TRADE: Multimodal Transport Networks; Professor Woan Foong Wong (University of Oregon)

Abstract

Movement of goods involves multiple modes of transportation. This paper studies multimodal transport networks, and their economic and environmental implications for infrastructure investments. We develop a tractable quantitative spatial equilibrium model incorporating multimodal routing, despite increased dimensionality of the underlying network, and congestion at intermodal terminals, where mode-switching takes place. Using vessel-positioning data, we estimate the strength of intermodal port congestion by investigating ship dwell times and their responsiveness to port traffic. Using highway and rail data, we estimate a modal diversion elasticity with respect to infrastructure improvements. With these estimates, we calibrate the model to US domestic freight flows using road, rail, and port traffic and geography data. Evaluating the welfare effects of US terminal investments, we identify important bottlenecks in the center of the US---a 1% reduction of transportation cost in the most important terminals generates welfare gains equivalent to 200-300 million USD of additional GDP (in 2012 USD). Modal diversion from truck to rail traffic further result in decreases in greenhouse gas emissions.