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Evaluation of factors for carrier selection in
the China Pearl River delta
PETER C. WONG*y, HONG YANy and COLIN BAMFORDz
yDepartment of Logistics, The Hong Kong Polytechnic University,
Hung Hom, Kowloon, Hong Kong, PRC
zDepartment of Logistics and Hospitality Management, University of
Huddersfield, UK
The efficient integration of logistics modes is critical for international cargo
shipping. The local transportation connecting to the export port then plays a vital
role in such integration. This paper investigates the problems of carrier selection
in the China Pearl River delta area, with respect to international shipping.
The analytical hierarchy process (AHP) model is constructed based on a
comprehensive industrial interviews and statistical analysis. Rather than simply
ranking the given alternatives, we use AHP is used to analyse the weakness and
strength of impacting factors in carrier selection. The model is implemented under
different types of shipper. Seven criteria are statistically summarized from the
questionnaire for evaluating eight different modes. The results are useful to those
liner companies serving the PRD region in relationship to port selection and fleet
deployment.
1. Introduction
This paper focuses on carrier mode selection in four selected cities within the PRD,
Shenzhen, Dongguan, Guanzhou and Zhongshan. The selection of these cities was
mainly based on the fact that they are the hubs of the area and are accessible by all
transport modes. In addition to the comprehensive infrastructure available, they
are also cities that received direct foreign (joint) investment in 1980, straight after
the open door policies implemented in China. In Guangzhou alone, over 110
multinational companies such as Warner-Lambert, P&G, Air Products, Casio,
Sumitomo, Honda, Linde, TOTAL, ICI Omicron, etc. have set up operations in the
region. Likewise, Shenzhen, Dongguan and Zhongshan have attracted investment
from Fortune 500 companies, including Dupont, General Electric, Hitachi,
Thompson and Nestle.
Obviously, these cities encompass a high concentration of factories ranging from
traditional industries such as textiles, clothing and footwear to more advanced
industries such as plastic mould injection, electronics and petrochemicals. They have
extensive involvement in the manufacturing industries and provide a wide variety
of export goods.
Starting from the late 1980s, Hong Kong’s major industries have undergone a
tremendous change with the dispersion of production networks moved into the Pearl
River delta (PRD) in China. This has created some logistics flow problems for
local shippers. With the manufacturing centres relocated further away from the


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