A strategic model of port-hinterland freight distribution networks

Abstract

This paper presents a strategic model for port-hinterland freight distribution networks. The approach utilizes a combination of a multi-objective optimization model to estimate locations and networks of distribution centers and an assignment model that recognizes distributed service level preferences. Our example application concerns the European continent and is transferable to other regions. The model calibration is able to explain the European port-hinterland distribution structures satisfactorily. We compute novel performance measures that take into account port-hinterland distribution structures. The measures include port-hinterland transport cost, port-hinterland transport time, and distribution center-hinterland transport time. These measures can provide inputs for port-connectivity studies.