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Precautionary and operative costs of freight train delays: a case study of a Swedish grocery company

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Abstract

There is limited knowledge about the valuation of reduced transport time variability for freight transports. This paper analyses a Swedish grocery company’s transports by shuttle train, as a case study. The distribution of the train arrival time is analyzed; it is shown that the 10 per cent worst delays contribute to more than half of the total train delays. Type and amount of the firm’s precautionary and operative costs are identified and calculated. It is shown that it is possible to get estimates for the cargo component of the VTTV (Value of Transport Time Variability) valid for the specific company based on the precautionary costs, the operative costs for delays and for the costs for cancellations separately or in combination. Further case studies are advocated in order to cover the whole freight transport market and study the differences between different segments of the market.

Suggested Citation

  • Krüger, Niclas A. & Vierth, Inge, 2014. "Precautionary and operative costs of freight train delays: a case study of a Swedish grocery company," Working papers in Transport Economics 2014:3, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    • Handle: RePEc:hhs:ctswps:2014_003
    Note: Published in: European Transport Research Review, Vol. 7, Issue 1, March 2015.
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    File URL: http://link.springer.com/article/10.1007%2Fs12544-015-0155-7
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    References listed on IDEAS

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    1. Vierth , Inge, 2012. "Vad skulle en likabehandling av transportslagen innebära för näringslivets transportval: exemplifiering för några varuslag och relationer," Working papers in Transport Economics 2012:20, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    2. Krüger, Niclas A. & Vierth , Inge & Fakhraei Roudsari, Farzad, 2013. "Spatial, temporal and size distribution of freight train delays: evidence from Sweden," Working papers in Transport Economics 2013:8, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
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    Cited by:

    1. Eva Nedeliakova & Maria Hudakova & Matej Masar & Lenka Lizbetinova & Renata Stasiak-Betlejewska & Peter Šulko, 2020. "Sustainability of Railway Undertaking Services with Lean Philosophy in Risk Management—Case Study," Sustainability, MDPI, vol. 12(13), pages 1-28, June.
    2. Andersson, Matts & Berglund, Moa & Flodén, Jonas & Persson, Christer & Waidringer, Jonas, 2017. "A method for measuring and valuing transport time variability in logistics and cost benefit analysis," Research in Transportation Economics, Elsevier, vol. 66(C), pages 59-69.

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    More about this item

    Keywords

    Value of Transport Time Variability (VTTV); Rail freight transports; Freight train delays; Monetary valuation; Precautionary costs; Operative costs; Cost-benefit analysis; Case study;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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