Intermodal Cost Function

Intermodal transport cost (C(T)) between an origin and a destination and using an intermediary point of transshipment, is the summation of composition (C(cp)), connection (C(cn)), interchange (C(I)), and decomposition (C(dc)) costs. Connection and interchange costs are related to national or international distribution costs while composition and decomposition costs are related to local or regional distribution costs. Significant costs reduction can be achieved with technical improvements for transshipment. However, with growing congestion, particularly in urban areas, composition and decomposition costs may increase.

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