Analysing the optimal location of a hub port in Southeast Asia

This paper applies an integer programming model on the selection of the Pakbara port as an expecting hub competition among the major ports in Southeast Asia. By solving the integer programming model, several origin/destination container flows in the world are serviced via candidate hub ports such that the total system costs, taking into account port costs (entrance and terminal handling charges) and shipping costs (feeder and mainline) are minimised. The result shows the Port Klang or the Pakbara port as the optimal single-hub solution in several scenarios of structural shifts in traffic flows at the Pakbara port.