The Value of a Cluster and Network Orientation for Container Terminals

Container Terminal Operating Companies (CTOC) are very focused on operational excellence today. Major reasons for this are the dominating position of shipping companies in the supply chain and highly competitive market conditions in many regions of the world. Such a focus on efficient terminal operations causes many CTOCs to put their “own processes” into the center of attention. In this chapter, we argue that in addition to an orientation on the terminal processes, CTOCs benefit from an orientation on the overall supply chain of which they are a part, as well as an orientation on the port cluster of which they are a component. First, the literature on an orientation beyond the company boundaries in general is briefly discussed. Second, the embeddedness of CTOCs in international supply chains is discussed, with examples of how a supply chain orientation is valuable for CTOCs. Relevant issues include information exchange, extended gates, and the revenue model of the CTOC. Third, the role of CTOCs in port clusters is discussed with examples of how a cluster orientation is valuable for CTOCs. Relevant issues include, e.g., education and training, intra-port container flows, and port marketing. The chapter ends with a concluding section providing insights on how CTOCs can improve their cluster and network orientation.