Terminal Vitalization Strategy through Optimal Route Selection Adopting CFPR Methodology

Abstract

Abstract Container shipping route selection strategy has become an important component in attracting additional cargo volumes and increasing terminal competitiveness of small and medium ports (SMPs). Shipping route selection relies upon decisions based on real industry data and expert judgments. There is scant research that places emphasis on container shipping route selection as a vital aspect of SMPs. This paper bridges the gap by utilizing Consistent Fuzzy Preference Relations (CFPR) methodology, which handles both qualitative and quantitative factors in order to select optimal routes for SMPs. Donghae port, which is located on the east coast of South Korea, is analyzed as a case study. The results illustrate that volume commitment ranks first among the 19 established selection factors, followed by incentive system risk and head-haul ratio. This study also reveals that Donghae-Hochiminh is the optimal route for the Donghae port, while the container shipping route of Donghae-Port Kelang is ranked in the middle, and Donghae-Jakarta is considered to be the least optimal route amongst the three alternatives.