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A bilevel storage pricing model for outbound containers in a dry port system

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  • Qiu, Xuan
  • Lam, Jasmine Siu Lee
  • Huang, George Q.

Abstract

Serving as a potential solution for seaport congestion and capacity limitation, dry port development is increasingly popular in the freight transport industry. This paper pioneers the research on dry port operations by modelling the storage pricing problem for outbound containers. The interaction between a dry port and multiple shippers is modelled as a bilevel program. The optimal properties of the proposed model under certain conditions are derived analytically, from which a closed-form solution is obtained. Contrary to intuition, the increase of container delivery frequency from shippers may lead to the reduction of dry port’s profit according to model outcomes.

Suggested Citation

  • Qiu, Xuan & Lam, Jasmine Siu Lee & Huang, George Q., 2015. "A bilevel storage pricing model for outbound containers in a dry port system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 73(C), pages 65-83.
    • Handle: RePEc:eee:transe:v:73:y:2015:i:c:p:65-83
    DOI: 10.1016/j.tre.2014.10.009
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    2. Alena Khaslavskaya & Violeta Roso, 2020. "Dry ports: research outcomes, trends, and future implications," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(2), pages 265-292, June.
    3. Erica Varese & Danilo Stefano Marigo & Mariarosaria Lombardi, 2020. "Dry Port: A Review on Concept, Classification, Functionalities and Technological Processes," Logistics, MDPI, vol. 4(4), pages 1-16, November.
    4. Qu, Chenrui & Zeng, Qingcheng & Li, Kevin X. & Lin, Kun-Chin, 2020. "Modeling incentive strategies for landside integration in multimodal transport chains," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 47-64.
    5. Talley, Wayne K. & Ng, ManWo, 2017. "Hinterland transport chains: Determinant effects on chain choice," International Journal of Production Economics, Elsevier, vol. 185(C), pages 175-179.
    6. Xiao, Tingting & Ha, Albert Y., 2018. "Optimal unloading and storage pricing for inbound containers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 210-228.
    7. Qiu, Xuan & Huang, George Q., 2016. "Transportation service sharing and replenishment/delivery scheduling in Supply Hub in Industrial Park (SHIP)," International Journal of Production Economics, Elsevier, vol. 175(C), pages 109-120.
    8. Witte, Patrick & Wiegmans, Bart & Rodrigue, Jean-Paul, 2017. "Competition or complementarity in Dutch inland port development: A case of overproximity?," Journal of Transport Geography, Elsevier, vol. 60(C), pages 80-88.
    9. Bi Wang & Kwai Sang Chin & Qin Su, 2022. "Risk management and market structures in seaport–dry port systems," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(1), pages 114-137, March.
    10. de Almeida Rodrigues, Thiago & Maria de Miranda Mota, Caroline & Manuele dos Santos, Inez, 2021. "Determining dry port criteria that support decision making," Research in Transportation Economics, Elsevier, vol. 88(C).
    11. Qiu, Xuan & Lee, Chung-Yee, 2019. "Quantity discount pricing for rail transport in a dry port system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 563-580.
    12. Santos, Maria João & Curcio, Eduardo & Amorim, Pedro & Carvalho, Margarida & Marques, Alexandra, 2021. "A bilevel approach for the collaborative transportation planning problem," International Journal of Production Economics, Elsevier, vol. 233(C).
    13. Tsao, Yu-Chung & Thanh, Vo-Van, 2019. "A multi-objective mixed robust possibilistic flexible programming approach for sustainable seaport-dry port network design under an uncertain environment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 124(C), pages 13-39.

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