Investigating the effect of terminals’ service attributes on attracting shipping lines: a stated choice approach

Aly Mohamed Elrefaei, Ahmed Osman Idris

Abstract


Container terminals in the Mediterranean region have a high competition level between them to achieve a greater share of the regional seaborne trade volume. The national container companies in Egypt face low performance and productivity issues because liners prefer other ports/terminals in the East Mediterranean. One reason for this problem is due to policy makers’ belief that spending much money on terminal infra- and super-structure is the best practice for attracting more shippers. However, terminal capital investments and yearly maintenance costs are substantial and may not be useful if other factors control port/terminal choice from a shipping company’s point of view.
Recently, the Egyptian Maritime Transport Sector went through a number of new projects through the construction of quay walls, yards, and terminals in various 

Egyptian ports such as Alexandria, Abu Kir, and El-Sokhna in attempt to improve the available freight capacity (i.e. supply)Nevertheless, and as long as shippers insist on choosing a specific port/terminal, such new improvements may not reap their intended benefits.
This research investigates the important factors that control shipping liners decisions when selecting a container terminal by using a custom-made instrument design. Two data collection methods are used; namely, Revealed Preference (RP) and Stated Preference (SP) or Stated Choice (SC). Then, discrete choice models of terminal switching behavior will be used to help policy makers prescribe efficient strategies to alter shipping lines decisions and ensure that each port/container terminal has a fair market share. However, this paper reports only on the first part, while the latter is still work in progress.
The preliminary data analysis showed that port charges and port infrastructure are the most critical factors shipping lines look for when choosing a container terminal. As such, policy makers need to focus on these factors in attempt to promote their terminals and make them more attractive to shipping lines.


Keywords


Mode Choice, Revealed Preference, Shippers Behaviour, Stated Choice Experiment, Terminal Choice.

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References


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DOI: http://dx.doi.org/10.21622/MARLOG.2022.11.197

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The International Maritime Transport and Logistics Journal (MARLOG)

E-ISSN: 2974-3141
P-ISSN: 2974-3133

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