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A Mixed Integer Programming Model on the Location of a Hub Port in the East Coast of South America

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  • R Aversa

    (Department of Production Engineering, Polytechnic School, University of São Paulo, Av. Prof. Almeida Prado, Travessa 2, No. 128, Cidade Universitária, São Paulo, SP 05508-900, Brazil.)

  • R C Botter

    (Department of Naval and Ocean Engineering, Polytechnic School, University of São Paulo, Av. Prof. Mello Moraes, No. 2231, Cidade Universitária, São Paulo, SP 05356-000, Brazil.)

  • H E Haralambides

    (Center for Maritime Economics and Logistics (MEL), Rotterdam School of Economics, Erasmus University Rotterdam, Burgemeester Oudlaan 50, 3062 PA Rotterdam, The Netherlands.)

  • H T Y Yoshizaki

    (Department of Production Engineering, Polytechnic School, University of São Paulo, Av. Prof. Almeida Prado, Travessa 2, No. 128, Cidade Universitária, São Paulo, SP 05508-900, Brazil.)

Abstract

The paper introduces a mixed integer programming model on the selection of a hub port in the East Coast of South America, among a set of 11 ports that are servicing the regional demand for container transportation. Ports in Brazil, Argentina and Uruguay are considered, together with several origin/destination ports in the world. The model minimises total system costs, taking into account both port costs (dues and terminal handling charges) and shipping costs (feedering and mainline). In total, the model consists of 3,883 decision variables and 4,225 constraints. It turns up the port of Santos (Brazil) as the optimal single-hub solution, with the port of Buenos Aires (Argentina) as a close runner up. In addition, the model provides tentative estimates of improvements in demand and costs necessary to bring a certain port up to hub status. Despite some bold assumptions and limitations – mainly due to data availability – the model offers a straightforward decision tool to all ports in the world aspiring to achieve hub status and all that comes with it. Maritime Economics & Logistics (2005) 7, 1–18. doi:10.1057/palgrave.mel.9100121

Suggested Citation

  • R Aversa & R C Botter & H E Haralambides & H T Y Yoshizaki, 2005. "A Mixed Integer Programming Model on the Location of a Hub Port in the East Coast of South America," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 7(1), pages 1-18, March.
    • Handle: RePEc:pal:marecl:v:7:y:2005:i:1:p:1-18
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    Cited by:

    1. Jagan Jeevan & Shu-Ling Chen & Stephen Cahoon, 2018. "Determining the influential factors of dry port operations: worldwide experiences and empirical evidence from Malaysia," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(3), pages 476-494, September.
    2. Nikolai MAIOROV & Vladimir FETISOV & Srećko KRILE & Darijo MISKOVIC, 2019. "Forecasting Of The Route Network Of Ferry And Cruise Lines Based On Simulation And Intelligent Transport Systems," Transport Problems, Silesian University of Technology, Faculty of Transport, vol. 14(2), pages 111-121, June.
    3. Gelareh, Shahin & Nickel, Stefan, 2011. "Hub location problems in transportation networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1092-1111.
    4. Nguyen Khoi Tran & Hans-Dietrich Haasis & Tobias Buer, 2017. "Container shipping route design incorporating the costs of shipping, inland/feeder transport, inventory and CO2 emission," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(4), pages 667-694, December.
    5. Notteboom, Theo E. & Parola, Francesco & Satta, Giovanni, 2019. "The relationship between transhipment incidence and throughput volatility in North European and Mediterranean container ports," Journal of Transport Geography, Elsevier, vol. 74(C), pages 371-381.
    6. Fraser, Darren & Notteboom, Theo, 2014. "A strategic appraisal of the attractiveness of seaport-based transport corridors: the Southern African case," Journal of Transport Geography, Elsevier, vol. 36(C), pages 53-68.
    7. Rodrigue, Jean-Paul & Notteboom, Theo, 2010. "Foreland-based regionalization: Integrating intermediate hubs with port hinterlands," Research in Transportation Economics, Elsevier, vol. 27(1), pages 19-29.
    8. Chen, Kang & Xu, Shihe & Haralambides, Hercules, 2020. "Determining hub port locations and feeder network designs: The case of China-West Africa trade," Transport Policy, Elsevier, vol. 86(C), pages 9-22.
    9. Tran, Nguyen Khoi, 2011. "Studying port selection on liner routes: An approach from logistics perspective," Research in Transportation Economics, Elsevier, vol. 32(1), pages 39-53.
    10. Nguyen Tran & Hans-Dietrich Haasis, 2014. "Empirical analysis of the container liner shipping network on the East-West corridor (1995–2011)," Netnomics, Springer, vol. 15(3), pages 121-153, November.
    11. Tavasszy, Lóránt & Minderhoud, Michiel & Perrin, Jean-François & Notteboom, Theo, 2011. "A strategic network choice model for global container flows: specification, estimation and application," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1163-1172.
    12. Kim, Hwa-Joong & Lam, Jasmine Siu Lee & Lee, Paul Tae-Woo, 2018. "Analysis of liner shipping networks and transshipment flows of potential hub ports in sub-Saharan Africa," Transport Policy, Elsevier, vol. 69(C), pages 193-206.
    13. Bütün, Cihan & Petrovic, Sanja & Muyldermans, Luc, 2021. "The capacitated directed cycle hub location and routing problem under congestion," European Journal of Operational Research, Elsevier, vol. 292(2), pages 714-734.
    14. Simme Veldman & Eric van Drunen, 2011. "Measuring Competition between Ports," Chapters, in: Kevin Cullinane (ed.), International Handbook of Maritime Economics, chapter 15, Edward Elgar Publishing.
    15. Alumur, Sibel & Kara, Bahar Y., 2008. "Network hub location problems: The state of the art," European Journal of Operational Research, Elsevier, vol. 190(1), pages 1-21, October.
    16. Gelareh, Shahin & Pisinger, David, 2011. "Fleet deployment, network design and hub location of liner shipping companies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 947-964.
    17. von Westarp, A. Graf & Schinas, O., 2016. "A fuzzy approach for container positioning considering sustainable profit optimization," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 92(C), pages 56-66.

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