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Port Choice Criteria in the Ro-Ro Sector: A Case Study on the Italy-Greece Axis

European and national policies stress the need of increasing the competitiveness of short-sea shipping (SSS) so as to avoid the negative effects of an all-road transport system. In the paper, a best practice in the short-sea shipping sector is examined, having reference to the ro-ro traffic in the South-East Europe, specifically along the Adriatic Corridor on the Italy-Greece axis. In particular, we examine the ro-ro traffic flows managed by major Greek shipping companies calling the Italian ports of the Adriatic (Ancona, Venice, Trieste). The case study is also of relevance in so far as it concerns a real “alternative” (competitive) short-sea shipping route with respect to land transport routes, not a “necessary” one as often short-sea routes are presented (links with islands, etc.). Specifically, the short-sea shipping route along the Adriatic Corridor faces the competition by land transport both on the Italian and on the Balkan side, even though in the latter case the situation of land transport is still critical (but clear signs of recovery are already under way, especially in the rail sector). The specific goal is that of analyzing the decision-making process of logistics operators with reference to port choices – as part of the general process concerned with transport service choices - so as to identify the main port choice criteria in the logistics chain and come up with a general choice model of ports which can be used for policy reasons. In this way we explain the relative competitiveness of the ports concerned with the traffic. First, the results of a quite comprehensive literature review is summarized, since the subject of port choice criteria in the specific sector of the ro-ro traffic (and not only in the general context of transport system analysis, i.e. freight mode choice) has become a key issue. Among other things, current literature indicates that there is a need to study several case studies because: decision variables in the context of ro-ro (port choice criteria) are still not clearly identified and they vary over time, especially since the 90’s; decision variables and criteria of port choice (and their relative weights) vary across different ro-ro markets, i.e. a unique model does not exist which can be valid in every ro-ro market; finally, different logistics operators perceive different criteria in slightly different ways, ending up with different choices of transport services depending on the structure and organization of the logistics chain. In few words, port choices (and generally speaking, transport choices) in the ro-ro sector do not permit us to build a general ever-valid decision-making process, rather they vary over time, among different markets and different operators involved in the logistics chain. The paper then analyzes and discusses the overall structure of the Adriatic shipping market concerned with the Greece-Italy commercial (ro-ro) flows, both from a demand and a supply-side perspective. This market presents a clear oligopolistic structure, in that few major Greek shipping companies has the control of it. Afterwards, using a methodology mainly based on primary data (i.e. in-depth interviews and questionnaires sent to a sample of key actors) the decision-making process of operators (mainly road hauliers and other logistics operators) of the supply chain is analyzed. Finally, by applying a sort of 2 “qualitative” factors analysis the results from responses are discussed and presented. They show us a characteristic structure of the logistics chain in terms of types of actors involved, in which road hauliers play a determinant role and also intermediaries (ie, brokers) are crucial in put together land (road) and sea transport needs. Furthermore, results show, partly according to the literature and partly in contrast with it, the relevant role of choice factors having reference to the quality of service, to commercial and particularly human relationships among actors in the logistics chain (especially between road hauliers and shipping companies). In fact, one of the distinctive aspects of the decision-making process is that the choice of ports is strictly interconnected with that of the shipping companies, very often not on the basis of long-term (incentive-based) contracts but rather on a sort of “human fidelization”. Generally, personal relationships often explain the main reasons for certain choices, given that the decision-making process of operators very often is an “intuitive” one, which is not based on formal and/or quantitative assessment of several alternatives. Factors related to economic convenience (total and partial costs, etc.) and to infrastructure needs definitely seem to play a minor role. This all clearly give suggestions in terms of policy matters.

  • Corporate Authors:

    World Conference on Transport Research Society

    Secretariat, 14 Avenue Berthelot
    69363 Lyon cedex 07,   France 
  • Authors:
    • Mazzarino, M
  • Conference:
  • Publication Date: 2004

Language

  • English

Media Info

  • Media Type: CD-ROM
  • Features: Figures; References; Tables;
  • Pagination: 14p
  • Monograph Title: 10th World Conference on Transport Research

Subject/Index Terms

Filing Info

  • Accession Number: 01087990
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jan 30 2008 11:52AM