Dry Port-Seaport Logistics Network Construction under the Belt and Road Initiative: A Case of Shandong Province in China

Abstract

In recent years, China’s dry ports have entered into a period of rapid development, especially driven by the Belt and Road initiative (BRI). This initiative not only provides valuable opportunities, but also intensifies fierce competition between ports. In order to earn more profits and maintain an advantageous position, dry ports generally tend to rely on seaports to increase competitiveness and attract more goods, and seaports are also willing to cooperate with dry ports to expand their business. As a large coastal province in China, Shandong Province has good maritime resources. Because of the fierce competition among seaports inside and outside Shandong Province, port operators should make good use of the opportunity offered by BRI to make connections with the inland cities through the dry port-seaport logistics network and enhance the competitiveness. In order to take an active part in the process of the BRI, forming a dry port-seaport logistics network is a win-win strategy for Shandong province. The research first analyzes the impact of the Belt and Road initiative on ports of Shandong and its development, then uses complex network theory and TOPSIS method to select dry port candidate cities from BRI’s important transportation nodes. After considering economic benefits, carbon emissions and construction costs, a multi-objective optimization model is established with a construction cost preference coefficient. Then the NSGA-II algorithm is used to solve the realistic problem. The study finds that when the construction cost increases, the transportation cost and carbon emission cost will decrease, which indicates that the dry port-seaport logistics network established under the BRI can reduce the cost of logistics transportation and environmental pollution.

Keywords

Dry port / Belt and Road Initiative / logistics network / mathematical programming

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