Assessing the value of travel time reductions in (sub)urban freight transportation

Abstract

Growing urbanization in the last years have caused concentration of people and economical activities in urban areas all around developed countries, causing high levels of traffic congestion in roads. Freight transportation is one of the most affected sectors by the congestion, as it generates uncertainty in time travels. However, a high percentage of on time deliveries is crucial for companies to have an efficient and optimized supply chain. High cost is associated with unreliable time deliveries, but the value of this cost, the value of reliability, has never been calculated before in Sweden. Considering this value in the Cost Benefit Analysis (CBA) of transportation and infrastructure projects will lead to have more accurate information about the economic impact, thus achieving better decision making. Through the theoretical study of the concept of reliability, its causes and its consequences, and through surveying and interviewing freight transportation and logistics companies, it has been found out how much the companies are willing to pay to get more reliability, and also for less travel time, in their transport journeys. These new empirical values of travel time and reliability have been obtained using random utility maximization approach with discrete choice modelling, defined by the analysis of the preferences of carriers and suppliers through a stated preference survey. These preferences have been analysed according to many variables, of which the sector of the company and the capacity of vehicles have proved to be significant. The ÅSEK report, which is a summary of CBA principles and values to be used in Swedish transport sector, recommends to use the value of reliability as twice the value of travel time savings, but the output of this thesis revealed that the value of reliability is 3,23 times higher than the value of travel time savings. This thesis is part of the global project called "Ringroad logistics - efficient use of infrastructure” which seek to dynamically prioritize socially valuable freight and increase the capacity of existing infrastructure by streamlining transport in roads in urban areas.