Container liner-shipping network design using a path formulation model for Indonesia

This thesis is conducted in order to improve the liner shipping network in the Indonesian ports region. The network design problem is modelled with the use of a Path Formulation Model, which is a MIP. The model is primarily focused on the tactical and operational level, namely determining the allocation of cargo through different paths in the network. Paths belong to a route and consists of an origin and a destination port on which containers can be transported. As prerequisite, on the strategic level, routes are generated which serve as input for the PFM. The optimal solution maximises the profit by determining the set of paths to operate and how much cargo each path transports. The solution consists of a set of routes to operate. This model is further extended with transhipment, heterogeneous fleet, and speed optimisation. The model is compared with a benchmark consisting of a network with six hub ports. The results with all extensions show an improvement of the base solution by 12%.