An Analytical Approach to Rail-Truck Intermodal Network Design

Rail-truck intermodal transportation plays a vital role in freight transportation. In this paper, we have developed a model for designing an optimal rail-truck intermodal transportation network. The locations of intermodal terminals are not pre-defined, and the proposed model determines the optimal locations of intermodal terminals, the number and type of intermodal train services, and the freight routing. The proposed optimization program is used to study numerical examples, and sensitivity analysis is performed to gain the following managerial insights: first, a reliable estimation of demand is needed when designing a network as it affects the network structure. Besides, a reliable estimation is necessary to avoid losing potential customers due to lack of capacity in the network. Second, it is crucial to have enough terminal capacity to meet demand, however, extra capacity will not necessarily result in lower overall cost.