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Connectivity at Inter-Modal Hub Cities

In: Building Supply Chain Excellence in Emerging Economies

Author

Listed:
  • Raymond K. Cheung

    (The Hong Kong University of Science & Technology)

  • Allen W. Lee

    (The Hong Kong University of Science & Technology)

Abstract

As the global economy continues to be increasingly integrated and the transit time required is getting shorter, the inter-modal freight activities around a major hub have become more complex and intense. Although these activities typically represent a very small portion of the global distribution network in terms of distance, they contribute significantly to the total transportation cost. Using Hong Kong, the busiest port in the world, as an example, we illustrate the challenges and issues on managing the connection activities in hub cities. In particular, how cross-border regulatory policies lead to very low utilization of resource is discussed. With partial relaxation of these policies in sight, a new operating model of using a freight relay center for connection activities is emerging. We present a decision model on how freight flow and driver flow can be managed in this setting both at tactical and operational levels and design a solution approach.

Suggested Citation

  • Raymond K. Cheung & Allen W. Lee, 2007. "Connectivity at Inter-Modal Hub Cities," International Series in Operations Research & Management Science, in: Hau L. Lee & Chung-Yee Lee (ed.), Building Supply Chain Excellence in Emerging Economies, chapter 0, pages 201-221, Springer.
    • Handle: RePEc:spr:isochp:978-0-387-38429-0_9
    DOI: 10.1007/978-0-387-38429-0_9
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