Legal and practical consequences of not complying with ISM code

Almost a decade since port corporatization was introduced in Australia it is becoming clear that initial objectives are not being realized. This paper explores some of the legal and legislative causes, the effect on port operation and investigates what necessary conditions are required to deliver an effective corporatized port business. The paper argues that effective corporatization is a product of effective legislation—one which, while emulating private sector business practices—can deliver a business model that is innovative, entrepreneurial, commercially oriented and free from self-serving political constraints.

The legislation and corporatized artifacts in Australian mainland ports have failed, in general, to deliver this. Arguably, the legislation has, in fact, created a model with inherent flaws and serious contradictions. The legislation enacted is such that while it has set in place a model that articulates commercial objectives, the model created is in fact one in which political objectives may override commercial ones; where strategy may be determined by a bureaucratic elite without the requisite skills and insights, and the resultant strategy appears ad hoc; and a corporate culture that frequently has failed to transcend that of the statutory authority and public utility model. This paper will test these assertions against the developments in the port of Melbourne.     

Port reform in Australia: issues in the ownership debate

Australia port reform initiatives have taken on a variety of forms — from out-right sale and transfer of ownership, to the sale of particular assets of infrastructure or services, or to long-term lease arrangements; or in some cases state governments, unable to relinquish control, have opted for corporatization or commercialization strategies. Reform is driven by the belief that ownership impacts on efficiency and efficiency is perceived to suffer if governments either retain ownership or direct control. As a result a major aim of reform is to either remove or distance governments from day to day port operations. The sale of ports removes government control outright and privatized ports are subject to identical regulatory constraints as any company in the private sector. But corporatization strategies are such that government ownership is retained and ports have been transformed into statutory state owned corporations. Effectiveness of this strategy requires legislation to be such that port corporations are free to operate like their private sector counterparts. To date this has not occurred and some serious impediments are emerging which are embedded in legislation and which, rather than reduce, have indeed, increased government control.     

Corporatization: a legislative framework for port inefficiencies

It is now some five years since the restructure of Australian ports and their transformation into corporatized entities. This strategy was adopted in an endeavour to improve efficiency by distancing government from day to day operations—the element that was perceived by many to be the cause of sub-optimal performance. While there is widespread agreement that port performance has improved significantly, dissatisfaction persists with the continued political intervention which is considered to be the reason for ongoing sub-optimal performance and ports' commercial potential from being realized. This paper investigates some of these issues but argues that political intervention per se should not be the focus of research and what is widely perceived to be the cause of the problem. Rather, that political intervention is an effect of something more endemic, of a legislative framework which may not be appropriate for the operations of a commercially focused port. It is argued that the focus should therefore be on the cause, a legislative framework, rather than the outworkings, or the effects of that framework.     

Corporatization: a legislative framework for port inefficiencies

It is now some five years since the restructure of Australian ports and their transformation into corporatized entities. This strategy was adopted in an endeavour to improve efficiency by distancing government from day to day operations--the element that was perceived by many to be the cause of sub-optimal performance. While there is widespread agreement that port performance has improved significantly, dissatisfaction persists with the continued political intervention which is considered to be the reason for ongoing sub-optimal performance and ports' commercial potential from being realized. This paper investigates some of these issues but argues that political intervention per se should not be the focus of research and what is widely perceived to be the cause of the problem. Rather, that political intervention is an effect of something more endemic, of a legislative framework which may not be appropriate for the operations of a commercially focused port. It is argued that the focus should therefore be on the cause, a legislative framework, rather than the outworkings, or the effects of that framework.     

Organizational change for port authorities: a social information processing analysis

Port authorities, like other organizations, have been constantly required to evolve in response to business, environmental, and technical changes since the 1980s to continue improving their competitiveness and performance. However, people often resist change due to various reasons, and the uncertainty of change has been pointed out as one of the most important reasons why this happens. This study contributes to social information processing (SIP) research and constructs an SIP model to explore employee’s response to port organizational reform in Taiwan. Empirical results are consistent with general job schema, where employees with job security orientation are less supportive of port corporatization, and those with corporate development orientation are more supportive of port organizational reform. Organizational trust and job conception are related to port workers’ attitude to port corporatization. Nevertheless, organizational communication does not positively moderate the relationship between job schema and employee attitude to port organizational change.     

基于电子商务的港口运营模式的探讨

开发依托港口优势主业和港口资源的电子商务是为了适应形势的变化,拓展经营领域,创新经营模式,提高天津港的核心竞争力和影响力。提出了基于电子商务这一创新的港口运营模式,分析了天津港开展电子商务的必要性与可行性;提出了中长期建设目标与实施原则;针对港口行业进行功能定位;同时阐述了如何开展具有港口特色的电子商务。对前景作了展望。     

The funding of hierarchical railway development in China

Transport networks are hierarchal in essence. In this paper, we explore the relationship between the financing structure and the hierarchal evolution of railway network development, using the case of China. Although privatization and corporatization in transport provision have been trends in some parts of the world, the national government is still the main body responsible for railway development in many countries. Among these countries, China and India are the only two that include the Ministry of Railways (MOR). In India, the entire country's railways are clearly defined as public services provided and managed by the MOR. In China, railways have been corporatized; yet, the MOR and the National Railway Corporation are still widely regarded as a single body that has monopolistic power over almost all railway systems at the national and regional levels in both infrastructure development and operation.     

Policy making and planning for the port sector: paradigms in conflict

Policy making is a complex and diverse process—particularly in relation to the provision and location of port and port related infrastructure. The planning stage of port infrastructure, or indeed transport planning more generally, may be finalized only to experience policy failure as implementation of the planned facility cannot be successfully completed. When this occurs planning and implementation failure is invariably perceived to be driven by a political agenda and it is argued that 'politics gets in the way'—that politics 'distorts' a scientifically rational planning process. Is it the case that politics 'gets in the way'? Or that politics distorts a technical and scientific process? Or is it the case that planning constitutes only one part, but an integral one, of the policy process—a process that is inherently political? And if that is the case, can we legitimately separate the planning process from that of policy making? This paper discusses the fundamental differences between the planning and policy-making processes. It argues that transport planning is one element in a broader process of policy making which incorporates political and other social/economic/environmental elements. It will argue that planning is a fundamental part of the policy-making process and, if successful completion is to be achieved, it cannot be divorced from that process. The paper will provide a conceptual framework which will incorporate these apparently conflictual activities. This model, if adopted, is likely to enhance both the planning and policy-making processes.     

Port reform in Australia: regulation constraints on efficiency

Privatization and corporatization of ports in Australia has meant the transfer of government-owned monopolies to privately owned monopolies. This has required the introduction of a regulatory regime to protect the interests of users as in some cases the privatized terminal owner or operator is also a customer of that facility. A complex regulatory regime for ports at the commonwealth and state government levels has, as a result, been created. This has meant that pricing policies and reinvestment strategies are constrained by the regulator. Inefficiencies and disruptions are likely to occur. This paper examines the regulatory regimes in place—the role of the state government regulator, the Queensland Competition Authority, and that of the Australian Competition and Consumer Commission, the national regulator. It will examine the impacts and constraints these have imposed on coal terminal expansion and operations. Recommendations have been made suggesting the transfer of state government ports to a single national regulator. This paper examines whether the proposed regulatory overhaul will resolve the dilemma of the Goonyella coal supply chain. It will argue that while regulation rationalization and overhaul will expedite the complex regulatory process, the solution lies with an integrated approach to the entire supply chain rather than the port focus.     

Revisiting port pricing; a proposal for seven port pricing principles

A review of seven large landlord port authorities around the world reveals a notable diversity of pricing structures. While port authorities increasingly act as commercial undertakings, port pricing often seems to be not driven by commercial considerations. In this paper, we argue that ports can be regarded as “business ecosystems” with multiple users. This provides a valuable perspective on pricing and raises the question of whether ports can be regarded as two-sided markets. We argue this is not the case. The business ecosystem perspective provides a basis for deducing seven pricing principles for port authorities that are detailed in the paper and illustrated with cases these principles. These pricing principles are broadly follow a direct user pays approach; capture value from “non-core” tenants; price aggressively for activities with a high strategic value; differentiate pricing based on price elasticity and connectivity improvements; maximize revenue from long-term lease agreements, price port dues competitively; critically consider differentiation of charges based on environmental performance; and finally use incentives to align interests of terminal operators and shipping lines. We conclude that the ecosystem perspective is central to the understanding of pricing decisions of port authorities and that various pricing issues deserve more attention.     

Port strategic planning: Canadian port reform

Recent port reform established major commercial ports as Canadian Port Authorities (CPAs) as federal non-profit, business corporations. Canadian port reform was aimed at allowing CPAs to compete effectively. Canada's major ports operate in an increasingly competitive business environment. To gain advantage over their competition, Canadian ports must develop business strategies dealing with their organizational cultures, institutional structures, operations, and facility provision. Developing appropriate strategies involves creating a strategic plan that considers external and internal port environments. This paper outlines the evolution of strategic planning and its applicability to Canadian ports. The initial literature review is followed by a brief review of Canadian port reform and an analysis of external and internal port environments. This analysis determines the resources available to exploit external opportunities and defend against threats, and considers the internal strengths and weaknesses of Canadian ports. A list of strategic issues facing Canadian ports and how the Canada Marine Act affected them is derived from the analysis.     

The changing role of ports in supply-chain management: an empirical analysis

As integrated supply-chain management (SCM) is now at the epicentre of business transformation, firms are breaking down boundaries between internal functions, as well as between the enterprise itself and key partners in the value chain (e.g. customers, distributors, suppliers and carriers). One of the main goals of such new management approach is to get everyone in the supply chain into a common platform of logistics transactions and information systems.

Against such background, the aim of this work is to analyse how and if port operators can face the challenge of higher integration, on the assumption that the higher the integration between the actors the higher the competitiveness of the whole supply chain.

Accordingly, we adopted an SCM approach in the analysis of the port of Le Havre in Renault's supply chain. More specifically, we referred to the Lambert tri-dimensional model based on supply chain's structure (actors), key business processes and links between actors. The field work—which mainly consisted of semi-structured interviews to Renault, logistics and port operators, and, finally, to the Le Havre Port Authority—was crucial to gather the needed information.     

关于提升天津港东疆保税港区集装箱业务竞争力的探讨

集装箱物流是吸引制造业资本跨国转移的重要条件,是港口城市参与国际经济大循环的有效途径,已成为促进港口城市经济发展的重要动力.世界各主要经济体都十分关注本国外贸港口在国际集装箱运输中的地位和作用,近年来国际集装箱运输市场的不断成熟为港口集装箱业务带来了前所未有的机遇和挑战.基于对国际集装箱运输市场发展趋势的分析,探讨影响港口集装箱业务竞争力的因素和天津港东疆保税港区发展集装箱业务的竞争优势,为制定提升东疆保税港区集装箱业务竞争力的策略提供建议.     

The UNCTAD and WORKPORT models of port development: evolution or revolution?

Around ten years have elapsed since the UNCTAD model on port development was put forward as an explanation of how ports have adapted to incorporate technological, political and operational changes. The UNCTAD Three Generation Port Model is critically examined in the light of research carried out under the WORKPORT project funded by the European Commission, 1998-1999. Evidence from the WORKPORT study shows that, rather than developing in discrete steps, ports evolve continuously, adapting to new technologies, fresh legislation, revised working practices and other influences on an as-required basis. Further, it is demonstrated that several streams of evolution can be observed simultaneously; the pace of change within each stream can vary substantially. One of the prominent features of ports is that they often have several terminals, some operating along traditional lines while others may be leading edge in terms of technology, working practices or other aspects; all of them may be equally effective. The UNCTAD model, implying ports develop in discrete steps, or generations, is therefore shown to be fundamentally flawed.     

Ports as elements in value-driven chain systems: the new paradigm

This paper argues that, with the rapid and pervasive restructuring of supply chains and of the logistics pathways in which ports are embedded, existing paradigms no longer offer adequate insights into the functions of ports or port authorities. Rather, ports must now be seen as elements in value-driven chain systems or in value chain constellations. They deliver value to shippers and to third party service providers; customer segmentation and targeting is on the basis of a clearly specified value proposition; and the port captures value for itself and for the chain in which it is embedded. The role of ports and port authorities, and the way in which they position themselves in the new business environments beyond 2001 must be defined within a paradigm of ports as elements in value-driven chain systems, not simply as places with particular, if complex, functions.     

Ports as elements in value-driven chain systems: the new paradigm

This paper argues that, with the rapid and pervasive restructuring of supply chains and of the logistics pathways in which ports are embedded, existing paradigms no longer offer adequate insights into the functions of ports or port authorities. Rather, ports must now be seen as elements in value-driven chain systems or in value chain constellations. They deliver value to shippers and to third party service providers; customer segmentation and targeting is on the basis of a clearly specified value proposition; and the port captures value for itself and for the chain in which it is embedded. The role of ports and port authorities, and the way in which they position themselves in the new business environments beyond 2001 must be defined within a paradigm of ports as elements in value-driven chain systems, not simply as places with particular, if complex, functions.     

A simulation study for the logistics planning of a container terminal in view of SCM

This paper aims to apply a supply-chain modelling and its analysis framework to the supply chain in the port industry. The simulation approach serves two purposes: to model a supply-chain network in quantity approach and to evaluate its supply-chain performance based on proposed strategies. Through the modelling works to improve the performance, components of simulation model, such as input model, strategy model, operational policy model and performance model, in the port supply chain were identified. The effects of various strategies can guide the way to administrate the supply chain in the different objectives.     

A simulation study for the logistics planning of a container terminal in view of SCM

This paper aims to apply a supply-chain modelling and its analysis framework to the supply chain in the port industry. The simulation approach serves two purposes: to model a supply-chain network in quantity approach and to evaluate its supply-chain performance based on proposed strategies. Through the modelling works to improve the performance, components of simulation model, such as input model, strategy model, operational policy model and performance model, in the port supply chain were identified. The effects of various strategies can guide the way to administrate the supply chain in the different objectives.     

Managing port-related supply chain disruptions (PSCDs): a management model and empirical evidence

ABSTRACT

In the contemporary port business environment, port resilience is of paramount importance for supply chain continuity. A result of the increased integration of ports into supply chains is ports’ potential to supply chain disruptions. This paper introduces a PSCD management model that incorporates the application of risk management, business continuity management, and quality management theories with the purpose of increasing port resilience such that supply chain continuity is enhanced. To validate this model, primary data were collected from samples of port operators and port authorities and analyzed using structural equation modeling with AMOS 22.0. The results indicate that managing PSCD using the management model contributes positively to the identification of internal and external opportunities and through that to port’s resilience of internal operations. This, in turn, positively influences port’s financial health and market reputation. The management model has several managerial and academic implications as it offers meaningful insights on policy development as well as theory building.     

Port strategic planning: Canadian port reform

Recent port reform established major commercial ports as Canadian Port Authorities (CPAs) as federal non-profit, business corporations. Canadian port reform was aimed at allowing CPAs to compete effectively. Canada's major ports operate in an increasingly competitive business environment. To gain advantage over their competition, Canadian ports must develop business strategies dealing with their organizational cultures, institutional structures, operations, and facility provision. Developing appropriate strategies involves creating a strategic plan that considers external and internal port environments. This paper outlines the evolution of strategic planning and its applicability to Canadian ports. The initial literature review is followed by a brief review of Canadian port reform and an analysis of external and internal port environments. This analysis determines the resources available to exploit external opportunities and defend against threats, and considers the internal strengths and weaknesses of Canadian ports. A list of strategic issues facing Canadian ports and how the Canada Marine Act affected them is derived from the analysis.