Port Prosperity

PORT PROSPERITY
2150 words
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Port Prosperity
Introduction
There has been a differential rate of port prosperity in different ports around the world. Different seaports have been faced with differing risks and uncertainties hence giving some ports competitive advantage as compared to others. On the other hand increased production and consumption of goods has increased the need for seaports as compared to other means of transport. Various market developments have also led to the success of many ports in the world. This paper is going to focus on the various factors that influence port prosperity taking into account the elements of hinterland and foreland.
Most of the port operators have been involved in a process of integration thereby generating more power than before intergration.These bonds helps to strengthen their market positions. Some of the container carriers like Maersk sea land have increased their operations to hinterland transportation. Horizontal mergers have been considered as one of the best integration because of the reduced operational cost and improved services to their clients. These integrations have been proven to increase the efficiency of many ports because of the improved services and reduced operational costs of the seaport. Mergers bring synergy by making ports to grow stronger thus improving their prosperity.
Another factor which has made many ports to grow stronger is the use of containers and changing technology. This factor has made many new ports to overdo the new ones by having an operational advantage. Adoption of new technology comes with increased productivity. For example ports like Rotterdam and Antwerp are facing competition from both large load areas like LeHarve-Harmburg range and also from small areas like Zeebruges and Amsterdam which employs better technology. In fact, competition has also been proven to come from medium load areas in different port ranges like UK ports and hubs alongside Mediterranean. This concept has brought too much pressure on some ports which used to prosper before. This process of containerisation has brought an increase in geographical coverage of many ports to the extent that hinterland has become less important, (Khan, 2011, par 6).
Changes in market structures have also influenced the rate of success in ports. This change usually comes with adverse effects as the ports strive to accommodate those changes. This has led to a state of stiff competition between different ports, with quick adopting ports doing well as compared to the slow adopting ports. The power of a port is dictated by its inside strengths and weak points. The success of ports is also determined by other external variables like hinterland. Good fortune of a port is normally influenced by external factors rather than internal factors. For example the performance of a seaport may become poor because of its poor marketing services as compared to its high lev...