Determination of the port attractiveness using mixed integer linear programming method

Abstract

In this paper we present well know Port Choice Problem as a Mixed Integer Linear Programing (MILP) problem. Using MILP we comapare North Adriatic ports with North European ports and determine their relative attractiveness for Bavarian shippers in case of importing containerized goods from far east. The results of the model show that despite better geographical position of North Adriatic ports Bavarian shippers are attracted to Nort European ports. The model also shows that land transport costs and subjective preferance rate play a large role in Port Choice.