A Model for Developing Existing Ports Considering Economic Impact and Network Connectivity

Veterina Nosadila Riaventin, Sofyan Dwi Cahyo and Ivan Kristianto Singgih
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Veterina Nosadila Riaventin: Department of Industrial Engineering, Institut Teknologi Bandung, Jl. Ganesa 10, Bandung 40132, Indonesia
Sofyan Dwi Cahyo: Kuala Tanjung Multipurpose Terminal, Jl. Akses Pelabuhan Kuala Tanjung No. 1, Batu Bara 21257, Indonesia
Ivan Kristianto Singgih: Department of Industrial and Systems Engineering, Korea Advanced Institute of Science and Technology, Daehak Road, Daejeon 34141, Korea

Sustainability, 2021, vol. 13, issue 7, 1-17

Abstract: This study discusses the problem of determining which container port should be developed within an existing network and when this should be carried out. A case study of Indonesia’s port network is presented, where several new ports are to be improved to ensure smooth interisland transportation flows of goods. The effects of the investment on economic consequences and increased network connectivity are assessed. When improving the ports, we consider that the available budget limits the investment. The network connectivity is evaluated by considering the number of reachable ports from the developed ports or transportation time required from other ports within the same port cluster. Based on our knowledge, our study is the first one that discusses the investment problem in multiple container ports under single management, as well as its effects regarding the increase in container flows. The problem is introduced and three mathematical models are proposed and used to solve a real problem. The results show that different models have different improved aspects of container transportation flows—e.g., a balanced improvement of the whole port network (Model 2) and appropriate investment priority for port clusters (Model 3).

Keywords: container port; connectivity; investment; port cluster (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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