Original Article
The feeder network design problem:
Application to container services in the Black
Sea region
Olcay Polat
a
, Hans-Otto Günther
b
and Osman Kulak
a
a
Department of Industrial Engineering, Pamukkale University, Kinikli,
Denizli, 20070 Turkey.
E-mail: opolat@pau.edu.tr
b
Department of Industrial Engineering, Seoul National University,
Seoul 151-744, Korea.
Abstract Global containership liners design their transportation service as hub-and-
spoke networks to improve the access to local transportation markets and to reduce
operational costs by using short-sea connections for low-volume transportation lanes.
These connections from the hub ports to the regional ports constitute the feeder network
that is serviced by small- or medium-sized feeder containerships. In our case study
investigation, we assume the feeder network design problem of a Turkish short-sea
shipping company, in view of the opening of the new Candarli port near Izmir. The cost
performance of three alternate feeder network configurations serving the Black Sea region is
compared. For this purpose, a mixed-integer linear programming model is developed and an
adaptive neighbourhood search algorithm is applied in order to determine the feeder ship
fleet size and mix with routes and voyage schedules to minimize operational costs for a given
planning period. Numerical results show that the new Candarli port has great potential as
hub port in the Black Sea region.
Maritime Economics & Logistics (2014) 16, 343–369. doi:10.1057/mel.2014.2;
published online 13 February 2014
Keywords: maritime transport; hub-and-spoke network; feeder network design;
liner shipping; variable neighborhood search; container ship routing
© 2014 Macmillan Publishers Ltd. 1479-2931 Maritime Economics & Logistics Vol. 16, 3, 343–369
www.palgrave-journals.com/mel/