Investigation and Identification of Variables of Cost and Time Affecting International Freight Transportation in the International North-South Transit Corridor (INSTC)

The International North-South Transit Corridor (INSTC) is of prime importance because the economic desirability of international cargo transportation through this corridor can be theoretically much higher than rival routes. Many studies have focused on estimating the cost of transit via the INSTC. Although most of them have sought to collect field information from the status quo of the transportation of the transited cargo, the findings cannot be broken down to each of the rings of the logistics chain. Determining the share of each part of the chain in the total transit cost can help us identify, compare, and remove extra charges and optimize the cost in the entire chain. This paper aimed to analyze the cost breakdown for transported goods from India (Kandla Port) to Kazakhstan (Aktau Port) as a case study route based on the detailed tariffs and rates associated with each logistics activity in each ring of the chain. The findings revealed the high portion of the cost of the maritime sector (49 percent), followed by the land transportation sector (29 percent). Cutting costs in the mentioned sectors is a priority of trade facilitation strategies compared with other parts such as the port sector (22 percent) and custom sector. The results of this research applied to depict a holistic and integrated cost breakdown picture in the INSTC. This study demonstrates how the cost breakdown structure can help managers identify the practical solutions to reduce the transit cost and time.