IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v285y2020i2p599-611.html
   My bibliography  Save this article

Identifying the market areas of port-centric logistics and hinterland intermodal transportation

Author

Listed:
  • Bouchery, Yann
  • Woxenius, Johan
  • Fransoo, Jan C.

Abstract

Many port authorities have developed ambitious strategies to foster hinterland intermodal transportation. In addition, port-centric logistics, that is, the provision of distribution facilities and value-adding activities in the port area, has expanded in multiple ports. Obviously, such port-centric logistics may impact the operations in the hinterland substantially and could potentially reduce opportunities for intermodal transport in the hinterland. We analyze the interaction between port-centric logistics and hinterland intermodal transportation. We take a logistics service provider's perspective and we include some key elements in the model, such as detention fees, extra handling, transport efficiency and empty container repositioning. We develop new analytical results identifying the optimal market areas of truck-only transportation, port-centric logistics and hinterland intermodal transportation. Our results show that tension between port-centric logistics and hinterland intermodal transportation is quite likely to happen in practice. We additionally study the use of continental containers as a way to reconcile port-centric logistics and hinterland intermodal transportation and we derive further results. We illustrate our results via an example and we highlight managerial insights.

Suggested Citation

  • Bouchery, Yann & Woxenius, Johan & Fransoo, Jan C., 2020. "Identifying the market areas of port-centric logistics and hinterland intermodal transportation," European Journal of Operational Research, Elsevier, vol. 285(2), pages 599-611.
    • Handle: RePEc:eee:ejores:v:285:y:2020:i:2:p:599-611
    DOI: 10.1016/j.ejor.2020.02.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221720301338
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2020.02.015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Woxenius, Johan & Bergqvist, Rickard, 2011. "Comparing maritime containers and semi-trailers in the context of hinterland transport by rail," Journal of Transport Geography, Elsevier, vol. 19(4), pages 680-688.
    2. Larranaga, Ana Margarita & Arellana, Julian & Senna, Luiz Afonso, 2017. "Encouraging intermodality: A stated preference analysis of freight mode choice in Rio Grande do Sul," Transportation Research Part A: Policy and Practice, Elsevier, vol. 102(C), pages 202-211.
    3. Dullaert, Wout & Zamparini, Luca, 2013. "The impact of lead time reliability in freight transport: A logistics assessment of transport economics findings," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 190-200.
    4. Jean-Paul Rodrigue & Theo Notteboom, 2009. "The terminalization of supply chains: reassessing the role of terminals in port/hinterland logistical relationships," Maritime Policy & Management, Taylor & Francis Journals, vol. 36(2), pages 165-183, April.
    5. Duan, Liwei & Tavasszy, Lorant A. & Rezaei, Jafar, 2019. "Freight service network design with heterogeneous preferences for transport time and reliability," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 124(C), pages 1-12.
    6. Wang, Xinchang & Meng, Qiang, 2017. "Discrete intermodal freight transportation network design with route choice behavior of intermodal operators," Transportation Research Part B: Methodological, Elsevier, vol. 95(C), pages 76-104.
    7. Sabine Limbourg & Bart Jourquin, 2010. "Market area of intermodal rail‐road container terminals embedded in a hub‐and‐spoke network," Papers in Regional Science, Wiley Blackwell, vol. 89(1), pages 135-154, March.
    8. Leachman, Robert C., 2008. "Port and modal allocation of waterborne containerized imports from Asia to the United States," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(2), pages 313-331, March.
    9. Roso, Violeta & Woxenius, Johan & Lumsden, Kenth, 2009. "The dry port concept: connecting container seaports with the hinterland," Journal of Transport Geography, Elsevier, vol. 17(5), pages 338-345.
    10. Mary R Brooks & Sean M Puckett & David A Hensher & Adrian Sammons, 2012. "Understanding mode choice decisions: A study of Australian freight shippers," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 14(3), pages 274-299, September.
    11. Rothenbächer, Ann-Kathrin & Drexl, Michael & Irnich, Stefan, 2016. "Branch-and-price-and-cut for a service network design and hub location problem," European Journal of Operational Research, Elsevier, vol. 255(3), pages 935-947.
    12. Janic, Milan, 2008. "An assessment of the performance of the European long intermodal freight trains (LIFTS)," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(10), pages 1326-1339, December.
    13. Rodrigue, Jean-Paul & Debrie, Jean & Fremont, Antoine & Gouvernal, Elisabeth, 2010. "Functions and actors of inland ports: European and North American dynamics," Journal of Transport Geography, Elsevier, vol. 18(4), pages 519-529.
    14. Sedghi, Nafiseh & Shavandi, Hassan & Abouee-Mehrizi, Hossein, 2017. "Joint pricing and location decisions in a heterogeneous market," European Journal of Operational Research, Elsevier, vol. 261(1), pages 234-246.
    15. Tsao, Yu-Chung & Mangotra, Divya & Lu, Jye-Chyi & Dong, Ming, 2012. "A continuous approximation approach for the integrated facility-inventory allocation problem," European Journal of Operational Research, Elsevier, vol. 222(2), pages 216-228.
    16. Fan, Lei & Wilson, William W. & Dahl, Bruce, 2015. "Risk analysis in port competition for containerized imports," European Journal of Operational Research, Elsevier, vol. 245(3), pages 743-753.
    17. Monios, Jason & Wilmsmeier, Gordon, 2013. "The role of intermodal transport in port regionalisation," Transport Policy, Elsevier, vol. 30(C), pages 161-172.
    18. Kris Braekers & Gerrit Janssens & An Caris, 2011. "Challenges in Managing Empty Container Movements at Multiple Planning Levels," Transport Reviews, Taylor & Francis Journals, vol. 31(6), pages 681-708.
    19. Notteboom, Theo, 2016. "The adaptive capacity of container ports in an era of mega vessels: The case of upstream seaports Antwerp and Hamburg," Journal of Transport Geography, Elsevier, vol. 54(C), pages 295-309.
    20. Theo E. Notteboom * & Jean-Paul Rodrigue, 2005. "Port regionalization: towards a new phase in port development," Maritime Policy & Management, Taylor & Francis Journals, vol. 32(3), pages 297-313, July.
    21. Tom Vermeiren & Cathy Macharis, 2016. "Intermodal land transportation systems and port choice, an analysis of stated choices among shippers in the Rhine–Scheldt delta," Maritime Policy & Management, Taylor & Francis Journals, vol. 43(8), pages 992-1004, November.
    22. Lam Canh Nguyen & Theo Notteboom, 2019. "The relations between dry port characteristics and regional port-hinterland settings: findings for a global sample of dry ports," Maritime Policy & Management, Taylor & Francis Journals, vol. 46(1), pages 24-42, January.
    23. Niérat, Patrick, 1997. "Market area of rail-truck terminals: Pertinence of the spatial theory," Transportation Research Part A: Policy and Practice, Elsevier, vol. 31(2), pages 109-127, March.
    24. Saeedi, Hamid & Wiegmans, Bart & Behdani, Behzad & Zuidwijk, Rob, 2017. "European intermodal freight transport network: Market structure analysis," Journal of Transport Geography, Elsevier, vol. 60(C), pages 141-154.
    25. Dekker, Rommert & Bloemhof, Jacqueline & Mallidis, Ioannis, 2012. "Operations Research for green logistics – An overview of aspects, issues, contributions and challenges," European Journal of Operational Research, Elsevier, vol. 219(3), pages 671-679.
    26. Dong-Wook Song & Photis M. Panayides, 2002. "A conceptual application of cooperative game theory to liner shipping strategic alliances," Maritime Policy & Management, Taylor & Francis Journals, vol. 29(3), pages 285-301.
    27. Lei, Ting L. & Church, Richard L., 2011. "Locating short-term empty-container storage facilities to support port operations: A user optimal approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(5), pages 738-754, September.
    28. Brian Slack & Claude Comtois & Robert McCalla, 2002. "Strategic alliances in the container shipping industry: a global perspective," Maritime Policy & Management, Taylor & Francis Journals, vol. 29(1), pages 65-76, January.
    29. Zheng, Jianfeng & Meng, Qiang & Sun, Zhuo, 2015. "Liner hub-and-spoke shipping network design," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 75(C), pages 32-48.
    30. Monios, Jason & Bergqvist, Rickard & Woxenius, Johan, 2018. "Port-centric cities: The role of freight distribution in defining the port-city relationship," Journal of Transport Geography, Elsevier, vol. 66(C), pages 53-64.
    31. Yann Bouchery & Stefano Fazi & Jan C. Fransoo, 2015. "Hinterland Transportation in Container Supply Chains," International Series in Operations Research & Management Science, in: Chung-Yee Lee & Qiang Meng (ed.), Handbook of Ocean Container Transport Logistics, edition 127, chapter 17, pages 497-520, Springer.
    32. Albert Veenstra & Rob Zuidwijk & Eelco van Asperen, 2012. "The extended gate concept for container terminals: Expanding the notion of dry ports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 14(1), pages 14-32, March.
    33. Wang, Xinchang & Meng, Qiang & Miao, Lixin, 2016. "Delimiting port hinterlands based on intermodal network flows: Model and algorithm," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 88(C), pages 32-51.
    34. W. J. Baumol & H. D. Vinod, 1970. "An Inventory Theoretic Model of Freight Transport Demand," Management Science, INFORMS, vol. 16(7), pages 413-421, March.
    35. John Gunnar Carlsson & Fan Jia, 2013. "Euclidean Hub-and-Spoke Networks," Operations Research, INFORMS, vol. 61(6), pages 1360-1382, December.
    36. Igor Averbakh & Oded Berman & Jörg Kalcsics & Dmitry Krass, 2015. "Structural Properties of Voronoi Diagrams in Facility Location Problems with Continuous Demand," Operations Research, INFORMS, vol. 63(2), pages 394-411, April.
    37. Y Bouchery & Jan C Fransoo, 2015. "Cost, carbon emissions and modal shift in intermodal network design decisions," Post-Print hal-01954452, HAL.
    38. Balakrishnan, Anantaram & Karsten, Christian Vad, 2017. "Container shipping service selection and cargo routing with transshipment limits," European Journal of Operational Research, Elsevier, vol. 263(2), pages 652-663.
    39. Kim, Nam Seok & Van Wee, Bert, 2011. "The relative importance of factors that influence the break-even distance of intermodal freight transport systems," Journal of Transport Geography, Elsevier, vol. 19(4), pages 859-875.
    40. Bouchery, Yann & Fransoo, Jan, 2015. "Cost, carbon emissions and modal shift in intermodal network design decisions," International Journal of Production Economics, Elsevier, vol. 164(C), pages 388-399.
    41. Miguel Ángel López-Navarro, 2014. "Environmental Factors and Intermodal Freight Transportation: Analysis of the Decision Bases in the Case of Spanish Motorways of the Sea," Sustainability, MDPI, vol. 6(3), pages 1-23, March.
    42. S. J. Pettit & A. K. C. Beresford, 2009. "Port development: from gateways to logistics hubs," Maritime Policy & Management, Taylor & Francis Journals, vol. 36(3), pages 253-267, June.
    43. Richa Agarwal & Özlem Ergun, 2010. "Network Design and Allocation Mechanisms for Carrier Alliances in Liner Shipping," Operations Research, INFORMS, vol. 58(6), pages 1726-1742, December.
    44. Ypsilantis, P. & Zuidwijk, R.A., 2013. "Joint Design and Pricing of Intermodal Port - Hinterland Network Services: Considering Economies of Scale and Service Time Constraints," ERIM Report Series Research in Management ERS-2013-011-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    45. van Riessen, B. & Negenborn, R.R. & Dekker, R., 2016. "Real-time Container Transport Planning with Decision Trees based on Offline Obtained Optimal Solutions," Econometric Institute Research Papers EI2016-14, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    46. Shams, Kollol & Asgari, Hamidreza & Jin, Xia, 2017. "Valuation of travel time reliability in freight transportation: A review and meta-analysis of stated preference studies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 102(C), pages 228-243.
    47. Demir, Emrah & Burgholzer, Wolfgang & Hrušovský, Martin & Arıkan, Emel & Jammernegg, Werner & Woensel, Tom Van, 2016. "A green intermodal service network design problem with travel time uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 93(PB), pages 789-807.
    48. Dasci, Abdullah & Verter, Vedat, 2001. "A continuous model for production-distribution system design," European Journal of Operational Research, Elsevier, vol. 129(2), pages 287-298, March.
    49. SteadieSeifi, M. & Dellaert, N.P. & Nuijten, W. & Van Woensel, T. & Raoufi, R., 2014. "Multimodal freight transportation planning: A literature review," European Journal of Operational Research, Elsevier, vol. 233(1), pages 1-15.
    50. Langevin, André & Mbaraga, Pontien & Campbell, James F., 1996. "Continuous approximation models in freight distribution: An overview," Transportation Research Part B: Methodological, Elsevier, vol. 30(3), pages 163-188, June.
    51. Tyworth, John E. & Zeng, Amy Zhaohui, 1998. "Estimating the effects of carrier transit-time performance on logistics cost and service," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(2), pages 89-97, February.
    52. Ambrosino, Daniela & Grazia Scutella, Maria, 2005. "Distribution network design: New problems and related models," European Journal of Operational Research, Elsevier, vol. 165(3), pages 610-624, September.
    53. Witte, Patrick & Wiegmans, Bart & Ng, Adolf K.Y., 2019. "A critical review on the evolution and development of inland port research," Journal of Transport Geography, Elsevier, vol. 74(C), pages 53-61.
    54. Jason Monios & Gordon Wilmsmeier, 2012. "Port-centric logistics, dry ports and offshore logistics hubs: strategies to overcome double peripherality?," Maritime Policy & Management, Taylor & Francis Journals, vol. 39(2), pages 207-226, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andrej David & Peter Mako & Jan Lizbetin & Patrik Bohm, 2021. "The Impact of an Environmental Way of Customer’s Thinking on a Range of Choice from Transport Routes in Maritime Transport," Sustainability, MDPI, vol. 13(3), pages 1-23, January.
    2. Souza, Marlon Fernandes de & Tisler, Trevor Ray & Castro, Gustavo Spadotti Amaral & Oliveira, Andréa Leda Ramos de, 2023. "Port regionalization for agricultural commodities: Mapping exporting port hinterlands," Journal of Transport Geography, Elsevier, vol. 106(C).
    3. Kenneth Løvold Rødseth & Rasmus Bøgh Holmen & Timo Kuosmanen & Halvor Schøyen, 2023. "Market access and seaport efficiency: the case of container handling in Norway," Journal of Shipping and Trade, Springer, vol. 8(1), pages 1-25, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bergqvist, Rickard & Monios, Jason, 2021. "Drivers for migration of an intermodal network hub from a port to an inland terminal," Journal of Transport Geography, Elsevier, vol. 91(C).
    2. Liu, Weichen & Cao, Youhui & Chen, Jianglong & Guo, Jiaying & Liang, Shuangbo, 2023. "Organization of river-sea container transportation in the Yangtze River: Processes and mechanisms," Journal of Transport Geography, Elsevier, vol. 108(C).
    3. Jason Monios & Gordon Wilmsmeier, 2014. "The Impact of Container Type Diversification on Regional British Port Development Strategies," Transport Reviews, Taylor & Francis Journals, vol. 34(5), pages 583-606, September.
    4. Yang, Dong & Notteboom, Theo & Zhou, Xin, 2021. "Spatial, temporal and institutional characteristics of entry strategies in inland container terminals: A comparison between Yangtze River and Rhine River," Journal of Transport Geography, Elsevier, vol. 90(C).
    5. Jiang, Xiaodan & Fan, Houming & Luo, Meifeng & Xu, Zhenlin, 2020. "Strategic port competition in multimodal network development considering shippers’ choice," Transport Policy, Elsevier, vol. 90(C), pages 68-89.
    6. Dadashpoor, Hashem & Arasteh, Mojtaba, 2020. "Core-port connectivity: Towards shaping a national hinterland in a West Asia country," Transport Policy, Elsevier, vol. 88(C), pages 57-68.
    7. Monios, Jason & Wilmsmeier, Gordon, 2013. "The role of intermodal transport in port regionalisation," Transport Policy, Elsevier, vol. 30(C), pages 161-172.
    8. Wan, Shulin & Luan, Weixin & Chen, Yuying & Lin, Qiaoqiao, 2022. "Influence of dry ports construction on seaport growth: Case of Ningbo Zhoushan Port," Transport Policy, Elsevier, vol. 117(C), pages 40-47.
    9. Ralf Elbert & Lowis Seikowsky, 2017. "The influences of behavioral biases, barriers and facilitators on the willingness of forwarders’ decision makers to modal shift from unimodal road freight transport to intermodal road–rail freight tra," Journal of Business Economics, Springer, vol. 87(8), pages 1083-1123, November.
    10. Witte, Patrick & Wiegmans, Bart & Ng, Adolf K.Y., 2019. "A critical review on the evolution and development of inland port research," Journal of Transport Geography, Elsevier, vol. 74(C), pages 53-61.
    11. Monios, Jason & Wilmsmeier, Gordon, 2012. "Giving a direction to port regionalisation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(10), pages 1551-1561.
    12. Archetti, Claudia & Peirano, Lorenzo & Speranza, M. Grazia, 2022. "Optimization in multimodal freight transportation problems: A Survey," European Journal of Operational Research, Elsevier, vol. 299(1), pages 1-20.
    13. Li, Qinglin & Rezaei, Jafar & Tavasszy, Lori & Wiegmans, Bart & Guo, Jingwei & Tang, Yinying & Peng, Qiyuan, 2020. "Customers’ preferences for freight service attributes of China Railway Express," Transportation Research Part A: Policy and Practice, Elsevier, vol. 142(C), pages 225-236.
    14. 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.
    15. Zhang, Qi & Wang, Wenyuan & Peng, Yun & Zhang, Junyi & Guo, Zijian, 2018. "A game-theoretical model of port competition on intermodal network and pricing strategy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 19-39.
    16. Chen, Hong & Cullinane, Kevin & Liu, Nan, 2017. "Developing a model for measuring the resilience of a port-hinterland container transportation network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 282-301.
    17. Panagiotis Ypsilantis & Rob Zuidwijk, 2019. "Collaborative Fleet Deployment and Routing for Sustainable Transport," Sustainability, MDPI, vol. 11(20), pages 1-26, October.
    18. Ansari, Sina & Başdere, Mehmet & Li, Xiaopeng & Ouyang, Yanfeng & Smilowitz, Karen, 2018. "Advancements in continuous approximation models for logistics and transportation systems: 1996–2016," Transportation Research Part B: Methodological, Elsevier, vol. 107(C), pages 229-252.
    19. 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.
    20. Roy Van den Berg & Peter W. De Langen, 2015. "Towards an 'inland terminal centred' value proposition," Maritime Policy & Management, Taylor & Francis Journals, vol. 42(5), pages 499-515, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:285:y:2020:i:2:p:599-611. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.