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Barriers to intermodal freight diversion: a total logistics cost approach

Hasan, KR, Zhang, W ORCID: 0000-0002-5651-6706 and Shi, W ORCID: 0000-0001-6551-0499 2020 , 'Barriers to intermodal freight diversion: a total logistics cost approach', paper presented at the Annual Conference of the International Association of Maritime Economists (IAME) 2020, 10-13 June, Hong Kong.

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Abstract

This paper analyses the intermodal freight diversion from road to inland water transport (IWT) for domestic transportation through ports in Bangladesh. The aim is to understand the barriers to intermodal freight diversion and examine the possible measures to make modal shift possible. The most significant factors regarding the modal choice are cost, time, reliability, flexibility, andenvironment. The related measures for facilitating modal shift are operational,organizational, fiscal and regulatory moves. Considering the most appropriatefactors and the consecutive measures, the total logistics cost of transportinggoods by three different modes along the main trade corridor namely Dhaka-Chittagong are estimated based on the inventory-theoretic model. Data on allthe three different modes road, rail and IWT for a period of two months arecollected from the operators. Empirical results indicate that IWT is in a betterposition than the road in terms of cost but in the unfavourable condition interms of transit time. However, by taking appropriate actions, such as servicequality and capacity enhancement, infrastructure development, the researchreveals that IWT can gain competitive advantages in both cost and time. Theresearch draws practical implementation for decision makers by redesigningthe freight movement through the IWT corridor. Further, service providers andpolicy makers can specify the areas of improvement to facilitate the intermodaldiversion and achieve the goal of reducing the applied cost and time.

Item Type: Conference or Workshop Item (Paper)
Authors/Creators:Hasan, KR and Zhang, W and Shi, W
Keywords: inland water transport, total logistics cost, inventory holding cost, intermodal transport, Bangladesh
Journal or Publication Title: Proceedings of the Annual Conference of the International Association of Maritime Economists (IAME) 2020
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