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    <title>Transport Research International Documentation (TRID)</title>
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    <copyright>Copyright © 2026. National Academy of Sciences. All rights reserved.</copyright>
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    <managingEditor>tris-trb@nas.edu (Bill McLeod)</managingEditor>
    <webMaster>tris-trb@nas.edu (Bill McLeod)</webMaster>
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      <title>Transport Research International Documentation (TRID)</title>
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      <title>Economies of traffic density and scale in the integrated air cargo industry: The cost structures of FedEx Express and UPS Airlines</title>
      <link>https://trid.trb.org/View/1301709</link>
      <description><![CDATA[This paper examines the cost structures of the leading integrated air cargo carriers, FedEx Express and UPS Airlines. A total cost model is estimated for the two carriers using quarterly data on domestic operations and costs over a nine-year period (2003–2011). The estimated model indicates that the integrated industry exhibits increasing returns to traffic density and constant returns to scale. Accounting for carrier-specific differences in cost structure and network size, FedEx Express is found to be more cost-efficient than UPS Airlines. Looking at the carriers individually, UPS Airlines exhibits substantial economies of traffic density and constant returns to scale while FedEx Express' cost structure is characterized by weak economies of density and constant returns to scale. The combined effect of returns to density and returns to scale on the cost structures of integrated carriers is captured by economies of size. Both FedEx Express and UPS Airlines exhibit economies of size, indicating that carriers in the integrated industry can be more cost efficient by making appropriate adjustments to their network size as their output grows. Moreover, the relative cost-efficiencies of the carriers are reversed when their network-size differences are not controlled.]]></description>
      <pubDate>Wed, 26 Mar 2014 10:07:23 GMT</pubDate>
      <guid>https://trid.trb.org/View/1301709</guid>
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      <title>Inventory Replenishment and Inbound Shipment Scheduling Under a Minimum Replenishment Policy</title>
      <link>https://trid.trb.org/View/891013</link>
      <description><![CDATA[Coordination between production and distribution functions and collaboration between a supplier and customer are required in an effective vendor-managed inventory (VMI) supply system. A dynamic lot-sizing model is studied by the author for production and inbound transportation to the VMI warehouse under a policy with a mutual supplier and customer benefit basis that there should be no less than a predetermined minimum size for each replenishment quantity. The problem in this study assumes a concave replenishment cost structure in general for which optimal algorithms are presented in order to take advantage of economies of scale in shipment consolidation operations and in replenishment operations. The author shows, through computational experiments, that minimum replenishment quantity is the most important parameter on the system. The author also shows that the minimum replenishment policy will only be successful  if there are collaboration-based guarantees for large-size demands.]]></description>
      <pubDate>Tue, 30 Jun 2009 08:32:45 GMT</pubDate>
      <guid>https://trid.trb.org/View/891013</guid>
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      <title>Capacity cost structure, welfare and cost recovery: Are transport infrastructures with high fixed costs a handicap?</title>
      <link>https://trid.trb.org/View/887985</link>
      <description><![CDATA[In this paper, the authors consider a region that invests in infrastructure used by both local demand and through traffic. The authors then compare transport systems that have, for a given capacity, the same total infrastructure cost but vary in the proportion of fixed costs and variable capacity costs. The authors show that, compared to a benchmark infrastructure which has zero fixed costs, an infrastructure which has (ceteris paribus) a higher share of fixed costs leads to higher welfare for the regional government building it. Moreover, the authors find that, even for capacity characterized by very high shares of fixed costs, financing of infrastructure is generally not an important issue as long as regions are allowed to toll through traffic. Finally, the authors show that, compared to the benchmark technology without fixed costs, regions are more likely to make a particular transport investment if they can chose a technology with higher fixed costs. As a corollary, projects with a higher share of fixed costs do not necessarily require higher federal subsidies.]]></description>
      <pubDate>Fri, 29 May 2009 07:41:56 GMT</pubDate>
      <guid>https://trid.trb.org/View/887985</guid>
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      <title>Well-Functioning Competition? Evidence of Competitive Situations and Their Implications in Three Different Passenger Transport Sectors</title>
      <link>https://trid.trb.org/View/889581</link>
      <description><![CDATA[This paper describes how competitive tendering in passenger transport is widespread and it has the potential to help authorities meet several goals, including cost and subsidy reductions. However, several conditions must be met for the competition to work satisfactory. An obvious precondition for well-functioning competition for the market is a sufficient number of bidders per tender. Other indicators of how well the competition works include ownership structure, developments in costs and bidding prices, differences between bids over time, and the difference between the lowest and the highest bid. This paper looks at evidence along these lines from three different passenger transport sectors in Norway: local public transport, regional aviation, and ferry services. The three sectors exhibit very different characteristics with respect to cost structure, competitive pressures, industry structure and entry barriers. The paper uses economic theory to relate the empirical findings to these differences in characteristics and to discuss the implications for future tenders. The empirical data shows that the number of bidders for local bus services has been significantly reduced over time, but has stabilized at an acceptable average of 3 to 5 bidders per tender. Differences between the successful bids and the runner up, as well as between the lowest and highest bid, have decreased significantly over time. Considerable cost savings (subsidy reductions) appear in the first rounds of tendering in each of the bus, aviation and ferry sectors. Finally, the analysis shows that the effects of competitive tendering crucially depends on the industries’ cost profile and barriers to enter the market, a competent buyer, and the pre-competitive tendering market structure. As a consequence, competitive tendering is by no means a straightforward tool that can be applied in any situation or sector. The use of competitive tendering so far seems most satisfactory in local public transport, and the paper concludes with some suggestions with lessons to be learned for public authorities in the other sectors.]]></description>
      <pubDate>Fri, 22 May 2009 10:07:07 GMT</pubDate>
      <guid>https://trid.trb.org/View/889581</guid>
    </item>
    <item>
      <title>Economies of scale in bus transit service in the USA: How does cost efficiency vary by agency size and level of contracting?</title>
      <link>https://trid.trb.org/View/871092</link>
      <description><![CDATA[Past studies of economies of scale in transit have tended to treat the transit industry as a set of similar agencies that have the same cost structure, and have conducted an analysis for the entire range of agency size using a single regression function. This may have caused problems in the interpretation of analysis results because agencies of different sizes that may have different cost structures are treated as a homogeneous data set. In this paper, the author examines the issue of economies of scale in the provision of fixed-route bus transit service in the USA, using level of contracting as a variable to classify agencies into three different size groups. In this analysis, using a significantly larger pooled data set (compared to previous studies) constructed from the National Transit Database of the US Federal Transit Administration from 1992 to 2000, the author found that agencies with different levels of contracting exhibit very different relationships between cost per vehicle hour and agency size. Applying the observed range of agency size, the author also found diseconomies of scale for all agency sizes with all levels of contracting, even when the author  utilized a quadratic function for the regression equation. While the analysis is limited since the model did not control for many other explanatory variables, the findings suggest that the level of contracting is possibly an important variable, among many attributes of transit systems, with which to classify agencies into different size groups, each of which has a different transit cost structure.]]></description>
      <pubDate>Tue, 21 Oct 2008 08:50:11 GMT</pubDate>
      <guid>https://trid.trb.org/View/871092</guid>
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    <item>
      <title>Comparative Analysis of Regional Airline Industry in Europe and North America and Some Insights into Current Developments</title>
      <link>https://trid.trb.org/View/847778</link>
      <description><![CDATA[The regional airline industry in Europe and North America is compared, and through a combination of data analysis and case studies, some of the current changes taking place are investigated. North American regionals are shown to have longer stage lengths, lower unit costs, and higher load factors than their European counterparts. Turboprops remain popular in Europe, but 50-seat jets still dominate in the United States, despite being considered inefficient because of high unit costs and pressure on yields. The bankruptcy of most U.S. legacy carriers has led to renegotiation of contracts for regional flying, with prices being driven down. European regionals face different problems with rail competition, capacity constraints at hub airports, and incursion by low-cost airlines. The differences in the cost structures of BA Connect, British Airways’ former regional arm, and Flybe, operating a new hybrid format, are interpreted, and it is shown that Flybe has much lower labor costs. Alternative business models are then discussed. In the United States, the most popular is the sale of capacity to the majors, whereas in Europe many operate on a quasi-independent franchise basis. It is concluded that European regionals require more action to reduce costs, whereas U.S. regionals will increasingly have to take more of the risk from their major carrier partners. A renewed enthusiasm for turboprops on short sectors is becoming apparent, and the European markets in particular are likely to see a shift to larger aircraft at lower frequency. This puts at risk the schedule convenience and network connections valued by business passengers.]]></description>
      <pubDate>Fri, 21 Mar 2008 08:13:55 GMT</pubDate>
      <guid>https://trid.trb.org/View/847778</guid>
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    <item>
      <title>Econometric Estimation of Scale and Scope Economies Within the Port Sector: A Review</title>
      <link>https://trid.trb.org/View/814853</link>
      <description><![CDATA[Seaports provide multiple services to ships, cargo and passengers. The size of the port and type of service they offer are two key elements when deciding whether competition is feasible and how to promote it or, conversely, regulation is needed. Analysing this requires a profound knowledge of the cost structure of the activity involved. This means not only knowing total costs for different volumes of aggregated traffic, but also the behaviour of costs when part of the bundle is produced, i.e. when the mix changes. The optimal organization of the industry can be studied by means of cost and production functions. This paper offers a review of the relatively scarce literature about econometric ports' cost structure, and highlights the role of the multioutput approach as the correct one because it allows the calculation of key cost indicators (economies of scale, scope and so forth) to determine the optimal port industrial structure for a given forecast of demand (traffic mix and volume).]]></description>
      <pubDate>Thu, 23 Aug 2007 13:00:52 GMT</pubDate>
      <guid>https://trid.trb.org/View/814853</guid>
    </item>
    <item>
      <title>Cost Structure of Highway Construction and Maintenance: How Should We Levy Taxes on Freight Vehicles?</title>
      <link>https://trid.trb.org/View/786638</link>
      <description><![CDATA[Recently, government and logistics service providers have established advanced logistics systems that meet sophisticated and diversified demands of city logistics.  It is necessary to introduce a principle of cost sharing among the infrastructure users in order to accomplish efficiency in logistics activities and to improve the environment.  In this paper, the authors aim to estimate the cost structure and cost responsibility for each automobile type on highway investment.  Based on the estimation results, the authors attempt to determine appropriate tax levels to be paid by highway users including freight vehicles from the perspective of social welfare.  As a policy implication in city logistics, the authors describe the required adjustments that have to be undertaken to change the current automobile-related tax and charging policies.]]></description>
      <pubDate>Fri, 28 Jul 2006 08:06:07 GMT</pubDate>
      <guid>https://trid.trb.org/View/786638</guid>
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    <item>
      <title>EFFICIENCY IN EUROPEAN RAILWAYS: NOT AS INEFFICIENT AS ONE MIGHT THINK</title>
      <link>https://trid.trb.org/View/728234</link>
      <description><![CDATA[This paper studies technical inefficiency in the railway systems of 10 countries of the European Union. A new approach is used permitting disaggregation of inefficiency by factor of production to result in estimates of input-specific technical inefficiency. The cost structure is represented using a generalized McFadden flexible functional form. Policy implications and guidelines for rational decisionmaking in the railway sector are discussed.]]></description>
      <pubDate>Wed, 06 Nov 2002 00:00:00 GMT</pubDate>
      <guid>https://trid.trb.org/View/728234</guid>
    </item>
    <item>
      <title>COMPARATIVE ANALYSIS OF THE PROFITABILITY OF A BARGE-CARRIER SYSTEM AND A CONTAINER SYSTEM FOR A GIVEN LINER TRADE</title>
      <link>https://trid.trb.org/View/166200</link>
      <description><![CDATA[Looking at the future development of liner services, the experience of the past ten years suggests that containerisation is likely to be seriously considered wherever it has not yet been introduced.  The utilization of Ro-Ro systems must take into account the technical and economic suitability of cargo for containerisation, and there is a general feeling that they will be of less interest than partial/combined lo-lo/Ro-Ro arrangements. Whether the utilization of barges and barge-carriers for seagoing or combined cargo transport represents a serious alternative is still open to doubt.  Barge-carrier technology still appears to be lacking in some respects, and there is a lack of information about cost structures of barge-carrier systems.  This paper presents investment and operational cost estimations for such systems, and refers overall costs to their transport performance in a given liner trade, taking into account information about cargo flow, port characteristics, hinterland conditions freight rate patterns, and other data relevant to the planning of a transport system.  Containers and barges need not necessarily mean a 100% contradiction, because any future barge-carrier system should consider transport of containers to some extent.]]></description>
      <pubDate>Wed, 15 Apr 1981 00:00:00 GMT</pubDate>
      <guid>https://trid.trb.org/View/166200</guid>
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    <item>
      <title>THE EFFECT OF THE INTEREST RATE UPON PROJECT FORMULATION AND SELECTION</title>
      <link>https://trid.trb.org/View/965</link>
      <description><![CDATA[The paper examines the effect of the interest rate on various methods of project evaluation and formulation. Several economic evaluation procedures and their advantages are discussed and illustrated.  The problems of project formulation or design with different objectives, cost structures, and timing patterns are covered.]]></description>
      <pubDate>Mon, 25 Nov 1974 00:00:00 GMT</pubDate>
      <guid>https://trid.trb.org/View/965</guid>
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    <item>
      <title>MARKET AND COST STRUCTURE IN SHIPPING</title>
      <link>https://trid.trb.org/View/17784</link>
      <description><![CDATA[The report is concerned with some aspects of the tanker markets as regards oil shipments. The study selects certain issues of market and cost structure and tries to shed some light on some paradoxes.]]></description>
      <pubDate>Wed, 20 Nov 1974 00:00:00 GMT</pubDate>
      <guid>https://trid.trb.org/View/17784</guid>
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