Abstract

To find the maximum social welfare, this paper incorporates the external costs of transportation to propose an Intercity Intermodal Logistics strategy where the railroad system is responsible for long-distance line-haul transportation and logistics companies are responsible for regional pickup and distribution of commodities. A multi-objective mathematical model is thus established to determine the financial profits and economic benefits, location of rail logistics terminals, and dispatching freight routes. In addition, an economic evaluation is carried out through a comparison with Intercity Logistics Highway Transportation. Empirical analysis results show that Intercity Intermodal Logistics is economically feasible.

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