Combining Simulation with Optimization to Evaluate Freight Logistics Performances for Developing a Corridor

Abstract

The chapter presents an evaluation of freight logistics performances and recommends policy on logistics facility and related transport infrastructure investment along the corridor that links between Laem Chabang Port in Thailand and Port of Vung Ang in Vietnam via Laos PDR. A dry port and its transportation links to the seaport have been proposed for investment. There are five nominal routes within the network where an origin is located over the dry port hinterland and Guangzhou Port in China PDR is a destination. The combination of simulation model and goal programming has been applied to evaluate the corridor in terms of freight logistics operational performance. A discrete event model visualizes the desirable system. The weighted goal programming is used to find an optimal route. Finally, the policy prioritizes that investment must be made for the dry port and the connection to Laem Chabang Port by direct rail link. In order to encourage the dry port to be part of the network, the desirable logistics system requires overall transit cost should be around US$1100. Quality of services for on time performance should be maintained around 320 h of total transit with 21 h of traveling time variance and 54 h of operation time variance.