Modelling Freight Transport Costs: A Case Study of the UK-Greece Corridor

ABSTRACT

The large–scale movement of freight by road in Europe has contributed to worsening traffic congestion and deteriorating transport conditions generally. A number of policy initiatives have sought to address this problem by encouraging the use of rail or sea transport, especially over longer distances. A freight transport cost model, applicable to any given route over which freight is moved by a variety of means, is proposed. The model enables the logistics tradeoffs, such as those between speed and costs, to be thoroughly examined in a range of circumstances. In particular, the model highlights the factors which affect the choice of transport mode or combination of modes for given movements. By testing the model against real conditions on the UK–Greece transport corridor, it is shown to be robust and to contribute positively to the wider debate on modal choice for freight transport at large. The model may also be used in the process of transport policy formulation.