Trans RINA, Vol 161, Part A4, Intl J Maritime Eng, Oct-Dec 2019
THE EVALUATION OF COMPETITIVENESS ON COST ADVANTAGE OF REGIONAL HUB PORT: THE CASE STUDY OF TRANS-PACIFIC ROUTE AGAINST KAOHSIUNG PORT (DOI No: 10.3940/rina.ijme.2019.a4.544)
T Y Tsai, Taiwan International Ports Logistics Corp and National Kaohsiung University of Science and Technology, Taiwan and H H Tai, Department of Shipping and Transportation Management, National Kaohsiung University of Science and Technology, Taiwan
SUMMARY
Numerous conventional container ports in East Asia are evolving from intercontinental into regional hub ports. This study adopted the Port of Kaohsiung as an example of competition with neighboring ports. The results of this study demonstrated that the Port of Kaohsiung is still a competitive docking port on trans-Pacific trunk routes for North America, despite facing external threats (e.g., upsizing of ships, lack of new deep-water terminals, and new strategic alliances affecting terminal operations), overall shipping cost considerations (e.g., container volume, different ship sizes, and port selection), and increasingly intense competition with neighboring ports. Under such circumstances, the Port of Kaohsiung must keep pace with container ship upsizing, sufficiently increase deep-water terminal capacity, and improve its existing container terminals’ operating efficiency to attract route deployment and larger container ships and thereby maintain its current advantages and position as a regional hub port.
NOMENCLATURE T/P
TIPC TEU
ACIk Trans-Pacific route
Taiwan International Ports Co., Ltd. Twenty-foot Equivalent Unit
The average cost in Ik hub-port
ACSAVING The average cost-saving C Fuel
Port The total costs of port for ship called on Ik port and handling in terminals
I
Sailing The sailing time of ship sailing from I1-port to I2-port
Port The port time of ship in Ik-port
The ship sizes (TEU) of mother ship (T) and feeder ship (t)
The handling quantity of containers (TEU) The loading-factor for each voyage
The terminal gross handling efficiency R on I-port
INTRODUCTION The total costs of vessel fuels for ship sailing
C Ship-daily The daily costs of ship on different routes C k
D 12 II
external factors. Whether container carriers perform container stacking and transshipment at a port primarily depends on transport cost considerations and whether the port has a stable set of transport routes as well as resource diversity. A number of conventional hub ports are distributed across Asia, including Singapore, Tanjung Pelepas, Hong Kong, Shenzhen, Kaohsiung, Xiamen, Shanghai, Qingdao, and Busan. These locations are dependent on criteria both internal (e.g., sufficient resources, subsidy policies, and terminal conditions) and external (e.g., shipment cost considerations, number of competing neighboring ports, and route deployment). A port’s competitiveness increases only if it satisfies both types of criteria; otherwise, transshipped containers will be attracted to other neighboring ports (Su, et al., 2016; MOTC, 2017). The number of transshipped containers is key to solidifying hub status.
D k I
T&t
Q&q LF RI
The Port of Kaohsiung is Taiwan’s largest container port, handling more than 70% of its container import and export operations. Because of
its advantageous 1.
Local supply is a stable source for a container port, ensuring minimal variations in import and export container quantities. However, the quantity of transshipped containers varies greatly due to strong
geographical location, the Port of Kaohsiung was a major transshipment port along the Far East–Europe trunk route, the trans-Pacific (T/P) route, and the Southeast Asia route (MOTC, 2013; Tai, 2015; MOTC, 2016), and was among the top three container ports in the world before 2000 as well as a leading intercontinental hub port. However, the outflow and transformation of traditional industries in Taiwan have caused import and export trade volumes to stagnate, and the emergence of new ports in neighboring countries (China and Southeast Asia) has also begun to diminish the Port of Kaohsiung’s hub status and transshipment container sources. Various prominent container carriers have gradually altered their East Asian route structures (Tai & Lin, 2014), docking less frequently at the Port of Kaohsiung and thus severely
©2019: The Royal Institution of Naval Architects A-381
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