A feasibility study on rail transportation of paperboard at Tetra Pak

Abstract: The current global trade scenario has a large infrastructural gap, which limits the possibilities for physical distribution of goods among different countries or continents. The ‘Belt and Road Initiative’ will be used to close this gap. Tetra Pak being global organisation would like to explore the possibilities of using rail transport in BRI. For this reason, they would like to evaluate the benefits and challenges associated with changing of transport mode from sea to rail.The purpose of this thesis is to conduct a feasibility analysis of change in mode of transportation from sea to rail from an economic, environmental and service performance aspects while proposing a better understanding of the advantages and challenges of rail freight. In order to fulfill the purpose of the thesis, the authors have used inductive case study approach. This was done by analyzing and comparing the as is state to the to be state, using the qualitative and quantitative data coming from interviews and company documents.The analysis resulted in showcasing the total logistics costs for both modes of transport along with the impact it would have on service and environmental performance. It was found that the rail freight would not be suitable and economical to ship paperboard due the its low unit value.