The effect of port and container terminal characteristics on terminal performance
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The effect of port and container terminal characteristics on terminal performance J . A u g u s t o F e l í c i o a, V í t o r C a l d e i r i n h a b a n d A n d r e i a D i o n í s i o c a
School of Economics and Management, Technical University of Lisbon, Rua Miguel Lupi 20, 1249-078 Lisbon, Portugal. b School of Economics and Management, Centre of Studies and Management, Rua Miguel Lupi 20, 1249-078 Lisbon, Portugal. c CEFAGE-UE, Évora University (UE), Largo dos Colegiais 2, 7004–516 Évora, Portugal.
Abstract
This study examines port and container terminal characteristics, and assesses how they affect performance. Little research has addressed the relationship between location, physical infrastructure (hard) and service (soft) characteristics, and container terminal performance. The present study fills this research gap. Performance is explained using a holistic perspective involving multivariate factors. A questionnaire sent to 12 container terminals in Portugal and Spain yielded 122 responses. Structural equation modelling confirmed the influence of port and terminal characteristics on container terminal performance. Performance was measured in terms of efficiency, activity and customer satisfaction. Five main characteristics were found to influence container terminal performance: regional and continental location, sea and land access, maritime shipping services, dynamism of port authorities, and terminal organization and logistics integration.
Maritime Economics & Logistics advance online publication, 18 December 2014; doi:10.1057/mel.2014.33
Keywords: port characteristics; terminal performance; terminal organization; port location; inland accessibility; logistics integration
Introduction Containerization and intermodality have undergone rapid growth in recent decades. This growth owes to hinterland expansion and transhipment operations at intermediate ports and at the crossing points of trade lanes. Container traffic growth has led to high demand for container terminals, resulting in port © 2014 Macmillan Publishers Ltd. 1479-2931 Maritime Economics & Logistics www.palgrave-journals.com/mel/
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Felício et al
congestion, a need for investment in new terminals and greater competition between terminals within and between ports. Container terminals are competing to become transhipment hubs as part of major shipping lines and feeder networks, while greater inland transport accessibility has allowed ports to spread further inland. Container cargo shippers and logistics companies select ports and container terminals according to their location, proximity to markets, port charges, freight rates, turnaround time, cargo value and volume, liner service frequency, and trade routes. Nonetheless, the decision often depends on the overall network service organization rather than the port or terminal per se (Yap and Notteboom, 2011). Besides the port’s strategic location, shipping companies also seek port service reliability and low costs per call. According to Cullinane et al (2004), containerization has stimulated
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