Willingness to invest in peripheral ports: perceptions of Indonesian port and maritime industry stakeholders

Bahana Wiradanti, Stephen Pettit (), Andrew Potter and Wessam Abouarghoub
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Bahana Wiradanti: Cardiff University
Stephen Pettit: Cardiff University
Andrew Potter: Cardiff University
Wessam Abouarghoub: Cardiff University

Maritime Economics & Logistics, 2020, vol. 22, issue 4, No 9, 699-714

Abstract: Abstract The growth of containerisation and the increase in ship size have resulted in a greater need for transhipment hubs. Hence, some peripheral ports are upgrading to become secondary hub ports. However, it remains unclear why these ports would move towards this strategic direction. The aim of this study is to investigate stakeholders’ perceptions on the importance of peripherality, so as to understand their willingness to invest in secondary hub ports. Stakeholders from the Indonesian port and maritime industry were chosen as the focus of the present study, representing a connected network of peripheral and hub ports at a country level. The study used a mixed-methods approach. Qualitative interviews were conducted with 46 respondents, while quantitative data were collected through an online survey, involving 171 respondents. The data were subsequently analysed through exploratory factor analysis and correlation tests. Results show a pattern in stakeholder behaviour, explaining their reasoning, locational decisions, their perceptions on the importance of peripheral locations and their willingness to invest. It is believed that these findings will prove of value both for governments and the private sectors of international shipping and port operations.

Keywords: Peripheral ports; Peripherality; Stakeholders; Willingness to invest; Indonesian ports; Regional development; Infrastructure; Investment (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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DOI: 10.1057/s41278-020-00147-6

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