THE GEOGRAPHY OF TRANSPORT SYSTEMS
| Factor | |
| Substitution | Small ships instead of large ships (better
asset utilization). Water instead of land (modal shift). |
| Network expansion | More links and wider coverage (more traffic
and throughput). Intersection and relay (transit between long distance services). |
| Imposed | Lack of port infrastructure (capacity
unavailable for large ships). Congestion (potential delays for large ships). High port costs (port call charges versus volume). |
| Cost trade off | Savings in ship cost vs. additional port handling (advantages of ‘offshore’ locations). |
| Level of service | Transit Time (varied; depend on the port
pairs). Frequency (higher; more port calls). Reliability (less; more potential for delays). |
| Appeal | Lead to surges in traffic (additional
revenue). Limited externalities (hinterland connections). |
Source: adapted from Ashar (2009).
There are several network and technical factors behind the usage of transshipment as a maritime shipping strategy. From a port authority perspective, transshipment can also have a lot of appeal since it can lead to rapid surges in traffic and therefore additional revenue. This is particularly attractive for ports that show limited expansion opportunities due to a saturated hinterland. Also, limited investments are required for hinterland access and the transshipment port therefore combines limited externalities with a higher traffic level.