CONTAINER PORT COMPETITION: A SOUTHEAST ASIA CASE STUDY

In recent year, shipping companies have been taking the initiative of vertical and horizontal integration in the international maritime logistics chain. As consequence, the market power of shipping companies has increases over the other service suppliers. This development has compelled port authorities to re-evaluate their strategy in response to the change of market structure. The purpose of this paper is to review the current container port competition in Southeast Asia and to analyze the response of port authorities to the changing market environment in which they operate. In Southeast Asia, the Port of Singapore will remain the leading port in the region in view of its long existence and reputation for excellent service. However, with the establishment of other regional hubs, its dominance will continue to decline. Dedicated terminal, financial stakes, changing technology and information system, and quality supporting services are important strategies for port authorities to increase their competitiveness.