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The feeder network design problem: Application to container services in the Black Sea region

Author

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  • Olcay Polat

    (Department of Industrial Engineering, Pamukkale University, Kinikli, Denizli, 20070 Turkey)

  • Hans-Otto Günther

    (Department of Industrial Engineering, Seoul National University, Seoul 151-744, Korea)

  • Osman Kulak

    (Department of Industrial Engineering, Pamukkale University, Kinikli, Denizli, 20070 Turkey)

Abstract

Global containership liners design their transportation service as hub-and-spoke networks to improve the access to local transportation markets and to reduce operational costs by using short-sea connections for low-volume transportation lanes. These connections from the hub ports to the regional ports constitute the feeder network that is serviced by small- or medium-sized feeder containerships. In our case study investigation, we assume the feeder network design problem of a Turkish short-sea shipping company, in view of the opening of the new Candarli port near Izmir. The cost performance of three alternate feeder network configurations serving the Black Sea region is compared. For this purpose, a mixed-integer linear programming model is developed and an adaptive neighbourhood search algorithm is applied in order to determine the feeder ship fleet size and mix with routes and voyage schedules to minimize operational costs for a given planning period. Numerical results show that the new Candarli port has great potential as hub port in the Black Sea region.

Suggested Citation

  • Olcay Polat & Hans-Otto Günther & Osman Kulak, 2014. "The feeder network design problem: Application to container services in the Black Sea region," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 16(3), pages 343-369, September.
    • Handle: RePEc:pal:marecl:v:16:y:2014:i:3:p:343-369
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    Citations

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    Cited by:

    1. Veterina Nosadila Riaventin & Sofyan Dwi Cahyo & Ivan Kristianto Singgih, 2021. "A Model for Developing Existing Ports Considering Economic Impact and Network Connectivity," Sustainability, MDPI, vol. 13(7), pages 1-17, March.
    2. Jin, Jian Gang & Meng, Qiang & Wang, Hai, 2021. "Feeder vessel routing and transshipment coordination at a congested hub port," Transportation Research Part B: Methodological, Elsevier, vol. 151(C), pages 1-21.
    3. Magnus Bolstad Holm & Carl Axel Benjamin Medbøen & Kjetil Fagerholt & Peter Schütz, 2019. "Shortsea liner network design with transhipments at sea: a case study from Western Norway," Flexible Services and Manufacturing Journal, Springer, vol. 31(3), pages 598-619, September.
    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. Qu, Chenrui & Wang, Grace W.Y. & Zeng, Qingcheng, 2017. "Modelling port subsidy policies considering pricing decisions of feeder carriers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 99(C), pages 115-133.
    6. Saurabh Chandra & Amit Kumar Vatsa, 2021. "Case Article—Coastal Shipping for Automobile Distribution," INFORMS Transactions on Education, INFORMS, vol. 22(1), pages 28-34, September.
    7. Kalayci, Can B. & Kulak, Osman & Günther, Hans-Otto, 2015. "A perturbation based variable neighborhood search heuristic for solving the Vehicle Routing Problem with Simultaneous Pickup and Delivery with Time LimitAuthor-Name: Polat, Olcay," European Journal of Operational Research, Elsevier, vol. 242(2), pages 369-382.
    8. Dario Medić & Srećko Krile & Igor Jelaska & Rino Bošnjak, 2021. "Adriatic Sea Hub Ports Feeder Service Optimization Using Multi-Criteria Decision-Making Methods," Sustainability, MDPI, vol. 13(21), pages 1-12, November.
    9. Mulder, J. & Dekker, R., 2016. "Optimization in container liner shipping," Econometric Institute Research Papers EI2016-05, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.

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