Strategies for Growth
12 Pages Posted: 3 Jul 2001
There is world-wide race among terminal operating Companies or large shipping Companies to corner commercial ports and hub ports.The aim is:
1- to build up merger policies,
2- to avoid being dependent on the performance of a single port location,
3- to acquire hub and commercial strategic terminals which will take account of changes in the directions of international trade in order to make maximum savings for the routes and achieve a monopoly of the great geographical regions (strategic networks). In this complex context we have the formation of hub and spoke systems with a fast growth of feeding. The shipping Companies best equipped and best financed will take control of most of the rich container market.
On this analysis we can outline a model on the basis of which we can understand the rapid evolution of the world situation and the key points for identifying the possibilities of ports.
Keywords: Hub and spoke system, port location, mergers, containership, shipping companies
JEL Classification: L99, R59, L19
Suggested Citation: Suggested Citation