The feeder network design problem: Application to container services in the Black Sea region

Olcay Polat (), Hans-Otto Günther and Osman Kulak ()
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Olcay Polat: Department of Industrial Engineering, Pamukkale University, Kinikli, Denizli, 20070 Turkey
Hans-Otto Günther: Department of Industrial Engineering, Seoul National University, Seoul 151-744, Korea
Osman Kulak: Department of Industrial Engineering, Pamukkale University, Kinikli, Denizli, 20070 Turkey

Maritime Economics & Logistics, 2014, vol. 16, issue 3, 343-369

Abstract: Global containership liners design their transportation service as hub-and-spoke networks to improve the access to local transportation markets and to reduce operational costs by using short-sea connections for low-volume transportation lanes. These connections from the hub ports to the regional ports constitute the feeder network that is serviced by small- or medium-sized feeder containerships. In our case study investigation, we assume the feeder network design problem of a Turkish short-sea shipping company, in view of the opening of the new Candarli port near Izmir. The cost performance of three alternate feeder network configurations serving the Black Sea region is compared. For this purpose, a mixed-integer linear programming model is developed and an adaptive neighbourhood search algorithm is applied in order to determine the feeder ship fleet size and mix with routes and voyage schedules to minimize operational costs for a given planning period. Numerical results show that the new Candarli port has great potential as hub port in the Black Sea region.

Date: 2014
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