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Relationships Between Container Terminals and Dry Ports

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Relationships Between Container Terminals and Dry Ports Relationships between Maritime Container Terminals and Dry Ports and their impact on Inter-port competition Master Thesis within: Business Administration – ILSCM Thesis credits: 30 Author: Robert Castrillón Dussán. Supervisor: Leif-Magnus Jensen Jönköping May 14, 2012 INTENTIONALLY BLANK i Acknowledgement _________________________________________________________________________ I would like to thank my supervisor Professor Leif-Magnus Jensen for his support and guidelines. I also want to thank Per Skoglund for his advice and interesting thoughts. Additionally, I want to express my appreciation and gratefulness to all the respondents from the container terminal and dry port industries. Special thanks to the interviewees and respondents of Gothenburg and Jönköping area for their time and valuable contribution to this study. May 2012, Jönköping Robert Castrillón D. ii INTENTIONALLY BLANK iii Master Thesis in Business Administration - ILSCM Programme Title: Relationships between Maritime Container Terminals and Dry Ports and their impact on Inter-port competition Author: Robert Castrillón Dussán Tutor: Assistant Professor Leif-Magnus Jensen Date: 2012-05-14 Subject terms: Container terminals, dry ports, relationship assessment, customer /supplier interaction, inter-port competition, inland integration of port services _________________________________________________________________________ Abstract Globalization of the world’s economy, containerization, intermodalism and specialization have reshaped transport systems and the industries that are considered crucial for the international distribution of goods such as the port industry. Simultaneously, economies of location, economies of scope, economies of scale, optimization of production factors, and clustering of industries have triggered port regionalization and inland integration of port services especially those provided by container terminals. In this integration dry ports have emerged as a vital intermodal platform for the effective and efficient distribution of containerized cargo. Dry ports have enabled port and hinterland expansion increasing the competitiveness of container terminals at seaports. In consequence, container terminals and dry ports are establishing formal and informal relationships to strengthen the competitiveness of their hinterlands and to improve their role in the physical distribution of goods. This study assesses the characteristics of relationships between container terminals and dry ports. Such assessment is conducted based on a set of relationship characteristics proposed in a relationship assessment model for customer/supplier, in which dry ports are given the role of suppliers of port services to container terminals. In addition, the research assesses the impact of the relationships between container terminals and dry ports on inter-port competition. The main findings of the research led to conclude relationships between container terminals and dry ports are characterized by medium mutuality, low particularity, low co-operation, low conflict, low intensity, low interpersonal inconsistency, high power/dependence and medium trust. Additionally, it was concluded that such relationship characteristics impact inter-port competition in two main ways. In one hand by driving container terminals to maximize the utilization of dry port’s capabilities such as container transport/delivery, container storage, customs clearance, information systems and intermodal connections to industrial clusters. On the other hand, by constructing channels of interaction through which dry port’s benefits for hinterlands such as increase of container terminal capacity, reduction of road congestion, increase of modal shift and hinterland expansion are used as leverage in competition for containerized cargo. iv INTENTIONALLY BLANK v Table of Contents List of Acronyms ............................................................................................................ ix Table of Figures .............................................................................................................. x Table of Tables ............................................................................................................... xi 1 Introduction ...................................................................................................... 1 2 Disposition of the Thesis .................................................................................. 2 3 Problem definition ........................................................................................... 3 3.1 Problem statement .............................................................................................. 4 4 Purpose ............................................................................................................. 4 5 Methodology ..................................................................................................... 5 5.1 Reasoning ........................................................................................................... 5 5.2 Data collection .................................................................................................... 6 5.3 Delimitations, limitations and scope .................................................................. 8 5.4 Quality Assessment ............................................................................................ 9 5.5 Reliability and Validity .................................................................................... 10 6 Theoretical framework .................................................................................. 10 6.1 Forces shaping economic environments and industries.................................... 10 6.2 Inland integration of port services and regionalization of ports ....................... 11 6.3 Dry port concept ............................................................................................... 13 6.4 Competition ...................................................................................................... 15 6.5 Inter-port competition ....................................................................................... 17 6.5.1 Factors that affect inter-port competition ......................................................... 18 6.5.2 Drivers and influencers of inter-port competition ............................................ 20 6.6 A model for relationship assessment ................................................................ 22 7 Empirical Findings ........................................................................................ 25 vi 7.1 The Interviews .................................................................................................. 25 7.1.1 Relationship characteristics between Container Terminals and Dry ports ....... 25 7.1.2 Strategic Priorities for Container Terminals and Dry ports .............................. 31 7.1.3 Influencers and enablers of relationships between Container Terminals and Dry ports .................................................................................................... 32 7.1.4 Inter-port competition and relationships between Container Terminals and Dry ports ........................................................................................................... 34 7.2 The Surveys ...................................................................................................... 36 7.2.1 Survey 1 ............................................................................................................ 36 7.2.2 Survey 2 ............................................................................................................ 42 8 Analysis ........................................................................................................... 48 8.1 Assessment of the relationships between Container Terminals and Dry ports .................................................................................................................. 48 8.1.1 Mutuality .......................................................................................................... 49 8.1.2 Particularity ...................................................................................................... 50 8.1.3 Co-operation ..................................................................................................... 52 8.1.4 Conflict ............................................................................................................. 53 8.1.5 Intensity ............................................................................................................ 53 8.1.6 Power/Dependence ........................................................................................... 54 8.1.7 Interpersonal inconsistency and Trust .............................................................. 56 8.2 Impact of relationships between container terminals and dry ports on inter-port competition ....................................................................................... 56 8.2.1 Impact of relationships between dry ports and CTs on strategies related to inland integration of port services .................................................................... 57 8.2.2 Impact of relationships between dry ports and CTs on benefits for port areas and hinterlands from dry ports ................................................................ 60 9 Conclusions ..................................................................................................... 62 10 Further
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