Dry Port Research Articles

The economic impact of dry port investment in Indonesia: A case study of Bangil, Pasuruan District, East Java Province

Acknowledging the pivotal role of ports and dry ports in shaping a nation’s economic landscape, this study explores the economic impact of port development in East Java, specifically Bangil Dry Port in Pasuruan over at least 30 years of business operational process. This study pioneers the quantification of gross value added, investment multiplier effect, tax contribution, and Creating Shared Value (CSV) resulting from dry port investment. The method used for calculating multiplier investment is Keynesian multiplier approach and for labor absorption is Incremental Labor Output Ratio (ILOR). Field surveys were conducted to determine the condition of Bangil, and secondary data on the growth of container flows at Port of Tanjung Perak was used as a reference for growth in Bangil. Overall, these results show that Bangil Dry Port investment will generates positive impact both for government and society in general, but also the economy of East Java and Pasuruan District in particular. These results offer practical guidance for decision-makers in optimizing public funds allocation, while also laying the groundwork for future scholars to conduct comprehensive societal-scale cost-benefit analyses of strategic port investments, contributing to a deeper understanding of the economic implications.

Simulation-based evaluation of road transportation logistics in a dry port with topographic challenges

The extension of existing container terminals or the creation of new ones introduces new logistical challenges, including topographic issues and increased distances between the quays and storage yards located several kilometers away from the quay (dry port). These challenges are complex to evaluate analytically and directly impact the acceleration, deceleration, and average speed of a truck which in turn affect the productivity and synchronization of the overall terminal logistics. This paper proposes a transportation simulation model that incorporates detailed descriptions of the topographical and geometrical restrictions. Our simulation model evaluates various scenarios for container transportation logistics, including varying road design terminals and truck fleet size to enhance productivity. A case study from a potential container terminal on Canada’s St. Lawrence River is used to demonstrate the simulation model. Several scenarios with different designs are tested and the simulation provides numerical results for supporting decision makers.

Optimizing Dry Port Locations: A Comparative Analysis of Deterministic, Stochastic, and Robust Models

The increasing international maritime transportation of freight has caused a huge operation in important ports, which are often established near cities and therefore do not have enough room for expanding the operations. This causes long delays and poor productivity in ports. The construction of dry ports has been proposed as a suitable solution to mitigate the problems. A dry port is an inland intermodal terminal directly connected to a seaport by road or rail, where importers and exporters can clear their cargo through customs and handle other shipping formalities. Selecting the right place for the establishment of dry ports has a significant impact on the time and costs of transportation in the network, as well as environmental consequences. In this research, to determine the optimal location of dry ports among the potential locations, three mathematical models as deterministic, stochastic, and robust with three objectives of minimizing the maximum transportation time in the entire network, environmental pollutants, and transportation costs are presented, which simultaneously specify the required number of dry ports in the network and the optimal place to build them. The presented models have been implemented for data related to 30 million bills of lading in a 10-year period in Iran with four major ports and 400 cities. Both deterministic and non-deterministic approaches reveal a preference not to build a dry port in the first optimal solution. However, in the following desirable answers, different answers have been suggested. According to the sensitivity analysis performed by making changes in the fuel price situation or the existing rail network, the model introduces several potential points for the construction of dry ports. The results of this model show that, with the construction of dry ports, despite the increase in overall costs of the network because of the construction of dry ports, operation, and storage in them, the amount of greenhouse gas emissions will decrease significantly.

Processes and mechanisms of the evolution of container port system in the Yangtze River Delta: An analysis from spatial and network perspectives

the Yangtze River Delta (YRD) has established a large-scale container port system with seaports and Yangtze ports as the mainstay and including other riverports and dry ports, occupying a prominent position in the pattern of national and even the global shipping development. Considering the new trend that the theoretical paradigm of port research has shifted from “spatial” to “network”, and that the focus of research goes from seaports to both seaports and inland ports, this study brings the complexity and uniqueness of the development of the port system in the YRD into the picture. By analyzing the influence of globalization, specialization, marketization, transportation, and greenization on port system development and its pattern formation, this paper elaborates on the gradient process of transportation and services allocation from the coast to the riverside and then to the inland. The evolution of port system is considered to have a temporal gradient between spatial-level transportation expansion and network-level services upgrading, and it is also believed that there is a spatial gradient in logistics supply chain terminalization between coastal and inland areas. Combined with the quantitative analysis from 200 5 to 2020, after entering the stage of port regionalization in the YRD, the container volume is distributed from coastal concentration to inland decentralization at the spatial level, while at the network level, port and shipping service enterprises (PSSEs) maintain a relatively centralized distribution along the coastal areas. At the same time, container volume growth rate fluctuates down, number of PSSEs growth rate fluctuates up, which trend is notable in the seaport. Currently, port regionalization in the YRD is still incomplete; the degree of logistics supply chain terminalization of ports in inland areas is relatively low; and the synergy between spatial and network in the entire YRD region has not yet been formed. This study tries to answer the question of the relationship between different types of ports in the complex port system, which can enrich the theoretical and empirical results of port system research and guide the practice of port and shipping in the YRD.

Environmental Aspects and Impacts of Porto Seco: the Case of the Largest Dry Port in Latin America, Located in Foz do Iguaçu (Brazil)

Objective: This work aims to present and describe the process of identifying and classifying environmental aspects in a Brazilian dry port. Theoretical Framework: The Climate Change Adaptation Strategies aim to reduce greenhouse gas (GHG) emissions, increase the share of renewable energy in total energy production and increase the energy efficiency. Unfortunately, road-based dry ports increase heavy truck congestion, energy consumption and, inherently, GHG emissions. Method: The general approach includes a literature review on the importance of managing environmental aspects and impacts in dry ports, followed by the description of the holistic procedure that involves the inventory of port activities linked to environmental aspects, the Leopold matrix and specialized knowledge about the local context (e.g., compliance with law, regional climate change adaptation strategy, stakeholder concerns) to perform the classification. Results and Discussion: The results showed that atmospheric emissions, noise and resource consumption are among the most significant environmental aspects of dry port. The absence of a railway that enables a multimodal transport system and the fact that the port is located in the city center constitute a disadvantage that worsens road congestion and air emissions, since the train would reduce GHG emissions. Research Implications: The work contributes to the planning and management of the activities of Foz do Iguaçu Dry Port considering environmental aspects and impacts, direct and indirect, from a holistic perspective. Originality/Value: The work presents a ranking of the environmental aspects and impacts of dry port to help defining priority actions in light of climate change strategies.

Prevention and adaptation of intermodal interactive seaports and dry ports under asymmetric risk behavior

The port-hinterland system, encompassing seaports and dry ports, has evolved into the backbone of international trade. Due to their unique geographic locations and critical socioeconomic functions, ports are particularly susceptible to a range of risks. Port authorities (PAs) can address these challenges through targeted preventive efforts, which aims to reduce the probability of risk occurrence, and adaptive efforts, which seeks to mitigate potential damage. However, intermodal interactions and the asymmetric risk behaviors exhibited by ports under risk probability ambiguity present significant challenges for PAs making risk-responsive investments. This study develops a two-stage game model to examine the effects of asymmetric risk behavior and risk probability ambiguity on strategic investment decisions. Our analysis reveals that prevention are susceptible to free-rider effects, which are further exacerbated by risk behaviors and mitigated by investment strategy differentiation. Moreover, we demonstrate that, as a general guideline, seaport authorities should prioritize adaptation, while dry port authorities should focus on prevention, with adaptation being the primary strategy when the level of risk aversion is low. These findings provide valuable managerial insights for improving the risk management and resilience of the port-hinterland system.

Dry port location selection for integration with inland waterway transport in developing countries: A case study in Northern Vietnam

Dry port has emerged as a critical element of transport infrastructure, eliciting substantial research and investment for its development. The strategic selection of dry port locations not only enhances the effectiveness of connections between seaports and hinterlands but also supports the sustainable advancement of the logistics industry, given that dry port operations can integrate with more environmentally friendly transportation modes, particularly inland waterway transport. Extensive research has been conducted to identify optimal dry port locations within the framework of inland waterway container terminals. Nevertheless, these studies primarily focus on developed economies, leaving a notable research void in developing countries. This paper aims to propose a methodological framework for selecting the most suitable dry port location, with a particular emphasis on integration with inland waterway transport in developing nations. This study implements a combination of the Best-Worst Method (BWM) and Elimination Et Choix Traduisant la Realité III (ELECTRE III) in this domain. An analytical case study of Northern Vietnam, considering five alternative dry ports, is conducted to demonstrate the efficacy of the proposed framework. Twenty-seven Vietnamese experts, categorized into three groups—policymakers and consultants, dry port investors and operators, and dry port users—participate in the decision-making process, contributing insights to this case study. An aggregated group decision-making approach is employed. Four principal criteria—economic, accessibility, location, and environmental—are utilized to assess and rank the five alternatives. The findings reveal that a reduction in transport cost is the most critical sub-criterion, while environmental considerations and railway accessibility receive the lowest priority.

Impact of Material Management on Organizational Profitability in Kaduna Inland Dry Port Authority Limited: An Empirical Evidence

The impact of material management on organizational profitability at Inland Dry Port Authority Limited (IDPAL) in Kaduna, Nigeria was investigated in this study, which used a survey research design of ex-post facto type. The target population consists of 254 staff of IDPAL. Two research questions guided the study. A sample of 211 respondents was randomly selected using purposive sampling, and materials management organizational profitability questionnaires (MMOPQ) were administered and only 195 copies were returned. Two research assistants assisted the researchers in this study. MMOPQ validation by two experts demonstrated consistency with a coefficient index of 0.89. Analysis was conducted using descriptive statistics, correlations, and multiple regression models. Results showed material management has a positive impact on profitability but a negative relationship with production cost and a positive relationship with service delivery at IDPAL. Implication to research and practice was provided.

Glacial lake outburst floods threaten China-Nepal connectivity: Synergistic study of remote sensing, GIS and hydrodynamic modeling with regional implications

Holistic study of glacial lakes and glacial lake outburst floods (GLOFs) in the strategically important China-Nepal transportation corridors is imperative for regional connectivity and disaster risk reduction. This study focuses on four China-Nepal transportation corridors, namely Chentang-Kimathanka, Zhangmu-Kodari, Keyrung-Kathmandu and Taklakot-Hilsa from east to west in the Himalayan region. Within a remote integrated framework, we present the latest high-resolution inventory of glacial lakes, assess their decadal spatio-temporal changes (1992–2022), identify potentially dangerous glacial lakes, and apply hydrodynamic model to assess downstream impacts of possible GLOFs along the study area. The results show 2688 glacial lakes (≥0.001 km2) with a total area of 116.10 ± 8.53 km2 over the study area in 2022. Glacial lakes exhibited spatiotemporal heterogeneity in expansion, with overall expansion of 32 % during 30 years. Keyrung-Kathmandu corridor, among others, was assessed with high GLOF susceptibility. Furthermore, hydrodynamic modeling of four highly dangerous lakes in each transportation area reveals that GLOFs have cross-border effects, impacting ∼103 km of China-Nepal highway, 103 bridges, two major dry ports and 3301 buildings in both countries. Based on these findings, we emphasize the joint efforts of both countries for integrated disaster management for smooth connectivity between two countries and saving downstream population through joint cooperation from central to local government levels by initiating artificial lake lowering, developing cross-border early warning systems and cooperation. This study is valuable for presenting a synergistic study of glacial lakes and GLOF for informing decision- and policy-makers of both China and Nepal for a joint approach to disaster mitigation.

ANALYSIS OF COST AND TIME EFFICIENCY IN CONTAINER DISTRIBUTION BETWEEN CONTAINER TRUCK AND FREIGHT TRAIN FROM INDUSTRIAL AREA TO PORT

Jakarta International Container Terminal (JICT) in Tanjung Priok Port , which serves export and import containers, can serve up to 5500 TEUs daily. However, no more than 1% of the total containers are transported by freight trains, meaning that 99% of container distribution from industrial areas is carried by trailer trucks. This condition causes a long queue at the container terminal entrance, resulting in delays in the services as well. Currently, Tanjung Priok Port is connected to rail transportation from Cikarang dry port with the frequency of twice a day with 30 flatcars (FC) for each trip. The capacity of one series of freight trains from Cikarang dry port to Tanjung Priok Port can reach 30 Feus or 60 Teus. However, the container distribution using freight trains is still less optimal because of the double handling at the JICT emplacement which is located outside JICT and the use of trailer trucks to move the containers from the area to JICT. The cost of transporting export and import containers always increases year by year because of the slow transportation due to inefficiency of the container depot location in Tanjung Priok area. In this research, the method used to determine the efficiency of container transportation is divided into three scenarios. The first scenario is when the container is fully transported by truck from the industrial area. The second scenario is when the container is transported by train and handled twice while entering JICT. Finally, the third scenario is when the JICT emplacement is located inside the JICT area, changing the business process of containers coming in and out, needing no stacking in the JICT container yard, relocating the container depot placement, consolidating containers, and automating equipment at JICT to reduce the cost and time of containers for export and import. After analyzing the costs and time of the three scenarios, it was found that the third scenario could reduce travel costs and shorten container time when exporting and importing. The 3rd scenario can reduce the cost by almost 50% from the 1st and 2nd scenarios due to container consolidation.

Back to the Future: Winnipeg’s Reinvention from Borderland Trade and Transportation Gateway to Globalized Trade and Transportation Hub

ABSTRACT Winnipeg’s location at almost the geographical center of the North American continent has historically made it an important transportation focal point with connections that have integrated the city with places and regions beyond its southern Manitoba boundaries. Winnipeg is also both a borderland city, with historically important links to American centers to the south, and a regional gateway and hub, with strong connections to the rest of Canada. This paper explores the history of Winnipeg as a transportation and trading center and focuses on its early borderland associations with the upper Midwest and northern Plains, its emergence and decline as the major metropolis and gateway to the Canadian West, and its recent efforts to draw upon the past in order to reinvent itself as a Great Plains, North American, and global trade and transportation hub. In doing so, the essay adds to the pre-existing literature that exists regarding Winnipeg as a historical trade center by examining how governments and businesses have integrated and managed globalization processes and geographical features in their desire to make the city more competitive. In particular, it focuses on the role that Winnipeg’s inland dry port – CentrePoint Canada – plays in achieving this objective.

Integrative Dry Port Concept: A Chance for the Balkans

Dry ports can be in the hinterland of sea ports as well as river ports. In addition, they can provide the services of classic logistics centers. Combining these three roles leads to a kind of integration not only of functions, but also of transport modes, parts and participants of the intermodal network, also to synergistic effects of the joint action of the parties involved. Therefore, this extension of the dry port concept can be called an integrative dry port. This very concept can be one of the chances for overcoming some of the environmental, economic, and social challenges of the logistics and economy of the Balkan Peninsula, bearing in mind its specific position in the context of geography and the global logistics network. The main contribution of this paper is the description of the new concept of the integrative dry port and the consideration of its applicability in the Balkans.

Implementation of Electronic Seal Cargo at Cikarang Dry Port to Support National Logistics System

This study discusses the implementation of Electronic Seal (E-Seal) Cargo at Cikarang Dry Port as an effort to support container cargo security in Indonesia's Sistem Logistik Nasional (Sislognas). This research also examines the role of Cikarang Dry Port as a key logistics infrastructure in facilitating the entry of international cargo goods into Indonesia, with the implementation of E-Seal on their fleet as a step to support the achievement of Sislognas targets. The research method of this article uses a descriptive qualitative method. The data obtained is used to understand how the implementation of the use of e-seal at cikarang dry port. The results of this study are a description of the types of e-seal devices used, the flow of e-seal use at cikarang dry port and an analysis of the level of damage to E-seal devices.

Developing a Measurement Framework for Ethiopian Dry Port Sustainability: An Empirical Study

Developing a Measurement Framework for Ethiopian Dry Port Sustainability: An Empirical Study

Literature Review: Application of MCDM Methodology to Logistics Location Problems

This article provides a comprehensive overview of the application of Multi-Criteria Decision Making (MCDM) methods in the field of logistics location selection. It traces the historical development of MCDM methods from their inception in the 1970s to the sophisticated models and algorithms used today, highlighting the evolution from simple models to complex, intelligent algorithms that incorporate environmental and social considerations. The article emphasizes the importance of combining various MCDM methods to leverage their strengths and address their limitations. It showcases the successful application of these hybrid models in diverse scenarios, such as urban transit hub optimization, inland dry port selection, and the positioning of emergency logistics centers. The article concludes by identifying current challenges, such as handling uncertainties and the complexity of models, and suggests future directions for research, including the development of adaptive models and the integration of artificial intelligence and big data analytics to enhance decision-making in logistics location selection.

Optimizing sustainable multimodal distribution networks in the context of carbon pricing, with a case study in the Thai sugar industry

Transportation is a major cause of energy consumption and emissions which can be reduced by optimizing routings and using alternative modes of transport. This paper relates to the strategic design of multimodal transportation networks. It presents a general model of green vehicle routing problems that supports strategic decision-making by identifying optimal solutions and provides data on costs and emissions. Three general linear programming models were developed that optimize multimodal distribution networks that could be applied in many industries. Model I evaluates carbon emissions; model II assesses carbon emissions and capacity constraints; and model III establishes total costs including transportation, handling, storage, fuel and carbon costs.Thailand is the third largest world sugar exporter in the world and is piloting carbon pricing, which will affect energy intensive industries, including the sugar industry. The models are applied using data obtained from a collaborating company. The research contributed to practice by informing managerial decisions relating to the export of sugar from the factory. This included evaluating the possible use of a dry port with rail connections, which could reduce transportation and carbon costs by 54.3 % and facilitate the building of another factory to increase exports.

An integrated intermodal freight transportation system to avoid container supply chain disruptions in Chattogram Port of Bangladesh

An integrated intermodal freight transportation system is a derived demand to transport shipping containers from/to the seaport to/from the hinterland, instead of undertaking cargo loading and unloading activities in port-protected areas. The concept of the intermodal system is to transfer containers to nearby hinterland nodes, such as dry ports, inland rail, road, and river terminals as a part of port development, as well as increasing port efficiency and productivity. Lloyd’s List ranked Chattogram Port as the 67th busiest container port in the world as per container port throughput in 2022. Chattogram Port has small-scale intermodal facilities for off-docks/ICDs in the port city only. In addition, a pure intermodal system has been developed by one rail ICD in the capital city, Dhaka, and two RICTs nearby Dhaka, but less than 5 % of port throughput. A large-scale intermodal for serving the major cities, SEZs, EPZs, and industrial areas is absent due to planning and policy problems, as well as the unavailability of intermodal infrastructure and network. Due to an improper hinterland intermodal chain, the port faced container supply chain disruptions at the port yard and exceeded port capacity, resulting in container vessel congestion at the outer anchorage of Chattogram Port. By developing rail and road infrastructure, and utilizing natural river connectivity, it is possible to develop road, rail, and river intermodal systems, and shape an integrated intermodal freight transportation system to avoid container supply chain disruptions in Chattogram Port. To develop an integrated intermodal system, this research chose a quantitative research methodology for port throughput data analysis and forecasting future throughputs that are advanced to the intermodal model for Chattogram Port. Overall, this paper aims to develop an integrated intermodal freight transportation system to support Chattogram Port to keep and increase the record of port productivity, efficiency, and competitiveness actively. Highlights Intermodal system is a derived demand for managing hinterland and port terminals of a seaport that needs to be implemented in Chattogram Port Container supply chain disruptions to be avoided to increase the port productivity and efficiency Inland intermodal connectivity will help to increase hinterland of a seaport It is necessary to develop an integrated intermodal freight transportation system to support Chattogram Port to keep and increase the record of port productivity, efficiency, and competitiveness globally

Port Access Fluidity Management during a Major Extension Project: A Simulation-Based Case Study

The increasing demand for freight services and the use of larger vessels to meet this demand has led to challenges related to storage space and logistics activities, highlighting the need for improvements in port infrastructure for better logistics management. At a crucial phase in its growth, the Port of Trois-Rivières in Canada is planning a major expansion, including the construction of a new terminal to enhance its hosting capacities and freight services. This expansion faces potential access congestion problems during the planned construction, exacerbated by the port’s urban setting. In response to the needs identified by the port authorities for this event, the study’s objective is to assess the implications of increased construction and freight truck flows on access gate fluidity and the impact of additional access infrastructure investment to mitigate potential congestion. These evaluations aim to define effective access management strategies throughout the construction period of the new terminal. To address these complexities, our approach is based on scenario analysis in variants co-constructed with the partner. These scenarios are evaluated using simulation models, configured according to parameters calibrated with a granularity that allows congestion detection. The results enabled an evaluation of the capability of existing and potential gates to manage access. Subsequently, recommendations were shaped in accordance with the expected objectives to manage access traffic effectively. These recommendations concern the optimization of construction activity planning, the layout and planning of access, and the importance of enhanced collaboration between municipal and port authorities for more controlled road traffic management. Recognizing the importance of synchromodality, road network centrality management, and the outsourcing of capacity through inter-port cooperation and with dry ports to manage congestion, these tools will be discussed in this work. The study proposes an approach that reconciles scientific rigor with the implementation constraints of the proposed solutions, allowing this study wider applicability in various port contexts facing challenges in this field of study.

Incentive policy for rail-water multimodal transport: Subsidizing price or constructing dry port?

The environmental issues within the transport industry need to be given priority attention. Optimizing the transport structure and promoting low-carbon transport are essential measures for achieving carbon emission reduction. However, the rail-water multimodal transport scale is currently limited. The government has to intervene in the market through incentive policies, so how to expand the revenue of carriers and enhance the volume has become a major dilemma. Our paper constructs a transport system that includes road, water, and railway, and examines the impact of incentive policies on separate stakeholders. It is discovered that incentive policies can increase the revenue of carriers and simultaneously attract more shippers to elect rail-water multimodal transport. Subsidy policy can hasten the structural transformation of inland transport, making railway transport volume rise. Unfortunately, although the dry port policy may enhance the revenue of railway carriers, it leads to an apparent decline in the revenue of road-water multimodal transport participants. However, the subsidy policy can create a win-win scenario for multiple carriers while achieving carbon emission reduction, but to the detriment of social welfare. Additionally, the paper compares the interactions between diverse incentive policies and pivotal factors such as transport time. The conclusions of our research serve strategic recommendations for maximizing carriers revenues and provide support for government decision-making.

Dry Port Financial Feasibility Analysis Model

The sea transportation system that is interconnected and provides value for loading and unloading services at the main port of Tanjung Priuk is already over capacity. The establishment of a dry port in Tangerang Regency is expected to facilitate the flow of export and import goods, streamline logistics costs, and solve the dwelling time problem that occurs. The plan to establish the Tangerang Dry Port requires an analysis of the financial feasibility of the investment. The method used to solve this problem is using the Internal Rate of Return (IRR), Net Present Value (NPV), and Payback Period. This feasibility analysis calculation was carried out during pre-construction and after construction so that these calculations can be used as reference material in every decision-making, especially those related to the finances of Tangerang Dry Port. The feasibility analysis calculation uses 3 (three) scenarios, namely for optimistic conditions the IRR value is 28.8%, for moderate conditions the IRR value is 13.6%, and for pessimistic conditions the IRR value is 7.2%. For optimistic conditions the NPV value is 1,716.7 billion, for moderate conditions the NPV value is 697 billion, for optimistic conditions the NPV value is 255 billion. For optimistic conditions the payback period is 6.87 years, for moderate conditions the payback period is 9.26 years, and for pessimistic conditions the payback period is 11.2 years. From the results above, optimistic, and moderate conditions are the most feasible scenarios for developing the Tangerang Dry Port.