Transport Logistics

iv) Need to influence demand for intermodal transport

Intermodal transport will never be able to compete seriously with road transport on short

distances. It could however be a viable alternative for some medium- and long-distance movements

currently handled by truck. Under the right conditions, intermodal transport could fulfil the demands

for flexible freight transportation with high quality service and competitive prices. However, in terms

of comparative advantage, the intermodal transport market is limited to distances exceeding

approximately 500 kilometres. In order to have any significant impact on road transport in the future,

intermodal transport must be able to compete on the vital middle distances of 200 to 500 kilometres.

However, for the most part, government policy aims at creating a level playing field for all

operators and modes. It is questionable whether such an approach will lead to a considerable shift

from road to intermodal transport. If a quantum shift in the trend towards road freight is really

desirable in terms of environmental objectives, a more regulatory approach may be the only possible

way, with commodities being regulated to rail. However, without liberalisation of rail markets, the

likely efficiency implications would be severe. Although, so far, policy has put more emphasis on the

supply side in terms of networks, terminals and technologies, it needs to focus more on measures

impacting on the demand side of intermodal transport.

Short of regulating commodities to a certain mode of transport, all policy measures to influence

the demand side would be indirect measures. Policies impacting on demand through taxation/charging

regimes could mean a stimulus for intermodal transport. Policy could also focus on creating awareness

in the private sector of the opportunities for intermodal transport within the scope of logistics.

Analysing best practice models or developing scans to support firms in identifying opportunities

relevant to their specific situation could facilitate this. Demand could also be shifted by influencing

locations of terminal facilities, integrating intermodal terminal facilities into loading or dispatching

centres, establishing covenants between shippers/forwarders and governments, and stimulating

consumer demand for environmentally friendly products.

On the other hand, for some regions, geographical constraints are the main determinant in the

choice of a certain mode. In this case, policy should not aim at modal shifts, but at increasing the

efficiency of transport. Intermodal transport should be the result of intelligent and efficient logistics

and should not be a goal in itself. Public policies on intermodal transport, which do not fit into market

conditions, can lead to inefficient outcomes.