HighlightsThe use of LNG as an alternative fuel for container vessels is considered.Strategic infrastructure investment and tactical tanker routing decisions are combined.Two different MIP models are proposed, allowing very short solution times.Results are presented for an industrial case study with a major liner shipping company.The robustness of the solutions is evaluated through a sensitivity analysis.

    AbstractWe consider a strategic infrastructure and tanker fleet sizing problem in the liquefied natural gas business. The goal is to minimize long-term on-shore infrastructure and tanker investment cost combined with interrelated expected cost for operating the tanker fleet. A non-linear arc-based model and an exact solution method based on a set-partitioning formulation are developed. The latter approach allows very fast solution times. Computational results for a case study with a liner shipping company are presented, including an extensive sensitivity analysis to account for limited predictability of key parameter values, to analyze the solutions’ robustness and to derive basic decision rules.


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    Title :

    The liquefied natural gas infrastructure and tanker fleet sizing problem


    Contributors:


    Publication date :

    2017-01-05


    Size :

    19 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English






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