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Factors Determining Port Performance and Choice

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Factors Determining Port Performance and Choice THE UNIVERSITY OF HULL A Comparative Study of Ports and Their Hinterlands: Factors Determining Port Performance and Choice A thesis submitted for the degree of Doctor of Philosophy By Mengying Feng 2010 ACKNOWLEDGEMENTS This thesis could not have been completed without the support of many people. First of all, I would like to address my heartfelt gratitude to my supervisors, Professor Chandra Lalwani and Professor John Mangan, who have made my PhD journey possible. Without their granting me a scholarship, it would not have been possible for me to even start the PhD journey. I would also like to thank Professor Mike Jackson for his supervision in my first year. I would like to extend my thanks to my supervisors for their guidance, encouragement and supervision during my PhD process. I will never forget the supervision meetings in the evenings and at weekends, when they should have been taking a break with their families. In particular, I owe Professor John Mangan a debt of gratitude for his helping me as a charitable service – thanks for his still helping me after he moved to Newcastle. Without my supervisors‘ help and support, the thesis could have never been completed. Secondly, I am grateful to a number of people, especially to Professor Chee Wong in HUBS for his comments on my work. Chee is always very helpful when the need arises. Thanks should also go to Ms. Rebecca E Conyers who helped me a great deal in administration, to my friends Daxi Huang and Dongmei Yang for their encouragement and to my fellow PhD students such as Khalid Albattal who have shared with me the ups and downs and encouraged me to carry on with the PhD journey. Special thanks should also go to the interviewees and questionnaire survey respondents. Without their participation, the thesis could not have been written as there would have been no empirical data. Lastly, I must express my deepest appreciation to my dearest family, especially my husband Simon Yan and my daughter Tan Yan, for their unconditional love and support throughout my PhD journey. Without my husband‘s financial and emotional support, I could not have left my motherland and come to the UK to study. My lovely daughter has shown her ability to support me by behaving herself very well without me around. Their sacrifices and continuous support have encouraged me to study in the UK for over five years until finally I completed the journey. ii ABSTRACT As a consequence of globalisation, port performance has become increasingly important for international trade. Different port regions perform differently. The aim of this research is to identify factors that determine port performance and choice in a comparative study between two case ports in Europe and Asia. Specifically, this research aims to examine factor differences between two European and Asian ports‘ contexts; to identify the key factors that drive port performance and choice; to investigate the differences in importance and performance among the factors; to analyse how the importance and performance of factors varies for different ports; to analyse the role a port hinterland plays in port performance and choice; and to illustrate the usefulness of key findings for port stakeholders. The construct of importance factors is based on the literature. The research methodology was that of mixed methods to collect both qualitative and quantitative data in two port regions (China and UK) and was carried out in two phases. Phase one comprised semi-structured in-depth interviews. Phase two consisted of questionnaire- based surveys to validate the factors influencing port performance. The questionnaire surveys were distributed to port experts from 500 organisations and had a 50.8% response rate. Thematic analysis was used for qualitative data analysis of the data from the interviews. Methods for analysis of the data from the questionnaires included descriptive analysis, factor analysis, t-test, Kruskal-Wallis H test, importance- performance analysis and other statistical validation and significance tests. The findings of this research suggest that ports wishing to outperform competitors can do so by improving the factors that are of high importance but currently perform poorly. This could also be achieved by improving performances on shipping services, shipping prices, overall logistics cost, logistics services and government support in descending order which is based on factor evaluation in this research. The thesis further analyses this result within the context of urgent, salient and basic factors based on IPA, including explicit & implicit importance. Shipping services and cost have a critical effect on port performance. Differences in port charges are the most significant differences in factor importance at the case ports of the Humber and Xiamen. Government support has the most significant differences in factor performance between the two case ports. This research is not without limitations. The analysis was restricted to two port regions in China and the UK and data used in this research were mainly generated from interviews and questionnaire surveys, responses to which are to some extent subjective. iii TABLE OF CONTENTS ACKNOWLEDGEMENTS ............................................................................................ ii ABSTRACT .................................................................................................................... iii TABLE OF CONTENTS ............................................................................................... iv LIST OF TABLES ....................................................................................................... viii LIST OF FIGURES ....................................................................................................... ix LIST OF ABBREVIATIONS ........................................................................................ x 1. INTRODUCTION ................................................................................................... 1 1.1 Background to the research ..................................................................................... 1 1.1.1 Overview .......................................................................................................... 1 1.1.2 Previous research ............................................................................................. 2 1.2 The research gap, aim and objectives ..................................................................... 7 1.3 Significance of the study ......................................................................................... 9 1.4 Methodology ......................................................................................................... 10 1.5 Outline of the thesis .............................................................................................. 13 2. LOGISTICS, SUPPLY CHAIN MANAGEMENT AND PORTS .................... 15 2.1 Defining logistics and supply chain management ................................................. 15 2.1.1 Definition of Logistics ................................................................................... 15 2.1.2 Definition of supply chain management ........................................................ 17 2.1.3 Relationship between logistics and SCM ....................................................... 18 2.2 Ports and global logistics chains ........................................................................... 20 2.2.1 Ports in global logistics chains ....................................................................... 20 2.2.2 Port activities .................................................................................................. 22 2.2.3 Port development and port generations .......................................................... 23 2.2.4 Port functions, roles and role change ............................................................. 25 2.2.5 Port hinterlands .............................................................................................. 27 2.3 Relevant theories underpinning port performance ................................................ 30 2.3.1 Stakeholder theory ......................................................................................... 30 2.3.2 SCP paradigm ................................................................................................ 30 2.3.3 PESTEL analysis ............................................................................................ 31 2.3.4 Three-factor theory ........................................................................................ 32 2.4 Trends in maritime freight transport ..................................................................... 32 2.4.1 Upscaling of vessel size ................................................................................. 32 2.4.2 Shifts in supply chains and port logistics integration .................................... 34 2.4.3 Global port/terminal operators (GPOs) .......................................................... 37 2.4.4 Powerful port users ........................................................................................ 39 2.4.5 An increased focus on landside and intermodality ........................................ 40 2.4.6 Port-centric logistics ...................................................................................... 42 2.4.7 Port ownership and privatisation .................................................................... 43 2.4.8 Green logistics and the supply chain .............................................................
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