Location Analysis Model for Belgian Intermodal Terminals: Importance of the value of time in the intermodal transport chain Ethem Pekin a, *, Cathy Macharis a , Dries Meers a , Piet Rietveld b a Vrije Universiteit Brussel, MOBI, MOSI-T, Pleinlaan 2, 1050 Brussels, Belgium b Vrije Universiteit Amsterdam, The Netherlands 1. Introduction Intermodal transport is the combination of at least two modes of transport in a single transport chain, without a change of container for the goods, with most of the route travelled by rail, inland waterway or ocean-going vessel and with the shortest possible initial and final journeys by road [1]. Intermodal transport may include various types of transport modes. In this paper we concentrate on the combination rail/road and waterways/road using containers as loading units. As noted by Bontekoning et al. [2], intermodal transport gets growing recognition as well from policy makers, practitioners and academics as an important alternative transport mode that can help tackle the congestion and environmental problems caused by our transport system. Decision support systems need to be developed in order to understand the intermodal transport system better and to assess the potential success of policies to stimulate it [3]. As several transport modes are included in an intermodal transport chain, intermodal transport costs involve a variety of transport activities. Fig. 1 represents the intermodal cost function. Taking a door-to-door intermodal transport chain, the function allows calculating total intermodal transport cost between an origin and a destination. At the port, intermodal barge transport has larger handling costs compared to unimodal road transport. This is due to the cranes that are being used for the transhipment of containers on barges. The main haulage is carried by barge or train. The advantage of intermodal transport lies in the smaller variable costs during main haulage, as a result of the scale economies that are obtained by the large capacities that can be used. Scale economies, gained by the main haulage leg of an intermodal transport chain, can further be increased by the introduction of larger vessels or longer trains. As the variable cost of barge transport is lower compared to road-only transport, the longer distance covered by the intermodal leg will make intermodal barge transport more efficient than road-only transport. At the end of the chain, this advantage is partly compensated by the extra cost that has to be paid for the terminal handling. Terminal operations necessary to tranship the goods from one mode to another imply a vertical leap in the cost curve. Reliable terminal operations, will contribute to reduce costs that take place in transhipping a container from the main haulage to the drayage. In order to achieve reliable operations and optimise the terminal processes, ICT applications will be needed. Special attention for the storage and transport of empty containers is also required. The post-haulage in the intermodal transport chain is performed by road. The final section of the cost curve of intermodal freight transport thus runs parallel to unimodal road transport. Once the total intermodal cost is calculated, it is possible to make comparisons with road-only transport, opening the way to a series of possible scenarios that can be assessed using an appropriate set of tools. For short distances unimodal road transport performs better compared to intermodal transport. Competitiveness of intermodal transport is defined by the concept Computers in Industry 64 (2013) 113–120 A R T I C L E I N F O Article history: Received 30 January 2012 Received in revised form 30 April 2012 Accepted 12 June 2012 Available online 20 July 2012 Keywords: Intermodal transport GIS network model Value of time Empty returns A B S T R A C T Intermodal transport, the combination and integration of several transport modes, with the use of loading units, is in most cases more environmentally friendly than unimodal road transport for the carriage of goods. The LAMBIT-model (Location Analysis Model for Belgian Intermodal Terminals) has been developed to analyse the market areas of existing and potential intermodal terminals. In the LAMBIT model, barge/road and rail/road intermodal chains can be compared to unimodal road transport within Belgium. In this paper we show how to include, next to market prices, the value of time in the model and how to integrate other factors influencing the cost structure, such as the possibility to use the terminal as an empty depot and implications of the so-called backhaul problem and the distance of the post-haulage section. Different scenarios will be evaluated and compared to the reference scenario. ß 2012 Elsevier B.V. All rights reserved. * Corresponding author. Tel.: +32 2 629 20 87; fax: +32 2 629 21 86. E-mail addresses: Ethem.Pekin@vub.ac.be, epekin@vub.ac.be (E. Pekin). Contents lists available at SciVerse ScienceDirect Computers in Industry jo ur n al ho m epag e: ww w.els evier .c om /lo cat e/co mp in d 0166-3615/$ – see front matter ß 2012 Elsevier B.V. All rights reserved. http://dx.doi.org/10.1016/j.compind.2012.06.001