  A multi--cluster model of traffic flow is studied, in which the motion of
cars is described by a stochastic master equation. Assuming that the escape
rate from a cluster depends only on the cluster size, the dynamics of the model
is directly mapped to the mathematically well-studied zero-range process.
Knowledge of the asymptotic behaviour of the transition rates for large
clusters allows us to apply an established criterion for phase separation in
one-dimensional driven systems. The distribution over cluster sizes in our
zero-range model is given by a one--step master equation in one dimension. It
provides an approximate mean--field dynamics, which, however, leads to the
exact stationary state. Based on this equation, we have calculated the critical
density at which phase separation takes place. We have shown that within a
certain range of densities above the critical value a metastable homogeneous
state exists before coarsening sets in. Within this approach we have estimated
the critical cluster size and the mean nucleation time for a condensate in a
large system. The metastablity in the zero-range process is reflected in a
metastable branch of the fundamental flux--density diagram of traffic flow. Our
work thus provides a possible analytical description of traffic jam formation
as well as important insight into condensation in the zero-range process.
