Two-phase optimisation approach to international multimodal hub location: the case of China under the belt and road initiative

Determining the optimal location of international multimodal hubs (IMHs) in an integrated transportation network is a strategic decision. This paper proposes an approach to select suitable IMH locations, which includes two phases: determining the candidate IMHs and optimising the distribution of IMHs. Firstly, five connectivity models reflecting the global connectivity of IMHs are built based on the transportation processes and modes of international goods. A grey cumulative prospect theory evaluation method considering the preferences of decision-makers is proposed to select candidate IMHs from all nodes at the macro level. Secondly, a cost-efficient mathematical model, aiming at minimising the total cost of multimodal transportation system, is proposed to choose optimal IMHs from candidate IMHs at the microeconomic and operational levels. Finally, the case of IMHs in China under the Belt and Road Initiative is used to evaluate the validity of the proposed approach. Results show that the connectivity-based candidate IMH evaluation model can provide an appropriate searching space for hub location optimisation, and the optimised IMH locations are consistent with the practice situation of international freight consolidation centres in China. The proposed two-phase optimisation approach is a feasible, competitive method for IMH location.