Optimization of a Japan-Europe multimodal transportation corridor

Abstract

Based on the export demand from Japan to the EU, we propose a sea-rail multimodal transportation corridor, with the China Railway Express (CR-Express) as the backbone. We conduct revealed preference (RP) and stated preference (SP) surveys of Japanese shippers and forwarders, and then integrate this data to build a utility function and route choice model of containers exported from Japan to Europe. We then construct a programming model to optimize a Japan-Europe, sea-rail transportation corridor in terms of ship size and sailing speed, operating frequency for Japan-China short-sea liner shipping and the needed CR-Express trains, with the objective of maximizing transportation profits from the multimodal system. Our model demonstrates that Japan’s high value exports to Europe prefer the multimodal route. In addition, three ships of 500 TEU each, with a sailing speed of 21 knots and departing 3 times per week, should be used for the short-sea liner leg of the route. We project the realized benefit at 2.0807 million USD/week (equivalent to 108.19 million USD annually). In the optimal case, 3 CR-Express trains with available capacity of 69 TEU containers will be necessary to connect the short-sea liner ships to the overland route.