Modelling Freight Transport Mode Choice of Users for Newly Developed Matarbari Seaport in Bangladesh

Abstract A feasible and sustainable mode of freight transportation is crucial for facilitating trade and logistics operations for a new developing port like Matarbari port in Bangladesh. Therefore, the study aims to identify the factors which influence users, including shippers, consignees and forwarders to choose the preferred transport mode. Based on the identified factors, the study also investigates the best mode of transportation for transporting containerized cargo from the Matarbari deep seaport to its hinterland. The research adopts two operations research models and one econometric model. The Best Worst Model (BWM) has been applied to identify the weights or relative importance of the factors influencing the choice of freight transport mode. The Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE) model has been used to outrank the three freight transport alternatives: rail, road, and inland waterway transport (IWT). Furthermore, the Conditional Logit Model (CLM) has been used to identify the freight transport alternative(s) based on the negative and positive influential factors. The research findings indicate that transportation cost, customs clearance and documentation, and cargo damage and accident risk are key factors influencing the movement of containerized cargo from Matarbari to its hinterland. The results further suggest that rail is the only feasible mode for transporting containerized cargo from Matarbari to Dhaka and its surrounding areas, as supported by both PROMETHEE and CLM analyses. The findings will help Bangladeshi policymakers to draft the freight transport policy relevant to Matarbari port and other similar port-hinterland connectivity problems.