The Battle of the Asian Transshipment Hubs: Psa Versus Ptp (a)

Abstract:     
Competition had arrived in the ports industry of Southeast Asia and was not going to disappear. Group Chairman Dr. Yeo Ning Hong and his executive team had set the ambitious goal for the state-owned Port of Singapore Authority (PSA), upon its incorporation in 1997, to become the "World's Port of Call." PSA operated the Port of Singapore, which was the dominant transshipment hub in Southeast Asia. The Port of Singapore had long been among the world's busiest ports and was a model of efficiency and operational excellence within the industry. But the events of the first few years of the millennium proved a challenge to PSA's competitive mettle. By the end of 2001, PSA had lost two key customers to an emerging competitor, the upstart Port of Tanjung Pelepas (PTP), in neighboring Malaysia. In 2002, the Chinese shipper COSCO Pacific was considering a shift to PTP. And by 2003, for the first time in 20 years, PSA laid off staff, and both PSA and government officials were in overdrive trying to explain the reasons behind the layoffs. This three-case series (see also UVA-S-0110 and UVA-S-0111) explores competitive strategies in a mature industry within the context of the Asia-Pacific region.

Number of Pages in PDF File: 20

Keywords: competitive analysis, competitive decision making, competitive dynamics, competitive factors, corporate strategy, international business, emerging markets, strategic planning, competitive advantage

JEL Classification:

Case and Teaching Paper Series