Abstract

In response to increasing container volumes, congestion and capacity constraints; ports have embarked on implementation of inland container depots (ICDs) as capacity enhancement strategy. Determination of optimal routing of containers, depot location and number of depots to insert in the logistics network is a challenge faced by many ports today. This paper presents a network flow optimization model for container depot integration in multi-stage logistics network with direct shipment constraints. LINGO mathematical modeling language is used for programming and solving the model using Dar es Salaam port in Tanzania as a case study. The model evaluates various flow scenarios and simultaneously determines container routing options as well as the optimal number of depots to include in the network in order to attain minimal total cost. Partial integration approach is proven by computational result to be a superior strategy for ICD integration into the freight network.

Key words: Inland container depot (ICD), dry ports, network flow optimization, partial integration, cleaning approach, Dar es Salaam Port, Tanzania.