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  CEFAGE-UE, Universidade de Évora, Palácio do Vimioso, Lg. Marquês de Marialva, 8, 7000-809 Évora, Portugal Telf: +351 266 706 581 - E-mail: - Web: CCEEFF A AGGEE--UUEE  W W oor r k k i i nn g g P P aa p peer r    22001133//1133   E E  f  f  f  f eec c t t  oo f  f  t t hhee c c oonnt t aai i nneer r  t t eer r mmi i nnaal l  c c hhaar r aac c t t eer r i i  s st t i i c c  s s oonn p peer r  f  f oor r mmaannc c ee  Vítor Caldeirinha 1  , J. Augusto Felício 2  and Andreia Dionísio 3 1  Centro de Estudos de Gestão; School of Economics and Management (ISEG)  2  School of Economics and Management; Technical University of Lisbon 3  CEFAGE-UÉ, Évora University (UÉ)  1 Effect of the container terminal characteristics on performance   Vítor Caldeirinha 1 , J. Augusto Felício 2  and Andreia Dionísio 3   1.  Centro de Estudos de Gestão; School of Economics and Management (ISEG); Rua Miguel Lupi, 20. 1249-078 Lisbon; Email address:; Phone: +351 - 213 970264 2.  School of Economics and Management; Technical University of Lisbon; Rua Miguel Lupi, 20. 1249-078 Lisbon; Email address:; Phone: +351 - 2133970264 3.  CEFAGE-UÉ, Évora University (UÉ); Largo dos Colegiais, 2, Évora; ; Email address:;  phone:+351 - 266740892   Abstract This paper focuses on the port and container terminal characteristics and evaluates its contribution to performance measured by the efficiency, productivity, activity and customer satisfaction. A Structural Equation Modeling (SEM) methodology was developed to determine which factors are characteristics of a port and container terminal. A questionnaire was submitted to senior managers of companies currently operating in twelve container terminals, both Portuguese and Spanish, and 122 validated answers were obtained. The results confirm the influence of the port and terminal characteristics on the terminal container performance through of the efficiency, productivity, and activity level and customer satisfaction Keywords: port characteristics, container terminal, terminal performance JEL R42 1.   Introduction Containerization and intermodality have experienced a fast growth in the last decades along with hinterland expansion and increasingly transhipment operations held at intermediate ports at crossing points of trade lanes. The container traffic growth has caused a great demand for port container terminals and port congestion problems, demanding more investments in new terminals, as well as it has intensified intra and interport competition between terminals. Many container terminals are competing to become transhipment hubs as major shipping lines and feeder networks tend to reorganize themselves. Also, the development of inland transport accessibilities allowed a deeper penetration of ports over hinterlands. For container cargo shippers and logistic chains, port and container terminal selection is made according to their location, proximity to/from the market, port charges, freight rates, turnaround time, cargo value and volume, liner services frequency and trade routes, although his decision often depends on the overall network service organization and not on the port or terminal  per se  (Yap & Notteboom, 2011). Besides the port strategic location, shippers and shipping companies also look for port service reliability, service quality and lower costs per call, lower charges and short turnaround times.  2 Containerization and intermodal transport were determinant for the changes operated in ports in recent years. According to Cullinane et al. (2004), containerization has stimulated shipping services globalization through the emergence of alliances and acquisitions in the liner industry (horizontal integration). Furthermore, intermodality has led to powerful global logistic door-to-door and other added-value service providers (vertical integration). Inland transport infrastructures were expanded and large logistic areas were developed creating interconnected bipolar systems with ports (Dias et al., 2010). Increasingly larger vessels has not only lowered freight rates per container but, also, by serving a limited number of major hub and gateway-ports, especially those with deeper inland penetration and wider feeder connections, has intensified port competition for hinterlands and for main shipping trade routes. As a result, shipping lines have wield greater bargaining power demanding ports to have higher performance levels, better service quality and lower costs (Cullinane & Wang, 2006). Container ports are important nodal points in the global logistic networks of containerized freight transport (Baird, 2006) and those who were able to adapt to its requirements succeeded in the logistic integration. The ability to provide logistic services has become an important issue for the port survival, while creating value-added services and meeting customer needs (Juang & Roe, 2010). In a competitive environment, the performance of a container terminal is determined by several factors, such as the market of the region where it is located, the physical and organizational capacity, the integration in the logistic networks, the level of competition, maritime and inland accessibilities, the type of handling equipment used at the quay and parking areas, the liner shipping services and inland networks to which they are connected (Tongzon & Heng, 2005). Insufficient knowledge of the relationship between geographic location, physical infrastructure ( hard ) and service ( soft ) characteristics and the container terminal performance (Estache et al., 2005) justifies this study. Furthermore, insufficient evaluation of the key determinants of the container terminal performance, efficiency and productivity (Gonzalez & Tujillo, 2008), the limited samples size of the determinant factors of port and container terminal performance studies (Woo et al., 2011, Chang et al., 2008), limitations using structural equation modelling methodology, only supported in factor analysis and without confirmatory analysis of the structural model (Woo et al. May 2011, Chang et al. 2008).   This study attempts to understand the importance of port and terminal characteristics in determining efficiency, productivity, customer satisfaction and activity level of a container terminal. The objectives of this research are to analyse which characteristics of port and container terminal are factors with influence on container terminal performance, measured by the efficiency and productivity, terminal activity, and customer satisfaction. The main questions addressed in this paper are: to understand why some container terminals are more successful than others and how to successfully build a new container terminal. Previous studies have not fully answered these questions with and holistic model. This paper has been organized in the following way: after the introduction, the theoretical background and methodology are presented. Then, results obtained are analysed, followed by discussion and conclusions. Finally, contributions for future knowledge, study limitations and guidelines for future research are proposed.  3 2.   Theoretical background Both the economic performance of the nearby region and the proximity to industrial and urban centres are essential determinants to understand the container terminal performance. Geographical location is relevant when explaining the container terminal performance. The terminal selection is largely driven by local economy development, because production and consumption centres enhance container flows (Tongzon, 2002; Cheon, 2007). The proximity of a container terminal to the European economic core is largely regarded to influence performance. The north European ports, in the range of Le Havre-Hamburg have been serving important and increasingly extended hinterlands, efficiently taking advantage of economies of scale and, by doing so, they were driven to compete with south ports in their hinterland regions. Some south European ports emerged as intermediary hubs connecting other continents with European ports, assuming a transhipment role (Notteboom, 2010). The proximity to the Mediterranean Sea is an important locational factor of performance because it is where Asia-Europe global container shipping networks cross, selecting Mediterranean ports as hub ports, for concentrating cargo flows from the hinterland and from feeder ports and serving northern European ports, including Atlantic ones (including North America, South America and Africa ports). Notteboom (2011) refers that the proximity to major shipping networks is an important factor in the terminal selection decision. The main hubs tend to have common characteristics, such as excellent nautical accessibility, proximity to important hinterlands and along main navigation routes   or at the crossing points of North-South and East-West routes, connecting trade flows (Notteboom & Rodrigue, 2009; 2010).   Most port authorities and operators have made significant infrastructure investments in order to reduce operational costs and improve service quality, which are important factors that influence terminal performance (Cullinane & Wang, 2009). Furthermore, investments in inland accesses are very important to expand the hinterland and contribute to improve terminal performance. Inland accessibility and terminal hinterland are driven by transport costs, alternative modes, capacity and quality of inland connections and transport service quality, as well as integration on the main land transport networks or at the crossroads of inland trade routes. Turner, Windle and Dresner (2004) examined the impact of hinterland and maritime accessibilities on performance and Gaur (2005) identified factors that affect the terminal performance, including maritime access and hinterland connectivity. Intermodality allows the coordination between different logistic service providers and transport operators, maritime or inland or at the maritime/land interface. Some added value logistic functions, such as pre-assemblies, preparation and customization, labelling, packaging and distribution, are performed at major ports and terminals. In order to assure port integration in logistic networks, many ports provide specialized logistic services within the port area, which are determinant for container terminal performance. The reputation of a port and terminal is very important for terminal performance. Cheo (2007) considered port marketing strategies, including communication and image, as essential to attract new liner services and traffic. Pando et al (2005), Pardali & Kounoupas (2007) and Cahoon (2007) examined the importance of marketing tools for port performance, which includes communication as a way to change the port reputation. Notteboom (2011) identified

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Jul 31, 2017
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