Analysis of Factors Considered by Shipping Lines and Agencies in Selecting a Container Terminal for their Operations within Colombo Port Complex, Sri Lanka

Abstract

Proclivity of a shipping line towards a container terminal is imperative and it itself becomes a critical success factor which brings a competitive advantage to the terminal. The research was carried out with the objective of analysing the factors considered by shipping lines and agencies in selecting a container terminal for their operations within Colombo port complex Sri Lanka. Data were collected through a questionnaire survey, targeting two hundred Managerial and Executive level staff in selected Shipping lines/Shipping Agencies based on stratified random sampling method and 81.5% valid responses received with .928 Cronbach`s Alpha value in Reliability Statistics ofdata. The Descriptive analysis of collected results has shown that "Efficiency in loading and discharging, Efficiency in terminal handling facilities and 24 hr. / 07 days a week service" as the significant factors in selection process. According to the Factor Analysis, Convenience Measures, Operational Efficiency, Port and Terminal Structure, Port Services, Logistic Services and Safety have been identified as terminal selection criterions in the Colombo port premises, Sri Lanka and Convenience Measures factor being the most significant criteria among the identified thirteen factors.The study has further suggested that the use of port marketing concepts as, direct marketing and more value added services such as, providing provisions, water, food and other recreation facilities, which help the terminals to develop a preference towards them among shipping lines