Evaluating the potential for modal shift in last-mile cargo distribution through stochastic programming

This paper presents a multistage stochastic programming model used to evaluate the potential for obtaining a modal shift from road to sea in the cargo distribution between a regional port and the surrounding customer regions, each with a given (and uncertain) future demand for cargo. We use the port...

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Bibliographic Details
Main Authors: Andreas Breivik Ormevik, Kjetil Fagerholt, Stein Ove Erikstad
Format: Article
Language:English
Published: Elsevier 2020-01-01
Series:Maritime Transport Research
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2666822X20300022
Description
Summary:This paper presents a multistage stochastic programming model used to evaluate the potential for obtaining a modal shift from road to sea in the cargo distribution between a regional port and the surrounding customer regions, each with a given (and uncertain) future demand for cargo. We use the port of Bergen in Norway as a case study as it has recently been decided to relocate the main cargo terminal from the city center in 2025. Analyses with the model indicate that implementing a multimodal distribution network with small electric vessels 10 years ahead will lead to slight cost reductions compared with using only trucks and reduce the road transportation need by 23%. A modal shift can be initiated at an earlier stage and reduce the road transportation further if modal shift targets are specified, without resulting in significant cost increases. What-if analyses have been conducted and indicate robustness in the obtained results.
ISSN:2666-822X