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Do freight transport time savings translate to benefit for transport consuming companies?

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  • Sambracos, Evangelos
  • Ramfou, Irene

Abstract

It is common practice in Benefit - Cost analysis to consider freight transport time savings (FTTS) as a benefit for both transport producing and consuming companies. While transportation projects and policies resulting in FTTS are expected to have a positive effect on carriers’ performance reducing time related transport costs and improving service, this is not always the case for the demand side of the transport market. Using System Dynamics in order to model the internal supply chain of a transport using company and simulate several scenarios, we argue that FTTS do not necessarily translate to benefit for shippers, but their effect depends strongly on the structure of the company’s decision making process.

Suggested Citation

  • Sambracos, Evangelos & Ramfou, Irene, 2015. "Do freight transport time savings translate to benefit for transport consuming companies?," MPRA Paper 68558, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:68558
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    References listed on IDEAS

    as
    1. Evangelos Sambracos & Irene Ramfou, 2014. "The Effect of Freight Transport Time Changes on The Performance of Manufacturing Companies," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 119-138.
    2. Hensher, David A., 2010. "Hypothetical bias, choice experiments and willingness to pay," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 735-752, July.
    3. Luca Zamparini & Aura Reggiani, 2007. "Freight Transport and the Value of Travel Time Savings: A Meta‐analysis of Empirical Studies," Transport Reviews, Taylor & Francis Journals, vol. 27(5), pages 621-636, March.
    4. Evangelos Sambracos & Irene Ramfou, 2013. "Freight Transport Time Savings and Organizational Performance: A Systemic Approach," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 6(1), pages 19-40, April.
    5. W. J. Baumol & H. D. Vinod, 1970. "An Inventory Theoretic Model of Freight Transport Demand," Management Science, INFORMS, vol. 16(7), pages 413-421, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Freight transport time; benefit – cost analysis; Systems Dynamics;
    All these keywords.

    JEL classification:

    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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