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Understanding the Port-Centric Logistics Clusters: Concepts, Characteristics, and Measurements
Abstract
Port-centric logistics clusters are considered as intermodal gateways and/or hubs of international trade, which connect national economies with global production networks. These clusters are spatial agglomeration of logistics related interconnected and interdependent companies. Singapore, Dubai and Rotterdam are world class exemplary of port-centric logistics clusters. The formation of these clusters is a derivative of conducive business environment generated within a geographically defined area. Despite the recognition of port-centric approach to economic development there is insufficient evidence to empirically assess the functional and spatial characteristics of port centric logistics clusters. There is also disagreement on three key questions: how port-centric logistics clusters are defined and identified, what industry types do they constitute and what methods are appropriate to delineate the boundary of port centric logistics cluster. In this paper, a spatial approach is adopted to geographically delineate the spatial congregation of port-centric logistics employment using three major container ports in Australia. Using the Census data from the Australian Bureau of Statistics (ABS 2006), analysis has been conducted on employment data containing information about where people work and what industry they work within the close vicinity of case study seaports. The results show that the spatial extent Australian port centric logistics clusters, which tend to vary both in size and shape. Overall size of employment in port-related industries in Australia has grown substantially. Road freight is dominating industry in the port-centric logistics cluster with a contribution of 23.02% and 37.54% in 2001 and 2006 respectively. The range of port-centric logistics cluster in Melbourne is towards western suburbs and in Botany Bay the port-centric logistics cluster is discerned mainly around eastern suburbs and in Brisbane the spread of port-centred logistics cluster is towards southeast inner Brisbane and Northwest Inner Brisbane suburbs. This shows the impact of land use consolidation by the State Government in their effort to boost transport and warehousing employment closer to Australian container ports. The establishment of port-centric logistics clusters, we argue, could mean the opportunities for organisations to achieve agglomeration economies, increase rivalry among organizations to promote competition, access to greater pool of customers, availability of skilled labour force, closer proximity between customers and supplier, sharing of public infrastructure and resources, increased inter-firm interactions, and knowledge spill-over.
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