Research On The Port Logistics Resources Vertical Integration Based On Revenue Sharing

Port logistics resources vertical integration is an effective measure to deal with the contradictions between abundant port logistics resources and high logistics costs. It considers whether the port enterprises can be highly competitive in a competitive shipping market. It’s a key issue in vertical integration of port logistics that how to choose appropriate stakeholders of the vertical integration and figure out how to fix the instability as a result of integrity of stakeholders which compete in the market, from the experiences of the ports integration domestically and abroad. Port logistics service chain and port logistics service network work differently in the vertical integration of port logistics resources. The integrated stakeholders only focus on the interests stemmed from the single corresponding upstream or downstream enterprises in the integrated port logistics service chain. The benefits distribution among stakeholders with complex relationships of interests is taken into consideration in the port logistics service network integration. Therefore, it is our objective to design a vertical integration optimization model of port logistics resources with revenue distribution based on different characteristics.This paper is based on the theory of revenue sharing. It reviews the existing literatures first, then it proposes the port logistics resources vertical integration problem in the light of the amount of the integrated subjects and different types of revenue sharing considering market environment. The paper is structured as follows. Firstly, it discusses the basic integration problem under the single chain structure. The effectiveness of port logistics resources vertical integration is demonstrated by using the proposition analysis. The decision-making behaviors of upstream or downstream enterprises in the port logistics service chain are analyzed by applying the Stackelberg game model. Furthermore, an optimization model with the objective of maximizing port revenue is established, and sensitivity analysis is made against the main uncertain factors. Reasonable revenue sharing proportion can increase the benefits of the upstream and downstream enterprises which participate in the vertical integration of port logistics service chain, and at the same time, the benefits of the whole chain would appear. The influence on the benefits is more significant by the change of price elasticity of demand. Then it extends the problem to a more complex dimension. The complex benefit relationships among upstream and downstream enterprises are analyzed in the port logistics service network. Based on fixed revenue-sharing, a bi-level programming model is established to resolve the problem of port logistics resources vertical integration, while ensuring the coordination and stability of port logistics service network. In view of the model, double iterative algorithm and hybrid genetic heuristic algorithm are planned. The optimal logistics resources integration scheme which can make sure the largest benefits of the port is obtained. And the size of the fixed revenue-sharing has a great influence on the integration scheme. Moreover, it considers the port revenue varing due to the changes of the shipping market. It is difficult to make the determination of the size of fixed revenue sharing, so a bi-level programming model based on variable revenue-sharing is established to settle the port logistics resources vertical integration problem. In the view of different market environment, the case studies of grain transportation of Northeast Three Provinces are presented to determine revenue-sharing proportion (or fixed value) under the single chain structure and complex network structure. The model can calculate the flow of goods in port hinterland. Port logistics resources are integrated effectively, and the competitiveness of the port is enhanced.