Optimizing Inland Waterway Transportation Cost By Using Hub-And-Spoke Network: A Case Study Of Cat Lai Port

Abstract

Cat Lai Port, a key international terminal in both the South Region and Vietnam, currently operates at three times its intended capacity, resulting in severe traffic congestion within and outside the port area, especially in road transport, leading to extensive delays. Meanwhile, the Mekong Delta port area is a vital region with high densities of rivers and canals, this area and its potential inland waterway transport is lacking substantial investment. This thesis focuses on developing a Mixed-Integer Linear Programming model based on the characteristic of Hub-and-Spoke network design to optimize the transportation cost as well as define new transportation route via inland waterway transport. A genetic algorithm is then proposed to solve the large scale data sample for this problem. After conducting both exact method and approximate approach, the optimal result would be discussed to recommend benefits for the customers, especially companies wanting to deliver products from the Mekong Delta port area to Cat Lai Port.