A reliable multi-period intermodal freight network expansion problem

This paper addresses the intermodal freight network expansion problem consisting of multiple periods. In each period, the objective is to determine the locations of new intermodal terminals, the amount of capacity to add to existing terminals, and the existing rail links to retrofit. The multi-period planning problem has the added complexity of determining which period a particular improvement should be made given a limited budget for each time period. A probabilistic robust mathematical model is proposed to address these decisions and uncertainties in the network. Due to the complexity of this model, a hybrid Simulated Annealing (SA) algorithm is proposed to solve the problem and its applicability is demonstrated via two numerical examples. Important managerial insights are drawn and discussed on the benefits of utilizing the multi-period approach.