Carbon dioxide emissions from port container distribution: Spatial characteristics and driving factors

Port carbon dioxide (CO₂) emissions in China have become an ever-increasing public concern due to their significant impacts on human health and the environment. However, existing studies focus mainly on CO₂ emissions from vessels calling at the ports and cargo handling within the ports, paying little attention to the inland distribution networks. To fill this gap, this paper proposes an easily implemented method for calculating CO₂ emissions from port container distribution (PCD) and investigates their spatial characteristics and driving factors. By analyzing 30 container ports in China, the main findings are as follows. First, road transportation is the major contributor of CO₂ emissions from PCD due to the lack of rail and inland water transportation. Second, PCD carbon emissions exhibit significant local spatial clustering. That is, ports with similar geographical locations tend to present a similar pattern of PCD carbon emissions. Third, as suggested by the spatial Durbin model, PCD carbon emissions are negatively determined by local gross domestic product, number of port berths, but are positively determined by local tertiary industry value and highway freight volume, and waterway freight volume in both local and neighboring ports. These results provide empirical insights into cross-port collaboration in reducing PCD carbon emissions.     

Quasi-landlord port financing in China: Features,practice and a contract theory analysis

Since the 1970s and 80s, landlord port has been the dominant port financing model in western large and medium-sized container ports. In China, many prospective port projects have also explored a landlord port financing model. However, some evidence suggests that landlord port financing in China is a variant of the international mainstream landlord port financing model. Based on an explanation of their unique features and practices, this paper analyzes the Chinese quasi-landlord port financing model from a contract theory perspective, in which it can be viewed as a double-level principal–agent relationship and two-layer profit distribution contract with three participants: the state-owned assets administration department, the port investment company and the operators. Furthermore, the results show that in the Chinese quasi-landlord port financing model, whether in the case of both joint venture and port land lease (fixed rent), or in the case of both joint venture and port land transfer, the optimal incentive scheme is the same as in the international landlord port financing model with profit sharing rent or mixed rent.     

Cruise activity and pollution: The case of Barcelona

One of the main causes of mortality worldwide is air pollution. To tackle this problem, local, regional and national governments have implemented policies to reduce emissions from industrial and on-road sources. However, when these policies are being designed, shipping emissions are often overlooked. There has been a drastic increase in the demand for cruises and its economic relevance is also growing in port-cities. Barcelona is Europe’s leading cruise port, and it is located near the centre of the city. In this context, this paper analyses the impact of cruise ships in the air quality of the entire city of Barcelona using a dataset with information about pollutants and the number of cruises arriving to the port. We show that there is a direct impact between cruises staying at the port and city pollution. Additionally, the size and age of the cruise also affect air quality. The larger (or newer) the cruise is, the higher the emission generated. Moreover, our simulations show that the whole city is affected by these emissions.     

The effect of institutional factors on public–private partnership success in ports

Port public–private partnerships (PPPs) are considered to be an important emerging mechanism for port development and improvement in port performance especially for developing countries. This paper empirically investigates the effect of institutional factors in the success of port’s PPPs; the latter defined as the attractiveness of the PPP project for private bidders and the market competitiveness of the facility. The empirical investigation of a large sample of ports finds that ‘regulatory quality’, ‘market openness’, ‘ease to start a business’ and ‘enforcing contracts’ are important institutional determinants of port PPP success and may ultimately contribute to port development and economic growth. The results are consistent with and add to the theoretical literature whereas practical implications for port authorities, managers and investors are discussed.     

Corporatisation and Performance: A Literature Review and an Analysis of the Performance Effects of the Corporatisation of Port of Rotterdam Authority

Abstract

The ongoing process of port reform has led to an increasing number of publicly owned but corporatised port authorities (PAs). The performance effects of corporatisation have been analysed, for example, for the airports industry, often showing positive effects. This paper reviews the literature on port reform and the relationship between port governance structures and performance. It also presents a first case study on the effects of corporatisation of PAs, namely for the Port of Rotterdam Authority, a publicly owned but corporatised port development company. In 2004, this organisation was transformed from a municipal department to an independently operating company. The performance indicators to evaluate the effect of this corporatisation include market share, turnover, operating costs, profits, and investments. These indicators are evaluated for two periods, one prior to the corporatisation (1997–2003) and the other afterwards (2005–11). The comparison of these two periods shows that corporatisation has led to significant improvements of all performance indicators. The findings derived from this case study are relevant for the ongoing discussion on port governance models.     

The impact of competition on container port (in)efficiency

There are many studies on container port efficiency and that seek to understand what factors, such as technical and scale efficiency, private versus public terminal management or macro-economic factors, play on the efficiency score of a given port. There are fewer studies that focus on the role played by the inter-port competitive environment. This role remains difficult to assess. In fact, on the one hand, a port subject to high inter-port competition may record higher efficiency scores due to the pressure from the competitive environment. On the other hand, a port subject to high competition may be forced to over-invest and could therefore records a lower efficiency score. This article investigates this issue and examines how the degree of competition measured at different levels (local, regional and global level) impacts the efficiency score of a given container port. To do so, we implement a truncated regression with a parametric bootstrapping model. The model applied to information gathered for 200 container ports in 2007 and 2010 leads to the following conclusions: port efficiency decreases with competition intensity when measured in a range of 400–800 km (regional level); and the effect from competition is not significant when competition is measured at a local (less than 300 km) or at a global (more than 800 km) level. Estimates also show a tendency for ports who invested from 2007 to 2010 to experience a general decrease in efficiency scores, an element which could be explained by the time lag between the investment and the subsequent potential increase in container throughput.     

When it comes to container port efficiency,are all developing regions equal?

In this paper we carry out a container port performance analysis of the developing world between 2000 and 2010, using both parametric and nonparametric approaches. From a unique dataset – our sample covers 70 developing countries, 203 ports, and 1750 data points–, we examine the evolution and drivers of productivity and efficiency changes across developing regions. We show that productivity growth rates between 2000 and 2010 vary significantly and that this heterogeneity is explained by pure efficiency changes rather than scale efficiency of technological changes. Therefore, we carry out a detailed efficiency analysis to determine the drivers of port efficiency. Time series results show an upward trend for port efficiency in developing regions, as it increased from 51 percent in 2000 to 61 percent in 2010. Our analysis indicates that private sector participation, the reduction of corruption in the public sector, improvements in liner connectivity and the existence of multimodal links increase the level of port efficiency in developing regions.     

Characteristics of European inland ports: A statistical analysis of inland waterway port development in Dutch municipalities

Most scientific attention in port studies centers on deep-sea ports, in particular container ports. In our paper, in contrast, we focus our attention on the characteristics of inland waterway ports in a European context. This is an overlooked part in the scientific literature on inland port development, which is up to now mainly concerned with US-based understandings of inland ports. We try to broaden the application of the inland port concept by explaining the development of inland ports in terms of inland waterway bounded cargo throughput. Based on a large-scale quantitative dataset of inland port development in Dutch municipalities we perform various statistical analyses to arrive at a more detailed understanding of the question: What are the characteristics of European inland waterway ports and what transport and economic factors influence cargo throughput on the municipal level? The results in particular highlight the importance of the presence of a container terminal, the diversity in types of goods which are being handled by the inland port and the accessibility of the inland port relative to the regional motorway network as important factors in explaining the size and growth of inland ports. Interestingly, the popular claim in policy of ‘investments in inland port development leading to employment growth’ cannot be confirmed.     

A review of port devolution and governance models with compound eyes approach

Port devolution and port governance are focal issues in port studies. This paper argues that the previous typology of port devolution and port governance, including port function matrix models, might have to be modified, in particular for Asian port cases, because they have not considered socio, economic, and political systems and historical aspects behind the port devolution continuum. This paper uses the “compound eyes” approach comprising of many similar, closely-packed facets called ommatidia, with a multiple angle view, to revisit and review previous port devolution and governance models. The paper aims to identify the limitations and rectify fallacies in previous port studies by conducting a critical review and taking a couple of Asian container port cases as examples. This paper contributes to the literature of port devolution and governance, illuminating crucial gaps that the previous studies have not addressed.     

Influential factors in port infrastructure tariff formulation,implementation and revision

The process of formulation, revision and approval of port infrastructure tariffs is complex and involves different stakeholders. The extant literature focuses more on port pricing research but pays less attention to the practice of port infrastructure tariff setting. This paper aims to identify and analyses the influential factors in the port infrastructure tariff formulation process using survey data collected from 67 port authorities. Exploratory factor analysis (EFA) is first conducted before confirmatory factor analysis (CFA) is applied to analyse the latent factors underlying port infrastructure tariff setting. The analysis results suggested the four factors influential to infrastructure tariff practice, namely tariff policies, transparency, tariff regulation and stakeholder participation. The paper also presents the implications for port authorities, management and stakeholders.     

Productivity changes in Taiwan's port industry incorporating environmental regulations on harbor water quality

Abstract

This paper evaluates the productivity changes in Taiwan's port industry for the period 2003–2007. Based on a ‘three-year-window’ data envelopment analysis method, Luenberger productivity indicators are employed to estimate the productivity changes that account for the success of attempts by port agents to control harbor water quality. This is one of the typical environmental concerns in port operations that prior studies on port productivity changes over time have not considered. The results show that the productivity of Taiwan's port industry has experienced growth over the study period, regardless of whether water quality has been considered or not. At a disaggregated level, however, if a port agent has succeeded in controlling water quality, but we do not consider it, the results will misclassify the agent by understating the port's productivity.     

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).     

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.     

Liner ship route schedule design with port time windows

This paper examines a practical tactical liner ship route schedule design problem, which is the determination of the arrival and departure time at each port of call on the ship route. When designing the schedule, the availability of each port in a week, i.e., port time window, is incorporated. As a result, the designed schedule can be applied in practice without or with only minimum revisions. This problem is formulated as a mixed-integer nonlinear nonconvex optimization model. In view of the problem structure, an efficient holistic solution approach is proposed to obtain global optimal solution. The proposed solution method is applied to a trans-Atlantic ship route. The results demonstrate that the port time windows, port handling efficiency, bunker price and unit inventory cost all affect the total cost of a ship route, the optimal number of ships to deploy, and the optimal schedule.     

Towards improved port capacity investment decisions under uncertainty: a real options approach

ABSTRACT

Port activity plays an important role in facilitating international trade. Sufficient capacity is indispensable for a port to attract flows to a region and retain them. The capacity decision is the result of a trade-off between investment and waiting costs. Traditional methods to value expansion projects do not deal adequately with managerial flexibility in the face of uncertainty from different sources in the complex port environment. In this paper, real options (RO) models are identified as an alternative method to making project valuations and investment decisions, as they attribute the correct value to managerial flexibility under uncertainty. In order to be able to build and use such RO models for port capacity investment decisions, the sources and implications of uncertainty in the port and the different RO model specifications need to be understood. To this end, both the literature about uncertainty in the port context and the literature about real options models are reviewed in order to provide researchers who want to build their own decision-making models, with the necessary knowledge of both fields. The review makes clear that the complex interactions in and competition between the logistics chains and their actors coming together in ports have significant impacts on port capacity. Uncertainty is also caused by uncertain international trade flows and changes in legislation following new technologies and environmental impacts. An analysis of the components of some general RO models shows how the options of flexible output, investment size and timing are valued by RO models in a setting with demand uncertainty. Moreover, the review presents researchers with insights in how to deal with cooperative and competitive interactions in the chain, time to build, cyclical markets and legislation changes. It also shows how to value the expansion and the phased investment options. The new insights resulting from this review are subsequently combined in a framework that serves as a guideline to build RO models for port capacity investments. Finally, an exemplifying application of the framework is used to build an actual port capacity investment decision model.     

Experimental evaluation of Heavy Duty Vehicle speed patterns in urban and port areas and estimation of their fuel consumption and exhaust emissions

Exhaust emissions and fuel consumption of Heavy Duty Vehicles (HDVs) in urban and port areas were evaluated through a dedicated investigation. The HDV fleet composition and traffic driving from highways to the maritime port of Genoa and crossing the city were analysed. Typical urban trips linking highway exits to port gates and HDV mission profiles within the port area were defined. A validation was performed through on-board instrumentation to record HDV instantaneous speeds in urban and port zones. A statistical procedure enabled the building-up of representative speed patterns. High contrasts and specific driving conditions were observed in the port area. Representative speed profiles were then used to simulate fuel consumption and emissions for HDVs, using the Passenger car and Heavy duty Emission Model (PHEM). Complementary estimations were derived from Copert and HBEFA methodologies, allowing the comparison of different calculation approaches and scales. Finally, PHEM was implemented to assess the performances of EGR or SCR systems for NO_X reduction in urban driving and at very low speeds.The method and results of the investigation are presented. Fuel consumption and pollutant emission estimation through different methodologies are discussed, as well as the necessity of characterizing very local driving conditions for appropriate assessment.     

Port choice in container market: a literature review

As a result of the intense changes occurring in port environment over the last decades, new models of competitiveness have been developed, where port authorities try to increase their attractiveness. In this context, one of the most debated issues in this area of research is still the role played by port authorities in defining port competitiveness. The aim of this paper is to provide a review of port choice literature enabling to identify the main port choice’s criteria in order to define the role played by Port Authorities and to point out future lines of research that should be undertaken to fully incorporate current ports’ environment and performance. The results show that although some studies point out the importance of geographical factors in port choice, a larger number of studies defend the increasing role played by port authorities in determining the competitiveness through investing in port infrastructure, improving port efficiency or hinterland accessibility. Despite the existing models contributing on this topic, there are still some gaps in terms of measuring the port performance, including port strategies and studying the port choice for specific industries.     

International emission regulation in sea transport: Economic feasibility and impact

Emissions from shipping due to the burning of the sulphur content of marine fuels conduce to air pollution in the form of sulphur dioxide and particulate matter. Various international organisations and institutions impose environmental standards on their member states to limit the emission of greenhouse gases. This paper examines both the potential effects of the emerging international maritime emission regulations on the competition between seaports and the potential underlying economic motivations fostering the discussion of introducing Emission Control Areas. It focuses on deepsea shipping. Another novelty is that the environmental issues are addressed from a policy, an economic and a legislative viewpoint. For the policy-related part, it is found that the political theory of public choice suggests that not the green lobby but rather the petrochemical lobby is the major driving factor behind the very strict emission caps. A potential port shift from Northern Europe to Mediterranean ports seems unlikely due to logistics disadvantages and service problems in Southern European ports. Finally, no convincing proof was found that the main liner companies would be unprepared for this legislation and should be persuaded to change their routes in favour of Mediterranean ports solely on account of the various emission regulations. The legal analysis, however, showed that the current enforcement regime of MARPOL Annex VI should be improved in order to rule out the possibility of a low degree of compliance and to protect the competiveness of complying ships.     

Estimating economic losses of industry clusters due to port disruptions

Seaport operations are highly important for industries which rely heavily on imports and exports. A reliable evaluation of port risks is essential to govern the normal running of seaborne transportation and thus the industrial economies. The occurrence of a breakdown in the trade facilitators, such as ports, will disrupt the smooth flow of supply chains for the industries. The estimation of the economic loss for an industry when a port gets disrupted is a challenging task as the relationship between the port and industry clusters is complex. This study aims to develop a systematic framework for performing economic loss estimation of industry clusters due to port disruptions. The whole risk assessment is split into three stages focusing on the establishment of a network flow model, economic estimations and evaluating risk mitigation strategies. The proposed idea is demonstrated by a case study on Shenzhen port and its related manufacturing industries. A dynamic inventory control strategy used by manufacturers is found to be beneficial for mitigating port disruption risks.