Facility sharing at dry-bulk terminals using game theory and simulation

Abstract

Coal-fired power plants need a reliable and steady supply of coal for their operation. The set-up of an import terminal requires huge investments in facilities like harbour infrastructure, stockyards and equipment. When multiple power plants are closely located, sharing of facilities can be very profitable. The objective of this study is to gain insight in facility sharing for dry-bulk environments. Cooperative game theory is used to distribute the expected benefits from different levels of collaboration between participants. In order to take stochastic influences into account and also to quantify the effects of collaboration on the reliability of the terminal a detailed simulation model is built. This simulation model is used to evaluate terminal performance in possible cooperative and non-cooperative terminal configurations. The results of the study show that facility sharing is very profitable. Furthermore, the non-trivial outcome of the cost allocation proofs the value of an approach using game theory.