C4 - Port Competitiveness

Question 1

What are the levels of port competition and players?

Answer 1

1. Intra-port competition
   It occurs between private port companies to compete to handle cargoes within port facility. The competition can help increase port efficiency and improve services.
2. Inter-port competition
   It occurs between port services providers located in different ports. (National or International, SG v Busan). It is usually within the same multi-port gateway region or within port-range, sharing a similar hinterland.
3. Inter-range competition
   It occurs between port ranges. Also known as inter-cluster competition. For example, Pearl River Delta ports in South China, where the rivalry occurs between Port of HK, Shenzhen and Guangzhou.

Fun fact: port range is geographically defined as an area with several ports sharing the same hinterland, serving the same customers.

Question 2

Who are the decision makers in port selection?

Answer 2

1. Shipping companies / carriers
2. Shippers
3. Freight Forwarders / 3PL