Research Article

A System Dynamics Model of the Modal Shift from Road to Rail: Containerization and Imposition of Taxes

Table 1

Previous studies for the policy measure of modal shift in South Korea.

Policy measure and planComments

The rail freight rate policy [5]To examine the impacts of the rail freight rate policy in Korea in terms of three impacts as follows: (i) on regional economies, (ii) on modal choice, and (iii) on CO2 emissions
There is no trade environmental quality for economic efficiency

The construction of a new railroad transportation-centered logistics system [6]To examine the strategic alternative plan of a modal shift for the construction of a new railroad transportation-centered logistics system for environmental-friendly logistics, targeting cargo owners and multimodal logistics businesses in South Korea
Companies’ recent high interest in environmental-friendly transportation and awareness of green energy caused by the recent rapid increase in oil prices and foreign exchange rate work as positive factors for the modal shift to railroads

Subsidy, tax, pricing, services, strategic planning and operation, and infrastructure [7]To examine the impact of policy measures on promoting a modal shift in South Korea
The variables of subsidy, tax, and pricing (0.228), services (0.279), and infrastructure (0.528) have a direct effect on the promotion of modal shift

Policies which encourage the use of intermodal freight transport system [23]To estimate the trade-off relationships among logistics cost, time, and CO2 emissions of the freight transportation system of Korea
The logistics costs were minimized when the mode share of the rail-based intermodal system was 35%, and total travel time in the network was at the minimum when the shared ratio of highway was 99%

Containerization [22]To calculate the logistics cost of new devices for containerization as a policy measure; using the new device was more economic than using previous transport packaging