Liner shipping hub network design in a competitive environment

Shahin Gelareh*, Stefan Nickel, David Pisinger

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


A mixed integer programming formulation is proposed for hub-and-spoke network design in a competitive environment. It addresses the competition between a newcomer liner service provider and an existing dominating operator, both operating on hub-and-spoke networks. The newcomer company maximizes its market share-which depends on the service time and transportation cost-by locating a predefined number of hubs at candidate ports and designing its network. While general-purpose solvers do not solve instances of even small size, an accelerated Lagrangian method combined with a primal heuristic obtains promising bounds. Our computational experiments on real instances of practical size indicate superiority of our approach.

Original languageEnglish
Pages (from-to)991-1004
Number of pages14
JournalTransportation Research Part E: Logistics and Transportation Review
Issue number6
Publication statusPublished - Nov 2010
Externally publishedYes


  • Competition
  • Enumeration
  • Hub-and-spoke network design
  • Lagrangian relaxation
  • Liner shipping
  • Mixed integer programming


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