Strategic Investment Planning for Trade Corridors: A Multi-Objective Optimization Model Based on the TCEI

Global supply chains heavily rely on trade corridors yet there is a challenge to strategic investment planning considering that competing global supply chains goals need to be addressed such as the focus on time efficiency, cost reduction, and infrastructure quality. In this paper, the author has proposed a multi-objective optimization model to incorporate Trade Corridor Efficiency Index (TCEI) into investment decisions of trade corridor infrastructure. The model is made to ensure minimum time and cost delays and an optimum quality of infrastructure. When the model is applied to case studies of Belt and Road Initiative (BRI) and Southeast Asia the best possible investment strategies, which can satisfy these objectives, are obtained. The trade-off of the goals is brought out by sensitivity analysis, providing information on resource allocation and priority on investments. The paper provides a new model of trade corridor governance and strategic investments plan.