A Mixed Integer Linear Programming Model for Green Logistics-Based Inland Container Depot Location Selection in Thailand

Abstract

Container transportation in Thailand has steadily increased, with Laem Chabang Port handling 9.46 million TEUs in 2024. While the development of national rail infrastructure enhances opportunities for integrated logistics systems, port congestion and transport-related pollution remain key challenges. This study proposes a Mixed Integer Linear Programming (MILP) model as a decision-support tool for identifying optimal locations for Inland Container Depots (ICDs), integrating both economic and environmental objectives. A numerical experiment based on a simulated scenario reflecting Thailand’s logistics context was conducted. The results suggest that establishing ICDs in Lat Krabang and Surat Thani is the most appropriate strategy, with a total cost of approximately 447.75 million THB and resulting in 891 tons of CO₂ emissions. Although up to three ICDs could be built under a 500-million-THB budget, the model shows that two strategically located ICDs suffice to ensure efficient service delivery. Lat Krabang is positioned near high-demand zones and major ports, while Surat Thani serves the southern region and possesses high renewable energy potential. Using 100% rail transport in this scenario yields an exceptionally high green logistics score of 14.109 (on a normalized scale where 10 is the benchmark). The developed MILP model can serve as a practical planning and decision-making tool to promote sustainable and cost-effective logistics in Thailand.