Transport service providers, such as carriers and terminal operators, can compete over a series of fundamental dimensions:
- Costs. The standard competitive mechanism where providers try to offer comparative low costs depending on the existing pricing structure. The need is simply to be able to offer a cost that is lower than what is comparatively available while keeping other parameters constant. Lowering or comparatively keeping input costs constant, such as energy, labor, and assets, enables this form of competitiveness. Another challenge can be to make customers aware of the cost structure, which involves marketing.
- Differentiation. Offering existing or new transportation services and performance metrics that are different from those offered by other transport service providers. It can also involve being able to offer more transport capacity than a counterpart. This implies that customers are less likely to find an alternative.
- Focus. Able to offer transportation services in a specific mode or market area, implying high know-how and reliability that is difficult to replicate. Ownership or control over regional transportation assets and infrastructures allows for a competitive operating focus. This is a major factor behind transnational investments in transport terminals. Another approach concerns focusing on a specific customer base with specialized requirements.