Clusters Initiatives in Port Hinterlands

Abstract

For the effective use of port hinterlands, the concept of supply chain logistics should be applied. Port hinterlands have a geographical advantage and an important infrastructure nearby. However, these merits of port hinterlands are not very significant from the point of view of supply chain logistics. In this respect, clustering can emerge as an alternative to develop port hinterlands. Small and medium enterprises (SMEs) that are related with specialized industries in relevant regions can be clustered into a port hinterland to improve the competitiveness of supply chain logistics. In addition to the synergy effect it creates, clustering is expected to meet the construction objectives of port hinterlands thanks to its export-oriented nature. Types of businesses that would create synergy effects through clustering should be selected among regionally specialized industries adjacent to a port hinterland. The characteristics of selected businesses among candidates should also accord with the successful factors of clustering, technology accumulation, the likelihood to secure skilled labor, innovation and R&D capacities. As an illustration, locating a packaging cluster near a port can lead to a better connection between manufacturing to logistics. The “total logistics service with packaging” is not a new concept, but this could be a more cost efficient business model in port hinterlands.