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Development of port service network in OBOR via capacity sharing: an idea from Zhejiang province in China

Author

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  • Xiao Ruan
  • Xuehao Feng
  • Kelvin Pang

Abstract

The ‘Silk Road Economic Belt and the 21st-Century Maritime Silk Road’ (One Belt One Road, OBOR) strategy initiated by the Chinese government has a significant impact on the business and logistics modes which involves Asia, Europe, Africa, and their adjacent seas. Many countries and ports are developing new strategies that are suitable for this economic environment. Compared with many ports in the world, the ports in Zhejiang province of China have a novel property. In addition to Ningbo-Zhoushan port, there are several other sea ports and river ports in that province. In this paper, we propose a concept of port service network that consists of a huge hub and multiple ports. Ports of small and medium sizes can share their capacities of different types of port service with the hub when the service capacities are integrated into the network. We develop a mixed integer nonlinear programming model to determine the optimal decisions in such a network with constraints on the budget to conduct integration. An optimization algorithm incorporated with a genetic algorithm is developed to solve large size problems. We provide managerial insights on the policies of government, including expanding port capacity, reducing fixed integration cost, and providing better financial condition.

Suggested Citation

  • Xiao Ruan & Xuehao Feng & Kelvin Pang, 2018. "Development of port service network in OBOR via capacity sharing: an idea from Zhejiang province in China," Maritime Policy & Management, Taylor & Francis Journals, vol. 45(1), pages 105-124, January.
    • Handle: RePEc:taf:marpmg:v:45:y:2018:i:1:p:105-124
    DOI: 10.1080/03088839.2017.1391412
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    Citations

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    Cited by:

    1. Wang, Zujian & Qi, Mingyao & Cheng, Chun & Zhang, Canrong, 2019. "A hybrid algorithm for large-scale service network design considering a heterogeneous fleet," European Journal of Operational Research, Elsevier, vol. 276(2), pages 483-494.
    2. Li, Wenjie & Asadabadi, Ali & Miller-Hooks, Elise, 2022. "Enhancing resilience through port coalitions in maritime freight networks," Transportation Research Part A: Policy and Practice, Elsevier, vol. 157(C), pages 1-23.
    3. Mehmet Sinan Yıldırım, 2023. "Quantifying the Operational Benefits of Dry Port Integrated Cooperation in Port Clusters: A Microsimulation Study," Sustainability, MDPI, vol. 15(6), pages 1-18, March.
    4. Chen, Jihong & Fei, Yijie & Wan, Zheng & Yang, Zaili & Li, Haobo & Choi, Kyoung-Suk & Xie, Xiaoke, 2020. "Allometric relationship and development potential comparison of ports in a regional cluster: A case study of ports in the Pearl River Delta in China," Transport Policy, Elsevier, vol. 85(C), pages 80-90.
    5. 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.
    6. Fu, Yaping & Wu, Di & Wang, Yan & Wang, Hongfeng, 2020. "Facility location and capacity planning considering policy preference and uncertain demand under the One Belt One Road initiative," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 172-186.
    7. Guo, Liquan & Ng, Adolf K.Y. & Jiang, Changmin & Long, Jiancheng, 2021. "Stepwise capacity integration in port cluster under uncertainty and congestion," Transport Policy, Elsevier, vol. 112(C), pages 94-113.
    8. Yang, Zhongzhen & Guo, Liquan & Lian, Feng, 2019. "Port integration in a region with multiport gateways in the context of industrial transformation and upgrading of the port," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 231-246.
    9. Li Li & Jiadong Zhu & Guanqiong Ye & Xuehao Feng, 2018. "Development of Green Ports with the Consideration of Coastal Wave Energy," Sustainability, MDPI, vol. 10(11), pages 1-17, November.

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