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Developing Responsive Rail Services through collaboration

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  • Kuo, April
  • Miller-Hooks, Elise
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    Abstract

    In this paper, the problem of optimally serving one off-loads arriving on spot markets through rail services is addressed. To facilitate rail’s responsiveness, collaboration among competing rail carriers positioned to handle the newly arising demand is considered. Through such collaboration, carriers can, by agreement, provide transport on existing trains for one-off loads belonging to their competitors. Additionally, carriers can pool shipments with synergistic origins, destinations and desired delivery dates to form new train lines operated by one of the carriers in the collaboration. This problem of serving spot markets through collaboration among competing rail carriers operating within an alliance in co-transporting one-off loads arriving on the spot market is mathematically formulated and an efficient solution methodology employing concepts of collaborative decision-making incorporated within a combinatorial auction (CA)-based framework is proposed for its solution. The proposed technique aids in forming profitable trains that might otherwise have been underutilized and permits rail carriers to capture a greater share of the freight market.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0191261511001494
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    Bibliographic Info

    Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

    Volume (Year): 46 (2012)
    Issue (Month): 3 ()
    Pages: 424-439

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    Handle: RePEc:eee:transb:v:46:y:2012:i:3:p:424-439

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    Related research

    Keywords: Combinatorial auctions; Collaborative decision-making (CDM); Spot markets; Intermodal freight transport; Rail transport;

    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Abrache, Jawad & Crainic, Teodor Gabriel & Gendreau, Michel, 2005. "Models for bundle trading in financial markets," European Journal of Operational Research, Elsevier, vol. 160(1), pages 88-105, January.
    2. Song, Jiongjiong & Regan, A C, 2003. "An Auction Based Collaborative Carrier Network," University of California Transportation Center, Working Papers qt2g88d8vc, University of California Transportation Center.
    3. Gibson, Stephen, 2003. "Allocation of capacity in the rail industry," Utilities Policy, Elsevier, vol. 11(1), pages 39-42, March.
    4. Nilsson, Jan-Eric, 1999. "Allocation of track capacity: Experimental evidence on the use of priority auctioning in the railway industry," International Journal of Industrial Organization, Elsevier, vol. 17(8), pages 1139-1162, November.
    5. Brewer, Paul J. & Plott, Charles R., 1996. "A binary conflict ascending price (BICAP) mechanism for the decentralized allocation of the right to use railroad tracks," International Journal of Industrial Organization, Elsevier, vol. 14(6), pages 857-886, October.
    6. Kuo, April & Miller-Hooks, Elise & Mahmassani, Hani S., 2010. "Freight train scheduling with elastic demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 1057-1070, November.
    7. Groothedde, Bas & Ruijgrok, Cees & Tavasszy, Lóri, 2005. "Towards collaborative, intermodal hub networks: A case study in the fast moving consumer goods market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(6), pages 567-583, November.
    8. Affuso, Luisa, 2003. "Auctions of rail capacity?," Utilities Policy, Elsevier, vol. 11(1), pages 43-46, March.
    9. Newbery, David M., 2003. "Network capacity auctions: promise and problems," Utilities Policy, Elsevier, vol. 11(1), pages 27-32, March.
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    Cited by:
    1. Xu, Su Xiu & Huang, George Q., 2013. "Transportation service procurement in periodic sealed double auctions with stochastic demand and supply," Transportation Research Part B: Methodological, Elsevier, vol. 56(C), pages 136-160.

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