Economically-efficient port expansion strategies: An optimal control approach

Sander Dekker, Robert Verhaeghe and Bart Wiegmans

Transportation Research Part E: Logistics and Transportation Review, 2011, vol. 47, issue 2, 204-215

Abstract: This paper proposes an analytical model with a control approach to obtain an optimal port expansion strategy by balancing investment costs for the port and congestion costs for its users. Starting point is the optimality condition that marginal investment costs should balance marginal benefits. Particularly the scale effect in investment costs is considered; the consequence that the investment will be made in different stages is included in the solution. By relaxing some assumptions in the model, a numerical optimization algorithm is proposed which is applied to show how the approach can be used to deal with a practical expansion problem.

Keywords: Port; expansion; Optimal; control; Economic; efficiency; Cost-benefit; analysis (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1366554510001043
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:47:y:2011:i:2:p:204-215

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic
http://www.elsevier. ... 600244/bibliographic

Access Statistics for this article

Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().