Many port authorities have developed ambitious strategies to foster hinterland intermodal transportation. In addition, port-centric logistics, i.e., the provision of distribution facilities and value-adding activities in the port area, has expanded in multiple ports. Obviously, such port-centric logistics may impact the operations in the hinterland substantially and could potentially reduce opportunities for intermodal transport in the hinterland. We analyze the interactions between port-centric logistics and hinterland intermodal transportation. We take a logistics service provider’s perspective and we include some key elements in the model such as detention fees, extra handling, transport efficiency and empty container repositioning. We develop new analytical results identifying the optimal market areas of truck-only transportation, port-centric logistics and hinterland intermodal transportation. Our results show that the tension between port-centric logistics and hinterland intermodal transportation is quite likely to happen in practice. We additionally study the use of continental containers as a way to reconcile port-centric logistics and hinterland intermodal transportation and we derive additional results. We illustrate our result via an example and we highlight managerial insights.
(Co-authors: J. Woxenius and J. Fransoo)
Yann Bouchery is Associate Professor in Operations Management and member of the Center of Excellence in Supply Chain at Kedge Business School. He holds a PhD in Industrial Engineering from Ecole Centrale Paris (France) obtained in 2012. Before joining Kedge Business School in 2019, he spent two years at Eindhoven University of Technology (The Netherlands) and five years at EM Normandie. His research interests focus on sustainable operations management and logistics and on the management of transportation systems in the hinterland of deep-sea ports. His work is published in international journals such as Production and Operations Management, European Journal of Operational Research, International Journal of Production Economics. He has also co-edited a book entitled « Sustainable Supply Chains : A Research-Based Textbook on Operations and Strategy ».
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