Feasibility of a modal shift of palletized goods on the bases of a location-analysis model and total logistics cost model

Palletized goods are in Belgium mostly distributed by trucks. These trucks cause negative e ects
on the economy, society and environment. Other transport modes - like barge and rail - do also create
such negative externalities, but in signi cantly lower proportions than road transport. A modal shift of
palletized goods to the inland waterways will by consequence limit the problems. This modal shift implies
that the palletized goods are bundled for the main-haulage by barge. The possible rst- and last mile
distribution must be organized via a limited number of transshipment hubs. As such, the transport done
by truck is limited to an absolute minimum. The locations of those transshipment hubs are crucial for the
feasibility of the modal shift. Therefore we created a location-analysis model which determines the optimal
hub locations on the bases of transport
ows. This location-analysis model determines besides the optimal
hub locations, also the nancial cost of the modal shift and the potential turnover for every one of the
hubs. This is important information; given that the transport cost is one of the main determinants in the
intermodal decision making process. Moreover, the transport cost has proved itself as a clear bottleneck
in previous studies and projects. The cost structure used until now included only direct transport and
handling costs. This cost structure is enlarged with a total logistics cost model, specially developed for
the modal shift of palletized goods. It enables a more realistic calculation of the potential economic gains.
Additionally, the potential reduction in transport-related CO2-emissions is calculated to illustrate the
ecological importance of the modal shift. The analysis is performed for 2011 transport data on palletized
construction materials within Belgium, collected in the Build-over-Water project.