Key Factors Influencing Container Terminal Competition Between Felixstowe and Southampton
Ports used to be just a transfer point between sea and land transport in international trades. The main objective of the port was to complete the shipment process by getting the cargo off from the vessels or vice versa. However, the invention of containers has dramatically influenced the trades. Developments in container operations as well as liner business have enabled door-to-door services or just in time (JIT) production in the supply chain system. The system requires high schedule reliability, fast transport times, and low cost production which force the ports to shift towards dedicated container terminals where modem working system is applied in order to achieve excellent and reliable operations. Container terminals are required to facilitate an integrated supply chain system and hence the ports become important economic gateways and centre for economic activities.
Cost efficiency is the most critical consideration in international trades. This encourages the players in international trades to come up with effective solutions. Container terminals across the world are contesting each other to attract more customers by offering cost-effective solutions along with high quality services. As the terminals try to outperform each other, it creates intense inter-port competition throughout the world.
Felixstowe and Southampton Container Terminal are the two largest container terminals in the UK. They act as the economic gateways where most of UK trades pass through. Their strategic locations, which are imminent to main navigation route in Europe, have put them in a strong position as major container ports. Like any other terminals, they face intense interport competition. They need to focus on competitive factors such as port location, port facility, and hinterland connections in order to enhance their competitiveness.
This study will discuss the competition between Felixstowe and Southampton Container Terminal. The most significant factors in determining the competitiveness level will be identified and SWOT analysis for both terminals will be carried out.
This study will discuss the competition between Felixstowe and Southampton Container Terminal. The most significant factors in determining the competitiveness level will be identified and SWOT analysis for both terminals will be carried out.