Engineering Commons^™

Cost Engineering Optimum Seaport Capacity, Douglas D. Gransberg, John P. Basilotto

Douglas D. Gransberg

Using queuing theory to solve port optimization problems can result in large potential savings by both ports and shippers. This methodology generally makes the assumption that minimizing ship waiting time optimizes the entire port system. However, this overlooks the contribution to the system given by the port itself. There is a fixed cost of facilities that must be incurred to open a berth at a port. By minimizing ship waiting time alone, the current algorithm tends to encourage ports to build excess capacity. When a port's cargo transfer capacity is idle, the port authority suffers a capital cost of lost …