Key Factors Influencing the Effectiveness of Logistics Management at Vallarpadam Container Terminal

Abstract

The Vallarpadam International Container Transshipment Terminal (ICTT), located in Kochi, has been set up to improve India's presence in international maritime trade; however, the terminal has not been able to operate at its expected levels of efficiency. This study aims to explore the factors that affect the logistics management effectiveness of ICTT through studying the impact of operational efficiency, regulatory policies, technology adoption, and logistics infrastructure on the performance and competitiveness of the terminal. In order to conduct quantitative research, primary data were collected through a structured questionnaire survey comprising 359 respondents involved in ICTT operations as port operators, shippers, freight forwarders, and other logistics professionals. The collected responses were statistically analyzed through Pearson correlation, paired sample t-test, linear regression and mediation analysis (using Hayes' PROCESS Macro). The study finds a strong positive correlation between operational efficiency and logistics management effectiveness (r = 0.684, p < 0.01). The results of the paired sample t-test suggest that improvement in regulatory policy led to significant enhancement of the competitiveness of ICTT, as the mean score for competitiveness increased from 3.46 prior to policy implementation to 4.21 after implementation (t = -10.12, p < 0.001). Regression analysis shows that technology adoption plays a significant role in determining service quality and operational performance and accounts for 56.5% of the variance (R² = 0.565; β = 0.512, p < 0.001). Besides, logistics infrastructure plays a significant mediating role in the relation between operational efficiency and performance, with an indirect effect of 0.136. The study concludes that integrated improvements in operational processes, regulatory support, technological advancement, and infrastructure development are essential for enhancing ICTT’s logistics effectiveness and strengthening its competitiveness as a regional transshipment hub.