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An Approach to Estimating the Economic Expediency of Developing a New Cargo Transport Hub by a Regional Public Administration

Author

Listed:
  • Alexander S. Belenky
  • Gennady G. Fedin
  • Alain L. Kornhauser

Abstract

Regional authorities consider the expediency of developing a new cargo transportation hub in the region in which it would provide transshipment services. It is considered that each transportation operator working in the region will use these services only if they are competitive with the currently existing ones. This competitiveness for a particular cargo means that the total transportation tariff for moving this cargo does not exceed (substantially or in principle) the (minimal) currently existing one as a result of including a transshipment via the hub in the transportation scheme for the cargo. A verifiable sufficient condition for the transshipment service competitiveness is proposed. Its verification consists of establishing the solvability of a system of linear inequalities being part of the system of constraints in the problem of finding optimal competitive transshipment tariffs for a set of cargoes expected to be moved via the hub. The latter problem is formulated as a quadratic programming one.

Suggested Citation

  • Alexander S. Belenky & Gennady G. Fedin & Alain L. Kornhauser, 2021. "An Approach to Estimating the Economic Expediency of Developing a New Cargo Transport Hub by a Regional Public Administration," International Journal of Public Administration, Taylor & Francis Journals, vol. 44(13), pages 1076-1089, October.
    • Handle: RePEc:taf:lpadxx:v:44:y:2021:i:13:p:1076-1089
    DOI: 10.1080/01900692.2020.1815052
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