Carrier and Mode Selection for shippers in the Pearl River Delta of the People's Republic of China - a case study of Zhongshan and Foshan

Abstract

Purpose This paper studies the carrier and mode choice selection problem in the China Pearl River Delta (PRD) area from selected shippers, who are aiming to deliver their overseas shipments. After the implementation of Environmental Act and Labour Law recently in China, particularly in Guangdong province, many factories have relocated their manufacturing base further inland (northwest-ward) to lower their fixed and operation costs. Hence they need to reassess their current transport network for overseas consignments. In this paper, the analytical hierarchy process (AHP) model is constructed based on comprehensive industrial interviews and statistical analysis. AHP is used to analyse the weakness and strength of impacting factors in carrier selection. Research Approach The initial stage will be focus on field data collected through questionnaire and telephone conversation with the local industrial practitioners. Data collected will be analyses to find out the basic parameters that constitute the carrier/mode choice. The methodology used in this research is the Analytic Hierarchy Process (AHP). This is an analytical tool, supported by simple mathematics, which enables researchers to explicitly rank tangible and intangible factors against each other for the purpose of resolving conflicts or setting priorities. The process has been formalised by Saaty and used in a wide variety of problem areas. Over the past two decades, Saaty’s AHP has been developed to solve decision making problems in various fields by prioritisation of alternatives using eigenvectors and manipulations in matrix algebra. This paper studies the factors that will affect the shippers’ mode/carrier choice and ascertains the unique key factors that will affect their mode/carrier choice in the PRD for their overseas consignments. The model is implemented under different types of shipper according to the nature of their cargo consignments. Major criteria are summarised from field questionnaire for evaluating different modes and alternatives. Findings and Originality Raw data will be collected from shippers who operate in PRD region. The study will analysis those raw data and come up with some interesting findings. Research Impact No studies, as known by the authors that have been carried out on carrier and mode selection in this region in recent decades. The relocation of industrial activity due to changes of related labour and environmental laws has never been studied. The improvement in port performances and inland infrastructure of ports located near the new location may create a new platform for the study of mode and carrier choice. Practical Impact The results are useful to those shippers located in the PRD region in relationship to port and carrier mode selectio