Coordination and Analysis of Barge Container Hinterland Networks

We analyze the import hinterland supply chain from the perspective of both the inland terminal operator and of the shippers. In the hinterland supply chain, the interests of capital-intensive terminal operators are not aligned with the interests of shippers. Therefore, we define the joint shipment quantity for container freight distribution that counts for the specific nature of barge transportation. We consider the direct and the tour coordination policies. Based on empirical data, the cost-effectiveness and the performance of these policies is evaluated in detail. Analytical results give insights into the trade-off between the variable transportation costs and the inventory holding costs.