In recent years, shipping and port industries are faced with enormous changes like globalization, market liberalization and borderless businesses. To cope with this competitive environment, a certain form of competition and cooperation among ports is necessary to provide high quality of services and lower costs to establish their power against the shipping alliance.
The purpose of this study is to identify the determinants of the strategic alliance between ports and demonstrate the level of importance of alliance motivations. In order to achieve this objective this paper consists of six chapters. Chapter one is the introduction including background, purpose and scope of the study. Chapter two covers a variety of concepts of the strategic alliance through literature review, and the recent conditions of shipping and port industries. Chapter three is about the Analysis Hierarchy Process(AHP), which approves logically the theory. Chapter four draws a schematic model of the study on the determinants of the strategic alliance between ports and demonstrates the results of the survey. Chapter five summarizes the results of the analysis of decision factors. Finally, chapter six concludes the study and suggests further research to examine.
The findings of this study are as follows Among four motivations of the strategic alliance, which are strategic motivation, economic motivation, operational motivation and marketing motivation, economic motivation is the most important factor for port alliance than any other things. This is because the economic motivation among strategic alliance allows ports in the same market to rationalize supply and demand, thus avoiding unnecessary over-supply and over-competition and also can reduce service costs by using comparative advantages of each partner which make costs cheaper.
Therefore, government, ports authorities, operators and port-related companies can benefit from a wide range of advantages from cooperation like alliance. They need to have a proactive attitude towards cooperation to benefit from the new trade and environment.