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Developing Responsive Rail Services through collaboration

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  • Kuo, April
  • Miller-Hooks, Elise

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.

Suggested Citation

  • Kuo, April & Miller-Hooks, Elise, 2012. "Developing Responsive Rail Services through collaboration," Transportation Research Part B: Methodological, Elsevier, vol. 46(3), pages 424-439.
  • Handle: RePEc:eee:transb:v:46:y:2012:i:3:p:424-439 DOI: 10.1016/j.trb.2011.10.009
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    References listed on IDEAS

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    1. 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.
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    4. 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.
    5. Affuso, Luisa, 2003. "Auctions of rail capacity?," Utilities Policy, Elsevier, vol. 11(1), pages 43-46, March.
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    8. 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.
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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.
    2. Xu, Su Xiu & Huang, George Q., 2014. "Efficient auctions for distributed transportation procurement," Transportation Research Part B: Methodological, Elsevier, vol. 65(C), pages 47-64.
    3. Xu, Su Xiu & Cheng, Meng & Huang, George Q., 2015. "Efficient intermodal transportation auctions for B2B e-commerce logistics with transaction costs," Transportation Research Part B: Methodological, Elsevier, vol. 80(C), pages 322-337.
    4. Zhang, Bo & Yao, Tao & Friesz, Terry L. & Sun, Yuqi, 2015. "A tractable two-stage robust winner determination model for truckload service procurement via combinatorial auctions," Transportation Research Part B: Methodological, Elsevier, vol. 78(C), pages 16-31.

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