Terminal and yard allocation problem for a container transshipment hub with multiple terminals

This paper presents an integer programming model for the terminal and yard allocation problem in a large container transshipment hub with multiple terminals. The model integrates two decisions: terminal allocation for vessels and yard allocation for transshipment container movements within a terminal as well as between terminals. The objective function aims to minimize the total inter-terminal and intra-terminal handling costs generated by transshipment flows. To solve the problem, we develop a 2-level heuristic algorithm to obtain high quality solutions in an efficient way. Computational experiments show the effectiveness of the proposed approach.