Title: Analysing the Effect of Government Subsidy on Shippers Transportation Mode Switching Behaviour
Speaker: Dr. Tanmoy Kundu, NTU, Taipei
Date, Time: 12th September 2019, 9.30 am
Venue: Seminar Room, 2nd Floor, IEOR Building
Abstract: The Chinese government is offering subsidies to promote the recently developed China-Europe rail freight corridor under its Belt and Road Initiative (BRI). Despite significant subsidies, the rail mode (China Railway Express) continues to struggle with low load factor. Accordingly, a competition model grounded on game-theoretic technique is proposed to analyze the effect of the government subsidy on shippers' mode preference (rail vs. maritime) and mode switching (from maritime to rail) behavior. Further, a case of container shipping along the China-Germany route is considered for the numerical analysis. Analytical results describe shippers' mode switching patterns in response to a mode subsidy and suggest a subsidy scheme for the government.