ABSTRACT

Ports play a key role in a nation’s international trade and economic development. Since ports are essential components of logistics chains, they can affect logistics efficiency and responsiveness, and thus a nation’s international competitiveness and economic development. Port efficiency or lack of port efficiency has a significant role in affecting the efficiency or lack of efficiency of logistics since port costs account for a large part of maritime transport costs which can be passed to logistics service providers and shippers by way of increased shipping charges. More importantly, delays or longer transit times due to port inefficiency can also lead to higher inventory costs and thus logistics costs and, at worst, could mean a loss of business opportunities.