A Simulation Analysis of the Economic Consequences of Establishing Multi-modal Transportation Companies

The study is concerned with the examination of the economic consequences of establishing multi-modal transportation companies. The purpose is to examine the economic impact various combinations of parameters or test factors have on a transportation company formed from single modal carriers, and to determine on the average which organizational form, transportation company or single modal carriers, is economically superior. A simulation model was developed for the comparison of a transportation company with single modal carriers. The test factors selected for analysis are: the operating ratios of truck and rail modes, the load factors of these modes, the amount of available capacity, and the level of shippers' logistics constraints.