Strategies for Growth

12 Pages Posted: 3 Jul 2001

See all articles by Alga D. Foschi

Alga D. Foschi

University of Pisa - Department of Economics

Dionisia Cazzaniga Francesetti

University of Pisa - Department of Economics

Abstract

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

Foschi, Alga D. and Cazzaniga Francesetti, Dionisia, Strategies for Growth. Available at SSRN: https://ssrn.com/abstract=275155 or http://dx.doi.org/10.2139/ssrn.275155

Alga D. Foschi (Contact Author)

University of Pisa - Department of Economics ( email )

via Ridolfi 10
I-56100 Pisa, PI 56100
Italy
+39 050 945331 (Phone)
+39 050 598040 (Fax)

Dionisia Cazzaniga Francesetti

University of Pisa - Department of Economics ( email )

via Ridolfi 10
I-56100 Pisa, PI 56100
Italy

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