A RiskCost Approach to RailTruck Intermodal Transportation of Mixed Freight

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A Risk-Cost Approach to Rail-Truck Intermodal
Transportation of Mixed Freight

• Manish Verma
• Faculty of Business Administration, Memorial
  University
• Vedat Verter
• Faculty of Management, McGill University

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Presentation Outline

• Introduction.
• Significance.
• Motivation.
• Rail-Truck Intermodal Transport Chain.
• Case Study.
• Canadian Example.
• Assessment and Analysis.
• Optimization Models.
• Conclusion

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Introduction/ Motivation

• Hazardous Materials Intermodal Transportation
• United States
• 1.5 or over 19 million tons of hazmats.
• 9 of multiple mode shipments.
• Europe
• Chemical Industry Intermodal transport.
• Global Chemical Industry
• 10 global trade growth in 2002.
• 5.1 billion tons by 2020.
• Intermodal Transportation One of the highest
  growth.
• No Risk Assessment work to date.

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Rail-Truck IM Transportation System

• Bontekoning (2003), Bontekoning et al. (2004) and
  Crainic and Kim (2005).

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Case Study

• Demand
• Hypothetical.
• Expressed in number of IMO tanks.
• Involves both Hazmat and Regular cargo.
• Has an associated delivery time.
• 100 origin-destination pairs.

Outbound Drayage
Intermodal Trains
Inbound Drayage
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Evaluation

• Risk-Cost Analysis time or service level.
• Dollar Cost.
• Population Exposure Risk.
  (Verma and Verter, 2004),
  (Verma et al., 2005).

Inbound Drayage for Shipper at Repentigny
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Evaluation Rail-Haul
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Evaluation-Contd.
Outbound Drayage to Receiver at Kelowna
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Analysis
Weighted Paths for Inbound Drayage
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Analysis- IM Trains

• Regular-IM
• All outside Greater Vancouver area.
• Kelowna, Kamloops, Prince-Rupert, Prince-George.
• Premium-IM
• Six in the Greater Vancouver area.
• Burnaby, Richmond, Forest Hills, Coquitlam,
  Haney, Surrey.
• Population Exposure Risk
• Determined by train makeup (Verma and Verter,
  2004).
• Non-linearity and Economies of Risk.
• Assignment Heuristic for train makeup.

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Analysis- IM Trains

• Unit-trains for hazardous cargo.
• Reduced Population Exposure risk by 24.
• Cost remained the same.

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Analysis
Weighted Paths for Outbound Drayage
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Alternate IM Train
South Route

• Passes through Calgary
• Shorter than the other route.
• Riskier exposes more people.
• Denser population centers than around Edmonton.
• Eliminates the need to use Premium-IM train.
• Provides more time for inbound drayage.
• Reduce Risk by taking longer paths.
• More time to prepare shipments.

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First Special Case
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Mathematical Model for First Case
Subject to
Lead-Time
Transshipment
Forcing
Demand
Capacity
Sign Restrictions Constraints
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Second Special Case
More than one type of train service is available
between the two intermodal terminals.
Subject to
Transshipment
Forcing
Demand
Capacity
Lead-Time
Sign Restrictions Constraints
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General Case Model
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Subject to
Forcing
Transshipment
Demand
Capacity
Lead-Time
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Conclusion

• Hazmats and ITS.
• Research Motivation.
• Economies of Railroad and Efficiency of Trucks.
• Case Study
• 100 supply-demand pair problem.
• Societal risk reduction specified-time
  flexibility.
• Preparing shipments earlier.
• Using Premium-IM trains.
• Dispatching Unit-trains.
• Optimization Models.

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Thank You!
Questions ?
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Contributions

• Studies rail-truck intermodal transportation of
  hazardous and regular freight.
• Relatively large realistic case example is built
  and presented for evaluation and analysis for
  additional managerial insights.
• Risk-Cost tradeoff driven by the element of
  time or service level is presented.

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Solution