  We propose a joint model that links the strategic level location and capacity
decisions with the operational level routing and hub assignment decisions to
solve hub network design problem with congestion and heterogeneous economics of
scale. We also develop a novel flow-based mixed-integer second-order cone
programming (MISOCP) formulation. We perform numerical experiments on a
real-world data set to validate the efficiency of solving the MISOCP
reformulation. The numerical studies yield observations can be used as
guidelines in the design of transportation network for a logistics company.
