PowerPoint Slides for the Graduation Project

SHIPPING CARRIERS PREFERENCES ON PORT SELECTION: A LITERATURE REVIEW

Abdullah Saber Alkhambashi

BACHELOR OF SCIENCE

PORTS AND MARITIME TRANSPORTATION

KING ABDULAZIZ UNIVERSITY

2021

SHIPPING CARRIERS PREFERENCES ON PORT SELECTION: A LITERATURE REVIEW

By

Abdullah Saber Alkhambashi

A Project Paper Submitted to Faculty of Maritime Studies, King Abdulaziz University in partial fulfillment of the requirements for the degree of

Bachelor of Science (Ports and Maritime Transportation)

February 2021

I dedicated this graduation project report to

My beloved parents who are always in my heart

DECLARATION

"I at this moment acknowledge responsibility for the accuracy of all opinion, technical comment, report the facts, data, diagram, illustrations, and photographs that have been suggested in this graduation project. I am fully responsible for the material submitted has been reviewed from aspects of copyright and ownership rights. King Abdulaziz University is not responsible for the accuracy of any comments, reports, and technical information and other facts and against claims of copyright and ownership rights."

_____________________

STUDENT’S NAME: Abdullah Saber Alkhambashi
NUMBER: 1766996

Date: October 9, 2020

PERMISSION TO USE

In presenting this research paper to fulfill the requirements for the bachelor's degree from King Abdulaziz University, I agree that the University Library may make it freely available for inspection. I further agree that the permission for copying of this research in any manner, in whole or in part, for scholarly purposes may be granted by my supervisor or, in his absence, by the Dean of Faculty of Maritime Studies (F.M.S.). It is understood that any copy or publication or use of this research paper or parts for financial gain shall not be allowed without my written permission. It is also understood that due recognition should be addressed to King Abdulaziz University for any educational use which may be made of any material from my research paper.

Request for permission to copy or to make other use of materials in this research paper, in whole or in part, should be addressed to:

Dean of Faculty of Maritime Studies (F.M.S.)

King Abdulaziz University

23712 Al Murjan

Jeddah, Kingdom of Saudi Arabia

ABSTRACT

Ports are very important features in international maritime transportation and global product supply chains presently as they provide an opportunity for the sea to connect with land transportation. However, with recent changes in containerization and supply chains that are stimulating global commerce, ports are challenged to provide the best cargo handling practices and services to attract many shippers to their ports and add Value to the shippers and carrier owners. The decision to choose a preferred port for export and import cargo depends on many factors that include ship specification, operating cost, level of traffic at the port, and the value-added benefits offered to the shippers, among others. Therefore, this graduation project focuses on the factors that shippers and career owners consider when making their preferred port destination. The dissertation uses survey results from regional shippers using Jeddah that ship L.C.L. cargo that carries hazardous and non-hazardous cargo and full containers from Europe east cost to Saudi Arabia. The study was done using Analytical Hierarchy Technique and the participants' comparative scores in which the main factors that influence shippers' port preference are prioritized. A discrete choice model based on alternative factors offered by port authority is used to assess shippers' decisions based on the various shippers and port characteristics. Findings from the study revealed that ship specification, operating cost, level of traffic at the port, and the value-added benefits offered to the shippers affect the decision of the shippers on a preferred port.

Keywords: Port preference, Jeddah Port, costs of operation, level of traffic at the port, ship specification, and port support services, discrete choice model, Analytical Hierarchy Technique, Saudi Arabia

ABSTRACT (IN ARABIC)

ACKNOWLEDGEMENT

I would like to take this opportunity to extend my deepest gratitude to my supervisor, Dr. Muhammad Subhan Ishak, for his expert advice, guidance, and support throughout the entire research project.

I appreciate the respondents who have contributed significantly by participating in the study and answering questionnaires. Without the help and support that I received from you all, I would never have completed this program.

Besides that, I would like to thank King Abdulaziz University (K.A.U.) for giving me this great opportunity to achieve my educational goals throughout my study. My special thanks also go to several admin staff at the College of Maritime Studies (F.M.S.) who helped me a lot from my first day at the college until my graduation.

TABLE OF CONTENT

PAGE

DEDICATION ii

DECLARATION iii

PERMISSION TO USE iv

ABSTRACT v

ABSTRACT (IN ARABIC) vi

ACKNOWLEDGEMENT vii

TABLE OF CONTENTS xi

LIST OF TABLES xii

LIST OF FIGURES xiii

LIST OF APPENDICES xiv

LIST OF ABBREVIATION xv

CHAPTER 1 – INTRODUCTION………………………………………………...1

1.1 Introduction………………………………………………………………….1

1.2 Background of the Study…………………………………………………....3

1.3 Problem Statement…………………………………………………………..4

1.4 Scope of the Research……………………………………………………….5

1.5 Research Question…………………………………………………………..6

1.6 Research Objective………………………………………………………….6

1.7 Significant of the Study……………………………………………………..7

1.8 Limitation of the Study……………………………………………………...8

1.9 Summary……………………………………………………………………..9

CHAPTER 2 – LITERATURE REVIEWS……………………………………….9

2.1 Chapter Introduction………………………………………………………...9

• • Port Selection Factors………………………………………………………9

2.2.1 Level of Traffic at the Port……………………………………………10

• • • Costs of Operations…………………………………………………...13

    • Ship Specifications…………………………………………………….14

    • Value-Added Benefits to Shippers……………………………………..14

  • Jeddah Port…………………………………………………………………15

  • Logistic Issues at the Port………………………………………………….15

    • Trucker Shortages……………………………………………………..19

    • High Sea Tidal………………………………………………………...19

    • Congestion at the Ports………………………………………………..20

    • Ship Alliances…………………………………………………………20

    • Port's Footprints………………………………………………………21

    • Lack of Chassis……………………………………………………….21

  • Hypothesis…………………………………………………………………22

  • Summary…………………………………………………………………...23

CHAPTER 3 – METHODOLOGY……………………………………………….24

3.1 Introduction………………………………………………………………….24

3.2 Research Design……………………………………………………………..25

3.2.1 List of Factors………………………………………………………...25

3.2.2 Aligning the Problem with A.H.P. Model…………………………...26

3.2.3 Analysis of Analytical Hierarchy Process model…………………….27

3.2.4 Calculating the Consistency Ratio…………………………………...28

3.3 Survey Procedures…………………………………………………………..30

CHAPTER 4 – DATA ANALYSIS & RESULT…………………………………31

4.1 Introduction………………………………………………………………….31

4.2 Analysis of the Results………………………………………………………31

CHAPTER 5 – CONCLUSION…………………………………………………...37

5.1 Introduction………………………………………………………………….37

5.2 Overview of the Study……………………………………………………….37

5.3 Result Discussion and Validation…………………………………………...38

5.4 Limitations and Future Research Directions…………………………………41

5.5 Implication…………………………………………………………………..42

5.6 Conclusion…………………………………………………………………..43

REFERENCES……………………………………………………………………..44

LIST OF TABLES

Table 1: The Fundamental A.H.P. Scale of Absolute Numbers (Saaty 1999)……………...28

Table 2: Saaty's standard random index scale………………………………………………29

Table 3: Analytical Hierarchy Process Model for Port Preference………………………….29

Table 4: Raw Relative Scores That Were Received From Shippers' Preference in a Port....32

Table 5: Weight on Sub-Criterion under Port Preference Factors…………………………..33

Table 6: Analysis of Different Ports Based on the cost of operations………………………34

Table 7: Analysis of Different Ports Based on the Value Added Services………………….34

Table 8: Analysis of Different Ports Based on the Ship Specification……………………...35

Table 9: Analysis of Different Ports Based on the level of traffic at the port………………35

Table 10: weight value of the preferred port selection……………………………………...36

Table 11: Result of the Shipper Port Preference in Saudi Arabia Region…………………..37

LIST OF FIGURES

Figure 1: Image showing the location of Jeddah Port along the red sea coast……………...17

Figure 2: An image of Jeddah Islamic Seaport……………………………………………...18

Figure 3: Main Terminals at Jeddah Islamic Port…………………………………………...19

Figure 4: Competitiveness of Seaports in Saudi Arabia…………………………………….41

LIST OF APPENDICES

Appendix A: Image showing the location of Jeddah Port along the red sea coast…………17

Appendix A: An image of Jeddah Islamic Seaport………………………………………...18

Appendix C: Main Terminals at Jeddah Islamic Port…………………….………………...19

Appendix D: The Fundamental A.H.P. Scale of Absolute Numbers (Saaty 1999)………...28

Appendix E: Saaty's standard random index scale…………………………………………29

Appendix F: Analytical Hierarchy Process Model for Port Preference…………………….29

Appendix G: Raw Relative Scores Received From Shippers' Preference in Port………….32

Appendix H: Weight on Sub-Criterion under Port Preference Factors……………………..33

Appendix I: Analysis of Different Ports Based on the cost of operations,…………………34

Appendix K: Analysis of Different Ports Based on the Value Added Services…………….34

Appendix L: Analysis of Different Ports Based on the Ship Specification.………………...35

Appendix M: Analysis of Different Ports Based on the level of traffic at the port…………35

Appendix N: weight value of the preferred port selection..………………………………...36

Appendix O: Result of the Shipper Port Preference in Saudi Arabia Region..……………..37

Appendix P: Competitiveness of Seaports in Saudi Arabia..……………………………….41

LIST OF ABBREVIATIONS

AHP Analytical Hierarchy Process

K.M. Kilometer

U.A.E United Arab Emirates

W.T.O. World Trade Organization

Shipping Carriers Preferences on Port Selection: A Literature Review

CHAPTER 1 – INTRODUCTION

• • Introduction

Marine ports are very important elements of any international business since they connect sea and land transportation and facilitate transportation of goods and services from one country or continent to another. Businesses today are forced to work in a global environment marred by complex and worldwide supply chains (Wang & Yeo, 2019). Exporters and importers are expected to deliver their goods and services to the market on a timely basis and at a competitive price, facilitated by efficiency in the transportation system adopted by the importer and exporters. Without a doubt, maritime transport provides the most appropriate and cost-effective form transportation of cargo containing large and bulky products (Chang et al., 2008). In this perspective, shippers and career ship owners have to consider several factors when making decisions on their preferred port of destination or use.

Studies have proven that selecting a port is one of the most difficult, if not challenging, decisions that shippers have to make when choosing the port to work with presently. As shippers consider factors before making the decisions on their preferred port, ports authority’s officials are under constant fear of losing their shippers to other ports in the region, which puts them on constant efforts to enhance their port effectiveness efficiency. The fear of lose their cherished customers is not based on their physical and infrastructure deficiencies of the ports but because of the continuously changing shippers' demands and preferences in marine ports (Wang & Yeo, 2019). These changing dynamics are important for the port officials to understand as they determine the changes and policies that they need to implement to make their ports the most preferred shippers' choice among the many in the region.

Scholars who have addressed themselves on this subject in the recent past have made much effort to examine if not to investigate some of the factors that influence the decision of different shippers to prefer a particular port over the other (Chang et al., 2008). However, this area of research is marred by gaps in literature because of the dynamic and complex nature of international trade logistics, which has made the subject remain among the ongoing research subjects. Available evidence from different contemporary studies have shown that price port charges and efficiency of the shipping lines are the major consideration when deciding to choose a port. As it was in the past, location and the infrastructure of the port play a minimal role in determining preferred port, but other factors such as operational costs, traffic at the port, subsidies and other benefits offered to ship owners and ship specifications have emerged to be the most considered factors, yet they are lowly researched (Chou, 2010). This paper, therefore, concentrates on investigating some of the recent changes in the shipping and maritime transportation industry, which have altered the presence of shippers in any port. Specifically, the paper investigates the impacts of ship specification, operational costs, level of traffic at the port, and other benefits that ship owners enjoy from the port authority on shippers' decision to choose a specific port over others (Wang & Yeo, 2019).

Jeddah port in Saudi Arabia will be considered as the case study of a perfect port that may be preferred by shippers. Although this area of maritime transport has received high concentration and attention in the recent past, the findings of the study will add Value to available literature concerning timing, analysis of the literature, and the subject, and interpretation of the results. To effectively analyze the selected factors that affect the decision on choosing the preferred port, the paper is present in the form of different decision-making factors in port selection criteria. Similarly, the paper will present an A.H.P. founded data analysis from the two region shippers. The paper will also provide a professional literature review to enhance audiences' understanding of the factors that are considered by the haulers when selecting their preferred port (Chou, 2010). The paper will then discuss the study methodology in detail, present a comprehensive analysis of the survey analysis, conduct a comprehensive discussion of the results and finally present a concrete conclusion with relevant recommendations to the audience of the study.

• • Background of the Study

The debate on what shippers consider the most important factors when choosing which shipping line and port to use seems to have taken a new twist in the recent past. The new line or arguments has been necessitated by increasing dynamics and complexities in this lucrative marine transportation sub-sector of the transportation industry (Chou, 2010). As the debate continues to take a new perspective every day, shippers become more confused on what are the main considerations of a perfect port, yet customers are waiting for the goods and services to reach them as demanded. Recent publications on this subject have suggested that the main reason why shippers are interested in ports is to ensure that their products reach their destination economically and reliably (Chang et al., 2008).

The concerns become even more critical when hazardous and high-value cargo is involved. In making the decisions on their preferred port, shippers tend to internalize various factors that enhance port and carrier efficiency. As the debate continues, it is surprising that there is no shippers' port choice models that address the issues concerning the ports and carriers at the same time (Chou, 2011). Available research in this perspective, as noted early in this paper, focus on the findings of early research, which may have become outdated due to the changing dynamics and complexities in this sub-sector of the transport industry (Zeng et al., 2018). Most of the available literature investigated preference factors in Australia, North America, and Europe, creating a gap in knowledge about Asian, African, and South American shippers' preferences in a port (Chang et al., 2008). Of more important to consider, there is little literature focusing on the factors that influence the choice of a port among shippers in the Middle East, especially relating to Saudi Arabia.

Lack of such port management literature related to Saudi Arabia explaining some of the factors that shippers look for in a port have made maritime ports in Saudi Arabia not harness current best maritime port management practices to make their ports attractive shippers. Analysis of Jeddah port in Saudi Arabia reveals a different picture as compared to other ports of similar stature. As one of the port with a natural harbor in the Middle East, many people who have been to this port will agree that it has been underutilized. The question that remains to be answered today is why has this marine port been underutilized by European and regional shippers (Chou, 2010). This study's foundation was not only to investigate the four mentioned factors that control the decisions of shippers to prefer a particular port as their destination but also to use the study findings to provide recommendations to Jeddah port authority on how they can increase ship traffic at the port.

• • Problem Statement

Shippers' port selection criteria are something that has been studied for a very long time now. However, most of the studies that have been done in this field of marine transportation have not been sufficient because of many factors. One, the dynamic nature of marine transport, including port management best practices (Chou, 2010). Whereas port authorities have been alert to address the shippers' changing requirements and effectively structure their ports to meet the needs of the shipper, the dynamic nature of the industry has made it impossible to achieve all the elements that shippers look for while choosing a port to work with. Secondly, the complexity of maritime transportation and supply chain logistics has also been another problem that has made it quite difficult for the shippers to make a conclusive decisions on which port is the best based on their perspective. Several factors have to be considered by the shippers when making decisions in regards to their preferred port destination, which also complicates the decision-making process (Zeng et al., 2018). Apart from the complex and dynamic nature of the industry, most of the studies that have been done in this perspective have not arrived at conclusive recommendations on which factors should be considered by the shippers when making port preferences. This has been influenced by the changing patterns in international trade, which requires systematic research for any literature to remain relevant in this complex and unpredictable field (Chang et al., 2008).

These mentioned factors, among other,s have done research in this area to remain ongoing research with no conclusion in sight. Traditional studies that are conclusive today have only agreed on price and shipping line as the main factors to consider when making a port selection. This has limit the scope of such research since other factors such as cost of operations, level of traffic at the port, subsidies and other benefits offered to the ship owners, and ship specifications, have emerged to be very important considerations today (Lam & Dai, 2012). The decision to investigate how the cost of operations, level of traffic at the port, subsidies and other benefits offered to the ship owners, and ship specifications affect port selection decision was informed by the little focus that has been directed on these factors ye they appear to very important in shipping and port management.

• • Scope of the Research

The current paper investigates the shipping carriers' preference for port selection. The paper will focus on understanding how the cost of operations, level of traffic at the port, subsidies, and other benefits offered to the ship owners and ship specifications affect port selection decisions among the shippers (Lam & Dai, 2012). The paper will not only look at the available literature relevant to this subject. Still, it will also analyze relevant theories in this field that can enhance our understanding of the factors discussed herein. A comprehensive review of literature is important to this paper because it will allow the audience to understand how shippers' preference in ports has changed with time. The paper will not limit itself to the analysis of the issues identified in the introductory part of this section. Still, it will also present a port selection model that can be used by the shippers to make better preferences when making a port selection.

Similarly, the paper will discuss the research methodology adopted by the researcher to complete the study (Lam & Dai, 2012). Secondary and primary data will be used to complete the study and synthesize the research findings. The results of the methodology will be analyzed and discussed in this paper. Finally, the current paper will summarize the study findings in the conclusion section and offer recommendations on the port of Jeddah's authority on the possible way to increase customer s at the port and utilize it effectively.

• • Research Question

The current research will be guided by a central question, divided into two sub-questions for the easy analysis of the findings.

• What are the major factors that the shipping carrier considers when selecting a preferred port?

• How can shippers use multiple objectives decision analysis with a value-focused thinking model to make the port selection?

• • Research Objectives

Just like it is the case of other academic endeavors, students and researchers conduct research in a specific field to achieve desired objectives. The current study was conducted to achieve three main objectives. Firstly, the study was done to investigate some of the main factors influencing shippers' choice of a preferred port (Lam & Dai, 2012). This will be achieved through the analysis of the four selected factors to provide an understand of how they are of benefit to the shippers.

Secondly, the study was done to develop a decision-making model that can be adopted by the shippers to make a decisions when selecting their port of choice (Lam & Dai, 2012). Finally, the study was conducted to craft recommendations to Jeddah port authority on the best port management practices and help the officials understand some of the factors that shippers consider when selecting a port of their choice. The benefits of making the right port selection to the shippers are also elucidated in this study through a review of the literature. The explained benefits relate to the four selected factors: the cost of operations, level of traffic at the port, subsidies, and other benefits offered to the ship owners, and ship specifications.

• • Significance of the Study

In a country where shippers' behaviors literature is limited, the current study is significant to the management of maritime ports in Saudi Arabia apart from the identified Jeddah Port. The study will contribute significantly to the available literature on some of the factors that shippers consider when deciding which port to work with or dock. Saudi Arabia is one of the leading oil-producing and exporting countries in the world (Lam & Dai, 2012). The export of oil and oil products remains the leading source of G.D.P. to the government and needs to be enhanced. In this perspective, it is important to ensure that the country's major ports are functional and preferred by many shippers.

Similarly, Saudi Arabia is considered a Middle East business hub with most of the companies that import and export products to other countries, and something requires the ports within the country's waters to be effective and attractive to the shippers (Zeng et al., 2018). Saudi Arabia is a member of the World Trade Organization (W.T.O.), meaning that the country trade with different countries, strengthening the importance of ports. It is through ports that export goods leave the country and import goods enter the country. Export and imports contribute 33% and 29% of Saudi Arabia's G.D.P. respectively hence stressing the importance of effective port management.

Several preceding studies in this industry have made efforts to understand a shipper's port choice selection criterion. Still, the complexity and dynamic nature of the international trade and logistics industry have kept this area an ongoing research subject. This study will, therefore provide literature that is required to fill the gap left by ongoing studies in this area of maritime transportation study (Lam & Dai, 2012). Although this area of maritime transport has received high concentration and attention in the recent past, the findings of the study will add Value to available literature concerning timing, analysis of the literature, and the subject, and interpretation of the results. To effectively analyze the selected factors that affect the decision on choosing the preferred port, the paper is present in the form of different decision-making factors in port selection criteria.

• • Limitations of the Study

Like other studies that have been done in this field or area, the current study encountered some limitations, which may have negatively impacted the reliability and validity of the study findings. The first limitation in the current study is that the sample size was insignificant based on the area of investigated coverage. Similarly, the number of investigated factors was insufficient since shippers consider many factors when selecting the most preferred port. Similarly, the other limitation of the study is the method used to collect data from the respondents.

Similarly, the presence of the researcher may have influenced the answers that respondents gave. Time was another notable limitation in this study since the work was needed within a specified time limit. Limited time may have contributed to the narrowed study, which investigated only four factors out of many hence negatively impacting the study findings. Another limitation of the current study was the pandemic we are in the the moment; it makes it hard to do an interview with the workers in the field to take direct information from them. So the pandemic impacted data collecting process hence limiting the study.

• • Summary

In this chapter, the researcher has introduced the topic under research to the audience and explained the topic's relevance to the researcher’s discipline. The research has also explained some of the issues that instigated the current research in the study backgrounds section and have vividly explained the problem under investigation through the problem statement. The scope of the study has been explained systematically in this chapter, leaving the audience aware of what will be included in this study. The objectives of the study and the research question have been outlined and explained in detail in this chapter. Similarly, the author of the current research paper has elaborated on the significance of the study to the shippers, Saudi economy, and Saudi Port management authority and the discipline as a whole. Similarly, the author of the paper has outlined and explained all the limitations that the researcher encountered during the research process.

CHAPTER 2 – LITERATURE REVIEWS

2.1 Chapter Introduction

There exist a relatively large number of studies that have focused on investigating some of the factors that shippers consider when making a port selection. Most of the factors that are considered are relative to the efficiency and shipper preferences, although these factors are not modeled or preferred simultaneously (Chou, 2010). Different scholars have focused on different factors throughout their studies, but something that has retained its identity in these different studies is the aims of the shippers' preferences. The number of ship calls has been a factor that has been explored by different scholars (Kurt et al., 2015). The level of traffic at the port has been identified as one of the main factors that shippers look at when selecting a port to work with. Similarly, other port authority offers to the shippers are another important factor that has been explored in the literature to present. Apart from the two leading factors, ship specification is also a very important factor to consider when choosing your destination port. Finally, the costs of operations at the port are one of the main factors that shippers consider when making their preferences.

Whereas these factors as mentioned earlier dictate the preferences of the shippers, few studies have been done to explore how they contribute or affect shippers at the port. Studies have also shown that most of the shippers consider their safety, depth of the harbor, and other factors such as accommodation, road network, and others when choosing their preferred port. This section explores some of the literature that has been published on this subject (Kurt et al., 2015). The section will explore four main factors that the researcher identified as the most important to consider when choosing a port of destination and will use Jeddah port as a case study. The section will also explore some of the issues that shippers or port employees face, which negatively impact port efficiency (Kurt et al., 2015). The section will also explore some of the theories that have been designed for operations of marine ports, and finally, the section will provide a summary of the main issues discussed or explored and the possible study conclusion based on the literature review synthesis.

2.2 Port Selection Factors

As aforementioned, shippers have different preferences when making a port selection. These preferences are based on different considerations that include port efficiency and safety of the cargo, among other issues. Slack (1985) provide imperative findings on this subject under study, in the study that surveyed end-users of the port, in American and Asian ports. The author noted that port traffic, which was referred to in this study as the number of sailing, was ranked as the most important factor considered by the shippers. It is quite unfortunate that most of the studies that have been done in this perspective are historical. Another important study done in this field is a study done by Bird (1988). Bird in this study investigated the perception of port shippers operating in Europe. The author noted that the main preference of the shipper in Europe at the time was the frequency of services offered at the port.

According to the study done by Wang and Yeo (2019), naval ports are very significant elements of any global business since they connect sea and land transportation and facilitate transportation of goods and services from one country or continent to the other. The authors noted that businesses are forced to work in a global environment, and it is because of this, they have to consider factors that may affect their businesses. In another study, Chang, Lee, and Tongzon (2008) argued that exporters and importers are expected to deliver their goods and services to the market on a timely basis and at a competitive price, facilitated by efficiency in the transportation system adopted by the importer and exporters. Chang, Lee, and Tongzon (2008) noted that maritime transport provides the most appropriate and cost-effective form of transportation of cargo containing large and bulky products. The authors argue that shippers and career ship owners have to consider several factors when making decisions on their preferred port of destination or use. Another study that was done by Ugboma, Ugboma, and Ogwude (2006) provided evidence which proven that selecting a port is one of the most difficult if not challenging decisions that shippers have to make when choosing the port to work with presently. Ugboma, Ugboma, and Ogwude (2006) are of the vies that shippers consider different factors before making the decisions on their preferred port, ports authority's officials are under constant fear of losing their shippers to other ports in the region, something that puts them on constant efforts to enhance their port effectiveness and efficiency.

Similarly, many studies have agreed with the study's findings that was done by Bird (1988). For instance, Tongzon (1995) argues that time is a very important factor in shipping, and therefore, service frequency becomes an important factor to consider when making a port preference. A recent study that was done by Tiwari et al. (2003) discovered other factors that determine shippers' port of choice. The authors noted that shippers distance from the location of the port and the number of ship calls (i.e., the number of scheduled intermediate stops by ships at the port, which determines the Value of cargo that can be moved through that port), port efficiency, infrastructures at the port and the routes offered by the port authority as the main factors to consider when choosing a port.

Blonigen and Wilson (2006) developed a model for port choice. They estimated the impact of ocean transport rates, the efficiency of ports, and internal transport systems on a shipper's port choice. Based on sample data on trade volumes between U.S. ports and several foreign countries from 1991 through 2003, the study provided strong evidence on the importance of economic factors in the port choice. While distance and transport prices were found significant, unlike previous studies, an individual port's efficiency plays an important role in determining its activity. In a study done by Chinonye et al. (2015), the authors investigated service features that shippers considered when making a port selection.

The authors' employed the analytic hierarchy process revealed that most of the shippers considered port efficiency, port traffic, and infrastructure development to be the most considered factors. Chinonye et al. (2015) also noted that similar factors are considered by the shippers when deciding on which port to dock. In relation to shipping port selection, Tongzon and Sawant (2007) used a revealed preference approach. They found port costs and range of port services to be two significant factors. They discussed the evolving role of shipping lines in the logistics business and how they now connect a shipper with a customer in modern days. The traditional approach of linking the shippers/freight forwarders with the ports. The study emphasized how this fact is of great importance for port officials when considering their competition with others.

In a different study that was done by Wong, Yan, and Bamford (2008), the authors noted that supply chain arrangements are another important factor that is considered by the shippers when making a port selection. However, the authors noted that supply chain arrangement is not considered by shipping lines when choosing the port of destination. The authors noted that the scenario might have been influenced by instructions from the ship owners and shippers or the cargo owners (exporters, vessel owners, and importers). Wong, Yan, and Bamford (2008) aimed to identify the key factors in a shipping company's port selection process. To identify and rank factors that play a role in selecting the port, it adopted a questionnaire-based survey approach. Responses from the major shipping companies’ operators in Iran revealed that supplying companies and customs rules plays an important role in selecting the ports.

• • • Level of Traffic at the Port

Traffic is a major consideration among the transporters as it determines how swift the services and products will arrive at the destination. The traffic level is one of the main factors that shippers consider when making their port preference (Mittal & McClung, 2016, December). Shippers, as expected, are in business and want to make as many trips as possible. In this cause, they want to use a port with no traffic congestion to make their work faster and easy. The level of traffic is also considered by the shippers from a different perspective (Lee et al., 2010). Shippers believe that a port with a high level of ship calls is efficient and effective, a factor that makes many shippers prefer it. In this perspective, shippers will consider a port with huge traffic because they want to enjoy Value added services that are offered by the port.

• • • Costs of Operations

As already mentioned, shippers are in the business of ferrying cargos from one location to the other, and it is through these activities, they make their revenues. The costs of operating a ship are high, given the number of factors and players that are involved in the shipping business (Lee et al., 2010). Cost of operation such as insurance, fuel, and other costs incurred by the ship crew determines the type of port that shippers will choose. Ports that experience a high level of traffic congestion are likely not to be preferred by many shippers because they will increase their costs of operations. Similarly, charges that are imposed on the shippers are another important aspect of the operational cost that shippers have to consider when choosing a port to dock (Mittal & McClung, 2016, December). The higher the docking fee and levies, the higher the costs of operation and transportation fees. Importers and exporters are likely not to prefer ports that impose high levies and docking charges.

• • • Ship Specifications

Ships are designed and modeled in different ways. Some ships are big and require deep seas to move while there are others that are small and can sail in any waters. Specifications of the ship are a very important factor that determines shippers' preference of a port (Mittal & McClung, 2016, December). Ships that can only sail in deep waters will not dock on shallow ports, and shippers operating big vessels will have to choose ports with deep natural harbors. Similarly, ships that are small and shallow can dock on any harbor and, in many cases, will prefer to dock on shallow ports with few ships and, which tend to be cheaper as compared to deep and large ports.

• • • Value-Added Benefits to Shippers

Ports provide shippers with other services apart from the normal services that including loading and offloading. Other Value added services that are offered by ports include storage, cargo inspection, and vessel control, documentation, and cargo handling (Lee et al., 2010). Marketing studies that have been done to investigate strategies that port authorities use to lure shippers to their ports show that some of the most used ports offer other added services to the ship crew that includes accommodation, meals, and free medical services, among others. Shippers spend a good portion of their profits on expenses such as accommodation, meals, and other nourishments (Yang et al., 2016). Most of the shippers will therefore prefer to dock on ports that offer them other benefits, including the aforementioned.

2.3 Jeddah Port

Saudi Arabia is one of the countries that lie along the Arabian Peninsula, and it occupies the largest part of this peninsula. It is a country located western part of Asia, and it borders U.A.E., Oman, Kuwait, Jordan, Iraq, Qatar, Bahrain, and the red sea (Ali et al., 2011). Jeddah port is strategically located along the red sea coast along with latitude 21° 28' N and longitude 39° 10' E, as shown in figure 1 below. Saudi Arabia is a leading business partner in the region and internationally because of its strategic location. It is also a member of the World Trade Organization (W.T.O.) (Zahran et al., 2017). As one of the leading trade hub in the western part of Asia, the country has developed many seaports to enhance its international business opportunities. Jeddah Islamic Seaport is one of the leading ports in Saudi Arabia.

Jeddah port is located at the center of western Asia international routes, which link East to the West, as shown in figure 2 below. Best on the Saudi Arabia seaport raking, Jeddah port is the biggest and leading seaport in Saudi Arabia (Ali et al., 2011). Jeddah port is important as it has contributed to the Saudi economy and Jeddah as a commercial city. Jeddah port is not only the busiest port in the region, but it is the second biggest natural port found in Arab countries. Saudi Arabia is known to be the single biggest oil exporter, which makes Jeddah port the biggest storage of oil and exporter of oil at the same time (Mahfouz et al., 2020). The port handles approximately 65% of the country's imports apart from being the biggest export route from Saudi Arabia. Given the activities at this natural seaport, the Saudi Arabia's government has installed more than 1700 cargo handling equipment at this seaport. Apart from the shipping services offered at the port, Jeddah port has 62 berths equipped with state of the modern art equipment, ship repair, and building yard, and many warehouses (Mahfouz et al., 2020). The berths are designed to handle all types of cargos, including bulk and small cargos. The port has eight terminals, with a total handling capacity of 130 million tonnes, as shown in figure 3 below.

Jeddah Islamic Port owns a complete port service vessels such as tugboats, rescue boats equipped with firefighting equipment, pilot boats, two buoys service boats, garbage collection boat, pollution control boat, floating crane capable of handling 200 tons (Zahran et al., 2017). This fleet has contributed to achieving a high Key Performance Indicator and increased the ports' operations efficiency, along with the port's development (Mahfouz et al. 2020). The fleet is monitored and operated by the Maritime Control Tower, which is equipped with an advanced Vessel Traffic Management Information System, to serve and control the movement of the ships, either in the navigational channels or inside the Port's basins. The port has two navigational channels, one of which length is 2.2 nautical miles with a 300 m width while the other channel's length is 1.8 nautical mile with a 300 m width, in addition to four basins which add Value to the seaport.

Jeddah seaport offers strategic services to the port stakeholders, including training services, ship repair services, and warehousing services that include open storage with 3.5 Km squire and closed storage made up of 59 warehouses covering 0.4 Km squire (Ali et al., 2011). The port also has a retention and re-exporting zone which offer importers and exporters Value added services. As the main pilgrims' arrival port, it has a state-of-the-art passenger hall which welcomes and bid farewell to pilgrims and other visitors to the port.

Figure 1: Image showing the location of Jeddah Port along the red sea coast

Figure 2: An image of Jeddah Islamic Seaport

Company	Terminal
Zamil Operations and Maintenance Company, Limited (Zamil O&M)	King Fahad Ship Building & Repair Yard
United National Marine Projects Co. Ltd	Passenger Terminal  (Handling Passengers' Luggage)
Gulf Stevedoring and Contracting Co. Ltd. (GSCCO)	Northern Container Terminal
Mansour Al-Musaid Company	Northern General Cargoes – Livestock, Bulk Grain, (Esnad Northern Terminal)
D.P. World Middle East Limited	Southern Containers
International Technical Company	Southern General Cargoes Al Esnad Southern Terminal
Abdul Rahman Turki Foundation (ATCO)	Marine equipment
Saudi Trade & Export Development Company (Tusdeer)	Re-Export Zone
Red Sea Container Terminal Company	Red Sea Container Terminal

Figure 3: Main Terminals at Jeddah Islamic Port

• • Logistic Issues at the Port

Recent studies that have been done to investigate the significance of maritime ports to the economy have provided enough empirical evidence to prove the imperativeness of seaports to the economy. An active shipment sector is highly contributing to the growth and development of any economy because it does not only create a job, create revenue, but it also open the country to the outside world (Yang et al., 2016). For these reasons, countries with seaports are making efforts to modernize their ports to harness the benefits that accrue from efficient port operations. An efficient port will attract a high level of ship traffic because it will be the preference of many shippers in the region hence increased revenues. However, seaports are still faced with many challenges, which deter effectively and operations efficiency at the ports (Wong et al., 2008). Some of the challenges include a shortage of the trucker, lack of chassis, an alliance of the ships, high sea tidal, port footprints, and congestion.

• • • Trucker Shortages

Another big challenge that has refused to fade at the seaports is the shortage of truckers. Most of the ports do not have enough truckers to handle the cargos that they receive daily causing ship traffic congestion. These is both operational and legal issues that need to be solved soon (Yang et al., 2016). In this perspective, lawmakers should enact policies that will not only allow the formation of more trucking companies, but that will make cargo trucking cheaper and faster to ease congestions (Wong et al., 2008). Laws that can be enacted to encourage investment in the trucking business include tax reduction and a few restrictions and regulations that the drivers and truck operators are expected to follow.

• • • High Sea Tidal

Delays and tragic accidents have been witnessed in many seaports in the past. These accidents and delays have been occasioned by unpredicted seal tidal, which hinders the movement of ships and other seaport operations, leading to delays and accidents (Wong et al., 2008). However, recent investigations into this issue have revealed that accidents and delays caused by a high levels of sea tidal can be mitigated by investing in high and modern technologies that can be used to predict changes in the sea (Yang et al., 2016). Technologies that can measure the current speed and direction of the wind, air temperature, water salinity, and accurately measure water levels are the solutions to this tidal level problem. As expected, shippers will not prefer seaports with highly unpredictable sea changes.

• • • Congestion at the Ports

The introduction of mega-ships has posed a big problem to the already existing port congestions problem at the seaports. Recently, many shipowners have moved from the traditional small ships too wide and large ships with a greater capacity (Wong et al., 2008). However, most of the ports have not changed in size and have retained their status quo despite the changing dynamics in the international product shipments. The volume of cargo received at the ports has increased significantly, yet ports are still reluctant to invest in modern equipment to enhance operations at the ports. Ships that arrive at the port on time have to wait for berth space, something that causes the ship traffic congestion at the ports. Coordination among the seaport operators is another cause of congestion at the port because of the outdated procedures and communication protocols (Aronietis et al., 2010, July). More space must be allocated to the ports authorities to allow for expansion through the creation of new berths and ease congestion at the seaports and enhance ship schedule integrity that is highly observed by the shippers.

• • • Ship Alliances

Whereas the idea to form ship alliances was good at the beginning as one way of achieving less costly shipments and ease transportation of cargos, they have become a problem today for many port authorities (Wong et al., 2008). Ship alliances have resulted in an assortment of ships carrying different cargos that need to be handled differently, which causes problems during loading and offloading. This leads to time wastage and delays since port operators have to plan how to handle different cargos. However, although the idea of ship alliance is still viable, the problems they cause can be reduced rather than solved if ship alliances can be aligned based on the similarities of the cargo they ferry.

• • • Port's Footprints

A cross-check of many seaports all over the world will show that majority of them do not have a modern outlook. Most of the seaports across the world are not ready for modern trade dynamics, something that has caused operation issues at such ports (Wong et al., 2008). Seaports still experience challenges related to hinterland areas, port entrance, shallow harbors, and lack of good jetties. These challenges have a huge problem on the marketability of the ports since many shippers, exporters, and importers will not prefer such ports. Port authorities need to invest heavily in challenging areas to make their ports preferred destination by the shippers.

• • • Lack of Chassis

Carriers used to provide chassis for container shipments in the past, but this has changed as many carriers have sold their chassis, something that has decreased the number of chassis, causing a crisis that remains difficult to solve presently (Wong et al., 2008). Decreased number of chassis hinders the smooth ferrying of containers from one country to the other, something that also contributes to shipping traffic at the ports. This problem can be solved by encouraging carriers to provide chassis for their containers, and port authorities should also enhance their cassis service provision to ease congestion by allowing smooth movement of containers.

• • Balanced Theory of Port Competitiveness

Seaports all over the world experienced weakening demand after the 2008 recession because global business retarded significantly. Many ports located in a different parts of the world developed different strategies to make them more competitive in their respective regions (Aronietis et al., 2010, July). Literature that has been published on the strategies that seaports employ to become competitive have primarily focused on the competition in two perspectives that includes customer and the regional perspective. Similarly, many studies are not specific to the perspectives of their findings. This is whether their findings apply to specific regions or specific customers (Hales et al., 2017). However, port operation competitive theories have considered five main factors that affect the competitiveness of ports. The factors are aimed at attracting new customers and retaining current customers.

The balanced theory of port competitiveness was developed through a new port competitiveness model that concurrently considers the effects of the strategies to the customers and investors in seaports.

The theory was built on ten factors considered by customers and investors when selecting a port to work with presently or in the future. The analytical hierarchy process model was used to develop the theory of balanced port competitiveness. The studies have shown that port administrators should consider the effects when making their decision on the competitiveness of the ports (Hales et al., 2017). This is important as it will ensure that all factors are considered for improvement. The theory explains the behaviors of the port managers and administrators and provides them with practical guidelines to assess the impacts of their decisions on customers and port investors.

• • Hypothesis

Considering the main themes that have cropped up from the review of kinds of literature on challenges, ports, and some of the factors that most of the shippers consider when making their port preference decision, it is clear that the level of the traffic at the port, costs of operations, ship specifications, and Value added benefits at the port take precedence in that order.

• • Summary

The literature review section is a very important part of any research paper or research project. The section focuses on investigating and analyzing some of the known information on the subject and inform the research on what to expect going forward. The section is also important as it highlights some of the gaps in the literature which need to be bridged by the researcher. In this section, I have focused on the analysis of the available literature on the topic matter. I have also looked at the available knowledge on the main selected factors that inform the decision of the shippers, including the level of traffic at the port, costs of operations, ship specifications, and Value added benefits to the shippers. Similarly, I have focused on the overview of Jeddah Islamic Port, which is the preferred port for the current study.

I have analyzed some of the factors that make this port strategic and one of the busiest in the world. Apart from the analysis of Jeddah Islamic Seaport, I have also analyzed some of the challenges that port operators face today including, trucker shortage, congestion, lack of chassis, tidal levels, port's footprints, and ship alliances (Zahran et al., 2017). I have noted from the literature review that port authorities need to do a lot to overcome the challenges that hinder efficiency at the ports and make their ports a preference of all shippers. Literature analysis provided the basis of my study hypothesis that the level of the traffic at the port, costs of operations, ship specifications, and Value added benefits at the ports are the most considered factors by the shippers when making port preference decisions.

CHAPTER 3 – METHODOLOGY

3.1 Introduction

Based on the literature review, it is apparent that most of the published literature discusses several factors that impact the decision of the shippers when making a port selection. The factors are both qualitative and quantitate, which can be measured while others are unmeasurable since they include feelings, experience, and emotions (van Dyck & Ismael, 2015). Some of the factors are subjective, and since the focus of the current project is to assess how some factors affect shippers' preference, the decision is made by freight forwarders. In many instances, the decision to choose the port that is preferred by the shipper is less supported by the difference between qualitative and quantitative factors since the perception of the shipper takes precedence over the actual performance of the port. Since perception is at the center of the decision-making process, this study considered the Analytical Hierarchy Process model (A.H.P.) to complete the paper (Chou, 2010). A.H.P. is a beneficial methodology since it allows the researcher to use logic, information, experience, and human institutions to measure the relative magnitude and compare the alternatives in pairs. The framework allows for the dissolution of the goal of the problem and develop a problem-focused structure that is built on its criteria and substitutes.

3.2 Research Design

To achieve the current project's purpose, the following methodology was adopted to synthesize findings after collecting data.

I first developed the list of factors that are considered by the shippers when making port preferences. The factors selection or listing criteria was founded on the review of the literature and the knowledge gained from the field of maritime transport so far. Secondly, after listing the factors that were to be considered, the study problem was placed in A.H.P. model context, and the survey form was developed for shippers from the Saudi Arabia region, specifically from the Jeddah Islamic Seaport in Saudi Arabia. The participants used the survey spreadsheet to input their comparative scores (van Dyck & Ismael, 2015). The fourth step was to analyze the data collected from the survey, and prioritize the factors that were essential to the shippers' port preference using A.H.P. framework. Finally, the results were presented, validated, and a summary based on the section findings.

3.2.1 List of Factors

Although the shippers' factors in making port preferences were predetermined by the researcher, other factors that cropped from literature analysis were also included in the list of factors. The following are the factors that shippers consider when making a decision to choose a specific port.

• Ship specification-the vastness of the ship, ship model, size of the ship, nature of the ships' docking port, among others.

• Value-added benefits to the shippers- repairs, loading bay, training, storage, repacking and re-exporting yards, etc.

• Costs of operations-port charges, other levies, towage charges, delivered price, custom charges, among others.

• Level of traffic at the port-delays, loading, and offloading problems, among others.

• Port infrastructure-port facilities, equipment for operations, hinterland transport, trucking, among others.

• Port efficiency, offloading and loading efficiency, information communication, cargo volume at the port, connection links, container handling, and the reputation of the port.

• Loss and damage frequency, security at the port, regulations, and policies from the government, shipment handling capacity, and services offered by the port.

3.2.2 Aligning the Problem with A.H.P. Model

According to the study that was done by Saaty (1999), the Analytical Hierarchy Process model provides a multi-criteria decision-making framework to the shippers selecting the port. It is a framework that used paired comparison to compare one item over the other based on the characteristics of the item. It is both a quantitative and qualitative method that is commonly used to solve decision-making problems. About quantitative design, the set of characteristics associated with a specific item are prioritized to differentiate them from each other based on the Value of their attributes (van Dyck & Ismael, 2015). Qualitatively, the framework decomposes the research problem to a class of elements that are then analyzed. It is believed that the shipper is in a dilemma on which port to choose based on the preferred factors that the port provided. AHPA framework will allow the shipper to place relative weight on each factor and then conclude by making a rational decision. The goal of the paper is to identify the factors that the shipper will consider when making a port selection. In this perspective, the right port and the other ports in the region will be based on the two problems with similar A.H.P. issue structures. Finally, ship specification, costs of operations, level of traffic, and other factors listed in this section will be compared with the two selection structures.

3.2.3 Analysis of Analytical Hierarchy Process model

The Analytical Hierarchy Process is a methodology that is used to measure items based on the pairwise framework. It is a framework that enables the researcher to measure uncountable factors based on their relative terms (Saaty, 2008). The framework compares the factors using a predetermined scale with absolute judgments that compare inferior factors with prime factors. The A.H.P. framework makes an organized decision because of the clearly defined problem of the research. The research problem is defined, and the decision hierarchy is created from top to bottom (van Dyck & Ismael, 2015). The problem statement is placed at the top of the hierarchy structure and is followed by other levels to the lowest level. The element in the upper position is compared to the element immediately below it. The priority of the item is developed based on the possibility of the item to achieve the goal of the process, and alternatives' priorities are derived based on their performance. To enable the comparison, the framework provides numbers I scale, which shows how many times the item is important as compared to the other item (Saaty, 1999). To determine how the other elements contribute to the goal, a weighing, and the adding mechanism is used to identify the priority of other items. In this process, the multidimensional scale issue in the research is converted to a one-dimensional scale issue.

The A.H.P. is a seven steps process that begins with the development of a pairwise comparison spreadsheet and ends with the formation of a vector table. It is a systematic process that incorporates all the seven steps to come up with understandable outcomes or results as detailed below.

Table 1: The Fundamental A.H.P. Scale of Absolute Numbers (Saaty 1999)

3.2.4 Calculating the Consistency Ratio

The researcher using the A.H.P. framework goes through five steps when calculating the consistency ratio. Firstly, the weighted sum of the pairwise comparison matrix rows is determined by adding the entries' items with the corresponding priority or the column alternatives. Secondly, the weighted total in each row is divided by the priority of its alternative. Thirdly, the average of step 2 results is determined, also known as the Lambda max. Fourthly, consistency index, CL is calculated using the formula (lambda max-v)/(n-1)=CL, where n is the number of criteria in each matrix. Lastly, the random index is determined using the standard table modeled by Saaty (1999).

Table 2: Saaty's standard random index scale

In the current project, the goal is to review some of the factors that shippers consider when making a choice of their port. The criterion and the sub-criterion involved in the current study are the factors that make shippers prefer a specific port as compared to the other ports in the region of the area. The participants who are at the same time priority providers are the shippers or freight forwarders. Given the above fact, the hierarchy is developed using the goal, the criterion, sub-criterion, and the alternative. The criterion and sub-criterion employed rather used in this study are illustrated in table 3 below.

CRITERIA	SUB-CRITERIA
Costs of Operations	Port's charges Cargo volume handled at the port Port's efficiency
Level of Traffic at the Port	Port/terminal operator's reputation Delay/congestion at the port Equipment availability
Ship Specification	Supporting value-(warehousing) Intermodal/hinterland connectivity Neighboring consumer market
Value-Added Benefits Offered At The Port	Empty container management Information conveyance (EDT) Cargo safety and insurance

Table 3: Analytical Hierarchy Process Model for Port Preference

3.3 Survey Procedures

Excel-based survey questionnaire were developed after developing the A.H.P. framework, which was distributed to the regional shippers. The study population was shippers who shipped bulk products, hazardous chemicals, and non-hazardous products to and from Jeddah I salami Seaport. The distributed questionnaires were then responded to by the logistics and sourcing personnel in respective shipping firms (Chou, 2010). The replies came from clients' obtaining teams laterally with feedback from clients' logistics specialists and 3PL supply chain analysts. The decision to use both high and low-volume shippers was informed on the assumption that responses will be assorted because the shippers have different financial muscles that they can use to source ports to dock.

The study participants were shippers who moved products to all parts of the world and shipped between 30,000-50,000 containers worth of goods each year. About 13% of the goods transported are hazardous while the remaining 87% are non-hazardous, of which around 70% are bulk. The containers required specialized care and handling as a portion of them were refrigerated goods and other temperature-sensitive goods (Chou, 2010). The goods from the port were exported to China, Europe, South, and North America, Australia, and Africa. Thirty-nine surveys were sent to the respondent through email, and after the survey duration, only 31 surveys were received from the responders. The percentage response rate was around 87%, which was a good rate based on the nature of the study. The response rate enhanced the reliability and validity of the data collected hence findings. The response weight and the corresponding relative scores were sufficient to warrant analysis and validate the study findings. The respondents were requested to focus on some of the factors that they will want to see or get in the port of their choice.

CHAPTER 4 – DATA ANALYSIS & RESULT

4.1 Introduction

After the raw relatives were obtained, data collected needed to be analyzed to understand the nature and the meaning of the data. The first step in the data analysis process was to perform the A.H.P. analysis, which was done using excel spreadsheets. The factors that were categorized under the first criterion were analyzed. The results of the analysis are presented in table 4 below. The table represents the subjective analysis of the port's vital characteristics over the other factors based on their hierarchy. It is imperative to note that the relative comparative scores were derived from the survey participants.

4.2 Analysis and Results

The results in the table show a value of 3 between the costs of operation and the ship specification. In this regard, it implies that most of the shippers prefer costs of operations three times as compared to ship specification when making a port selection. Ship specification value is represented by a reciprocal of costs of operation value (1/3). This implies that shippers prefers ship specifications 3 times less as compared to the costs of operations. It is important to note that all study participants were only required to fill upper values in the triangular matrix, while the lower part was calculated using a reciprocal of the upper part of the matrix.

	Ship Specification	Cost Of Operations	Other Benefits To Shippers	Level Of Traffic At The Port	Port's Efficiency
Ship specification	1	3	2	5	1/8
Costs of operations	1/3	1	1/8	1/5	1/6
Other benefits to shippers	1	8	1	3	1/8
Level of traffic at the port	1/5	5	1/3	1/9	1/6
Port’s efficiency	1	1	1	2	1

Table 4: Raw Relative Scores That Were Received From Shippers' Preference in A Port.

The second step in the data analysis and results presentation was to normalize the scores based on the first step. The weight that was given to each criterion by the participants was calculated by dividing the entry by the total of the column that it appeared in. after the calculation, the results of the normalization process were then averaged to develop the weight that corresponded to each sub-criterion with the port characteristics or factors. The averaging process for each row was important in eliminating the inconsistencies that may which in many cases, hinder the decision-making process. The average results ranged between 0-1 and were represented in percentage while weight, which was also represented in percentage, summed up to 1. The consistency ratio was tested for all values at each step, and the results of the average normalization are represented in table 5 below.

Shippers' Reference Factors	Value
Ship specification	16.2%
Costs of operations	38.7%
Other benefits to the shippers	11.7%
Level of traffic at the port	23.3%
Port's Efficiency	10.1%

Table 5: Weight on Sub-Criterion under Port Preference Factors

The above results show that most of the shippers prefer the costs of operations when making a port selection. The preference is followed by the level of traffic at the port at 23.3% and ship specification at 16.2% I that order. The least considered factor is Value added benefits offered by the port authority at 11.7% and followed by efficiency at the port at 10.1%.

Because there are many ports in Saudi Arabia that have different characteristics, it was essential to evaluate the factors based on different ports. Since Jeddah Islamic Port was our case study port, more ports were identified for comparison, and they included Jeddah Islamic Port, King Abdulaziz Port Dammam, King Fahad Industrial Port Yinanbu, King Fahad Industrial Port Jubail, and Jubail Commercial Port. To complete this section, I compared the factors that shippers prefer in a port in different ports in the Saudi Arabia region. For example, I compared the most preferred factor costs of operation across different ports. The weights were also calculated, and the results of the comparison are presented in table 6 below.

Jeddah Islamic Port	King Abdulaziz Port Dammam	King Fahad Industrial Port Yinanbu	King Fahad Industrial Port Jubail	Jubail Commercial Port	Others
0.341	0.223	0.173	0.098	0.079	0.086

Table 6: Analysis of Different Ports Based on the cost of operations.

The results show that Jeddah port is the most preferred by the shippers based on the costs of operation at 34.1%, and Jubail commercial port is the least preferred at 7.9%. A similar analysis is repeated for the remaining three factors, including Value-added services offered by the ports, ship specification, and level of traffic at the port. The results are presented in tables 7, 8, 9, respectively.

Jeddah Islamic Port	King Abdulaziz Port Dammam	King Fahad Industrial Port Yinanbu	King Fahad Industrial Port Jubail	Jubail Commercial Port	Others
0.321	0.203	0.143	0.078	0.1479	0.106

Table 7: Analysis of Different Ports Based on Value Added Services.

The results of the analysis of the Value-added services that are offered by the ports show that Jeddah port is still the most preferred port then followed by King Abdulaziz and King Fahad is the least preferred.

Jeddah Islamic Port	King Abdulaziz Port Dammam	King Fahad Industrial Port Yinanbu	King Fahad Industrial Port Jubail	Jubail Commercial Port	Others
0.241	0.096	0.173	0.128	0.213	0.109

Table 8: Analysis of Different Ports Based on the Ship Specification.

The preferred port in Saudi Arabia based on the ship specification factor is unique since the ports almost have equal preference b the shippers. However, Jeddah port still leads as the most preferred port by the shippers who consider ship specification as a factor when choosing port at 24.1%, and it is followed closely with Jubail port at 21.3%, and the least preferred port based on this category is King Abdulaziz at 9.6%.

Jeddah Islamic Port	King Abdulaziz Port Dammam	King Fahad Industrial Port Yinanbu	King Fahad Industrial Port Jubail	Jubail Commercial Port	Others
0.143	0.086	0.271	0.138	0.213	0.109

Table 9: Analysis of Different Ports Based on the level of traffic at the port.

Considering the level of traffic at the port, it is obvious that the shipper may not choose Jeddah port as compared to others because of the high level of traffic that is experienced at the port. In this category, King Fahad port becomes the most popular port among the shippers at 27.1%. It is followed closely with Jubail commercial port, and King Abdulaziz port is the least popular.

After evaluating the four primary factors that were selected for this study for the port selection criterion, the results were summarized using the relative importance score from the four main criteria which included ship specification, costs of operations, level of traffic at the port, and Value-added services offered by the port. The weight value of each factor was calculated, and the results are presented in Table 10 below. Please note that the fifth criterion or factor, was port efficiency, was neglected from this calculation to give the factors more immense weight value. The table shows what shippers prefer in a port before asking their choice of a port to dock during their shipping.

Criterion	Weight Value
Ship specification	0.234
Costs of operation	0.311
Value-added benefits	0.213
Level of traffic at the port	0.242

Table 10: weight value of the preferred port selection.

The last step was calculated to determine which port was preferred in Saudi Arabia based on the four factors. To arrive at the most preferred port, the following was done. The weight and the relative score of importance for each criterion and sub-criterion were determined. After the determination of the Value as shown in the above tables, the priority weight for each factor shown in table 10 was multiplied with their port results, as shown in table 6,7,8, and 9 above. The final table 11 below shows the most preferred port in Saudi Arabia because it offers the shippers most of their preferred factors.

Jeddah Islamic Port	King Abdulaziz Port Dammam	King Fahad Industrial Port Yinanbu	King Fahad Industrial Port Jubail	Jubail Commercial Port	Others
0.321	0.216	0.163	0.138	0.103	0.119

Table 11: Result of the Shipper Port Preference in Saudi Arabia Region.

CHAPTER 5 – DISCUSSION, CONCLUSION, AND LIMITATION

5.1 Introduction

The current graduation project was done to investigate dome of the factors that shippers prefer in a port the factors that most of the shippers or carrier owners will consider when choosing a port to work within the region. The main factors that were considered in this study include ship specifications, costs of operations, level of traffic at the port, and the Value added benefits offered to shippers and carrier owners (Chou, 2010). The previous sections of this paper have introduced the topic under review, analyzed literature on the subject matter, explained the methodology adopted to collect data and presented the study results. This section, which is the last chapter of the paper, will now focus on discussing the study results and concluded the study by providing the answer to the study question. The section will also offer study limitations. The section will also include recommendations for future studies and implications of the study findings.

5.2 Overview of the Study

Available evidence from different contemporary studies have shown that price port charges and efficiency of the shipping lines are the primary consideration when deciding to choose a port (Chou, 2010). As it was in the past, location and the infrastructure of the seaport play a minimal role in determining preferred port, but other factors such as operational costs, traffic at the port, subsidies and other benefits offered to ship owners and ship specifications have emerged to be the most considered factors, yet they are lowly researched. This paper, therefore, concentrates on investigating some of the recent changes in the shipping and maritime transportation industry, which have altered the presence of shippers in any port (Wong et al., 2008). Specifically, the paper investigates the impacts of ship specification, operational costs, level of traffic at the port, and other benefits that ship owners enjoy from the port authority on shippers' decision to choose a specific port over others. Jeddah port in Saudi Arabia will be considered as the case study of a perfect port that may be preferred by shippers.

5.3 Discussion and Validation of the Results

This section of the research paper will discuss and validate the results using the literature review's knowledge. The results in the Table 5 above indicates that costs of operations with 38.5% is one of the most essential factors that shipper consider when making port preference (Wong et al., 2008). Based on the literature review, it is true that ports play a significant role in the movement of goods, and the costs of shipping and other operations at the port will dearly impact the transport and the price of the goods transported. This will interfere with the inventories of the exporters and importers, most especially when the interests involved are also produced locally. Whereas the results in table 6 present the results that highlight the significance and the level of the likeness of different ports in the Saudi region. The results of the analysis show that the Jeddah port has increased its popularity among the shippers because of its most competitive operational costs (Wong et al., 2008). The results indicate that the Jeddah port is more competitive concerning the costs of operations as compared to other ports in the Saudi region at 34.1%.

The results of table 7 represent shippers' choice of a port based on the Value added benefits offered at the port. Value-added benefits included other services that are provided by the port, including training, repair of the ship, handling of empty containers, among others such as repacking for re-export. Considering this factor, the results show that the Jeddah port is preferred by many shippers because of the Value added services they offer to the shipper at 32.1%. According to the study that was done by Wong et al. (2008), shippers will choose one port over the other because of the Value added services they offer to the shippers, such as space for ship repair and space for repacking the goods for re-export. The results can be validated based on the high level of investments and the immense capacity that is exhibited by the Jeddah port.

In table 8, the port's preference by the shipper concerning ship specification was compared. By ship specification, I mean the bulkiness and size of the ship and the cargo volume it can transport at once. The results of the analysis indicate that ship specification is a major consideration of the shippers when making a decision relating to port selection. In relation to ship specification, the results suggest that Jeddah port is still preferred by many shippers because of its deep natural harbor at 24.1%. Studies have shown that Jeddah port has deep docks in the region, which can anchor any type of ship. The port is also said to have many terminals and berths which can accommodate both small and big ships with a large volume of containers.

Table 9 compared shippers' preference of a port based on the level of traffic at the port. The level of traffic in this perspective included congestion, space, swiftness of the loading, and offloading the cargo, among others. In this category, the Jeddah port was not the most preferred one because it experiences high traffic congestion. Many shippers preferred King Fahad Industrial port at 27.1%, and Jeddah port was the third selected at 14.3%. This implies that as much as Jeddah port is the most preferred port by shippers based on the three factors, it was not the preferred port in relation to the port's level of traffic. It, therefore, means that shippers will prefer to dock in a smaller and less developed port as long as it experienced a low level of traffic to make their work easier and faster.

Table 10 and 11 show the most considered factor when choosing a port by the shippers and the most preferred port in Saudi Arabia region. The results indicate that most of the shippers will consider the costs of operations when selecting a port at 31.1%, followed by the level of traffic at the pier at 24.2%, followed by ship specification at 23.4%, and finally the Value added benefits that are offered to the shippers at 21.3%. Concerning the port, Jeddah port was the most liked overall at 32.1%, and the least preferred was Jubail port at 10.3%. Jeddah port is the darling of many shippers because it offers favorable factors considered by the shippers when making a port preference.

The findings of this study, therefore, support the results of different studies that have been done in the past that many ports will lose their competitiveness if they do not keep up with the pace at the international level. The recent development of the Jeddah port has significantly changed the most preferred port in the region, and it is because of these changes that most of the shippers will prefer to dock in Jeddah port as compared to other ports. The costs of operation, level of traffic, ship specification, and Value added benefits are some of the main factors that shippers prefer when making a port choice (Wong et al., 2008). I noted that the current study's findings concur with the recent article new in Saudi Arabia that rate ports based on their performance and preference. Jeddah port has been rated as one of the best and most famous ports in Saudi Arabia for more than a decade, as shown in figure 4 below.

Figure 4: Competitiveness of Seaports in Saudi Arabia

Several studies and business review articles have asserted that Jeddah port is the fastest growing port in the Arab world and the second biggest among the Middle East countries. Reports indicate that almost 67% of all export and imports into Saudi Arabia are done through Jeddah port (Wong et al., 2008). Several reasons explain why this is the case, and some of the factors include the efficiency at the port. Although the level of traffic at the port is high, it has been countered by the development of several terminals and berths, which can handle as many ships as possible. The port also has installed state-of-the-art equipment to load and offload cargo, which has also checked on the traffic level at the port.

5.4 Implication

The implication of the current study findings to port authorities, managers, and operators are that they need to implement changes that will enhance their competitiveness at the port. Port managers need to review their existing port policies and learn from other competitive ports worldwide to improve their efficiency and performance. The current findings also have significant implications for the shippers (Wong et al., 2008). Shippers are expected to conduct thorough research and surveys to identify ports that will give them more benefits than others. It is, therefore crucial for then managers understand some of the factors that shippers consider when deciding on the port to work with so that they can make decisions that will improve the effectiveness and competitiveness of their ports.

5.5 Limitations and Future Research Directions

Whereas many researchers has used A.H.P. as an analytical tool to understand the decision-making process, the critics of the method have described it as highly subjective. In this perspective, the study findings' validity and reliability were limited since they were not compared with other different methods to understand the superiority of the tool. Considering the limitation of the methodology employed in this study, I recommend that another research should be conducted using a different methods to investigate the correlation analysis of the factors that influence the decision of the shippers during their port selection (Wong et al., 2008). Apart from the methodology, time was another limiting factor in the current study. It is because of the limited time associated with academic research that only four elements were chosen for investigation. Similarly, financial resources and human resources were the other limiting factors. The study had to work within limited funds while at the same time had no enough human resources to support the researcher's efforts since it was an individual undertaking. Despite the cautions to the study that resulted from the tool used to collect data and formulation of the data, I believe that the findings of the survey will be found necessary to port managers and officials in formulating their competitive port strategy. Similarly, the results will inform the port authorities of the policies and regulations that they can implement to attract shippers to use their ports. I believe that this is an era of competitive ports due to increasing international trade due to globalization. In this regard, port authorities, port managers, and port operators need to understand the most fundamental factors that shippers consider when choosing a port. This research has provided enough such knowledge to the relevant audience.

5.6 Conclusion

The current graduation project investigated some of the factors that shippers prefer in a port that most of the shippers or carrier owners will consider when choosing a port to work within the region. The main factors considered in this study include ship specifications, costs of operations, level of traffic at the port, and the value-added benefits offered to shippers and carrier owners. To effectively analyze the selected factors that affect the decision on choosing the preferred port, the paper was present in the form of different decision-making factors in port selection criteria. Similarly, the report presented an A.H.P. founded data analysis from the two region shippers. Several studies and business review articles have asserted that Jeddah port is the fastest growing port in the Arab world and the second biggest among the Middle East countries. Reports indicate that almost 67% of all export and imports into Saudi Arabia are done through Jeddah port. Several reasons explain why this is the case, and some of the factors include the efficiency at the port. Although the level of traffic at the port is high, it has been countered by the development of several terminals and berths, which can handle as many ships as possible. The port also has installed state-of-the-art equipment to load and offload cargo, which has also checked on the traffic level at the port. The implication of the current study findings to port authorities, managers, and operators are that they need to implement changes that will enhance their competitiveness at the port. Port managers need to review their existing port policies and learn from other competitive ports worldwide to improve their efficiency and performance.

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APPENDICES

Appendix A: Image showing the location of Jeddah Port along the red sea coast

Appendix A: An image of Jeddah Islamic Seaport

Appendix C: Main Terminals at Jeddah Islamic Port

Company	Terminal
Zamil Operations and Maintenance Company, Limited (Zamil O&M)	King Fahad Ship Building & Repair Yard
United National Marine Projects Co. Ltd	Passenger Terminal  (Handling Passengers' Luggage)
Gulf Stevedoring and Contracting Co. Ltd. (GSCCO)	Northern Container Terminal
Mansour Al-Musaid Company	Northern General Cargoes – Livestock, Bulk Grain, (Esnad Northern Terminal)
D.P. World Middle East Limited	Southern Containers
International Technical Company	Southern General Cargoes Al Esnad Southern Terminal
Abdul Rahman Turki Foundation (ATCO)	Marine equipment
Saudi Trade & Export Development Company (Tusdeer)	Re-Export Zone
Red Sea Container Terminal Company	Red Sea Container Terminal

Appendix D: The Fundamental A.H.P. Scale of Absolute Numbers (Saaty 1999)

Appendix E: Saaty's standard random index scale

Appendix F: Analytical Hierarchy Process Model for Port Preference

CRITERIA	SUB-CRITERIA
Costs of Operations	Port's charges Cargo volume handled at the port Port's efficiency
Level of Traffic at the Port	Port/terminal operator's reputation Delay/congestion at the port Equipment availability
Ship Specification	Supporting value-(warehousing) Intermodal/hinterland connectivity Neighboring consumer market
Value-Added Benefits Offered At The Port	Empty container management Information conveyance (EDT) Cargo safety and insurance

Appendix G: Raw Relative Scores Received From Shippers' Preference in Port

	Ship Specification	Cost Of Operations	Other Benefits To Shippers	Level Of Traffic At The Port	Port's Efficiency
Ship specification	1	3	2	5	1/8
Costs of operations	1/3	1	1/8	1/5	1/6
Other benefits to shippers	1	8	1	3	1/8
Level of traffic at the port	1/5	5	1/3	1/9	1/6
Port’s efficiency	1	1	1	2	1

Appendix H: Weight on Sub-Criterion under Port Preference Factors

Shippers' Reference Factors	Value
Ship specification	16.2%
Costs of operations	38.7%
Other benefits to the shippers	11.7%
Level of traffic at the port	23.3%
Port's Efficiency	10.1%

Appendix I: Analysis of Different Ports Based on the cost of operations

Jeddah Islamic Port	King Abdulaziz Port Dammam	King Fahad Industrial Port Yinanbu	King Fahad Industrial Port Jubail	Jubail Commercial Port	Others
0.341	0.223	0.173	0.098	0.079	0.086

Appendix K: Analysis of Different Ports Based on the Value Added Services

Jeddah Islamic Port	King Abdulaziz Port Dammam	King Fahad Industrial Port Yinanbu	King Fahad Industrial Port Jubail	Jubail Commercial Port	Others
0.321	0.203	0.143	0.078	0.1479	0.106

Appendix L: Analysis of Different Ports Based on the Ship Specification

Jeddah Islamic Port	King Abdulaziz Port Dammam	King Fahad Industrial Port Yinanbu	King Fahad Industrial Port Jubail	Jubail Commercial Port	Others
0.241	0.096	0.173	0.128	0.213	0.109

Appendix M: Analysis of Different Ports Based on the level of traffic at the port

Jeddah Islamic Port	King Abdulaziz Port Dammam	King Fahad Industrial Port Yinanbu	King Fahad Industrial Port Jubail	Jubail Commercial Port	Others
0.143	0.086	0.271	0.138	0.213	0.109

Appendix N: weight value of the preferred port selection

Criterion	Weight Value
Ship specification	0.234
Costs of operation	0.311
Value-added benefits	0.213
Level of traffic at the port	0.242

Appendix O: Result of the Shipper Port Preference in Saudi Arabia Region

Jeddah Islamic Port	King Abdulaziz Port Dammam	King Fahad Industrial Port Yinanbu	King Fahad Industrial Port Jubail	Jubail Commercial Port	Others
0.321	0.216	0.163	0.138	0.103	0.119

Appendix P: Competitiveness of Seaports in Saudi Arabia