Cost Analysis of Freight Mode Shift: Rail to Motor Impact

The essay titled 'Cost Analysis' evaluates the decision by an organization to switch its freight mode from rail to motor. The analysis highlights the economic advantages such as reduced expenses on short trips and increased revenue through cost reduction, alongside sustainability benefits due to this mode change. However, it also addresses significant drawbacks including increased road congestion, a rise in traffic accidents attributed to more vehicles on the roads, and potential negative environmental impacts. Although the shift presents financial gains for the company, the essay concludes with recommendations to mitigate adverse effects by suggesting alternative methods to alleviate road congestion and decrease accident rates.

Running head: COST ANALYSIS
Cost Analysis
Name of the Student:
Name of the University:
Authors Note:

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COST ANALYSIS
Table of Contents
Evaluation of the Decisions taken by Choice for shifting from rail freight mode to motor
freight mode:..............................................................................................................................2
Reference:..................................................................................................................................4

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COST ANALYSIS
Evaluation of the Decisions taken by Choice for shifting from rail freight mode to motor
freight mode:
The overall shift from rail to motor modes was mainly conducted to increase
sustainability and the economically advantage for the organisation. This shift in motor mode
would mainly help the organisation to effectively transport small value of goods at short
distances. From the economics point of view the use of new Motor modes against the rail
modes eventually allow the organisation to reduce its overall expenses on short trip. This
directly allows the organisation to reduce expenses from the land base transportation, which
was previously pretty high. Therefore, it could be understood that shifting from rail to motor
now mainly allowed choice to generate higher revenue by reducing the cost.
There is relevant reason for changing the rail mode to motor mode, as it helped in
reducing the delivery time. However, this relevant increment in the motor mode directly
increases the vehicle of freight carriers on the road. In addition, the increment in the overall
cars of vehicles in the road directly resulted in accidents, which have skyrocketed after the
use of motor modes by choice. Due to the implementation of motor mode for transportation,
relevant increment in the both trucks and cars can be seen which directly increase the
congestion in the route networks. This congestion in the overall Road networks prompted and
increases the level of accident that is being happening all around the place. The increment in
road accident is mainly associated with rising number of cars and trucks that is been filled in
the roads and Highways. However, the new driver of the cargo is mainly acquired on the
basis of agency and not quality based. This mainly increased a chance accident that could
have happened in the roads1.
1 Kordnejad, Behzad. "Intermodal transport cost model and intermodal distribution in urban
freight." Procedia-Social and Behavioral Sciences 125 (2014): 358-372.

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COST ANALYSIS
The decision regarding Change in the freight mode has many benefits economically
and provides sustainable growth to the company. However, there are different types of
negative impact that could have on both environment and on the roads. Due to the adoption
of motor freight cars or trucks, there is a boost in the accidents, which is directly affecting the
environment. After seeing the overall adverse effects what the decision made by choice, it is
mainly advisable that choice should reduce the number of trucks that has been operating on
the road. This movie is not an economical, where relevant expenses of the freight could
increase. However, the decision is ethical, as it might help in reducing the accidents
conducted on roads, which has increased recently. Nevertheless, a different type of method
could be used by choice for reducing the traffic time of normal cars and trucks, which could
help in declining the accidents that has sprung from the current decision2.
2 Litman, Todd. Evaluating public transit benefits and costs. Victoria Transport Policy
Institute, 2015.

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COST ANALYSIS
Reference:
Kordnejad, Behzad. "Intermodal transport cost model and intermodal distribution in urban
freight." Procedia-Social and Behavioral Sciences 125 (2014): 358-372.
Litman, Todd. Evaluating public transit benefits and costs. Victoria Transport Policy
Institute, 2015.