Economic Impact, Design, and Significance of Intermodal Freight Distribution in Pakistan

Abstract

The goal of this study is to quantify and analyse the costs of road-intermodal freight transportation in Pakistan. For the design of the problem, a performance model is utilised, which provides calculations of the costs incurred in road and intermodal freight transports. Our research shows a big cost difference between road and road-rail freight transport. The results show that the cost of road freight transport is 1.48 million Pkr/day and the cost of intermodal freight transport is 1.26 million Pkr/day for the delivery of 220 tonnes of cargo to the consumers. The quantitative analysis of real-life data from one of Asia's leading paper and board businesses used in this study demonstrates operational benefits of more than 60% cost reductions when switching from road to intermodal freight (road-rail) transport. Sensitivity analysis is also presented to assist decision-makers in selecting the most efficient and cost-effective mode of transportation.