A stochastic facility location model for intermodal freight hubs

Karina Lang, Víctor Cantillo*, Héctor López-Ospina, Iván Serrano

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

This article proposes a stochastic model for assessing the location of facilities for logistics terminals, modelled as freight transfer hubs to optimise the physical distribution of foreign trade products from the production centres to seaports and vice versa. The objective function minimises social costs, including private logistics costs (fares, travel times, transhipment) and external costs. In addition, the proposed approach uses a multinomial logit model as a demand function to incorporate consumer stochastic behaviour when choosing a route and location. The model was applied to the multimodal Colombian freight network. Results show that the social costs of logistics networks are reduced by including terminals that encourage intermodality. Network structure and economies of scale affect terminals selection.

Original languageEnglish
Pages (from-to)383-413
Number of pages31
JournalInternational Journal of Shipping and Transport Logistics
Volume17
Issue number4
DOIs
StatePublished - 15 Jan 2024
Externally publishedYes

Bibliographical note

Publisher Copyright:
Copyright © 2023 Inderscience Enterprises Ltd.

Keywords

  • facility location
  • intermodal hub location problem
  • intermodality
  • logistics terminals

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