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Intermodal freight network incorporating hub-and-spoke and direct calls for the archipelagic Philippines

Author

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  • Anita Odchimar

    (Department of International Development Engineering, Graduate School of Science and Engineering)

  • Shinya Hanaoka

    (Department of International Development Engineering, Graduate School of Science and Engineering)

Abstract

Compared with point-to-point (PTP) transport, a hub-and-spoke (HS) network benefits from consolidation of cargoes in hubs, leading to lower average costs for hub-to-hub transport because of scale economies. This article explores the use of intermodal road – Roll-on Roll-off (RoRo) transport, in complement with container transport, that is, in a combined HS and PTP network topology for the archipelagic Philippines. The mixed HS network is modeled to incorporate the properties of multiple allocations, non-restrictive networking policy and general hub network topology. The large network problem is solved by a heuristic that uses Lagrangian relaxation as a starting point. The model is able to locate hub ports where cases of intermodal road-RoRo and container transport could transship and be used complementarily. It is shown that considerable savings in total network costs could be realized with a mixed network, as compared with a purely PTP one.

Suggested Citation

  • Anita Odchimar & Shinya Hanaoka, 2017. "Intermodal freight network incorporating hub-and-spoke and direct calls for the archipelagic Philippines," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(2), pages 352-378, June.
    • Handle: RePEc:pal:marecl:v:19:y:2017:i:2:d:10.1057_mel.2015.32
    DOI: 10.1057/mel.2015.32
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    References listed on IDEAS

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    Cited by:

    1. Behzad Behdani & Bart Wiegmans & Violeta Roso & Hercules Haralambides, 2020. "Port-hinterland transport and logistics: emerging trends and frontier research," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(1), pages 1-25, March.

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