Port connectivity in Asia: A case study on the Hub and Spoke Model for Port Klang and Chattogram Port

Abstract

Port Klang, Malaysia, and Chattogram Port, Bangladesh are ranked among the 100 busiest container ports in the world by following their port throughput in a year by Lloyds List. Bangladesh’s premier seaport Chattogram is well connected to Asian major “Hub” ports such as Singapore, Port Klang, and Colombo for international container trade and plays the role of “Spoke” actively. A quantitative data analysis method is applied to get the scenarios of vessels calling between two ports and carrying containers to understand the gaps, obstacles, and management issues for augmenting shipping services and arranging seamless connectivity. In a selected monthly throughput data analysis of Chattogram Port, it is explored that the direct contribution of Port Klang to Chattogram Port is 19% only whereas jointly with Port of Tanjung Pelepas is 30%. Two other major findings are the absence of a bilateral contract between Bangladesh and Malaysia especially Chattogram Port and Port Klang for exclusive facilities such as priority berthing, reduced charges, flag-vessel sharing, etc., and port choice of MLO ( Main Line Operator) and NVOCC ( Non-Vessel Operating Common Carrier ) to select Port Klang as Hub to connect with the Spoke Chattogram Port regularly. These findings would benefit port authorities, feeder operators, port users, and others in making strategic port choice decisions. Overall, this paper aims to recommend improvements to the port connectivity between Port Klang and Chattogram Port to fit the “Hub and Spoke Model” for developing a long-term relationship, increasing the number of vessels and containers as well as decreasing container freight and vessel operating costs significantly.