Freight shipper's mode choice preference for sustainable inland transportation

Modelling of transport mode choice preferencehas beencurrently regarded essential to identify the preference of transport agents towards a transport policy. This research proposes a model of the freight mode choice preference by using Stated Preference Methods for the data collection from industrial freight shippers in Gresik, Indonesia. This research examines how truck as an existing mode and rail as a sustainable mode alternative compete for goods movement. As the common feature of discrete choice models, the Binary Logit was utilized to analyze the data. The sensitivity of mode preferences was investigated by changing the shipping cost and hauling time. The results indicated that the respondents were sensitive to haul time and shipping cost. When the shipping cost and hauling time was similar, the probability of choosing a truck was 77%. However, the industrial freight shippers changed the preference when the truck's shipping cost and haul time was higher than that in the train. The train had a 65% choosing probability when the cost difference was IDR 500,000 lower and the hauling time difference was two days faster than the truck. This study assisted the policymakers to correctly design the variables of shipping cost and hauling time for the future sustainable inland transportation based on freight shipper's preferences.