||In order to confront a more competing world, worldwide navigation administrations and their ports systems have progressively been privatized. They stand now as independent, more flexible and competitive companies, able to grasp market information much quicker, reduce lengthy administrative procedures and respond to them in briefer delays. In Taiwan, the corporatization has been done in March 2012, with the establishment of the “Maritime Port bureau” which is the public sector for navigation and aviation and “Taiwan International Ports Corporation Ltd.” for the operation of harbors. This study focuses on the strategic development of the port of Kaohsiung.|
After conducting a thorough literature review, we used System Thinking to depict the company’s structure with four subsystems: the financial affairs subsystem, the customer subsystem, the port environment subsystem and the employees’ subsystem. We then built a simulation model, whose main purpose was to simulate changes in customer loyalty as depending on environmental and services qualities, and their impacts on the development of the port of Kaohsiung.
Our results show that there are different ways to improve the operation of the port of Kaohsiung: increasing operating freedom by reducing customs constraints for example, was shown to be the most effective way to increase customer loyalty. Adopting flexible bonus policies and improving on the efficiency index can both make service quality better. Finally, although rate cut policies may enhance the total volume of containers, the revenues are expected to be decreasing in the long run.