The Time Cost Distance Model

Th
e
 
T
i
m
e
 
Co
s
t
 
D
i
st
ance
 
Model
T
r
a
n
s
i
t
 
c
o
r
r
i
d
o
r
 
p
e
r
f
o
r
m
a
n
c
e
The
 
objective
 
of
 
the
 
model
 
is
 
to
 
propose
 
a
 
methodology
 
to
illustrate
 
the
 
cost
 
and
 
time
 
components
 
of
 
door-to-door
movement
 
by
 
available
 
routes
 
and
 
modes
 
as
 
well
 
as
 
to
illustrate
 
the
 
delays
 
at
 
borders
 
or
 
other
 
inspection
 
points
up
 
to
 
the
 
point
 
of
 
destination
 
within
 
a
 
transit
 
transport
corridor.
The
 
cost/time
 
methodology
 
has
 
been
 
adapted
 
from
Beresford
 
and
 
Dubey
 
(1990),
 
as
 
improved
 
by
 
Banomyong
(2000)
 
and
 
later
 
disseminated
 
by
 
UNESCAP.
The
 
model
 
includes
 
costs
 
and
 
time
 
associated
 
with
transport
 
by
 
any
 
mode
 
and
 
with
 
transfers
 
between
 
modes.
The
 
methodology
 
is
 
based
 
on
 
the
 
premise
 
that
 
the
 
unit
cost
 
of
 
transport
 
varies
 
between
 
modes
F
o
u
r
 
d
e
v
e
l
o
p
m
e
n
t
a
l
 
s
t
a
g
e
s
,
Stage
 
1:
 
Competition
 
between
 
two
 
modes
 
of transport
.
Stage
 
2:
 
a
 
combination
 
of
 
transport
 
modes
,
 
where
 
the
 
cost
of
 
transport
 
by
 
combining
 
both
 
modes
 
is
 
less
 
expensive
 
than
just
 
road
 
transport
 
and
 
slightly
 
more
 
expensive
 
than
 
rail
transport.
Stage
 
3:
 
Combined
 
transport,
 
road-rail-sea
.
Stage
 
4:
 
Multimodal
 
transport
,
 
from
 
origin
 
to
 
destination
S
t
a
g
e
 
1
:
 
R
o
a
d
 
v
e
r
s
u
s
 
r
a
i
l
 
a
l
t
e
r
n
a
t
i
v
e
The
 
distance
 
and
 
cost/time
 
data
 
are
 
plotted
 
on
 
the
 
x-axis
 
and
 
y-axis,
 
respectively.
Initially
 
road
 
transport
 
may
 
be
 
cheaper
 
than
 
rail
 
transport
 
over
 
shorter
 
distances,
due
 
to
 
the
 
initial
 
costs
 
(or
 
time)
 
required
 
to
 
transport
 
the
 
goods
 
to
 
the
 
railway
station.
  
However,
 
as
 
the
 
distance
 
increases,
 
the
 
two
 
lines
 
cross
 
and
 
beyond
 
this
point,
 
rail
 
transport
 
has
 
a
 
lower
 
per
 
kilometre
 
cost
 
than
 
road
 
transport,
 
as
indicated
 
by
 
the
 
flatter
 
slope.
S
t
a
g
e
 
2
:
 
C
o
m
b
i
n
e
d
 
t
r
a
n
s
p
o
r
t
,
 
r
o
a
d
-
r
a
i
l
In
 
the
 
first
 
part
 
of
 
the
 
journey,
 
it
 
is
 
cheaper
 
to
 
transport
 
the
 
goods
 
by
 
road
 
rather
 
than
 
by
 
rail.
However,
 
if
 
the
 
distance
 
to
 
be
 
travelled
 
is
 
further
 
than
 
the
 
break-even
 
distance,
 
transport
 
by
rail
 
becomes
 
more
 
economical.
 
An
 
intermodal
 
transfer
 
can
 
be
 
arranged
 
at
 
the
 
closest
 
rail
freight
 
terminal
 
or
 
inland
 
clearance
 
depot
 
(ICD).
  
The
 
vertical
 
step
 
in
 
figure
 
3
 
represents
 
the
costs
 
(or
 
time)
 
involved
 
when
 
goods
 
are
 
transshipped
 
from
 
road
 
to
 
rail
 
at
 
the
 
rail
 
freight
terminal
 
or
 
ICD.
 
The
 
cost
 
of
 
rail
 
transport,
 
in
 
reality,
 
has
 
not
 
increased
 
but
 
the
 
cost
 
of
 
the
intermodal
 
transfer
 
is
 
reflected
 
in
 
the
 
combined
 
transport
 
cost
 
from
 
that
 
point
 
on.
S
t
a
g
e
 
3
:
 
C
o
m
b
i
n
e
d
 
t
r
a
n
s
p
o
r
t
,
 
r
o
a
d
-
r
a
i
l
-
s
e
a
Since
 
the
 
overwhelming
 
majority
 
of
 
traded
 
goods
 
are
 
transported
 
by
 
sea,
 
the
 
most
 
likely
 
destination
 
for
 
the
 
freight
in
 
transit
 
will
 
be
 
a
 
seaport,
 
where
 
the
 
goods
 
will
 
be
 
transferred
 
onto
 
seagoing
 
vessels.
 
The
 
additional
 
costs
 
(or
time)
 
incurred
 
at
 
the
 
port
 
are
 
represented
 
by
 
the
 
second
 
vertical
 
step.
 
Thus,
 
cumulative
 
costs
 
from
 
the
 
origin
 
to
the
 
port
 
are
 
the
 
sum
 
of
 
the
 
cost
 
of
 
rail
 
transport
 
to
 
the
 
ICD
 
plus
 
the
 
cost
 
of
 
intermodal
 
transfer
 
at
 
the
 
ICD
 
plus
 
the
cost
 
of
 
rail
 
transport
 
from
 
the
 
ICD
 
to
 
the
 
port
 
plus
 
the
 
handling
 
charge
 
at
 
the
 
port.
S
t
a
g
e
 
4
:
 
M
u
l
t
i
m
o
d
a
l
 
t
r
a
n
s
p
o
r
t
,
 
f
r
o
m
o
r
i
g
i
n
 
t
o
 
d
e
s
t
i
n
a
t
i
o
n
The
 
final
 
stage
 
shows
 
that
 
numerous
 
modes
 
of
 
transport
 
may
 
be
 
involved
 
for
 
goods
to
 
be
 
moved
 
door-to-door.
  
At
 
each
 
intermodal
 
transfer
 
point
 
there
 
will
 
be
 
a
 
cost
(or
 
time)
 
increase
 
represented
 
by
 
a
 
vertical
 
step.
  
Should
 
a
 
border
 
crossing
 
occur
along
 
the
 
route,
 
the
 
border
 
crossing
 
charges
 
(and
 
time
 
spent)
 
can
 
be
 
represented
by
 
another
 
vertical
 
shift
 
upwards
 
in
 
the
 
cost
 
curve
 
at
 
that
 
point,
 
which
 
can
 
then
 
be
cumulated
 
with
 
other
 
costs.
S
o
u
r
c
e
 
a
n
d
 
U
n
i
t
s
 
o
f
 
I
n
f
o
r
m
a
t
i
o
n
Source:
 
The
 
data
 
utilised
 
are
 
obtained
 
during
 
interviews
 
with
transit
 
and
 
transport
 
service
 
providers,
 
traders
 
and
governmental
 
officials.
Units:
 
A
 
unit
 
of
 
analysis
 
must
 
be
 
agreed
 
upon.
 
Data
 
such
 
as
 
cost
or
 
quotes
 
should
 
concern
 
the
 
shipment
 
of
 
one
 
TEU
 
on
 
a
 
freight-
all-kind
 
basis
 
or
 
for
 
a
 
shipment
 
of
 
a
 
particular
 
product.
Information
 
needed:
Origin
 
and
 
destination
 
of
 
the
 
cargo;
Full
 
route
 
details
 
including
 
border
 
crossings
 
and
 
modal
 
transfers;
Mode
 
of
 
transport
 
for
 
each
 
leg;
Distance
 
for
 
each
 
leg;
Transit
 
time
 
for
 
each
 
leg
 
(in
 
hours
 
or
 
days);
 
and
Cost
 
or
 
quotes
 
for
 
each
 
leg.
S
a
m
p
l
e
 
d
a
t
a
 
t
a
b
l
e
S
a
m
p
l
e
 
g
r
a
p
h
For
 
costs
 
or
 
quotes,
 
the
 
figure
 
shows
 
the
 
relative
 
cost
 
of
 
each
 
leg
 
(or
 
mode,
 
where
 
applicable),
 
and
 
the
 
approximate
proportion
 
of
 
non-transport
 
costs
 
in
 
relation
 
to
 
transport
 
costs.
A
 
breakdown
 
of
 
costs
 
at
 
border
 
crossings
 
or
 
ports,
 
can
 
highlight
 
areas
 
for
 
action.
By
 
plotting
 
time
 
against
 
distance,
 
the
 
relative
 
speed
 
of
 
transit
 
transport
 
for
 
each
 
leg
 
(or
 
mode)
 
can
 
be
 
compared,
 
and
bottlenecks
 
at
 
transshipment
 
points
 
can
 
be
 
identified.
As
 
a
 
rule
 
of
 
thumb,
 
the
 
higher
 
the
 
vertical
 
step
 
the
 
more
 
likely
 
that
 
the
 
border
 
crossing
 
or
 
the
 
nodal
 
link
 
is
 
a
bottleneck.
Zamyn
 
U
ud
1000
 
km
Average
 
s
p
eed
2
2.4
 
k
m
/h
Tian
j
in,
 
0
 
k
m
75
 
hr
s
 
3
1
 
min.
500
 
km
1
0
00
 
km
2000
 
km
1500
 
km
D
a
y
 
4
1,6
9
1
 
k
m
33
.7
 
k
m/h
04
.18
 
a
.m.
D
a
y
 
3
D
a
y
 
2
D
a
y
 
1
29
 
hr
s
 
1
2
 
min.
Er
e
nh
o
t,
 
9
8
3
 
k
m
02
.
3
0
 
a
.m.
05
.
5
9
 
a
.m.
20
 
hr
s
 
31
 
min.
Ulaanbaatar
1700
 
km
Shunting
 
+
 
train
formation:
3
 
hrs.
 
20
 
min.
(3.5
 
min.
 
per
 
box)
3
 
hrs.
 
35
 
min.
T
r
a
n
s
sh
ipment:
3
h
rs
.
 
00
 
mi
n
.
4
h
rs
.
 
50
 
mi
n
.
China,
Mongolia,
Customs:
 
R
e
s
u
l
t
s
 
o
f
 
D
e
m
o
 
R
u
n
 
T
i
a
n
j
i
n
 
-
 
U
l
a
a
n
b
a
a
t
a
r
D
i
m
e
n
s
i
o
n
s
 
n
o
t
 
i
n
c
l
u
d
e
d
In
 
addition
 
to
 
transportation
 
time
 
and
 
costs,
traders
 
and
 
transit
 
service
 
operators
 
must
also
 
take
 
into
 
consideration
 
the
 
reliability
 
of
the
 
transit
 
corridor,
 
in
 
terms
 
of:
All
 
year
 
consistency
 
of
 
transit
 
times;
Frequency
 
and
 
quality
 
of
 
services;
Competition
 
between
 
service
 
providers
Balance
 
of
 
freight
 
volumes;
 
(empty
 
returns)
Predictability
 
of
 
costs;
Informal
 
controls
 
and
 
check
 
points;
Transport
 
safety
 
and
 
security,
 
etc.
Thank
 
y
o
u
 
f
o
r
 
y
ou
r
 
a
t
t
e
n
ti
on
Th
e
 
T
i
me
 
Co
s
t
 
D
i
s
t
ance
 
Model
Slide Note
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The Time Cost Distance Model in Transit Corridors aims to illustrate the cost and time aspects of door-to-door movement along available routes and modes within a transit transport corridor while highlighting delays at borders or inspection points. The model proposes a methodology based on cost and time components, adapting from previous research and focusing on the variation in unit transport costs between different modes. It progresses through stages of competition between transport modes, combination of modes for cost-effectiveness, and ultimately, multimodal transport from origin to destination.

  • Transport Modeling
  • Transit Corridors
  • Cost Analysis
  • Time Efficiency
  • Multimodal Transport

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  1. The Time Cost Distance Model

  2. T Tr ransit ansitc corrid orrido or rper perf formance ormance Theobjectiveofthemodelistoproposeamethodologyto illustratethecostandtimecomponentsofdoor-to-door movementbyavailableroutesandmodesaswellasto illustratethedelaysatbordersorotherinspectionpoints uptothepointofdestinationwithinatransittransport corridor. Thecost/timemethodologyhasbeenadaptedfrom BeresfordandDubey(1990),asimprovedbyBanomyong (2000)andlaterdisseminatedbyUNESCAP. Themodelincludescostsandtimeassociatedwith transportbyanymodeandwithtransfersbetweenmodes. Themethodologyisbasedonthepremisethattheunit costoftransportvariesbetweenmodes

  3. F Fo ou ur r d de ev vel elopm opme en nt tal alst sta ag ges, es, Stage1:Competitionbetweentwomodesof transport. Stage2:acombinationoftransportmodes,wherethecost oftransportbycombiningbothmodesislessexpensivethan justroadtransportandslightlymoreexpensivethanrail transport. Stage3:Combinedtransport,road-rail-sea. Stage4:Multimodaltransport,fromorigintodestination

  4. S St tage age 1 1: : R Ro oa ad d vers versu us s ra rail il a al lt ter ern native ative Thedistanceandcost/timedataareplottedonthex-axisandy-axis,respectively. Initiallyroadtransportmaybecheaperthanrailtransportovershorterdistances, duetotheinitialcosts(ortime)requiredtotransportthegoodstotherailway station.However,asthedistanceincreases,thetwolinescrossandbeyondthis point,railtransporthasalowerperkilometrecostthanroadtransport,as indicatedbytheflatterslope.

  5. S St tage age 2: 2: Combined Combined transpor rail rail transport t, , roa road d- - Inthefirstpartofthejourney,itischeapertotransportthegoodsbyroadratherthanbyrail. However,ifthedistancetobetravelledisfurtherthanthebreak-evendistance,transportby railbecomesmoreeconomical.Anintermodaltransfercanbearrangedattheclosestrail freightterminalorinlandclearancedepot(ICD).Theverticalstepinfigure3representsthe costs(ortime)involvedwhengoodsaretransshippedfromroadtorailattherailfreight terminalorICD.Thecostofrailtransport,inreality,hasnotincreasedbutthecostofthe intermodaltransferisreflectedinthecombinedtransportcostfromthatpointon.

  6. S St tage age 3: 3: Combined Combined transpor rai rail l- -sea sea transport t, , roa road d- - Sincetheoverwhelmingmajorityoftradedgoodsaretransportedbysea,themostlikelydestinationforthefreight intransitwillbeaseaport,wherethegoodswillbetransferredontoseagoingvessels.Theadditionalcosts(or time)incurredattheportarerepresentedbythesecondverticalstep.Thus,cumulativecostsfromtheoriginto theportarethesumofthecostofrailtransporttotheICDplusthecostofintermodaltransferattheICDplusthe costofrailtransportfromtheICDtotheportplusthehandlingchargeattheport.

  7. S St tage age 4: 4: Multimoda Multimodal l transpor origin origin t to o de des stination tination transport t, , from from Thefinalstageshowsthatnumerousmodesoftransportmaybeinvolvedforgoods tobemoveddoor-to-door.Ateachintermodaltransferpointtherewillbeacost (ortime)increaserepresentedbyaverticalstep.Shouldabordercrossingoccur alongtheroute,thebordercrossingcharges(andtimespent)canberepresented byanotherverticalshiftupwardsinthecostcurveatthatpoint,whichcanthenbe cumulatedwithothercosts.

  8. S So ou ur rce ceand and Un Uni its tso of f I In nf form orma ati tion on Source:Thedatautilisedareobtainedduringinterviewswith transitandtransportserviceproviders,tradersand governmentalofficials. Units:Aunitofanalysismustbeagreedupon.Datasuchascost orquotesshouldconcerntheshipmentofoneTEUonafreight- all-kindbasisorforashipmentofaparticularproduct. Informationneeded: Originanddestinationofthecargo; Fullroutedetailsincludingbordercrossingsandmodaltransfers; Modeoftransportforeachleg; Distanceforeachleg; Transittimeforeachleg(inhoursordays);and Costorquotesforeachleg.

  9. Sampl Sample e da dat ta at table able Leg Mode Distance Cost Cum. Cum. Transit Cum. (km) (US$) distance cost time Time (km) (US$) (hours) (hours) AtoB Road 100 100 50 50 4 4 - - 100 150 6 10 Border Crossing BtoC Road 70 170 30 180 3 13 - - 40 220 3 16 Intermodal transfer CtoD Rail 200 370 60 280 18 34 Port - - 20 300 6 40 DtoE Sea 800 1170 300 600 72 112 TOTAL 1170 600 112

  10. Sampl Sample e graph graph Forcostsorquotes,thefigureshowstherelativecostofeachleg(ormode,whereapplicable),andtheapproximate proportionofnon-transportcostsinrelationtotransportcosts. Abreakdownofcostsatbordercrossingsorports,canhighlightareasforaction. Byplottingtimeagainstdistance,therelativespeedoftransittransportforeachleg(ormode)canbecompared,and bottlenecksattransshipmentpointscanbeidentified. Asaruleofthumb,thehighertheverticalstepthemorelikelythatthebordercrossingorthenodallinkisa bottleneck.

  11. Results of Demo Run Tianjin - Ulaanbaatar Ulaanbaatar 1700km Day 4 04.18 a.m. 75 hrs 31 min. Day 3 Average speed 22.4 km/h Zamyn Uud 1000 km 02.30 a.m. Day 2 20 hrs 31 min. 05.59 a.m. 29 hrs 12 min. Day 1 Erenhot, 983 km Tianjin, 0 km 1,691 km 33.7 km/h 500 km 1000 km 1500 km 2000 km 3 hrs. 00 min. 4 hrs. 50 min. Transshipment: Customs: 3hrs.20min. (3.5min.perbox) 3hrs.35min. China, Mongolia, Shunting+train formation:

  12. D Dimen imens si ion ons s no not t i inc ncl luded uded Inadditiontotransportationtimeandcosts, tradersandtransitserviceoperatorsmust alsotakeintoconsiderationthereliabilityof thetransitcorridor,intermsof: Allyearconsistencyoftransittimes; Frequencyandqualityofservices; Competitionbetweenserviceproviders Balanceoffreightvolumes;(emptyreturns) Predictabilityofcosts; Informalcontrolsandcheckpoints; Transportsafetyandsecurity,etc.

  13. Thank you for your attention The Time Cost Distance Model

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