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Railroad planning & optimization

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how to effectively plan and schedule your rail freight movements

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Railroad planning & optimization

  1. 1. Railroad Planning & Optimization Private & Confidential
  2. 2. Table of Contents• Industrial Requirement• Our Approach• Understanding Flow Network Private & Confidential 2
  3. 3. Industrial Requirements – Operating At A Large Scale• Privatization of container rail operations in India, has created an overall freight market (size of ~3bn tonnes) by trying to shift volumes from road to rail• With 500 rakes expected to be operational in FY12/13, around 16 players are offering integrated, value-added logistics solutions with last mile connectivity. This includes few key players like Concor, Arshiya, Gateway Distriparks, etc. Source of above: IDFC SSKI Sector Report, December 2009 • Given the capital investment in this segment is high, logistics players need to operate with minimum resources yielding maximum capacity utilization • Routes will overlap with each other, and under dynamic loading situation at each nodes, forms a classic “Time and Capacity Constrained Routing Problem” • Minimizing the empty run will be a tough nut to crack • Practical conditions such as – customized containerization, maintenance cycle adds to the planning difficulties • Traditionally, railroad planning is being done using more than one methodologies – MILP, Heuristics, NP-Hard. This requires solid conceptual understanding & real- time tested algorithm Private & Confidential 3
  4. 4. Rail Planning Optimization Solution Framework INPUT STATIC DATA INPUT DYNAMIC DATANODE ROUTE • Monthly forecasted loading data at each nodeLocation Route Id • Material freight rate on each routeType (ICD/Port etc.) Source • Starting Rake & container availability data atMax Rakes per Month Destination each nodeNODE ACTIVITIES Intermediate Nodes • Capacity change for the next monthActivity (dwelling, Distance • Previous month transaction to update certaincustoms etc.) time/cost parameters Travel TimeCost Max Load AllowedTime + Business Rules Double Stacking AllowedRAKE (such as maintenanceRake Id Max Rake Length run of 6,000 km)  Monthly Route-RakeType ROUTE FREIGHT allocationLength Route Id  Number of rakesCapacity (MT) Material required at each nodeNo of Rakes Freight Amount  Transportation volume,CONTAINER From Date cost & time estimatesContainer Id End Date Optimization  Capacity utilizationType Engine  Capacity deficitMaterial SpecificCapacity (MT)No of Container Private & Confidential 4
  5. 5. Understanding Flow Network •In this example, nodes (could be port, IDC locations etc.) are shown 3 x32 •Each node has interconnections with the other nodes x23 2 •All Nodes have demand-supply estimates x13 x24 x42x31 x21 x12 •Once demand and supply or flow in/out is x45 achieved for all nodes, we try to calculate 5 4 the number of movements between each x51 x54 nodes, in the given set A of origin- x15 destination (O-D) pairs 1 • In the equation below, no of movements Figure: Network flow illustration is represented by m and x is the flow volume between i-j (O-D). This basically becomes part of the optimization objective function Private & Confidential 5

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