A bilevel storage pricing model for outbound containers in a dry port system

Serving as a potential solution for seaport congestion and capacity limitation, dry port development is increasingly popular in the freight transport industry. This paper pioneers the research on dry port operations by modelling the storage pricing problem for outbound containers. The interaction between a dry port and multiple shippers is modelled as a bilevel program. The optimal properties of the proposed model under certain conditions are derived analytically, from which a closed-form solution is obtained. Contrary to intuition, the increase of container delivery frequency from shippers may lead to the reduction of dry port’s profit according to model outcomes.