Logistics by Combined Transport: Barriers to Market Entry and Strategies of Main Suppliers
International Journal of Physical Distribution & Logistics Management
ISSN: 0960-0035
Article publication date: 1 April 1993
Abstract
In the EC, Combined Transport (CT) is generally regarded as the most promising market for external logistics suppliers. EC deregulation policy makes market entry a strategic option both for mega carriers and big shippers. Concentrates on access problems to this market. Shows that liberalization does not automatically mean lower access barriers. The semi‐deregulated CT industry presents strong entry barriers due to low profitability and a high level of control over upstream and downstream resources by established main actors. Therefore the set of CT main providers, the “railway‐league” and the “UIRR‐forwarder‐league”, remains stable. The situation will probably not change as long as (1) the low price level of trucking is accepted by environmental and transport policy makers and (2) access to relevant resources is nationally monopolized. Only a combination of measures designed to rectify both of these market imperfections, not a succession of isolated actions, will support further development of CT. The consequence of its fast liberalization, without higher returns on capital, could be a serious crisis for the whole industry.
Keywords
Citation
Bukold, S. (1993), "Logistics by Combined Transport: Barriers to Market Entry and Strategies of Main Suppliers", International Journal of Physical Distribution & Logistics Management, Vol. 23 No. 4, pp. 24-34. https://doi.org/10.1108/09600039310041482
Publisher
:MCB UP Ltd
Copyright © 1993, MCB UP Limited