Multi-objective evaluation of intermodal freight terminal location decisions

Abstract

In the movement of freight across the supply chain, terminals play an important role as points of transfer between different modes. The location of terminals is one of the most crucial success factors bearing directly and indirectly on the main stakeholders involved including policy makers, investors, terminal operators, freight operators, and the local community affected. There have been several attempts to develop models to evaluate the optimum location of terminals. However, those models tend to maximize terminal owners’ and users’ benefits. Only a few attempts have been made to include community impacts. There is a need to deal with the individual perception and strategic behavior of each stakeholder, including the behaviour and objectives of the impacted community living close to potential terminal sites. Finally, there is no concrete study on how terminal expansion, interdependency of terminals, and freight policy affect the pattern of terminal locations. The paper reports on the initial phases of a study aimed at developing a model to perform an evaluation of intermodal freight terminal location decisions. The model will be developed, based upon the most appropriate multi-objective evaluation techniques derived from the findings of the research investigation, with other supporting established modules including land use allocation and transport network models; financial viability; terminal user cost; and environmental and traffic impact modules. The influences of terminal expansion, interdependency of terminals, and freight policy on the pattern of terminal locations will also be investigated by a sensitivity test. The developed model is expected to be a comprehensive tool for assisting decision makers in selecting the optimum terminal locations that satisfy the often conflicting needs of the major players.