Internationalisation and Consolidation of the Container Port Industry: Assessment of Channel Structure and Relationships

Khalid Bichou () and Michael G H Bell
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Khalid Bichou: Port Operations, Research and Technology Centre (PORTeC), Centre for Transport Studies, Imperial College London, London SW7 2BU, UK.
Michael G H Bell: Port Operations, Research and Technology Centre (PORTeC), Centre for Transport Studies, Imperial College London, London SW7 2BU, UK.

Maritime Economics & Logistics, 2007, vol. 9, issue 1, 35-51

Abstract: The international consolidation of the container port industry is a relatively recent, yet radical trend in international shipping and logistics. Global strategies of vertical and horizontal integration evolving around port ownership and operations are undertaken by a variety of market players, both within and outside the international shipping and logistics markets. However, while much of the available literature on the subject has focused on the bases and various motives behind the change, little work has addressed the impacts on channel structure and relationships, including such aspects as control, power and conflict. By channel, we refer to an organised network of institutions that form the combined physical and non-physical path taken by goods and services as they move from original supplier to final consumer. However, in the context of this paper, the scope of the distribution channel is reduced to active members of the international shipping and logistics industry, that is, shippers, ocean carriers, ports, agents and intermediaries. This paper investigates the extent of channel power, conflict, role, performance and strategic concentration of shipping lines as international container terminal operators. A structural equations model is used to assess the impacts of global factors and consolidation on the container port industry, and test whether the direction of change would result in an increasing or decreasing risk of commoditisation and footloose mobility. Maritime Economics & Logistics (2007) 9, 35–51. doi:10.1057/palgrave.mel.9100170

Date: 2007
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