A Competitive Analysis of Chinese Container Ports Using the Analytic Hierarchy Process

Abstract

Over 20% of the world’s container traffic occurs from Asian ports. China’s entry into the market has stimulated this process significantly. Since China adopted a liberalized economic policy in the 1970s, its economy has grown at an average rate of 10% or more per annum. In particular, the efforts and investments that have been poured into its container ports are conspicuous because approximately 90% of the country’s international trade (by volume) is handled through maritime transport. However, Chinese ports (especially, container ports) face a number of problems such as bureaucratic administration, insufficient facilities, lack of service and commercial orientation, and inefficient operation. This study aims to identify the competitiveness of container ports in China, including Hong Kong, from an outsiders’ perspective by using the analytic hierarchy process framework and provide managerial and strategic implications. As expected, the fndings reveal that in terms of competitiveness, Hong Kong, Shanghai, and Yantian rank first, second, and third, respectively.