A Multicommodity Multimodal Network Design (MCMND) model is presented; the model is to be used as a planning tool for determining investment priorities for freight intercity networks. The MCMND model is designed to select the best set of investment options for a multimodal regional network, given a limited investment budget. The main component of the model comprises the solution of a nonlinear bilevel network design problem formulated to choose investments that minimize both the transportation costs incurred by users and the environmental impacts of less efficient modes of transportation. Investment options to be considered by the model involve the addition of new physical links to the network, the improvement of existing links, and the location of intermodal transfer facilities at specified nodes of the network. The representation of the multimodal network is at a level of detail appropriate for strategic planning for a large region. The demand for transportation services is fixed and exogenous to the model. Mode choice in shipping freight is modeled in combination with flow assignment, assuming that goods are shipped at minimum total generalized costs. A new path-based stochastic user equilibrium assignment algorithm is proposed to distribute trips over the multimodal network according to a logit-type model. The Tietê-Paraná Valley in Brazil was selected for the development of a pilot application of the MCMND model to assess its efficiency when dealing with large networks. This application also served to emphasize the importance of an interface between the MCMND model and a geographic information system in solving real-life problems.