Impact of Externalities on the Design and Management of Multimodal Logistic Networks

Abstract

It is now widely accepted that the locations of intermediate facilities, such as logistics platforms or inland ports, are key elements of multimodal freight distribution networks and heavily influence their effectiveness. This crucial role of localization decisions is even more significant if we consider their impact on the external costs of the entire logistic corridor, with reference to the cost components associated with environmental sustainability. This paper faces a facility location problem concerning a port system network serving inbound container flows arriving by sea and travelling via road and/or rail towards the hinterland. The aim is to evaluate the impact of externalities on the overall management of the distribution network, including location decisions, flow routing and transport mode choice. We present a Mixed Integer Linear Programming (MILP) model having the goal of minimizing both the location and shipping costs, while accounting for external cost components. In particular, as a novel environmental issue, we propose three different objective functions including congestion, air pollution, and, incidentally, noise and infrastructure deterioration. We allow the containerized flows to be split among several capacitated facilities and road and rail transport modalities. The reported computational experimentation refers to different intermodal freight logistic networks through real data derived from the logistic network departing from the maritime terminals associated with the port of the Ligurian region towards their main destinations in the north-west side of Italy. Finally, we evaluate the impact on both flows and total costs due to a closure or a capacity reduction on some links of the network. The evidence of the impact of sustainability external costs on the design and management of the multimodal logistic network under analysis is emphasized.

Long-Term Strategies for Multimodal Transportation of Block Rubber in Thailand

“…It is due to the low operational efficiencies and inadequate transportation-supported facilities, resulting in delays, limited capacities, and the inability to support block rubber transportation. Ambrosino and Sciomachen [38] added that the most significant limitation of the rail mode is the infrastructure capacity, both the intermodal facilities and their connections. With the government's plans to purchase new locomotives and improve the rail infrastructure, it is expected that train capacity will be enhanced and services will be improved to support multimodal transportation of the truck-train mode in the long term.…”

“…All possible mode combinations (truck-train, truck-ship, and truck-only) are considered, if available or if the full capacity is yet achieved (see Equations ( 36) and ( 37)). The "MODECKAV" (see Equation (38)) is then used to calculate the logistics costs per TEU of each available mode combination, and the mode with the lowest logistics costs per TEU is selected to be used for the transportation of the leftover block rubber (see Equation ( 39)). The "MODECKAVY" in Equation ( 39) represents the decision of the next available mode, where 0 = the truck-train mode selection, 1 = the truck-ship mode selection, and 2 = the truck-only mode selection.…”

Port Access Fluidity Management during a Major Extension Project: A Simulation-Based Case Study

“…This method aligns with the "capacity drop" concept, as delineated in the research of [32], which utilized scenario analysis and simulations to examine capacity reductions at highway bottlenecks and underscored the critical role of targeted scenarios in influencing traffic control system design. Similarly, Ambrosino and Sciomachen's [33] study applied this concept, investigating capacity drop effects on traffic flows and overall sustainability costs. Their findings highlight how the design and management of the analyzed multimodal logistic network significantly impact sustainability-related external costs.…”

Min-cost route problems for multimodal sustainable logistics cooperation

“…The investment in managing economic, social, and CO 2 emissions helps protect the environment, reduce total transport costs, and ensure sustainability [7] which is the main target of this paper. In recent times, there has been a growing recognition among trained professionals and specialists of the need to focus on multimodal transportation in light of its various sustainable benefits [8][9][10][11]. The European Union (EU) has also recognized the negative externalities associated with road haulage, such as delays, congestion, and environmental impact from CO 2 emissions [12][13][14][15][16].…”