotowska & Marta Mańkowska & Michał Pluciński, 2018. "Inland Shipping to Serve the Hinterland: The Challenge for Seaport Authorities," Sustainability, MDPI, vol. 10(10), pages 1-17, September.
    5. Santos, Georgina, 2017. "Road fuel taxes in Europe: Do they internalize road transport externalities?," Transport Policy, Elsevier, vol. 53(C), pages 120-134.
    6. Paixão, A. C. & Marlow, P. B., 2002. "Strengths and weaknesses of short sea shipping," Marine Policy, Elsevier, vol. 26(3), pages 167-178, May.
    7. M. A. Mueller & B. Wiegmans & J. H. R. Duin, 2020. "The geography of container port choice: modelling the impact of hinterland changes on port choice," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(1), pages 26-52, March.
    8. Hercules Haralambides, 2017. "Globalization, public sector reform, and the role of ports in international supply chains," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(1), pages 1-51, March.
    9. Ancor Suárez-Alemán, 2016. "Short sea shipping in today’s Europe: A critical review of maritime transport policy," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 18(3), pages 331-351, September.
    10. Mary R Brooks & Sean M Puckett & David A Hensher & Adrian Sammons, 2012. "Understanding mode choice decisions: A study of Australian freight shippers," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 14(3), pages 274-299, September.
    11. de Jong, Gerard & Ben-Akiva, Moshe, 2007. "A micro-simulation model of shipment size and transport chain choice," Transportation Research Part B: Methodological, Elsevier, vol. 41(9), pages 950-965, November.
    12. Anastassios N. Perakis & Athanasios Denisis, 2008. "A survey of short sea shipping and its prospects in the USA," Maritime Policy & Management, Taylor & Francis Journals, vol. 35(6), pages 591-614, December.
    13. Santos, Georgina & Behrendt, Hannah & Maconi, Laura & Shirvani, Tara & Teytelboym, Alexander, 2010. "Part I: Externalities and economic policies in road transport," Research in Transportation Economics, Elsevier, vol. 28(1), pages 2-45.
    14. W. J. Baumol & H. D. Vinod, 1970. "An Inventory Theoretic Model of Freight Transport Demand," Management Science, INFORMS, vol. 16(7), pages 413-421, March.
    15. Francesca Medda & Lourdes Trujillo, 2010. "Short-sea shipping: an analysis of its determinants," Maritime Policy & Management, Taylor & Francis Journals, vol. 37(3), pages 285-303, May.
    16. Furkan Oztanriseven & Heather Nachtmann, 2020. "Modeling dynamic behavior of navigable inland waterways," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(2), pages 173-195, June.
    17. Tiago A Santos & C Guedes Soares, 2017. "Modeling transportation demand in short sea shipping," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(4), pages 695-722, December.
    18. Dewan Md Zahurul Islam & John Dinwoodie & Michael Roe, 2005. "Towards Supply Chain Integration Through Multimodal Transport in Developing Economies: The Case of Bangladesh," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 7(4), pages 382-399, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Khandaker Rasel Hasan & Wei Zhang & Wenming Shi, 2023. "A Sustainable Port-Hinterland Container Transport System: The Simulation-Based Scenarios for CO 2 Emission Reduction," Sustainability, MDPI, vol. 15(12), pages 1-24, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Behzad Behdani & Bart Wiegmans & Violeta Roso & Hercules Haralambides, 2020. "Port-hinterland transport and logistics: emerging trends and frontier research," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(1), pages 1-25, March.
    2. Morales-Fusco, Pau & Saurí, Sergi & Lago, Alejandro, 2012. "Potential freight distribution improvements using motorways of the sea," Journal of Transport Geography, Elsevier, vol. 24(C), pages 1-11.
    3. Michalis P. Michaelides & Herodotos Herodotou & Mikael Lind & Richard T. Watson, 2019. "Port-2-Port Communication Enhancing Short Sea Shipping Performance: The Case Study of Cyprus and the Eastern Mediterranean," Sustainability, MDPI, vol. 11(7), pages 1-22, March.
    4. Abisai Konstantinus & Mark Zuidgeest & Anastasia Christodoulou & Zeeshan Raza & Johan Woxenius, 2019. "Barriers and Enablers for Short Sea Shipping in the Southern African Development Community," Sustainability, MDPI, vol. 11(6), pages 1-16, March.
    5. Ching-Chiao Yang & Hui-Huang Tai & Wen-Hsing Chiu, 2014. "Factors influencing container carriers' use of coastal shipping," Maritime Policy & Management, Taylor & Francis Journals, vol. 41(2), pages 192-208, March.
    6. José F. Baños & Luis Valdés & Eduardo Valle & Emma Zapico, 2018. "Economic importance of the motorways of the sea for tourism: The experience of the route Nantes–Gijón," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(2), pages 300-320, June.
    7. Lupi, Marino & Farina, Alessandro & Orsi, Denise & Pratelli, Antonio, 2017. "The capability of Motorways of the Sea of being competitive against road transport. The case of the Italian mainland and Sicily," Journal of Transport Geography, Elsevier, vol. 58(C), pages 9-21.
    8. Emeric Lendjel, 2013. "Pre- and end-haulage of containers in shipping chains: the neglected role of transaction costs in shippers' modal choices," Working Papers halshs-00978091, HAL.
    9. Emeric Lendjel, 2013. "Pre- and end-haulage of containers in shipping chains: the neglected role of transaction costs in shippers' modal choices," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00978091, HAL.
    10. Miguel Ángel López-Navarro, 2014. "Environmental Factors and Intermodal Freight Transportation: Analysis of the Decision Bases in the Case of Spanish Motorways of the Sea," Sustainability, MDPI, vol. 6(3), pages 1-23, March.
    11. Konstantinus, Abisai & Zuidgeest, Mark & Hess, Stephane & de Jong, Gerard, 2020. "Assessing inter-urban freight mode choice preference for short-sea shipping in the Southern African Development Community region," Journal of Transport Geography, Elsevier, vol. 88(C).
    12. Feo, María & Espino, Raquel & García, Leandro, 2011. "An stated preference analysis of Spanish freight forwarders modal choice on the south-west Europe Motorway of the Sea," Transport Policy, Elsevier, vol. 18(1), pages 60-67, January.
    13. Anastasia Christodoulou & Zeeshan Raza & Johan Woxenius, 2019. "The Integration of RoRo Shipping in Sustainable Intermodal Transport Chains: The Case of a North European RoRo Service," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    14. Mohammad Maghrour Zefreh & Adam Torok, 2021. "Theoretical Comparison of the Effects of Different Traffic Conditions on Urban Road Environmental External Costs," Sustainability, MDPI, vol. 13(6), pages 1-22, March.
    15. Massiani, Jérôme, 2014. "A micro founded approach to the valuation of benefits of freight travel time savings," Research in Transportation Economics, Elsevier, vol. 47(C), pages 61-69.
    16. Tapia, Rodrigo J. & de Jong, Gerard & Larranaga, Ana M. & Bettella Cybis, Helena B., 2020. "Application of MDCEV to infrastructure planning in regional freight transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 133(C), pages 255-271.
    17. Tiago A. Santos & C. Guedes Soares, 2017. "Methodology for ro-ro ship and fleet sizing with application to short sea shipping," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(7), pages 859-881, October.
    18. Antonio Comi & Antonio Polimeni, 2020. "Assessing the Potential of Short Sea Shipping and the Benefits in Terms of External Costs: Application to the Mediterranean Basin," Sustainability, MDPI, vol. 12(13), pages 1-17, July.
    19. Piendl, Raphael & Liedtke, Gernot & Matteis, Tilman, 2017. "A logit model for shipment size choice with latent classes – Empirical findings for Germany," Transportation Research Part A: Policy and Practice, Elsevier, vol. 102(C), pages 188-201.
    20. Enrico Musso & Anna Sciomachen, 2020. "Impact of megaships on the performance of port container terminals," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(3), pages 432-445, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:marecl:v:23:y:2021:i:3:d:10.1057_s41278-020-00182-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.