The Strategic View of Port Investment Decisions

Abstract

Maritime transport is most preferred transportation mode in global trade and ports are strategy model points along global supply chains due to their integral part role in maritime transportation. Efficiency and effectiveness in the port industry can create a competitive advantage to port operators and supply chains they are in part as well. In order to ensure the sustainability of ports, environmental, economic and social components of port investments must be taken into account. Thus, investment decisions have strategic importance to gain and sustain a competitive advantage, which requires an analysis of port performance indicators. Investment decisions also necessary to respond to the requirements of the industry at a level above the average, while the wrong prediction can be caused idle capacity, loosed capital and missed opportunity costs. This study aimed to create an effective decision-making process. According to this aim, SWOT, AHP and Stepwise Regression analyses are combined. Firstly, investment decision criteria were determined by SWOT analysis, and AHP technique is used for weighting the criteria. Findings of these two steps used as the inputs of investment decision. Finally, a statistical model developed to help decision makers to decide which type of investment must be made by stepwise regression analysis. (C) 2019 Published by Future Academy www.FutureAcademy.org.uk