Optimal location of intermodal freight hubs

We present an optimization model that has been developed to address the problem of increasing the share of rail in intermodal transport through the use of hub-and-spoke type networks for freight rail. The model defined is a generalization of the hub location problem in that it allows for non-linear and concave cost functions on different segments. A linearization procedure along with two efficient variable-reduction heuristics was developed for its resolution, making use of recent results on polyhedral properties of this class of problems. Computational experience and a qualitative analysis from a case study on the Alpine freight network is provided. © 2004 Elsevier Ltd. All rigths reserved.