Optimizing Intermodal Transport and Hub Location Problem for ECOWAS in the Context of Improving Intra-African Trade

Abstract

Trade within Africa is at an all-time low, with a lack of an optimal intermodal transportation network and a high cost of business serving as a deterrent to trade. This research studies Intra-African Trade within ECOWAS using a hierarchical spatial aggregation process to identify 27 nodes. Distance-based weighted centrality measures employed TOPSIS to model a ranked node centrality of Economic Community of West African States (ECOWAS) intermodal transport of railway, road, and waterway networks. The ten highest-ranking nodes identified from the mixed-integer linear program adopted as candidate hubs, thus selecting Ibeshe ferry terminal in Lagos and Tema Harbour in Accra for waterway; Thies, Ibadan, Conakry, Monrovia and Thies for railway; and Thies and Ibadan for road. We conclude with sensitivity analysis and a discussion of management implications for ECOWAS. This paper demonstrated that a limited number of transshipment hubs would encourage interregional trade and cut point-to-point transportation costs and lead to economic growth and development.