Modeling a Three-Mode Hybrid Port-Hinterland Freight Intermodal Distribution Network with Environmental Consideration: The Case of the Yangtze River Economic Belt in China

Abstract

Efficiency challenges of the hinterland connectivity, along with growing green concerns necessitate the integration of economic goals and environmental considerations, for port-hinterland logistics problems. This study focused on innovative modeling, for a three-mode port-hinterland intermodal freight distribution system, from the perspective of shippers. A hybrid distribution network topology, combining point to point, hub-and-spoke, and connected hubs was designed as route alternatives for loads from origin to destination. A bi-objective decision framework involving analytical scenarios of emissions limitation, emissions taxation, and an emissions trading scheme, was developed for policy analysis, and then applied to a real-life hinterland logistics network in the Yangtze River Economic Belt in China. The results showed that the implementation of the three emissions policies, all resulted in great changes in flows between intermodal routes and achieved emissions reduction goals. Nevertheless, the conflict between logistics costs and carbon emissions, differs from policy to policy. Some inflection points were identified to offer decision supports on policy insights, for the port-hinterland distribution network. Lastly, a sensitivity analysis on cost and emissions parameters was given. It revealed that the flow changes and trade-off relationship between economic and environmental objectives, were both sensitive to the road transportation mode.