Strategic port classification: International clustering‐based approach for decision‐making optimization

Abstract

This comprehensive study aims to identify from a strategic perspective a new port classification approach based on port features and characteristics. Data of 3,685 ports worldwide have been collected, and 25 dimensions with 62 factors have been identified and utilized to analyze and classify ports worldwide. The K‐means clustering technique has been utilized to conduct the port classification process at several levels. First, ports have been classified into two general clusters (low capabilities and moderate‐to‐high capabilities). Then only ports with moderate‐to‐high potentials were classified and taxonomized. In addition to identifying and classifying ports with moderate‐to‐high capabilities, findings of the second round demonstrate the existence of three main clusters. The new port classification has been used to provide new insights about the top 50 terminal ports as a real case study. This innovative approach is valuable for most port‐related decision‐making situations and facilitates the global supply chain management processes.