As regards port operations, any delay at the port or the terminal has negative economic and financial implications (Imai et al., 2013). Efficient port operation is one important factor for accommodating mega-container ships. For example, efficient and speedy handling at the terminal directly influences the transit time and operational costs of mega ships (Stopord, 2009). Therefore, economies of scales for mega-container ships are highly dependent on terminal efficiency. Then again, Imai et al. (2013) indicated that handling efficiency of mega ships is evaluated by the handling time while other ships’ efficiency is determined by handling time plus waiting time (service time). They argued that an efficient ship handling service in a port is particularly important to avoid the complexities of berthing small ships in terms of total service time because a mega ship has a priority at the berth.

With respect to the roles and responsibility of a regional gateway port, with enlargement of scale and scope of a port, a regional gateway port contributes to global or major regional trade and the local economy. Therefore, a regional gateway port, as an economic catalyst to revenue and employment (Ducruet and Lugo, 2013; Wang and Cheng, 2010) and with a central position serving industries related to international trade (Notteboom and Rodrigue, 2008), is required to perform as a multifunctional business centre which can produce added-value and the growth in its host city (Wang and Cheng, 2010). As a result, in order to be a regional gateway, the major ports in NEA need to promote a balance between valuable land, labour and technology, as well as to ensure harmony between growth and the environment (Hall, 2007), as economic stability and social responsibility shed a new light on port operations literature (Dinwoodie et al., 2012; Cheon and Deakin, 2010).

3) Determinants of port competitiveness to be a regional gateway

Literature reviews identified that port competitiveness is determined by considering perse factors including port availability, economic size, efficiency, productivity, cost factors (e.g. total transport costs per container and inland logistics costs), soft factors such as reliability, service differentiation, and professional and workforce development, and supportive factors including market niche, incentives and IT application (Imai et al., 2013; Yeo et al., 2011, 2008, Wang and Cheng, 2010; Tongzon, 2009; Notteboom and Rodrigue, 2008; Yap et al., 2006). As suggested by Yeo et al. (2008), after eliminating overlapping and interrelated elements, this study carefully selected components of port competitiveness. Finally, twenty one measurement items were extracted as shown in Table 1.

Table 1

Selected components of port competitiveness

Code* Elements Reference

COM1 Local cargo volume (economic size) Imai et al., 2013; Yeo et al., 2011, 2008; Notteboom and Rodrigue, 2008

COM2 Port facilities utilization (business infrastructure) Yeo et al., 2011, 2008; Tongzon, 2009; De Langen, 2007

COM3 Proximity (to the import/export area, market and host city) Ducruet and Lugo, 2013; Van den Berg and de Langen, 2011; de Langen, 2007

COM4 Preference of shipping liners and the relevant industries Ducruet and Lugo, 2013; Yeo et al., 2008; Low et al., 2009

COM5 Port physical capacity to accommodate additional voulmes Yeo et al., 2011, 2008; De Langen, 2007; Murphy et al., 1992, 1989

COM6 Hinterland development