The choice of mode for international middle-mile delivery is relatively simple for Australian shippers, receivers and freight forwarders, as Australia is an Island nation. For first-mile delivery, last-mile delivery, and domestic leg of the middle-mile delivery, there is a greater choice between road, rail and sea modes. However, similar to some other countries, Australian government policy also encourages a modal shift away from road. For example, the inland freight rail project linking Melbourne to Brisbane seeks to create an infrastructure that would encourage a modal shift away from road and onto rail. The extent to which a modal shift would occur successfully will likely depend upon how attractive the alternative modes are to shippers, receivers and freight forwarders who currently use road freight. Question: Discuss the likely determinants of first-mile delivery, last-mile delivery, and domestic middle-mile delivery modal choice among Australian shippers, receivers and freight forwarders of international containerised cargo. Your answer should make specific references to:
• The Australian landscape for the domestic transportation of international containerised freight; and
• Lessons from modal shift initiatives in other countries.
Sample Solution