North Dakota's transportation problem is centered on geography and volume. Being a land-locked state and not having an intermodal facility within the economic range of 150 miles from North Dakota production sites, transportation costs severely reduce shipper profit margins. Options available to containerized shippers are limited and expensive. The purpose of this research is to develop a model that evaluates tradeoffs regarding the development of intermodal shipping capabilities in North Dakota. The following are specific objectives to the research process: 1. Examine historical and current issues pertaining to intermodal transportation in North Dakota; 2. Develop an empirical model to evaluate intermodal pricing, revenues, and demand; 3. Conduct a sensitivity analysis on key random variables and interpret the results; 4. Analyze a variety of coalition cooperative efforts among key players and their effect on North Dakota' s transportation environment; 5. Describe a business model that could enable efficient intermodal transportation for North Dakota intermodal operators. Examining both the base case model and sensitivities applied to the base model allowed for examining today's transportation environment and its potential. The results are reported in chapter five and applied to game theory. Incorporating the results to game theory allows development of a business model focused on subsidizing network operators to cooperate and reposition containers to service North Dakota. A linear programming model was developed to analyze logistical costs and payoffs associated with varying game alternatives. Data collected was analyzed using GAMS software to determine the cost minimizing solutions for exporters across the eight regions of North Dakota. Base model results indicate hard IP producers in North Dakota realize minimized costs by draying containers to the intermodal terminals of Saskatoon, Winnipeg, or Minneapolis. Sensitivities were applied to answer "what if" questions related to North Dakota transportation. The first sensitivity test allows for cost of shipping by bulk to the point of export versus required loading of containers at the site of production. Results show that for the three regions encompassing the eastern border and southeast comer of North Dakota (ND4, ND7 and ND8), stuffing containers at the site of production remains the cost minimizing solution. Sensitivity accounts for hard IP shipments and includes the Minot intermodal terminal. Results show that North Dakota realizes the Minot terminal as an important shipping option. The expanded model and final sensitivity accounts for the 21 metric tons per TEU limitation placed on a containers load weight moving by rail. The addition of this parameter slightly changed model results to reflect a loss of market share to the Minot terminal. Sensitivities were then conducted on the expanded model. These sensitivities display a shift in shipping patterns due to the cost of repositioning empty containers, container stuffing fees, and Minot`s terminal handling fee.
| Identifer | oai:union.ndltd.org:ndsu.edu/oai:library.ndsu.edu:10365/29629 |
| Date | January 2010 |
| Creators | Goldade, Ashley Lynn |
| Publisher | North Dakota State University |
| Source Sets | North Dakota State University |
| Detected Language | English |
| Type | text/thesis |
| Format | application/pdf |
| Rights | NDSU policy 190.6.2, https://www.ndsu.edu/fileadmin/policy/190.pdf |
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