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Modal shift

Modal shift supports ports to shift from trucks to trains, inland shipping, and pipeline.

Transport efficiencyInland shippingTrainsTrucks

Introduction

The hinterland transport is an important area regarding performance and sustainability of ports. Among hinterland modes road transport is dominating, so there is still room for modal shift to railway transport and inland waterway transport (IWT). New cargo streams, such as hydrogen, are aimed for modal shift to pipeline. Ports have a strong influence on transport networks and contribute to the framework for the design of hinterland transport chains. This factsheet should support ports to work towards modal shift from road to rail and IWT and for new cargo streams from rail/IWT to pipeline.

Value proposition

  • Strengthen competitiveness

  • Improve sustainability

  • More efficient and reliable hinterland transport

  • Avoid road congestion

Modal shift from road to rail and barge will strengthen the competitiveness and sustainability of ports. It allows for more efficient and reliable hinterland transport solutions avoiding road congestion and providing environmental- friendly transport solutions. Moreover, modal shift strengthens the resilience by providing alternative transport options in case of disruptions (e.g. closures of bridges along motorways for trucks)

Port applicability

All ports with a railway connection, navigable inland waterway network or pipeline connection may aim for a modal shift of cargo transport. The last mile transport will maintain to be executed by truck or, in urban environments, also with other vehicles such as cargobikes. For cruise ports, modal shift is less relevant. However, a good railway connection of ports may increase the share of cruise passengers travelling from/to the port by railway.

Groups of innovations

  • New modalities

    Such as drones and concepts still under development like hyperloops. Drones can be used for the transport of small sized shipments. The idea concerning hyperloops in port hinterlands is to transport large volumes of cargo (e.g. containers) at high speeds between port and inland hubs, but that is still in early stages.

  • New transport solutions

    New concepts such as the kiss&ride concept

    MAGPIE Kiss&Ride concept demo

  • Improved transport planning solutions

    such as road traffic spreading and the use of advanced (potentially autonomous) planning tools. Advanced planning will strengthen the resilience of a port and logistical system with synchromodal networks to allowing for incidental modal shift in case of disruptions.

    MAGPIE Spreading road traffic demo

Impact

Impact level per aspect
ImpactLevelRemark
GHG emissions and air pollutionLimited impact
Mitigation of emission, through efficiency or zero-emission modalities
Noise reductionLimited impact
Reduction of noise through electric modalities.
CongestionMedium impact
Reduction of road congestion
Efficiency and competitivenessMedium impact
Better performance and reliability of hinterland transport as well as accessibility of catchment areas

Port characteristics

Ports require connectivity to the railway or inland waterway network as well as sufficient capacities for hinterland operation for modal shift. Moreover, multimodal handling and storage facilities are needed. In terms of cargo handling, available sites and handling capacities as well as waiting times are critical.

Barriers and enablers

Enablers

  • EconomicEnabler

    Good performance and efficient operation including seamless integration between modalities are enablers of modal shift. Shippers usually select cost-efficient transport options. Regarding the transhipment, the seamless integration of modalities is essential. This includes the cooperation of involved actors and the synchronization of operations. Modal shift leads to social benefits benefits as it contributes to a mitigation of road congestion and a reduction of pollution, but truck transport is often cheaper than transporting via train or barge. Subsidies, regulative measures and incentives by ports and other stakeholders may contribute to the implementation of modal shift (e.g. modal split targets, reduced port tariffs etc.). Regulative measures, such as true pricing of modes, could be another driver for modal shift. Considering limited cargo volumes of single cargo owners, supplementary cargo volumes may contribute to the feasibility of modal shift. The same holds for the bundling of cargo by operators.

  • Stakeholer coordinationEnabler

    Cooperation among stakeholders is an enabler of modal shift. Supply chain partners need to coordinate their activities for seamless intermodal transport.

  • Standards & regulationsEnabler

    Ports have a strong role by setting standards in hinterland transport. Modal shift objectives (e.g. by ports such as the Port of Rotterdam in terminal concessions) could work as enabler. Ports can stimulate modal shift by fostering the use of these modes in concessions, lease agreements, port dues and port development plans. Regulation is required for the use of new modalities.

  • TechnologyEnabler

    The development of tools for advanced (potentially autonomous) synchromodal planning including a one-stop-shop- solution for door-to-door transport are enablers of modal shift. A dynamic synchromodal perspective contributes to efficient and resilient hinterland networks by taking into account all modes and providing back-up solutions in case of irregularities. New transhipment and transport technologies could strengthen the performance of railway transport and IWT. For instance, barges adapted to low water level conditions could improve the resilience of IWT in low water periods. Another example are new modular vessel concepts which may strengthen the operational efficiency and contribute to the reduction of waiting time for barges when calling at seaport terminals (MAGPIE demo 6). For the last mile, the use of carbon-neutral operation may be extended (e.g. cargobikes for the distribution of consumer goods in the form of parcel shipments).

Barriers

  • InfrastructureBarrier

    The connectivity and capacity of railway, waterway and/or pipeline networks as well as the port handling facilities are enablers of modal shift. Limitations of the road infrastructure due to damages (e.g. bridges) may contribute to modal shift. Barriers for modal shift are capacity limitations such as in the port railway networks and operational restrictions in seaports such as waiting times for barges in seaports.

How to implement?

  1. Step 1

    Investigate model shift potential

  2. Step 2

    Multimodal transport design

  3. Step 3

    Implementation

  4. Step 4

    Optimization and scaling

Timeline

The arrow below represents the expected development of the TRL of modal shift.
* Technical Readiness Level

What should a port do in the next 3 years?

Ports should investigate hinterland cargo flows for potential modal shift and work towards the implementation by consolidating hinterland transport flows and developing capacities and services together with operators. Based on this modal shift opportunities can be promoted among cargo owners and logistic service providers. Provided sufficient capacities are available, a quick implementation of modal shift is possible. However, if investment in seaport and/or inland terminal handling capacity would be required, then at least 5 – 10 years (planning and construction/expansion) might be needed. New infrastructure and modalities will require even more time. With existing railway, inland barge or pipeline services offering spare capacity, the extension of operation to accommodate additional cargo is quickly possible. However, the new set-up of railway transport and IWT services may take some time.

Investment overview

The setup of multimodal transport may require investment e.g. for pipelines, terminals and equipment such as trains and barges. New infrastructure such as pipelines, hyperloops and terminals would require very large investments. When it is possible to use existing infrastructure and multimodal transport services, modal shift might be possible without major investment required by cargo owners. Operational costs cover handling costs for the transhipment of cargo which is a critical factor regarding the competitiveness of multimodal transport with road transport.Key stakeholder for modal shift is the cargo owner (shipper). Depending on the applying shipping regime, a different actor such as the logistic service provider, maritime shipping line or seaport terminal may be responsible for the planning of hinterland transport and the selection of hinterland modes and routes. Both seaports and inland terminals are important stakeholders for the implementation of modal shift. Seaports set the framework for port users which may include incentives for modal shift. Inland terminals contribute as regional logistic hubs with a strong network among shippers in the region. Infrastructure providers in seaports, multimodal hinterland networks and inland terminals, as well as operators, are important stakeholders to establish hinterland services and last mile operations. Considering investment requirements and the challenging competitive situation of multimodal transport services public authorities could take measures such as grants and incentives to improve the conditions for modal shift.

Stakeholder overview

Below is an overview of the required involved stakeholders.
Blue stakeholders are essential, white stakeholders are enabling

Knowledge base