Dry port location problem in the context of competition and environmental concerns

This study investigates the dry port location problem in the context of sequential seaport competition and environmental concerns. A bi-level programming model is proposed: the upper level aims to maximise the leader seaport's profit and minimise carbon emissions from transportation routes, while the lower level seeks to maximise the cargo flow of the follower seaport. A bi-level programming algorithm incorporating a heuristic approach (BLPAIHA) is designed to solve the model. The model and algorithm are validated through case studies of Beibu Gulf Port and Zhanjiang Port. The numerical results show that the optimal dry port location can balance economic and environmental objectives. Additionally, under lower values of environmental concern coefficients of seaports and shippers, location decisions are more driven by economic benefits, whereas under higher values of them, the preference shifts towards closer, low-carbon dry port locations. This study emphasises the importance of integrating economic and environmental goals in dry port location decisions to achieve sustainable development.