Analysis of Factors Contributing to Criteria for Selection of European Container Terminals

Abstract

The selection criteria used by container shipping lines when choosing European container terminals were studied to determine what factors were crucial. Data were collected through a questionnaire given to shipping lines calling at the port of Rotterdam in the Netherlands, the port of Antwerp in Belgium, and the port of Hamburg in Germany, which were the main container hubs in Europe (as measured by the 20-ft equivalent units handled annually). Descriptive statistics revealed that the loading or discharging rate, handling charges, and service quality were the main attributes that influenced port selection. The least important selection factors were personal contacts, investments by shipping lines, and value-added activities. The analysis also showed that hinterland connections were more important than value-added activities. This finding suggested that ports should focus on developing good hinterland connections rather than on providing value-added activities. Factor analysis of the aggregate data was used to determine whether the attributes could be partitioned into fewer, more meaningful factors. According to the results, 12 variables were loaded into two factors, which also appeared to contain distinct elements: Factor 1 contained port attributes, and Factor 2 contained the variables related to formal and informal relationships between ports and shipping lines. Results of the study can be used by port authorities and terminal operators seeking to improve the efficiency and productivity of their ports according to the requirements of their customers, that is, shipping lines.