Hub location with flow economies of scale

A characteristic feature of hub and spoke networks is the bundling of flows on the interhub links. This agglomeration of flows leads to reduced travel costs across the interhub links. Current models of hub location do not adequately model the scale economies of flow that accrue due to the agglomeration of flows. This paper shows that current hub location models, by assuming flow-independent costs, not only miscalculate total network cost, but may also erroneously select optimal hub locations and allocations. The model presented in this paper more explicitly models the scale economies that are generated on the interhub links and in doing so provides a more reliable model representation of the reality of hub and spoke networks.     

The potential of turboprops for reducing aviation fuel consumption

To assist in aviation systems planning in the context of fuel price uncertainty and environmental regulation, we take a total logistics cost approach and evaluate three representative aircraft (narrow body, regional jet, and turboprop) for operating and passenger preference costs over a range of fuel prices. Homogenous fleets of each vehicle category are compared for operating and passenger costs over a range of fuel prices and route distances and the minimum cost fleet mix is determined. In general, as fuel prices increase, the turboprop offers a lower operating cost per seat over a wider range of distances when compared with both jet aircraft models. The inclusion of passenger costs along with operating costs decreases the number of fuel price and distance pairs where the turboprop exhibits the lower cost. This analysis shows that the aircraft that exhibits the lowest cost is highly sensitive to fuel prices and passenger costs and points to the important balance between saving fuel and serving passengers.     

The design of capacitated intermodal hub networks with different vehicle types

In this study, we allow using alternative transportation modes and different types of vehicles in the hub networks to be designed. The aim of the problem is to determine the locations and capacities of hubs, which transportation modes to serve at hubs, allocation of non-hub nodes to hubs, and the number of vehicles of each type to operate on the hub network to route the demand between origin-destination pairs with minimum total cost. Total cost includes fixed costs of establishing hubs with different capacities, purchasing and operational costs of vehicles, transportation costs, and material handling costs. A mixed-integer programming model is developed and a variable neighborhood search algorithm is proposed for the solution of this problem. The heuristic algorithm is tested on instances from the Turkish network and CAB data set. Extensive computational analyzes are conducted in order to observe the effects of changes in various problem parameters on the resulting hub networks.     

Fuel saving and ridesharing in the US: Motivations,limitations, and opportunities

Ridesharing can reduce the fuel consumed in noncommercial passenger highway vehicles by grouping individuals into fewer vehicles and reducing the number of miles that vehicles must travel. We estimate the potential fuel savings that could result from an increase in ridesharing in the US. If no additional travel is required to pick up passengers, adding one additional passenger for every 100 vehicles would reduce annual fuel consumption by 0.80–0.82 billion gallons of gasoline per year; if one passenger were added in every 10 vehicles, the potential savings would be 7.54–7.74 billion gallons per year. However, ridesharing may require extra travel to pick up additional passengers, which can reduce and possibly eliminate potential fuel savings. The tradeoff between saving fuel and spending time to pick up additional passengers is investigated, finding that, on average, ridesharing may not be attractive to travelers, but can be made more attractive by increasing per-vehicle-trip costs such as parking and tolls.     

The environmental cost implication of hub–hub versus hub by-pass flight networks

Increasing congestion at major hubs and the advantage to passengers of non-stop flights and faster journey times has intensified the debate on patterns of air service. At the same time the economics of highly focused networks has been challenged by the availability of very economic smaller capacity long-haul aircraft. The purpose of this research is to value the environmental costs of these two patterns of service: hub-to-hub and hub by-pass. Five long-haul markets were evaluated both on a hub to hub and hub by-pass basis. These involved both transatlantic and Europe/Asia flights. It was found that the noise and emissions social cost impact of the hub by-pass networks was significantly lower than the hub to hub in all cases. Differences in environmental costs per passenger depend on the concentration of population around the airports and the degree to which the hub routing involves extra mileage.     

Airport privatization in congested hub–spoke networks

This paper investigates the airport privatization issue. One congested hub and two linked local airports serve symmetric hub carriers. Passengers valuate the congestion delay cost and benefit from greater frequencies. The government considers privatizing either the hub or local airports. We find that in each privatizing scenario, welfare-maximizing public airport(s) set a charge below their operating costs in order to fully coordinate the high charge of privatized airport(s). If this fiscal deficit is not allowed, each scenario causes distortion. Interestingly, the distortion—and hence welfare losses—in privatizing a hub are smaller (larger) than those in privatizing both local airports when both passengers’ valuations are small (large); this is exactly the case when privatized local airports are strategic substitutes (complements). We also surprisingly find that retaining the hub airport as public and privatizing one or both local airports achieves the same market outcomes. We further find that if all airports are privatized, welfare becomes worse than the other scenarios; the hub airport charges lower (higher) prices than local airports when both local airports are strategic substitutes (complements).     

A continuous approximation model for time definite many-to-many transportation

Time definite freight transportation carriers provide very reliable scheduled services between origin and destination terminals. They seek to reduce transportation costs through consolidation of shipments at hubs, but are restricted by the high levels of service to provide less circuitous routings. This paper develops a continuous approximation model for time definite transportation from many origins to many destinations. We consider a transportation carrier serving a fixed geographic region in which demand is modeled as a continuous distribution and time definite service levels are imposed by limiting the maximum travel distance via the hub network. Analytical expressions are developed for the optimal number of hubs, hub locations, and transportation costs. Computational results for an analogous discrete demand model are presented to illustrate the behavior observed with the continuous approximation models.     

Comparing the impact of future airline network change on emissions in India and the United States

In this paper we use simulation to analyze how flight routing network structure may change in different world regions, and how this might impact future traffic growth and emissions. We compare models of the domestic Indian and US air transportation systems, representing developing and mature air transportation systems respectively. We explicitly model passenger and airline decision-making, capturing passenger demand effects and airline operational responses, including airline network change. The models are applied to simulate air transportation system growth for networks of 49 airports in each country from 2005 to 2050. In India, the percentage of connecting passengers simulated decreases significantly (from over 40% in 2005 to under 10% in 2050), indicating that a shift in network structure towards increased point-to-point routing can be expected. In contrast, very little network change is simulated for the US airport set modeled. The simulated impact of network change on system CO₂ emissions is very small, although in the case of India it could enable a large increase in demand, and therefore a significant reduction in emissions per passenger (by nearly 25%). NO_x emissions at major hub airports are also estimated, and could initially reduce relative to a case in which network change is not simulated (by nearly 25% in the case of Mumbai in 2025). This effect, however, is significantly reduced by 2050 because of frequency competition effects. We conclude that network effects are important when estimating CO₂ emissions per passenger and local air quality effects at hub airports in developing air transportation systems.     

The effect of crowding on public transit user travel behavior in a large-scale public transportation system through modeling daily variations

In this paper, the crowding effect in a transit vehicle is modeled in a time-expanded network that considers the daily variation in passenger flows. The study models the daily variation of in-vehicle crowding in a real large-scale transit system. A transit assignment for this real network is modeled and implemented by constructing a crowding cost function that follows the valuation of crowding and by using the reliable shortest path finding method. The direct application of the crowding model to a real network for the Utah Transit Authority indicates that crowd modeling with multi-user classes could influence public transportation system planning and affect the revenues of transit agencies. Moreover, the addition of the disutility factor, crowding, does not always appear to cause an increase in disutility for transit users.     

Flight and passenger delay assignment optimization strategies

This paper compares different optimization strategies for the minimization of flight and passenger delays at two levels: pre-tactical, with on-ground delay at origin, and tactical, with airborne delay close to the destination airport. The optimization model is based on the ground holding problem and uses various cost functions. The scenario considered takes place in a busy European airport and includes realistic values of traffic. A passenger assignment with connections at the hub is modeled. Statistical models are used for passenger and connecting passenger allocation, minimum time required for turnaround and tactical noise; whereas uncertainty is also introduced in the model for tactical noise. Performance of the various optimization processes is presented and compared to ration by schedule results.     

A comparison of technologies for carbon-neutral passenger transport

In this study, the use of energy carriers based on renewable energy sources in battery-powered electric vehicles (BPEVs), fuel-cell electric vehicles (FCEVs), hybrid electric vehicles (HEVs) and internal combustion engine vehicles (ICEVs) is compared regarding energy efficiency, emission and cost. There is the potential to double the primary energy compared with the current level by utilising vehicles with electric drivetrains. There is also major potential to increase the efficiency of conventional ICEVs. The energy and environmental cost of using a passenger car can be reduced by 50% solely by using improved ICEVs instead of ICEVs with current technical standard. All the studied vehicles with alternative powertrains (HEVs, FCEVs, and BPEVs) would have lower energy and environmental costs than the ICEV. The HEVs, FCEVs and BPEVs have, however, higher costs than the future methanol-fuelled ICEV, if the vehicle cost is added to the energy and environmental costs, even if significant cost reductions for key technologies such as fuel cells, batteries and fuel storages are assumed. The high-energy efficiency and low emissions of these vehicles cannot compensate for the high vehicle cost. The study indicates, however, that energy-efficiency improvements, combined with the use of renewable energy, would reduce the cost of CO₂ reduction by 40% compared with a strategy based on fuel substitution only.     

Integrated modeling of high performance passenger and freight train planning on shared-use corridors in the US

This paper studies strategic level train planning for high performance passenger and freight train operations on shared-use corridors in the US. We develop a hypergraph-based, two-level approach to sequentially minimize passenger and freight costs while scheduling train services. Passenger schedule delay and freight lost demand are explicitly modeled. We explore different solution strategies and conclude that a problem-tailored linearized reformulation yields superior computational performance. Using realistic parameter values, our numerical experiments show that passenger cost due to schedule delay is comparable to in-vehicle travel time cost and rail fare. In most cases, marginal freight cost increase from scheduling more passenger trains is higher than marginal reduction in passenger schedule delay cost. The heterogeneity of train speed reduces the number of freight trains that can run on a corridor. Greater tolerance for delays could reduce lost demand and overall cost on the freight side. The approach developed in the paper could be applied to other scenarios with different parameter values.     

The European freight railway system as a hub-and-spoke network

This paper addresses a hub-and-spoke network problem for railroad freight, where a central planner is to find transport routes, frequency of service, length of trains to be used, and transportation volume. Hub-and-spoke networks, often found in air freight, have not been favoured by railways in the past. Such a structure could be profitable, however, if there exist concentrated freight flows on some service links. We formulate a linear integer programming model whose objective function includes not only the typical operational cost, but also cost due to the transit time spent by freight in the network. We then develop heuristic algorithms to solve large scale instances occurring in rail freight systems in France plus Italy; Germany; and a 10-country European network. By assuming that every node is equipped with consolidation capability, we let the final solution naturally reveal potential hub locations, the impact of several of which is studied by sensitivity analysis.     

An optimization model of energy and transportation systems: Assessing the high-speed rail impacts in the United States

This paper presents a long-term investment planning model that co-optimizes infrastructure investments and operations across transportation and electric infrastructure systems for meeting the energy and transportation needs in the United States. The developed passenger transportation model is integrated within the modeling framework of a National Long-term Energy and Transportation Planning (NETPLAN) software, and the model is applied to investigate the impact of high-speed rail (HSR) investments on interstate passenger transportation portfolio, fuel and electricity consumption, and 40-year cost and carbon dioxide (CO₂) emissions. The results show that there are feasible scenarios under which significant HSR penetration can be achieved, leading to reasonable decrease in national long-term CO₂ emissions and costs. At higher HSR penetration of approximately 30% relative to no HSR in the portfolio promises a 40-year cost savings of up to $0.63 T, gasoline and jet fuel consumption reduction of up to 34% for interstate passenger trips, CO₂ emissions reduction by about 0.8 billion short tons, and increased resilience against petroleum price shocks. Additionally, sensitivity studies with respect to light-duty vehicle mode share reveal that in order to realize such long-term cost and emission benefits, a change in the passenger mode choice is essential to ensure higher ridership for HSR.     

Health externalities of ship air pollution at port – Piraeus port case study

This paper is employing the well-known methodology of impact pathway approach to assess the external costs in human health from ship air pollution at port areas. The passenger port of Piraeus, Greece is the scenery of the study. Piraeus port is in the vicinity of the greater Athens metropolitan area where almost half of the country’s population lives. Hence, this port is the central hub of the Greek coastal passenger ship system which connects the islands of the Aegean Sea with land and is characterized by heavy ship traffic. The case study presented in this paper assesses the annual external cost in human health from air emissions produced by all passenger ships and cruise ships calling the port of Piraeus. Health cost from ships at port has been estimated at both local (Athens metropolitan area) and regional level (entire territory of Greece). Results show that higher costs occur at the local level. The dominant pollutants creating this cost are particulate matter (PM_2.5, and PM₁₀). Overall, the results indicate that the health impact of Piraeus’s passenger port emissions is not negligible; however the cost of PM₁₀ is considerably lower than the corresponded cost deriving from the land based industries of the Athens regional area for which comparison has been available.     

Evaluation of an existing bus network using a transit network optimisation model: a case study of the Hiroshima City Bus network

This study evaluates an existing bus network from the perspectives of passengers, operators, and overall system efficiency using the output of a previously developed transportation network optimisation model. This model is formulated as a bi-level optimisation problem with a transit assignment model as the lower problem. The upper problem is also formulated as bi-level optimisation problem to minimise costs for both passengers and operators, making it possible to evaluate the effects of reducing operator cost against passenger cost. A case study based on demand data for Hiroshima City confirms that the current bus network is close to the Pareto front, if the total costs to both passengers and operators are adopted as objective functions. However, the sensitivity analysis with regard to the OD pattern fluctuation indicates that passenger and operator costs in the current network are not always close to the Pareto front. Finally, the results suggests that, regardless of OD pattern fluctuation, reducing operator costs will increase passenger cost and increase inequity in service levels among passengers.     

The design of single allocation incomplete hub networks

The hub location problem deals with finding the location of hub facilities and allocating the demand nodes to these hub facilities so as to effectively route the demand between any origin–destination pair. In the extensive literature on this challenging network design problem, it has widely been assumed that the subgraph induced by the hub nodes is complete. Relaxation of this basic assumption constitutes the starting point of the present work. In this study, we provide a uniform modeling treatment to all the single allocation variants of the existing hub location problems, under the incomplete hub network design. No network structure other than connectivity is imposed on the induced hub network. Within this context, the single allocation incomplete p-hub median, the incomplete hub location with fixed costs, the incomplete hub covering, and the incomplete p-hub center network design problems are defined, and efficient mathematical formulations for these problems with O(n³) variables are introduced. Computational analyses with these formulations are presented on the various instances of the CAB data set and on the Turkish network.     

Two-phase stochastic program for transit network design under demand uncertainty

This paper develops a reliability-based formulation for rapid transit network design under demand uncertainty. We use the notion of service reliability to confine the stochastic demand into a bounded uncertainty set that the rapid transit network is designed to cover. To evaluate the outcome of the service reliability chosen, flexible services are introduced to carry the demand overflow that exceeds the capacity of the rapid transit network such designed. A two-phase stochastic program is formulated, in which the transit line alignments and frequencies are determined in phase 1 for a specified level of service reliability; whereas in phase 2, flexible services are determined depending on the demand realization to capture the cost of demand overflow. Then the service reliability is optimized to minimize the combined rapid transit network cost obtained in phase 1, and the flexible services cost and passenger cost obtained in phase 2. The transit line alignments and passenger flows are studied under the principles of system optimal (SO) and user equilibrium (UE). We then develop a two-phase solution algorithm that combines the gradient method and neighborhood search and apply it to a series of networks. The results demonstrate the advantages of utilizing the two-phase formulation to determine the service reliability as compared with the traditional robust formulation that pre-specifies a robustness level.     

Analysis of performance and equity in ground delay programs

The discrepancy between the projected demand for arrival slots at an airport and the projected available arrival slots on a given day is resolved by the Ground Delay Program (GDP). The current GDP rationing rule, Ration-by-Schedule, allocates the available arrival slots at the affected airport by scheduled arrival time of the flights with some adjustments to balance the equity between airlines. This rule does not take into account passenger flow and fuel flow performance in the rationing assignment tradeoff.This paper examines the trade-off between passenger delays and excess surface fuel burn as well as airline equity and passenger equity in GDP slot allocation using different rationing rules. A GDP Rationing Rule Simulator (GDP-RRS) is developed to calculate performance and equity metrics for all stakeholders using six alternate rules. The results show that there is a trade-off between GDP performance and GDP equity. Ration-by-Passengers (a rule which maximizes the passenger throughput) decreased total passenger delay by 22% and decreased total excess fuel burn by 57% with no change in total flight delay compared to the traditional Ration-by-Schedule. However, when the airline and passenger equity are primary concerns, the Ration-by-Schedule is preferred.     

The location of public logistic centers: an expanded capacity-limited fixed cost location-allocation modeling approach

The location problem considered in this paper concerns the optimal number, size, and location of public logistic centers. To solve this problem, a mathematical model is developed based on an expanded capacity-limited fixed cost location-allocation model of a network incorporating handling costs and the costs of the temporary storage of cargo in the logistic center. The effectiveness of the proposed approach is evaluated with a numerical example of locating public logistic centers of international importance in the Republic of Serbia, based on two scenarios regarding the future development of import cargo flows into the Republic to the year 2020.