Multimodal Transport Networks

Simon Fuchs and Woan Foong Wong

No 19531, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Over half of distance-weighted U.S. freight is shipped using more than one transport mode. We examine how multimodal transport networks shape the economic and environmental impacts of infrastructure investments and disruptions. We develop a tractable spatial equilibrium model of multimodal routing with mode-specific congestion at intermodal terminals. We estimate a modal substitution elasticity using road and rail data, and a terminal congestion elasticity using vessel-positioning data. Calibrated to the U.S. freight network, the model identifies key bottlenecks and quantifies $.46-$1.85 billion in real GDP gains from intermodal terminal improvements, with additional environmental benefits from shifting away from carbon-intensive road transport. Ignoring mode-specific congestion overstates welfare gains from highway improvements by 85%, while ignoring multimodal flexibility understates them by 22%. Losing rail network access is estimated to reduce real GDP by $230 billion.

Keywords: Spatial equilibrium; Infrastructure investments; Disruption (search for similar items in EconPapers)
JEL-codes: F11 R12 R42 (search for similar items in EconPapers)
Date: 2024-09
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