Port Selection and Multicriteria Analysis: An Application to the Montreal-New York Alternative

• Published in: Maritime economics & logistics Vol. 8; no. 2; pp. 169 - 186
• Main Authors: Guy, Emmanuel, Urli, Bruno
• Format: Journal Article
• Language: English
• Published: London Palgrave Macmillan 01.06.2006
• Series: Maritime Economics and Logistics
• Subjects: Competition; Decision making; Economic theory; Economies of scale; Maritime industry; Ports; Shipping industry; Studies; Canada; Montreal Quebec Canada; United States > US; New York City New York
• ISSN: 1479-2931; 1479-294X
• DOI: 10.1057/palgrave.mel.9100152

In this paper, our goal is to assess whether the accepted rationale of port selection by shipping lines – based on the combined importance of quality of infrastructures, cost, service and geographical location – is useful to account for the selection behaviour observed in the Northeast of North America, particularly the recent arrival of new global carriers in Montreal. We use a multicriteria approach in combination with scenarios where the relative importance given to selection criteria and the performance of ports are both varied across a wide range. This allows us to assess how port preference is affected by changes in criteria weight (expressing selection rationale) and by changes in evaluation (expressing relative port performance). With criteria weights set to reflect the common selection rationale, our findings suggests that shipping lines should call at New York and bypass Montreal. For Montreal to become the preferred choice, extensive hinterland coverage must be the top criterion for carriers and simultaneously the port must perform better in terms of cost and/or service. We conclude by discussing the implications for the hub-and-spoke paradigm of network evolution. Maritime Economics & Logistics (2006) 8, 169–186. doi:10.1057/palgrave.mel.9100152