Freight Distribution in Urban Areas: The role of supply chain alliances in addressing the challenge of traffic congestion for city logistics

The distribution of freight is a major contributor to the levels of traffic congestion in cities, yet it is much neglected in the research and planning activities of government, where the focus is disproportionately on passenger vehicle movements. Despite the recent recognition of the contribution of freight transportation to the performance of urban areas under the rubric of city logistics, we see a void in the study of how the stakeholders in the supply chain associated with the distribution of goods (whose destination is an urban location) might cooperate through participation in distribution networks, to reduce the costs associated with traffic congestion. Given that transport costs are typically over 45% of all distribution costs, with congestion contributing a substantial amount of cost in the urban setting, the importance of establishing ways in which supply chain partnerships might aid in reducing the levels of freight vehicle movements in urban areas has much merit. This paper sets out a framework to investigate how agents in the supply chain might interact more effectively to reduce their costs of urban freight distribution. We propose an interactive agency choice method as a way of formalising a framework for studying the preferences of participants in the supply chain to support specific policy initiatives. Such a framework is a powerful way of investigating the behavioural response of each agent to many policies including congestion pricing as a way of improving the efficient flow of traffic in cities

The Oosterweel junction revisited.

This paper assesses the Oosterweel junction, a new tunnel under the river Scheldt, that aims to alleviate the congestion on the existing tunnels and on the Ring of Antwerp. The paper uses data from existing studies of the same project to calibrate a simple network model (MOLINO-II). The model is then used to compare alternatives with and without the new tunnel. The alternatives include different combinations of tolls and bans on trucks. The study concludes that the first priority is not to build new capacity but to remove the pricing distortions on the existing capacity. The alternatives that include a pricing reform are the only ones that generate a positive net benefit, almost all scenarios that include the new tunnel have a negative net benefit.

Gridlock - Regulatory Regimes in the Thai Passenger Transport Sector

The Thai passenger transport sector remains dominated by ailing state-owned enterprises (SOEs). Virtually untouched by post-1997 crisis liberalization and privatization schemes that would have revitalized these zombies1, the managerial and regulatory architecture of transport SOEs continue to be complicated. Departments under at least two ministries and three sectoral commissions with complex structures regulate the sector with unclear lines of responsibilities.Lacking regulatory expertise, public officials often make decisions on an ad hoc basis and abusively protect the status quo just as the financial performances of these SOEs, especially welfare bus and railway operations, deteriorate. As this paper will demonstrate, privatization, shock therapists knee-jerk response to this structural problem, may be inappropriate unless regulatory institutions are strong and independent, restraining conflict of interest and rent-seeking behavior of public officials. Because regulatory capture is prevalent, Thailand should first consider institutional remedies, most importantly separating regulatory function from operation and policy-making, whilst increasing public awareness and strengthening competition regime.Thailand, passenger transport system

Gridlock - Regulatory Regimes in the Thai Passenger Transport Sector

Thailand, passenger transport system

Options for reshaping the railway

In many countries the mismatch between what the railways offer and what the customers want has caused significant economic inefficiency and severe financial strains for the railways and their government owners. The concept of the railway as a monolithic entity is so strong in many countries as to be a roadblock against reshaping the railway. The authors explore four options which can be used to reshape the railways. First is the lines of business option which improves accountability and responsiveness to markets. The second is the competitive access option which introduces intramodal competition in selected markets, while maintaining unitary control over most railway operations. The third is the"wholesaler"option which would accomplish an excellent marketing job, but the actual operation would remain in monolithic hands. Finally there is the"toll rail enterprise"option which comes closest to reflecting a theoretical model of marketing effectiveness, however it would generate potential operating conflicts and higher transaction costs. The authors show that one generalization holds true in all circumstances: a monolithic railway does not function well in a market economy in competition with privately owned, properly regulated competitors - especially trucking. The authors point out that solutions will vary, but the universal objective as an economy becomes more market driven is to make the railway more market sensitive.Railways Transport,Roads&Highways,Environmental Economics&Policies,Banks&Banking Reform,ICT Policy and Strategies

A System of Tradable CO2 Permits Applied to Fuel Consumption by Motorists

Decentralized transferable permit systems in the transport sector can be of interest with regard to reducing greenhouse gas emissions, in spite of anticipated transaction costs. This paper describes a potential application of a domestic market for car fuel consumption permits. The marginal costs of consumption reduction vary sufficiently according to motorists' residential locations to consider permit exchanges. Economic evaluation of this system shows that there are transfers of surplus between the various groups of motorists according to their residential locations. The central government may lose significant revenues when compared with a conventional fuel tax. Lastly, the issue of transaction costs, the benefits and disadvantages in terms of social acceptability and equity are discussed. (JEL classification: D120; D450; R410; R480).Tradable permits ; Transport ; Greenhouse gas ; economic evaluation ; car fuel consumption ; carbon card ; motorists

Key issues in trade facilitation : summary of World Bank/European Union workshops in Dhaka and Shanghai in 2004

Trade facilitation is the ability of countries to deliver goods and services on time at the lowest possible cost. It has emerged as an important issue in unilateral, bilateral, and multilateral trade liberalization. Most countries have embarked on heroic reforms aimed at reducing transaction costs of trade. Thus, among the four new Singapore issues, there was least resistance from World Trade Organization (WTO) member countries to include trade facilitation in the Doha Round discussions. However, all countries are not equally placed in initiating reforms in the complex areas of customs procedures, transport and port logistics, harmonization of standards, and simplification of procedures. Trade facilitation reforms require a large volume of technical assistance for national capacity building. To facilitate what these reforms entail and what can be learned from cross-country experiences, the EU and the World Bank organized two workshops in Dhaka (South Asian countries) and Shanghai (East Asian countries) in 2004. Jointly they succeeded in bringing together renowned experts from multilateral organizations, selected bilateral donor community, the private sector, ex civil servants, and scholars. The participants were largely drawn from the relevant government departments and chambers of commerce and industry. This paper summarizes the main presentations in the workshops. It also indicates the areas that need more focus in future events. The paper should serve as a reference document for national policymakers and for future seminars and workshops on trade facilitation. It has also linked the presentations to the ongoing research work on trade facilitation.Common Carriers Industry,Transport and Trade Logistics,Environmental Economics&Policies,Economic Theory&Research,Trade Policy

A system of tradable permits applied to fuel consumption by motorists

Decentralized transferable permit systems in the transport sector can be of interest with regard to reducing greenhouse gas emissions, in spite of anticipated transaction costs. This paper describes a concrete application of a domestic market for motor vehicle fuel consumption permits. The marginal costs of consumption reduction vary sufficiently according to motorists' residential locations to consider permit exchanges. Economic evaluation of this system reveals that there are transfers of surplus between the various groups of motorists according to their residential locations. The central government may lose significant revenues when compared with a conventional fuel tax. Lastly, the issue of transaction costs, the benefits and disadvantages in terms of social acceptability and equity are discussed.Transferable permits ; Transport ; Greenhouse gas ; Surplus

International Air Cargo in Time of Crisis: Global Challenges and Modal Shift Provide Transformational Opportunity in Commerce and Law

The current pandemic has elevated the critical need for a dependable, resilient, air cargo supply chain to the forefront of commercial and legal discussion. Throughout its history, air cargo has evolved in parallel with other unimodal means of cargo transport into a global multimodal transport paradigm. The unimodal legal regimes governing individual modes of cargo transport have not kept pace with the growth and development of global cargo transport and its associated legal issues. The unimodal regimes do not adequately reflect the relational, commercial, and operational realities of the contemporary global multimodal supply chain. The authors identify key changes in air cargo and multimodal supply chain logistics and relationships, and discuss the resulting contemporary legal issues that have emerged and must be addressed. The authors advocate that a multimodal cargo transport regime is needed to reflect these current realities and to accommodate future multimodal evolution. At a minimum, update and integration of the Warsaw, Montreal, and CMR conventions is indicated. The authors emphasize the essential need for continued integration of new technologies and complete digitalization of the air cargo supply chain in order adequately to prepare for the global multimodal cargo transport paradigm of tomorrow