Port and Inland Mode Choice from the Exporters’ and Forwarders’ Perspectives: Case Study – Java, Indonesia

This paper identifies the critical factors influencing the port and inland mode choice from the perspective of shippers and forwarders using data from a stated preference (SP) survey in Java, Indonesia. The best model from estimation is Mixed Nested Logit (MXNL) with the inland mode cost coefficient distributed normally and with port nests. The cost of inland modes, inland mode time, greenhouse gas (GHG) emissions and cost of ports have negative signs, whilst the number of ship calls at port and the reliability of inland modes have positive signs. Simulation results show that reducing fuel subsidies for road transport and giving incentives to reduce rail freight rates would provide the most significant encouragements to modal shift from road transport to rail transport.