Modeling Inland Intermodal Container Transport Systems in Taiwan

Abstract

The growth in use of containers and the creation of joint ventures in the shipping industries have all put pressure on seaports. The concept of hinterland is becoming obsolete through the use of containers providing intermodality and reflecting inter-port competition and port concentration. The context of inland container transport originally resulted from the port-hinterland relationship between regional industries and port infrastructure. However, the development of inland container transport has developed in more recent times according to the concept of a hub port with feeder ports. This paper discusses the validity of using the gravity model approach to study inland container transport in the context of the above development. The study assesses the role of distance on the performance of inland container transport and evaluates how that role has changed over time with new transport technologies and logistics systems. The simple gravity model was used to estimate distance elasticity and the time trends for inland container transport for the past 10 years in Taiwan. The results for the aggregate categories were similar to previous research. However, there was statistical evidence of a declining effect of distance when port-hinterland relationship data were used. The paper examines reasons for this declining effect.