Lecture 5: Port Competition and Competitiveness Flashcards
What does competitiveness reflect?
Capability and ability. It is a comprehensive measure of an entity’s ability to succeed in the marketplace while ensuring sustainable economic growth and improved living standards for its population.
It is a comprehensive measure of an entity’s ability to succeed in the marketplace while ensuring sustainable economic growth and improved living standards for its population.
What does competition imply?
Reflects the action and result. Struggle but does not exclude cooperation given the opportunities and threats
It reflects the action and result of competing entities.
What is intra-port competition?
Competition between service providers within a port facility
Examples include cargo companies, ship chandlers, and bunkering operators.
What is inter-port competition?
Competition among port service providers located in different ports
This can occur in different regions and countries.
What drives port competition?
- Globalization and Trade Growth
- Infrastructure and Capacity
- Differentiation of Services
- Shipping Industry Consolidation
- Environmental Regulations
Who are the three decision makers in port selection?
- Shipping companies/Carriers
- Shippers
- Freight forwarders/third-party logistics (3PL) service providers
What factors contribute from the perspective of shipping companies?
- Cargo-generating potential
- Port charges
- Level of efficiency
- Nautical access
- Berth allocation policy
- Strategic fit with logistics network strategies
What factors do shippers consider in port selection?
- Port capability of cargo handling
- Port location
- Port connectivity
- Port charges and costs
- Port efficiency
- Port service quality
- Schedule and service reliability
- Port sustainability and environmental practices
- Risk of congestion
- Viable alternative routings
What additional factor do freight forwarders/3PL consider in port selection?
Information and communication
This factor is similar to those considered by shippers, with an emphasis on information flow.
What is the role of port networking?
Crucial for competitive advantage
It requires port interaction and coordination.
What does achieving sustainability depend on in port networks?
Balancing competition and cooperation
This balance is essential for long-term success.
What is port integration?
Combining operational efficiency, economies of scale, improved connectivity, innovation, and environmental sustainability
What is vertical integration in the context of ports?
A port expands control over the supply chain
Examples include owning terminals, ships, or logistics.
Who are the major players in port vertical integration?
- Terminal operators
- Shipping lines
- Inland logistics companies
- Digital platforms
What is horizontal integration in the context of ports?
A port expands by merging or partnering with other ports or businesses in the same industry
Provide an example of horizontal integration.
Ports of Los Angeles and Long Beach
Focus on congestion management, environmental sustainability, and infrastructure.
What is the significance of Ningbo-Zhoushan Port?
World’s largest port by container cargo throughput
It serves as a key gateway for China’s exports and imports, handling various types of cargo.
