In most of the developing countries, the performance indicators of industry clusters have outpaced the na-tion’s economic development indicators. Clusters as an instrument for economic growth is turning out to be an acceptable choice among policymakers globally. Establishment and execution of cluster policies can be classified in to different models based on approaches to the creation and promotion of clusters followed in different geographies. Potential constituents of a cluster need to be motivated to participate in more common action. Cluster policy is about consistently paving the way for environments that are encouraging to the dis-tinct businesses and organizations those are the key actors in cluster activities. There should be definitive benefits facilitated by the policy measures to encourage the constituent firms to participate in the cluster activities. The attempt was to facilitate policy makers by identifying the characteristics of cluster policies, which are fundamentally critical to be considered within many of the approaches being practiced, especially in the maritime industry.

Port clusters have been major concept driving competitiveness and creating an edge over other ports over a period. The clusters also have been developing in many geographical regions across the world due to various factors depending on the location and need of the region. The purpose of this research article is to study various factors affecting the Port clusters growth in Malaysia and to identify the main factors based on the variance. The responses for the factors affecting the Port clusters have been collected using the Likert scale, and Principal component analysis has been used. Four prominent factors have been identified among 19 factors based on variance using Principal component analysis. Shipping services and primary service providers were found to be major factors for the growth of Port Clusters in Malaysia. The article brings forth that there is a need for government to formulate policy concentrating towards the growth of the Shipping services lined shipping lines and primary service providers like Custom house agents and stevedoring agents for the development of port clusters in countries like Malaysia. The study shows the need to focus on Port clusters and factors that affect the development of the same.