The changing role of ports as locations for logistics activities

Abstract

Ports are often seen as engines behind regional economic development, because ports attract a variety of economic activities. This paper focuses on the role of ports in global supply chains and the opportunities to attract new economic activities in logistics. The central argument of the paper is that the role of ports as a location for logistics activities evolves with the evolution of logistics concepts. Evidence from West Europe is discussed. With the evolution of logistics concepts towards central coordination and more decentralized physical distribution, ports will see its multinational function diminish, eventually replaced by logistics activities with a more regional function and stronger integrated with production activities. Ports then have to face the competition from inland locations for value added logistics activities. The case of logistics developments provides a basis for analysing the increasingly important questions “What logistics activities ports can attract?” and “What is the appropriate strategy to result in this?”