Vertical integration between container lines and terminal operators : terminal operator’s perspective

• Main Author: Chang, Wan Jun.
• Other Authors: Lam Siu Lee
• Format: Final Year Project
• Language: English
• Published: 2009
• Subjects: DRNTU::Engineering::Maritime studies::Maritime management and business
• Online Access: http://hdl.handle.net/10356/16006
• Institution: Nanyang Technological University

Global terminal operators have become more influential in this emerging trend of port privatization. Currently, the top 20 global terminal operators handle 13% of the world container throughput, and by 2013, it is estimated to become 58%. The objective of this research paper is to investigate the vertical integration of container lines and terminal operators from the terminal operator’s perspective. Reasons, costs and risks of offering dedicated container terminal (DCT) services will be discussed through surveys from the terminal operators. This paper will also analyse how the non-DCT operators think differently from the DCT operators with regard to the reasons, costs and risks of offering DCT services. Empirical analysis of the investment and management patterns of the 14 global hybrids and global stevedores is provided extensively in this paper. It is classified according to terminal operators and geographical regions. It is observed that North America, Far East, Africa and Europe are the top 4 regions that offer DCT services. Their investment and management patterns will also be discussed in this paper. North America and Europe are at the opposite spectrum with regard to their nature of investment. In terms of investment patterns, joint ventures are common in Far East, Africa and Europe. For North America, leasing is the norm. For the management of DCTs, Africa and Far East adopts a JV approach while North America and Europe are managed by wholly/partially owned subsidiary.