Abstract
One of the preliminary requirements for freight transportation modeling is to understand the factors that affect the freight volume. In this study, we attempt to investigate the relationship between various factors and freight volumes using a structural equation model. From a review of the existing literature, we formulate our research hypotheses and identify the factors. We propose a research model describing the relationship between the factors and freight volume. Finally, we estimate a structural equation model using the survey data of 97 private steel companies in Korea. From the developed models, we find that all the three characteristics (i.e., location, agglomeration, and other) have positive effects on steel freight volume. Location and other characteristics have a more significant effect than agglomeration characteristics because these characteristics have a direct effect, whereas agglomeration characteristics have an indirect effect.
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