Transshipment hub port selection criteria by shipping lines: the case of hub ports around the bay of Bengal

Abstract

With the competitive nature of the liner shipping industry, the transshipment hub port selection process has become complicated with numerous decision-making criteria that need to be considered, and competition between hub ports has accelerated across different regions. The emergence of different liner service networks, such as "hub and spoke" and "relay," has also intensified the complexity of the hub port selection process. The overlapping of maritime markets simultaneously served by multiple competitive hub ports has offered various hub port choices for shipping lines. Therefore, the criteria for hub port selection for both hub and spoke and relay networks are separately discussed in this study, which evaluates the performances of four competitive hub ports located around the Bay of Bengal: Colombo, Singapore, Kelang, and Tanjung Pelepas. The hub port selection criteria are evaluated based on the monetary, time, port traffic, location, operation, and liner-related categories using a questionnaire survey administered to shipping lines. The results provide a detailed discussion on the significant criteria for both network types and also highlight the dominant performance of the Singapore port and the performance of the other hub ports based on the individual criteria.

The role of Chittagong port to support MSR in providing maritime transport facilities through intermodal in Asia

“…Hinterland corridor efficiency is poor; inland port operations are developing, and inland connections to ICD and RICT are in progress. Moreover, shipping lines (Kavirathna et al, 2018), forwarders, and shippers are playing a vital role in selecting hub ports, and they have practical viewpoints on the "monetary", "time", "location", and "operation" factors, in which Chittagong Port is accordingly suitable.…”

“…The symbolic role (Cahoon et al, 2013) between healthy trade movement through a port and regional growth is self-evident, but the economic activities of the region will prosper speedily. Kavirathna et al (2018) describes the hub and spoke network, which has the advantages of mainline and feeder services for operating by an integrated manner of network configuration and ensuring proper transportation of cargos and containers between the origin and destination ports. Ruan et al (2019) stated that ports are a capital-intensive multimodal facility that require substantial investment on infrastructural development to connect them with rail, road, and even pipeline links to improve the efficient handling of all types of cargo as an integrated part of the global supply chain and port logistic network.…”

“…Port regionalization is a step to attract the international shipping community to invest in the port sector of Bangladesh. Kavirathna et al (2018) reported that rapid development of international trade and globalization are causing ports to handle a considerably increased volume of freight in the maritime transport sector.…”

“…In the eyes of Kavirathna et al (2018), Chittagong Port is denoted as a feeder port in the Bay of Bengal. To perform as a hub port, Chittagong has to compete with Colombo, Sri Lanka, and Singapore, as well as to attract shipping lines, forwarders, and shippers accordingly.…”

“… Kavirathna et al (2018) recommended to increase port competitiveness to act as a hub port in the Bay of Bengal. In this context, port competition and port cooperation are important; competition will benchmark the facilities and service quality of the port, and port cooperation will assist to increase freight volume, as well as port efficiency and productivity.…”