EURO 2024 Copenhagen
Abstract Submission

EURO-Online login

2668. Policy Setting for Integrated Freight and Passenger Transportation

Invited abstract in session TB-58: Public Transport, stream VeRoLog - Vehicle Routing and Logistics.

Tuesday, 10:30-12:00
Room: S07 (building: 101)

Authors (first author is the speaker)

1. Krissada Tundulyasaree
Operations, Planning, Accounting and Control, Eindhoven University of Technology
2. Layla Martin
Operations, Planning, Accounting and Control, Eindhoven University of Technology
3. Rolf Van Lieshout
Operations, Planning, Accounting and Control, Eindhoven University of Technology
4. Tom van Woensel
Technische Universiteit Eindhoven

Abstract

Public authorities use policies to encourage freight forwarders to shift towards more sustainable modes of transportation. In an integrated freight and passenger transportation setting, freight forwarders can choose between unimodal (truck) or multimodal (truck and scheduled train/barge) transport, minimizing their operational costs. To promote more sustainable transport, public authorities levy taxes on road transport and subsidize scheduled services. In this study, we propose a bi-level model where the authority sets road-access taxes and rail/water-access charges while freight forwarders select the modes of transportation. Due to the inherent computational complexities, we solve the problem using a bi-section algorithm for the upper level and Adaptive Large Neighbourhood Search for the freight-forwarder's lower level problem. We find that it is usually optimal to make the scheduled line free and to set the tax sufficiently high to stay within a predefined budget. However, increasing subsidies and taxes gives marginal returns on modal shift and mileage reduction. Due to decreased routing efficiency, a budget-neutral policy results in considerable cost increases for the freight forwarders. The policy maker can allocate a budget to keep tax at an acceptable level while still promoting modal shift.

Keywords

Status: accepted


Back to the list of papers