Competition dynamics between container ports in East Asia

This paper unveils the competitive dynamics between the major container ports in East Asia by analyzing their extent and intensity. Time series data, with the longest series dating back to 1970 ending 2001, on container throughput for the ports of Hong Kong, Kaohsiung, Keelung, Kobe, Nagoya, Osaka, Pusan, Taichung, Tokyo and Yokohama are computed. Cointegration tests are employed to determine the existence of long run relationship between various port pairs. Error correction models are constructed to determine short run inter-port dynamics. The results reveal that Hong Kong and Pusan are beneficiaries from inter-port competition in the region for the past three decades. The study suggests that inter-port competition in the region would intensify in the future as the centre of gravity of cargo volume shifts to mainland China. Moreover, concentration of services by shipping lines at the primary load centers might lead to intense competition between the primary load centers and ports located in close proximity that share their hinterlands.     

Traffic consolidation in East Asian container ports: A network flow analysis

The proliferation of hub-and-spoke operations in maritime container transportation has resulted in the widespread consolidation of traffic flows. Utilising liner shipping network configurations, this paper assesses the impact of freight traffic consolidation in the container port industry by exploring the spatial pattern of traffic flow movements and identifying the variety of roles that container ports play within this context. On the basis of the network concept, the spatial inequality of freight traffic consolidation is determined by the density and direction of all meaningful connections (i.e. significant flows) identified by applying Multiple Linkage Analysis (MLA) to an initial traffic flow matrix.The effectiveness of the chosen methodology is tested empirically using a sample comprising the 18 major container ports in East Asia, together with another 21 important container ports located on the East–West trading route. Based on this sample network, the spatial structure of traffic flow consolidation reveals the nature and structure of hub-and-spoke operations within a port system, the relative hub-dependence of ports, the variety of roles which individual ports play within the overall structure of inter-port interactions and the hierarchical configuration of the port industry structure. The paper concludes that MLA offers new insights into the distributional inequality of traffic flows, the spatial and economic interactions between ports and the extent to which hinterlands overlap. Furthermore, the analysis clearly shows that inter-port relationships can no longer be evaluated as isolated phenomena; any change in a specific port’s competitiveness will directly impact upon the structure of the whole maritime transportation system. Port authorities and terminal operators will need, therefore, to carefully analyse and disentangle specific inter-port relationships in order to provide the most appropriate basis for their decision making.     

Modelling emission control taxes in port areas and port privatization levels in port competition and co-operation sub-games

Using a game theory approach, this paper analyses a situation in which the government imposes a certain emission tax on vessels and port operations for emission control in port areas. Two ports are considered: a purely private port and a landlord (partial public) port. These two ports are in Cournot or Bertrand competition or cooperation with differentiated service. Our model outcomes lead to the following conclusions. First, the optimal private level of port 2 under Cournot and Bertrand competitions varies between fully private and highly public concerned port, while government will prefer a highly public concerned or close to highly public concerned port in the cooperation scenario. Second, government will have to make more and stricter efforts to enhance environmental protection in the situation of port cooperation (monopoly) than in the case of inter-port competition, and all the optimal emission tax should be always lower than the marginal emission damage. Third, port privatization has a non-monotonous effect on ports’ environmental damage in the inter-port competition scenarios and a monotonous decreasing effect in the cooperation scenario. Fourth, the total emission tax revenue is always higher than the overall environmental damage in the cooperative scenario, and it may or may not be able to cover the whole environment damage in Cournot and Bertrand competitions. Finally, the government may face a trade-off among environmental protection, maximizing social welfare, satisfying individual motivation, when considering port cooperation (monopoly).     

Joint impact of competition,ownership form and economic regulation on airport performance and pricing

The combined impact of ownership form, economic regulation and competition on airport performance is analyzed using data envelopment analysis to measure cost efficiency in the first stage and regression analysis to measure the impact of the environment in the second stage. The empirical results of an analysis of European and Australian airports over a 10 year timeframe reveal that under relatively non-competitive conditions, public airports operate less cost efficiently than fully private airports. Irrespective of ownership form, regulation is necessary to emulate competitive forces thus pushing airport management towards cost efficiency and reasonable pricing policies. Under potential regional or hub competition, economic regulation inhibits airports of any ownership form from operating and pricing efficiently. Although public and fully private airports operate equally efficiently in a competitive setting, private airports still set higher aeronautical charges. Furthermore, mixed ownership forms with a majority public holding are neither cost efficient nor low price, irrespective of the level of competition.     

Evaluation of eco-driving training for vehicle fuel use and emission reduction: A case study in Australia

This study evaluates effectiveness of driver education teaching greater fuel efficiency (Eco-Driving) in a real world setting in Australia. The driving behaviour, measured in fuel use (litres per 100 km of travel) of a sample of 1056 private drivers was monitored over seven months. 853 drivers received education in eco-driving techniques and 203 were monitored as a control group. A simple experimental design was applied comparing the pre and post training fuel use of the treated sample compared to a control sample. This study found the driver education led to a statistically significant reduction in fuel use of 4.6% or 0.51 litres per 100 km compared to the control group.     

Estimation of nitrogen oxides emissions from petrol and diesel passenger cars by means of on-board monitoring: Effect of vehicle speed,vehicle technology,engine type on emission rates

NO_X emission rates of 13 petrol and 3 diesel passenger cars as a function of average speed from 10 to 120 km/h, emission class (pre-Euro 1 – Euro 5), engine type were investigated by on-board monitoring on roads and highways of St. Petersburg using a portative Testo XXL 300 gas analyzer. The highest level of NO_X emission 0.5–2.5 g/km was inherent to old pre-Euro 1 petrol cars without a catalytic converter. NO_X emissions rates of Euro 1 and Euro 2 petrol cars changed within 0.15–0.9 g/km, Euro 3 – 0.015–0.27 g/km, Euro 4 – 0.013–0.1 g/km, Euro 5 – 0.002–0.043 g/km. Euro 3 – Euro 4 petrol cars generally satisfied corresponding NO_X Emission Standards (ES), except cold-start period, Euro 5 petrol cars did not exceed ES. Warmed, stabilized engines of Euro 3 – Euro 5 petrol cars showed 5–10 times lower NO_X emission rates than corresponding ES in the range of speed from 20 to 90 km/h. NO_X emission rates of diesel Euro 3 and Euro 4 cars varied from 0.45 to 1.1 g/km and from 0.31 to 1.1 g/km, respectively. Two examined diesel Euro 3 and one Euro 4 passenger vehicles did not satisfy NO_X ES at real use. Euro 3 diesel cars showed 28.9 times higher NO_X emissions than Euro 3 petrol cars and Euro 4 diesel car demonstrated 17.6 times higher NO_X emissions than Euro 4 petrol cars at warmed and stabilized engine at a cruise speed ranging from 30 to 60 km/h.     

Reducing speed and fuel transfer of the Green Flag Incentive Program in Kaohsiung Port Taiwan

This research applied the Green Flag Program to assess the benefits of reducing speed and fuel transfer for large merchant vessels (bulk and container) entering Kaohsiung Port. This study adopts an activity-based model to calculate fuel consumption and emissions, as well as setting up two scenarios, (1) decrease vessel speed to 12 knots 20 nm away from port; and (2) decrease vessel speed to 12 knots and transfer fuel 20 nm away from port, which based on the Green Flag Program in Long Beach, in the U.S. The findings are (1) In scenario one, the container and bulk vessels saw reductions in CO₂ emissions of about 41% and 14%, respectively. In scenario two, container and bulk vessels had reductions of about 48% and 43% in SO₂ emissions, respectively. (2) Large vessels are more environmentally friendly than small vessels. (3) Using the CATCH model to assess the effectiveness of the two scenarios, it was found that container vessels benefited from both reducing speed and fuel transfer, while bulk carriers only did so from the former.     

Evaluating the social cost of cruise ships air emissions in major ports of Greece

Detailed NO_x, SO₂ and PM_2.5 emissions have been estimated for cruise ships in the five busiest Greek ports (i.e. Piraeus, Santorini, Mykonos, Corfu and Katakolo) for year 2013. The emissions were analyzed in terms of gas species, seasonality and activity. The total in-port inventory of cruise shipping accounted to 2742.7 tons: with NO_x being dominant (1887.5 tons), followed by SO₂ and PM_2.5 (760.9 and 94.3 tons respectively). Emissions during hotelling corresponded to 88.5% of total and have significantly outweighed those produced during ships’ maneuvering activities (11.5% of total). Seasonality was found to play a major role, as summer emissions and associated impacts were significantly augmented. The anticipated health impacts of ship emissions can reach to €24.3 million or to €5.3 per passenger proving the necessity of control of the emissions produced by cruise ships in port cities or policy and measures towards a more efficient cruise industry.     

Foreign participation and competition: A way to improve the container port efficiency in China?

This paper investigates how the involvement of foreign and local ownerships, intra- and inter-port competition and hinterland affect the container terminal efficiency in China and its neighboring countries. The operational efficiency of sample container terminals is estimated by data envelopment analysis, which is followed by regression analysis to examine factors affecting container terminal efficiency. We find that having some Chinese ownership may make a container terminal more efficient, while a container terminal is less efficient with Chinese as the major shareholder. It is also found that intra- and inter-port competition may enhance container terminal efficiency. Finally, the efficiency growth of terminals is examined, and implications for the regional economic disparity in China are discussed.     

Container Terminal Development in Mainland China and Its Impact on the Competitiveness of the Port of Hong Kong

In recent years, China's container ports have experienced a significant expansion in throughput and capacity. This paper provides a review of the sector and analyses the recent development of container ports and terminals within Mainland China. It then focuses in more depth on the competition between the ports of Shenzhen and Hong Kong. In particular, the port of Shenzhen is analysed in the context of Robinson's criteria for hub port development to try to discern whether it will become the dominant regional hub. The discussion concludes that despite Shenzhen's current competitive advantages, Hong Kong will, in all probability, retain its dominant role.     

Comparing and presenting city-level transportation CO2 emissions using GIS

In 2011, the European Pollutant Release and Transfer Register (E-PRTR) inventory of diffuse emissions became available, providing data on a range of atmospheric emissions at a 5 km resolution across Europe. The data are produced from spatially disaggregated emissions totals for countries, and must be validated before being used at a sub-national level. The UK government maintains a 1 km resolution emissions inventory based on a bottom-up methodology by which a validation is possible. The UK National Atmospheric Emissions Inventory data are used to assess at what geographic scale the new E-PRTR data might be most useful. This paper compares the two data sets and estimates city-level transportation CO₂ emissions for 149 EU cities. We find that at a functional boundary level the two datasets match well.     

Effects of the 80 km/h and variable speed limits on air pollution in the metropolitan area of barcelona

In 2008 the regional government of Catalonia (Spain) reduced the maximum speed limit on several stretches of congested urban motorway in the Barcelona metropolitan area to 80 km/h, while in 2009 it introduced a variable speed system on other stretches of its metropolitan motorways. We use the differences-in-differences method, which enables a policy impact to be measured under specific conditions, to assess the impact of these policies on emissions of NO_x and PM₁₀. Empirical estimation indicate that reducing the speed limit to 80 km/h causes a 1.7–3.2% increase in NO_x and 5.3–5.9% in PM₁₀. By contrast, the variable speed policy reduced NO_x and PM₁₀ pollution by 7.7–17.1% and 14.5–17.3%. As such, a variable speed policy appears to be a more effective environmental policy than reducing the speed limit to a maximum of 80 km/h.     

Measuring transport related CO2 emissions induced by online and brick-and-mortar retailing

We develop a method for empirically measuring the difference in transport related carbon footprint between traditional and online retailing (“e-tailing”) from entry point to a geographical area to consumer residence. The method only requires data on the locations of brick-and-mortar stores, online delivery points, and residences of the region’s population, and on the goods transportation networks in the studied region. Such data are readily available in most countries. The method has been evaluated using data from the Dalecarlia region in Sweden, and is shown to be robust to all assumptions made. In our empirical example, the results indicate that the average distance from consumer residence to a brick-and-mortar retailer is 48.54 km in the studied region, while the average distance to an online delivery point is 6.7 km. The results also indicate that e-tailing increases the average distance traveled from the regional entry point to the delivery point from 47.15 km for a brick-and-mortar store to 122.75 km for the online delivery points. However, as professional carriers transport the products in bulk to stores or online delivery points, which is more efficient than consumers’ transporting the products to their residences, the results indicate that consumers switching from traditional to e-tailing on average reduce their transport CO₂ footprints by 84% when buying standard consumer electronics products.     

Strategic responses to institutional forces pressuring sustainability practice adoption: Case-based evidence from inland port operations

This article investigates strategic responses of inland ports to institutional forces pressuring their adoption of sustainability practices. We postulate that even though inland port operators strive for economic viability, there are growing pressures from various stakeholders for continuous enhancement of their environmental and social sustainability practices. We apply institutional theory to classify the effects of these forces based on five institutional antecedents – cause, constituents, content, control, and context – and further expand our theoretical framework with resource dependence tenets to discuss the spectrum of strategic responses available to inland ports to deal with institutional forces. We examine our theoretical arguments with empirical evidence collected from four inland ports using a case study-based approach. We conclude that while inland ports have a strong disposition towards social sustainability, economic considerations are still most emphasized, and environmental issues are mostly regarded in compliance with the legally mandated minimum. The most important sources of institutional pressure are identified as cause, constituents, and control. In a further step, we present evidence of the inland ports’ potential strategic responses. The study also provides insights for managers and policy makers on strategic options as appropriate organizational responses to proliferating institutional pressures for sustainability practices adoption.     

Paying for harbor maintenance in the US: Options for moving past the Harbor Maintenance Tax

The Harbor Maintenance Tax is a fundamentally flawed maintenance funding mechanism for the critical US port system. Three alternatives were analyzed. User fee rates were estimated for either a national or regional tonnage based fee. Our results indicate that maintenance cost recovering regional fees could vary widely from about 10 cents per tonne to nearly 80 cents per tonne. A national rate would be about 30 cents per tonne. The large regional differences and affects on bulk shippers are likely to make implementing and maintaining cost recovering tonnage based fees infeasible. Two other mechanisms are considered. One possibility is to abolish the HMT without a replacement mechanism. The obvious strength of this approach is its simplicity, the weaknesses is that it is not budget neutral. Another possibility is to increase the federal diesel tax rate. One strength of the approach is the reasonable rate increase required to recover port maintenance costs (estimated between 0.278 and 0.315 cents per liter). An additional strength is that relatively inefficient fuel users will either make the largest share of the additional payments or the freight will shift modes to one that is more efficient. One weakness is that the rate has been unchanged since 1997, this points to the political difficulty involved in passing such a rate increase.     

An Application of the Hierarchical Fuzzy Process to Container Port Competition: Policy and Strategic Implications

This paper aims to empirically identify the competitiveness of container ports in Asia by examining factors influencing the perceived competitive edge of each port using the Hierarchical Fuzzy Process, a method embracing human knowledge and/or judgement into a mathematical framework. This analysis is unique in that the ‘human-perceived’ competitiveness on Asian container ports is examined under the quantifiable framework. The findings reveal that Singapore is the most competitive port among the sampled ports. Moreover, the methodology employed here shows the potential to be applicable to other transport and logistics related service industries.     

Competitive tendering versus performance-based negotiation in Swiss public transport

The purpose of this study is to assess differences in the levels of cost efficiency of bus lines operated under competitively tendered contracts and performance-based negotiated contracts. Following the revision of the Swiss railways act in 1996, regional public authorities were given the choice between two different contractual regimes to procure public passenger transport services. We directly compare the impact of competitive tendering and performance-based negotiation by applying a stochastic frontier analysis to the complete dataset of bus lines (n = 630) operated by the main Swiss company (Swiss Post) at the same time (in 2009) throughout the country. The overall results show that the differences in the levels of cost efficiency between the two contractual regimes are not significant. Our findings are in line with recent evidence of cost convergence between competitive tendering and performance-based negotiation, and suggest that the practice of using both contractual regimes is challenging for the operators in terms of competitive pressure. The threat of competitive tendering may have a disciplining effect on negotiation since it prevents bus companies from bargaining inadequate rents and inducing asymmetric information advantages.     

Green approaches at sea – The benefits of adjusting speed instead of anchoring

In this paper, the concept ‘green approaches’ already used in aviation is applied to cargo transportation at sea. Instead of anchoring outside a port waiting for berth, ships can adjust their speed to arrive just in time for berthing. With improved incentives for reducing speed and shared information about berthing times, green approaches instead of anchoring can be a way to reduce fuel consumption and emissions without increasing the transit times of goods. The present study estimates the benefits to society as a whole for the EU ports in the Baltic Sea with Automatic Identification System data applying a new method using data collected in real time. Data consists of all anchored ships awaiting berth on 40 different occasions in 2015 and are subsequently extrapolated to a year. Fuel consumption by the individual ships, emissions and values are calculated from the detailed data with established models and estimates of unit values. The potential benefits are estimated at 27 million euros per year in the scenario where the near 15,000 anchorings by ships annually awaiting berth may instead start a green approach 12 h prior to arrival and may reduce speed by 25%, using the middle unit values for fuel and emissions. The methodology used in the paper can be applied to estimate the benefits of green approaches in other areas with anchored vessels.     

Eco-driving key factors that influence fuel consumption in heavy-truck fleets: A Colombian case

This research identifies key variables that influence fuel consumption that might be improved through eco-driving training programs under three circumstances that have been scarcely studied before: (a) heavy- and medium-duty truck fleets, (b) long-distance freight transport, and (c) the Latin American region. Based on statistical analyses that include multivariate regression of operational variables on fuel consumption, the impacts of an eco-driving training campaign were measured by comparing ex ante and ex post data. Operational variables are grouped into driving errors, trip conditions, driver behavior, driver profile, and vehicle attributes.The methodology is applied in a freight fleet with nationwide transport operations located in Colombia, where the steepness of its roads plays an important role in fuel consumption. The fleet, composed of 18 trucks, is equipped with state-of-the-art real-time data logger systems. During four months, 517 trips traveling a total distance of 292,512 km and carrying a total of 10,034 tons were analyzed.The results show a baseline average fuel consumption (FC) of 1.716 liters per ton-100 km. A different logistics performance indicator, which measures FC in liters per ton transported each 100 km, shows an average of 3.115. After the eco-driving campaign, reductions of 6.8% and 5.5% were obtained. Drivers’ experience, driving errors, average speed, and weight-capacity ratio, among others, were found to be highly relevant to FC. In particular, driving errors such as acceleration, braking and speed excesses are the most sensitive to eco-driving training, showing reductions of up to 96% on the average number of events per trip.     

Capitalization of BRT network expansions effects into prices of non-expansion areas

A before and after hedonic model is used to determine the property value impacts on properties already served by the transit system caused by extensions to Bogotá’s bus rapid transit system. Asking prices of residential properties belonging to an intervention area (N = 1407 before, 1570 after) or a control area (N = 267 before, 732 after) and offered for sale between 2001 and 2006 are used to determine capitalization of the enhanced regional access provided by the extension. Properties offered during the year the extension was inaugurated and in subsequent years have asking prices that are between 13% and 14% higher than prices for properties in the control area, after adjusting for structural, neighborhood and regional accessibility characteristics of each property. Furthermore, the appreciation is similar for properties within 500 m and properties between 500 m and 1 km of the BRT.