Study of Optimal Number and Location of Intermodal Railway Yards: A Case Study of Sugar Transportation in Northeastern Region of Thailand
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Abstract
Thailand is the second largest sugar exporter in the world. Most sugar is transported from its factories to domestic ports via road freight. However, railway has proven to be a more cost-effective alternative mode. This research is aimed at determining the optimal number and locations of intermodal railway yards by adopting cluster analysis technique called K-means. The clustering decision criteria include factory production capacity, transportation cost and distance between each factory to its nearest railway station. The results show that transportation of sugar by rail in the northeastern region of Thailand via intermodal railway yards as proposed in this research can save transportation cost by 73.48 percent with respect to that of road transportation. The economic analysis shows that by the year 2050, the net present value of the project is 6.24 billion baht where the economic internal rate of return is 13.70 percent per
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