In today’s competitive global markets, ports play a vital role in global supply chain operations. A port selection model was developed to demonstrate the potential to aid shipping line companies with decisions to select the best ports in the U.S. Gulf Coast. Because port selection is complex, is dynamic, and includes multiple objectives, a multiple-objective decision analysis quantified the value of the various ports using industry data and an industry expert’s knowledge. In addition, a corresponding cost model was developed using available cost data for each port. Monte Carlo simulation analyzed the uncertainties in the value and cost models. For the demonstration model scenario assumptions, the results show that the Houston port would be the best alternative for shipping lines in the Gulf Coast. The value model also identified opportunities for improvement for each port compared with the best West Coast port. The demonstration models show that port data exist to support the development of a multiple-objective decision analysis model and a cost model that can provide useful insights to port selection decision makers. Furthermore, these models can be easily tailored to support port selection in other regions by tailoring the objectives and measures to the decision-maker objectives.
The West Africa gross domestic product is expected to grow and port expansion projects will increase capacity by over 12 million TEUs (Twenty-Foot Equivalent Units) by 2020. With the economic potential that the region offers and the steady growth of container traffic, the port selection decision by shipping lines is complex because the region has a poor shipping infrastructure and political instability that impact transportation security supply chain services. This research applies a multi-attribute value theory (MAVT) with value-focused thinking (VFT) and alternative-focused thinking (AFT) methodologies to develop a shipping lines' container port selection decision models for West Africa. Criteria and port alternatives from a previous published study were used in the research. The study demonstrates that a decision analysis model can be developed based on available quantitative port data rather than using data from surveys, interviews and questionnaires, as done in previous publications. In both approaches the Abidjan Port is the best option for shipping lines and the worst option is the Lagos Port. The VFT approach offers graphical displays that help decision makers understand strengths, weaknesses, tradeoffs, and improvement opportunities for each port alternative.
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