Port choice in a competitive environment: from the shipping lines' perspective
Authors: Tongzon, Jose L.; Sawant, Lavina
Source: Applied Economics, Volume 39, Number 4, March 2007 , pp. 477-492(16)
Abstract:The present era of globalization and regional competition has witnessed the increasing influence of the global operations of the shipping lines on port development and the declining monopoly of ports. This warrants the need for an identification of the port selection criteria from the perspective of the shipping lines. Hence, an attempt is made to determine the port choice from the perspective of the shipping lines. Moreover, most port operators have designed their strategies based on the 'stated preference' of the shipping lines. However, the stated preference approach can have several shortcomings such as the shipping lines would tend to overstate their demands for services at the port. This directs for an examination of the port choice of the shipping lines based on a revealed preference approach. The 'revealed preference' approach aims at judging the port choice of shipping lines purely from their 'actions' rather than what they actually 'state'. The empirical study in this article is based on a survey conducted among major shipping lines operating in Singapore and Malaysia. The findings have shown port charges and wide range of port services to be the only significant factors in their port choice. Moreover, the results show no consistency between the stated and revealed preferences of shipping lines.
Document Type: Research Article
Affiliations: Department of Economics, National University of Singapore, Singapore 119260
Publication date: March 2007