The need to make effective plans for locating transportation hubs is of increasing importance in the megaregional area, as recent research suggests that the growing intercity travel demand affects the efficiency of a megaregional transportation system. This paper investigates a hierarchical facility location problem in a megaregional passenger transportation network. The aim of the study is to determine the locations of hub facilities at different hierarchical levels and distribute the demands to these facilities with minimum total cost, including investment, transportation, and congestion costs. The problem is formulated as a mixed-integer nonlinear programming model considering the service availability structure and hub congestion effects. A case study is designed to demonstrate the effectiveness of the proposed model in the Wuhan metropolitan area. The results show that the congestion effects can be addressed by reallocating the demand to balance the hub utilisation or constructing new hubs to increase the network capacity. The methods of appropriately locating hubs and distributing traffic flows are proposed to optimise the megaregional passenger transportation networks, which has important implications for decision makers.
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