Port choice problem in a linear city: Application to Manila and Batangas ports in the Philippines

Abstract

Global maritime container trade has increased during the past two decades. In many developing countries, secondary ports have been developed to complement primary ports. However, primary ports are still being used even after the development of a secondary port, notwithstanding heavy congestion at the former. Construction of new port infrastructure demands several important decisions such as port capacity and number of gantry cranes and berths, which significantly affect shippers’ port choice. This study aims to develop a port choice model in a multiple-port region as a linear city and observe the improvement in port-related factors, that is, container allocation and catchment areas of the two ports. We present a spatial model in which the hinterland is expressed as a linear city to describe the behaviors of shippers and shipping lines. As a case study, the model is applied to the Manila metropolitan area (i.e., the Manila and Batangas ports) where secondary port utilization is not as expected. Three significant insights are obtained: (i) hourly container handling volume of gantry cranes at the port is the most influential factor regarding container allocation, (ii) port-related factors affecting shipping lines are more effective than those of shippers for increasing the container volume at the port, and (iii) geographical disadvantages are limiting the increase in container volume at the Batangas port.

Keywords

• Multiple ports
• Port choice
• Hinterland
• Linear city
• Catchment segment
• Manila