Optimising Cargo Consolidation for Port-Hinterland Inland Waterway Transportation

Abstract

Despite being a sustainable and cost-effective mode of transportation, Inland Waterway Transportation (IWT) has experienced a decline in its market share within the EU over the years. The IWT system faces certain inefficiencies, including low occupancy rates of vessels and low load factors of containers. To address these challenges, this research proposes a Cargo Consolidation (CC) strategy to optimize the utilization of available transport capacity. We develop a mixed integer programming model that considers the trade-off between cost savings from more efficient vessel capacity use and increased container handling costs, aiming to determine the optimal consolidation assignment. A case study conducted on the Rhine-Alpine corridor IWT network demonstrates the feasibility of the CC strategy. The results indicate that a low vessel occupancy rate is the key factor influencing the profitability of the CC concept.