DEVELOPMENT OF FREIGHT MODE CHOICE MODEL IN THE BORDER REGION: A CASE STUDY OF CHIANG RAI PROVINCE

Abstract

Road transport dominates inland freight movement in Thailand, being responsible for almost 90% of all domestic freight tonnage. Despite that, the transport cost of freight shipped by truck is more than two times higher than that shipped by rail (i.e., 2.12 and 0.95 Baht/ton-kilometer, respectively). Apparently, improving multi-modal and infrastructure network, while encouraging the greater usage of rail transport in carrying freight especially in the major cities and border areas, could bring down the national-level logistical cost drastically and potentially provide the competitive advantage over the neighboring countries. To gain a greater insight into the effects of various factors influencing freight rail demand in border regions, this paper presents a model capturing the intercity freight mode choice behaviors in Chiang Rai province. The model is developed based on the stated preference data collected from 415 Chiang Rai freight operators, traders and shippers. The analysis result found that, among numerous potential factors examined, on-vehicle travel time, shipping cost, and punctuality are statistically the determinants of the mode choice.  Moreover, differences in inter-city mode choice behaviors amongst categories of freight agents can be empirically revealed. While 21.17% of domestic freight operators/traders tend to deliver their commodities using double-track rail, international freight operators/traders based in three major border districts in Chiang Rai: Mae Sai, Chiang Khong, and Chiang Saen, are likely to use double-track rail, 22.60%, 30.96% and 34.19%, respectively.