Optimizing Logistics and Transportation Locations in the China–Pakistan Economic Corridor: A Strategic Risk Assessment

Abstract

Logistics centers (LCs) have become a critical component of supply chain networks, playing an essential role in the development and implementation of logistics and supply chain management strategies. Recognizing the importance of LCs, Pakistan and China have initiated an extensive plan to establish and expand an LC system as part of the China–Pakistan Economic Corridor (CPEC) initiative. However, the implementation of this plan has faced challenges due to the inadequate prioritization of factors used to identify LCs. This research proposes a structured framework for selecting LC locations, employing a combination of fuzzy logic and the technique for order of preference by similarity to the ideal solution (TOPSIS). These widely used methods address various challenges encountered in location selection. The findings highlight crucial logistics hubs in China and Pakistan, emphasizing factors such as port accessibility, freight demand, and transportation costs. The prioritization of criteria for LC selection is determined through the evaluation of variables and alternatives. The proposed framework enhances decision-making based on multiple criteria by addressing uncertainty and subjective assessments.