Following the pressure of intense competition in the maritime and port industry that squeezes profit margins, the container
shipping industry has undergone some significant structural changes over the last two decades. In particular, major
shipping conglomerates have attempted to globalize their service coverage through joint ventures, mergers and acquisitions
within the liner industry, (Wang and Cullinane, 2006; Parola and Musso, 2007). At the same time, the deployments of
increasingly large vessels, including post-panamax vessels, on mainline and feeder services have helped to further enhance
cost efficiencies of these shipping conglomerates by reaping scale economies (Cullinane and Khanna, 1999). As a result, carriers
not only improve their service quality at lower prices to end users, but also strengthen their bargaining positions
against ports. While concentration within the liner shipping industry has increased the potent impact of a move by a major
port user on the port’s traffic, carriers are becoming increasingly footloose with more than one port to choose from, not just
for transshipment traffic but also for gateway traffic, in their hub-and-spoke networks. Such phenomenon is partly attributable
to the advances in logistical systems that expand port hinterlands to some extent that the hinterland of one port overlaps
with another. As the port industry is constantly at risks of losing important customers when carriers rationalize their
shipping schedules, a port needs to constantly adapt itself to meet the frequently changing demands of its customers in a
way that is superior to competing ports