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Barriers to intermodal freight diversion: a total logistics cost approach

Citation

Hasan, KR and Zhang, W and Shi, W, Barriers to intermodal freight diversion: a total logistics cost approach, Maritime Economics and Logistics pp. 1-18. ISSN 1479-2931 (2021) [Refereed Article]

Copyright Statement

© Springer Nature Limited 2021

DOI: doi:10.1057/s41278-020-00182-3

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‚Ä"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 √† 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.

Item Details

Item Type:Refereed Article
Keywords:inland water transport, total logistics cost, inventory holding cost, intermodal freight transport, Bangladesh
Research Division:Commerce, Management, Tourism and Services
Research Group:Transportation, logistics and supply chains
Research Field:Logistics
Objective Division:Defence
Objective Group:Defence
Objective Field:Logistics
UTAS Author:Hasan, KR (Mr Khandaker Rasel Hasan)
UTAS Author:Zhang, W (Dr Vera Zhang)
UTAS Author:Shi, W (Dr Wenming Shi)
ID Code:142524
Year Published:2021
Deposited By:Maritime and Logistics Management
Deposited On:2021-01-21
Last Modified:2021-09-22
Downloads:0

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