The impact of container terminal relocation on hinterland geography

This paper presents a mathematical model for calculating the generalized costs resulting from the transportation of containers from multiple locations in a geographical region to different container terminals serving this region. The generalized costs are calculated using a road and rail transport network model, enabling potential hinterlands of terminals in close competition to be delimited, rather than port hinterlands as is more common in the literature. The mathematical model is used in a case study on the consequences of building a new terminal in the port of Lisbon and closing down an existing terminal, implying a terminal relocation between river banks. The model shows that this relocation has significant implications in the delimitation of container terminal potential hinterlands across southern Portugal. Conclusions and policy recommendations regarding the consequences of such relocation are given in terms of relative competitiveness of the different terminals and suitability of the relocation.