Analysis of Rail Transportation Advantages for Freight Transport

Abstract

One of the causes of inefficiency in the logistics sector is the use of transportation modes that are
proportionally unbalanced in freight transport. From the three most often used modes of transportation, road
transportation mode (trucking) dominates the volume of the freight transport that is at around 91%, sea
transportation mode is at around 7,5%, and rail transportation mode is approximately at 1%. Rail freight
transportation has several advantages, namely: decreased traffic congestion, increased productivity of freight
transport vehicles, reduced risks of traffic accidents, reduced road damage level, reduced cost of transportation
and logistics, and reduced fuel consumption that eventually leads to less air pollution. However, the competition
for freight trains is constrained due to the two large levies, which is 10% VAT and track access charge (TAC)