Modal choice in cargo haulage for the Mombasa-Nairobi route

Abstract

This paper presents findings of a study on the determinal of choice in cargo haulage between road freighters and the railways. The study covers route between Mombasa and Nairobi incoming dry cargo cleared from Kilindini Port. Shippers' choices of transport mode are ana lysed considering the characteristics of each consignment transported and the attributes of 'each mode. A binary logit model is used to analyse the impact of certain variables on transport mode choice. This impact relates to the odds of one mode of transport being chosen over the other Accordingly, freight rates, loading costs, transit time, and availability of door to door service within the modes are the most important determinants of the probability that a shipper will choose one mode over the other. Freight rates are higher road than in railways. However, the high speed, efficiency in cargo handling, flexibility, and availability of door-to-door service encourage truck use. A high correlation exists between road and rail haulage implying that shippers take into account the existence of the alternative mode when making their choice The railways is disadvantaged, however, due to lack of door-to-door service where side lines do not exist. Consignment weight is not a significant determinant of the mode chosen except for low value government imports--e.g., grains and fertilizers--which usually go by rail.