Logistics Capability and Performance of Container Ports: An Empirical Research Basing on SEM

Container ports expect more competitive advantages and performance improvement on their extinctive logistics capabilities in the circumstance of ongoing integration of supply chain and port fields. Whereas, the connotation and denotation of port logistics

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Logistics Capability and Performance of Container Ports: An Empirical Research Basing on SEM Jin-shan Dai, Han-bin Xiao, and Ting-ting Cui

Abstract Container ports expect more competitive advantages and performance improvement on their extinctive logistics capabilities in the circumstance of ongoing integration of supply chain and port fields. Whereas, the connotation and denotation of port logistics capabilities and port performance have been undergoing significant changes. Meanwhile, the competition between container ports is presented in multitiered and wide-ranging arena. This research focuses on container ports and conceptualizes port logistics capability from five dimensions (positioning, integration, infrastructure, operation and agility) and port performance from four aspects (productivity, finance, social and satisfactory performance), then tests the relationships among port logistics capability, competitiveness advantages and performance. Data from 30 container ports and 181 responses and results from structural equitation modeling indicate that the comprehensive improvement of port logistics capability can directly raise port efficiency and effectiveness performance concurrently. Moreover, via the competitiveness advantages in market, port logistics capability has an indirect positive impact on performance. Keywords Container logistics • Container ports • Port competitiveness • Port performance • Structural equation modeling

Introduction Modern ports are undergoing the shift from gateway to logistics hub (Robinson 2002). Logistics service, which having the instinctive close connection with customers, is increasingly regarded as the one of the main new sources for corporate differentiation strategy especially in the global wide and time-based competition.

J.-s. Dai (*) • H.-b. Xiao • T.-t. Cui School of Logistics Engineering, Wuhan University of Technology, Wuhan, China e-mail: [email protected]; [email protected]; [email protected] R. Dou (ed.), Proceedings of 2012 3rd International Asia Conference on Industrial Engineering and Management Innovation(IEMI2012), DOI 10.1007/978-3-642-33012-4_39, # Springer-Verlag Berlin Heidelberg 2013

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The development and practice of ports indicate that port is growing to be a key and functional element in the chain of logistics services with a trend of supply chain integration, namely, the 4th generation port which based on logistics and supply chain. Therefore, it is necessary to rethinking of port and its logistics from the view of supply chain. Serving as a productive unit, port service is evolving to customer orientation, namely, gaining competitive edge by attracting the customers and satisfying the stakeholders, and eventually obtaining expected performance. The port stakeholders mainly include shipping lines, consignees, international freight forwards, ship operators, logistics managers and etc. In order to improving the performance whole dimensionally, ports need to explore the unique predominance in logistics business an