Abstract

An implementation of the International Freight Simultaneous Transportation Equilibrium Model (IFSTEM) that developed in United Nations Economic and Social Commission for Western Asia (ESCWA), to the goods trade through the ports and lands of Sultanate of Oman is presented. Although some socio-economic variables, which are not available, were required for IFSTEM model calibration, some reasonable assumptions were made and it was good enough to draw the following main findings: the proposed alternative enhancement scenarios were 4 nested scenarios, i.e., each scenario included the previous one plus an additional enhancement. Scenario 1 involved reducing the number of documents from 8 to 4, and scenario 2 involved scenarios 1 plus reducing the time for port and terminal handling to 1 day (instead of 2 days for imports and 3 days for exports as estimated for 2012 by the World Bank trading across borders report 2013). Scenario 3 involved scenarios 1 and 2 plus reducing the international maritime transport times and costs by 20% (i.e., to become equal to that of the United Arab Emirate (UAE) according to the application assumptions), and scenario 4 involved scenarios 1 and 2 plus reducing the international maritime transport times and costs by 40% (i.e., to become 20% less than that of UAE according to the application assumptions). These 4 enhancement scenarios were analyzed against and compared with scenario (0), i.e., the reference “Do nothing” scenario.The prediction results revealed that the estimated international trade flows (imports, exports and re-exports) for Oman for scenarios 4 would increase by more than 504% by 2040 ( i.e., around 187 million tons) compared to the present situation of the base year 2012 (i.e., around 37 million tons). This increase would represent around 70% compared to the “do nothing” reference scenario by the year 2040 (i.e., around 110 million tons) assuming that the average increase of international trade flows in the “do nothing” case would be around 4% annually during the analysis period from 2012 to 2040. The predictions of average total trip time and total cost per ton revealed an estimated decrease for scenario 4 compared to the reference scenario by around 25% and 20% respectively. These results are internally consistent and represented reasonably significant improvements compared to the “Do nothing” reference scenario.

Highlights

  • The prediction of multicommodity freight flows over a multimodal network has attracted much interest in the recent years

  • An implementation of the International Freight Simultaneous Transportation Equilibrium Model (IFSTEM) that developed in United Nations Economic and Social Commission for Western Asia (ESCWA), to the goods trade through the ports and lands of Sultanate of Oman is presented

  • The prediction results revealed that the estimated international trade flows for Oman were increased by more than 504% by 2040 compared to the present situation of the base year 2012. This increase would represent around 70% compared to the “do nothing” reference scenario by the year 2040 assuming that the average increase of international trade flows in the “do nothing” case would be around 4% annually during the analysis period from 2012 to 2040

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Summary

Introduction

The prediction of multicommodity freight flows over a multimodal network has attracted much interest in the recent years. Et al [26] developed a multimodal multiproduct network assignment model that does not consider shippers and carriers as distinct actors in the decision made for shipping freight This level of aggregation which is appropriate for strategic planning of freight flows, where origins and destinations correspond to relatively large geographical areas, leads to the specification of supplies and demands for the products considered, which represent the services provided by all the individual shippers for the same product. Their model assumes that goods are shipped at minimum total generalized cost, which is appropriate when certain products are captive to a mode, or a subset of modes, due to service availability or regulation.

The Solution Procedure for EOP
Application Assumptions for Demand Models
IFSTEM-Oman Model Supply Side Assumptions
Input Data for IFSTEM-Oman Model and Application Assumptions
Estimated International Maritime Transport Times and Costs for 2012
The IFSTEM-Oman Model Application
Growth Rates of Future International Trade Flows
Predicted Total Cost per Ton of International Trade Flows
Conclusions
Procedures
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