Entropy maximising facility location model for port city intermodal terminals

This paper employs the principle of entropy maximisation to solve the multi-user intermodal terminal (IMT) location problem in a context where users have the option not to use an IMT. The proposed model is a non-linear mixed integer programming problem, which decomposes into an IMT location sub-problem and an IMT choice sub-problem linked in one direction by the choice of IMT location(s) and in the other by dual variables relating to cost sensitivity and IMT capacity. The principal features of the model are illustrated by a numerical example based on the state of NSW, Australia, where new IMTs are planned.