A CROSS SECTIONAL STUDY OF FREIGHT TRANSPORT DEMAND AND RAIL-TRUCK COMPETITION IN CANADA

This article derives a rail-truck freight demand model that is consistent with the economic theory of modal choice in the price-speed-reliability space. The translog model is estimated from the cross sectional data of Canadian interregional freight flows for the eight selected commodities. Major empirical findings are: (i) The quality attributes of service sigificantly influence modal choice only for the relatively high-value commodities. (ii) Both the price and quality elasticities of demand and the elasticity of rail-truck substitution vary substantially from route to route as well as from commodity to commodity. This implies that CES models including Cobb-Douglas form should not be used for freight demand studies. (iii) For the relatively high-value commodities, short-haul traffic is largely dominated by the truck mode, and significant rail- truck competition exists only in the medium and long-haul markets. (iv) For the relatively low-value commodities, effective rail-truck competition exists only in the short- haul markets. Hence, the medium and long-haul markets are largely rail-dominated. (Author)

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  • Corporate Authors:

    American Telephone and Telegraph Company

    195 Broadway
    New York, NY  USA  10007
  • Authors:
    • Oum, T H
  • Publication Date: 1979

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  • Accession Number: 00329983
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Apr 15 1981 12:00AM