Sustainability and national policy in UK port development

Given the private sector character of the UK port system it might well be thought that, so far as port development is concerned, the market ruled. There are of course permissions to be obtained, including planning consent under the Town and Country Planning Acts; but this process has not so far been considered to interfere with market function. Ports are already well used to the process of obtaining approval, to negotiations with objectors and environmental interests, and to mitigating the effects of development when defining projects and seeking approval.

However, as ports policy is being brought into line with transport policy generally, and in particular with Government policy for sustainable development, ports are being faced with a more challenging regulatory framework. The search for sustainable transport is leading Government towards a broader based approach to the approval of development applications in which market need and commercial viability are simply two of a number of considerations which ports must take into account in designing projects which also meet environmental concerns.

There has been a long standing requirement for developers of major projects to carry out Environmental Impact Assessments. In addition Government policy is set out in a number of publications, applying sustainability and the associated “New Approach to Transport Assessment” (NATA) to the ports sector. In a separate and broader initiative it has also considered a radical reform of the planning system and the establishment of national priorities for infrastructure combined with a simplification of the Public Inquiry process. In the event it has been decided not to establish national priorities in the ports sector, although the aim of simplification of the Inquiry process remains.

The aim of this paper is to explore the emerging theoretical and practical issues arising within the development approval process. These are of most concern in the development of major projects for cargoes which have broad hinterlands, and where there are competing locations for new facilities. The most important example of this is in the deep sea container sector where there is a demand for new capacity and a choice of widely spaced locations in the south east of the UK. Some comment will be made on this sector and on the issues arising at the Public Inquiries for the proposed container port developments at Dibden Bay (Southampton) and the London Gateway at Shellhaven on the north bank of the Thames.     

An analysis of decision-making processes in multicultural maritime scenarios

With three research studies recently carried out the pros and cons of multicultural, multilingual crews have given a 'second' food for thought:

• The Seafarers' International Research Centre (SIRC): 'Transnational Seafarer Communities' and the research, 'Finding a balance: companies, seafarers and family life', linked to this [1]. The latter presented in Maritime Policy & Management, no. 1, January-March 2003.
• The Swedish National Maritime Museum (SNMM): Isolde av Singapore [2]. This research and sociological documentation will be reviewed in a later issue of Maritime Policy & Management.
• Horck, J., 'A culturally mixed student body; the WMU experience in fostering future decision makers' [3].

There is a growing conviction among seafarers and persons working in the land-based sector of the maritime industry (including ex-seafarers) that staff onboard and on shore should be prepared to work with crews and groups whose members come from different countries and cultures and speak different languages. The problem, though, is which culture will have to surrender and which will dominate? Will a third culture become the norm for common survival? Perhaps to understand oneself and be knowledgeable about others is a better way to avoid eventual conflicts.

There are nearly no research findings on how a programme should comprise the aims of facilitating comprehension and appreciation of influences, from differences in cultural backgrounds, on group performance and decisions.

This paper reports on the research carried out on students in the Shipping Management and the Maritime Education and Training courses at World Maritime University (WMU). How do post-graduate students holding unlimited certificates of competency, as well as holders of university degrees with experience in the maritime industry and maritime administration, come to a consensus decision?

The findings in this research are discussed in balance with the results from both the SIRC and the SNMM research which is interesting because the results, in some significant issues, are not the same.

A phenomenographic approach has been used to find out that a multicultural group is not free from working problems. Can cultural differences, perhaps, be developed from an assumed hindrance into a catalyst for stimulating national appreciation and cooperation? Perhaps the opposite is true; it might be a bottleneck for improvements in safety as formulated in the STCW95 and the ISM Code.     

Job satisfaction and personality of Merchant Navy officers

Until recently little research had been carried out into job satisfaction of seafarers. Wastage in the shipping industry is higher than most other industries and although some improvements have been made to working conditions and facilities the wastage is still very high.

During the last two decades shipping technology has changed drastically, necessitated by changing economic factors, resulting in the need for highly trained personnel. Training costs are high, particularly for officers, and could be reduced if efficient selection processes were employed.

The project is designed to study perceived and implied (calculated) job satisfaction of officers who have served in the Merchant Navy for five years or more. Gone are the days of high port-time/sea-time ratios due to increased port and labour costs. Consequently seafarers may be confined together for longer periods at sea such that a different type of personality may be required to survive the stresses and strains of such a way of life. The project also attempted to discover whether the personalitics of the seafaring officers differ from those of the shoreside population and whether personality is related to job satisfaction at sea.

The project took the form of a survey by applying a questionnaire to Merchant Navy deck, engineer and radio officers at nautical educational establishments between September and October 1978.

The results showed that the majority of officers have a moderately high level of perceived job satisfaction whereas implied satisfaction was comparatively low. The personality of officers was found to be significantly different from that of the shoreside population in almost 50% of the 31 personality scales measured. There were also found to be differences between the personalities of deck and engineer officers.

A correlational study indicated that the personality of the Merchant Navy officer is related to overall job satisfaction.     

The impact of port choice on inland transportation

The Belgian government intends to shift part of its funding away from Antwerp and towards other seaports, particularly Ghent and Zeebrugge. In the long run, this policy change will undoubtedly influence the port choice and probably cause a traffic diversion at the expense of Antwerp. This will have a great influence on the structure of inland transportation.

The impact of port choice on inland transportation is the central theme of this paper. To this end a disaggregated model of the demand for freight transport is constructed.     

A model for forecasting future supply of shipping services at Australian ports

This paper aims to develop an integrated model for forecasting both the number of ship visits and their characteristics in the medium and long term. Knowledge of future shipping trends for any port is no doubt important, as the future number of ship visits and their characteristics may have implications for the physical facilities of a port. In addition, more reliance on tonnages as a revenue source has made this knowledge more valuable. The proposed model identifies such major economic determinants as the expected trade throughput, world shipping trends, standards of facilities and future plans of shipping companies/agents. The model examines three possible scenarios for the Port of Melbourne and produces a range of shipping forecasts based on certain assumptions. From the model the major findings were:

world trends in shipping did not have any immediate impact on the shipping trends at the Port of Melbourne;

Future shipping services at the Port of Melbourne in the next 11 years are most likely to be determined by trade demand rather than by technological developments overseas;

there has been no evidence to indicate that the Port of Melbourne has been excluded from the schedule of general cargo ships due to the Port's physical constraints.     

Cargo handling productivity. Part 2. The findings

This is the second of two papers on cargo handling productivity presenting the results of the model developed int he first [1] which had been designed to test a productivity measurement method with cross-sectional empirical data. Four productivity measures were employed. Two related cargo handling to time, with labour brought into the analysis as an independent variable. The third productivity measure expressed total throughput as an aspect of labour productivity, while the final measure was a full productivity index developed by relating output to both capital and labour.

The productivity measurement technique demonstrated that this method can be used for cross-sectional studies and can cope with and allow for variation in non-controllable extraneous factors, thus proving useful for policy decision-makers in shipping lines and/or port authorities.

This paper presents the results of the prodictivity analysis for which the analytical design was decribed in Part 1. The first section briefly restates the productivity indices developed. The principal results and tests on these measures are present in Section 2 with conclusion following in Section 3.     

Currency adjustment factors

The manner in which CAFs have been applied to cargo carried by lines appears to be both arbitrary and secretive. This note intends to give some clarification as to how the CAF is calculated and the manner in which it is applied.

The operation of the two methods, i.e. the monthly review and the radical review, is merely a device which enables conferences to adjust effective charges so as to leave lines without a loss in real revenue, although minor losses and gains will be inevitable as the operation of the CAFs take time to be implemented.

Finally it is hoped to point out the volatilc nature of CAF changes impinges upon the uncertainty of lines' costs.     

On the beaten track: a view of US West-Coast container port competition

More than a century ago far-sighted railroad builders and steamship operators were seeking the shortest intermodal itineraries between the eastern United States and the Orient. A combination of locational fact and the factual outcomes of 19th century railroad building left Chicago roughly equidistant in railway mileage from what became the four great US West-Coast port complexes in the Los Angeles, San Francisco, Portland and Seattle regions. Their nearly equivalent rail access to Chicago and points east has renewed significance in the container era.

This paper concerns the efforts of US Pacific seaboard ports to stay 'on the beaten track' with respect to container shipments between Asia and the eastern United States. The West-Coast ports are transit points dividing the transcontinental and transoceanic segments of long intercontinental journeys. From origins to destinations there are, in fact, many possibly feasible itineraries, including all-water routes.

The West-Coast ports have considerable control over their own site improvements. On the other hand, with respect to transiting container traffic, the ports may influence, but are unlikely to control, their own situations. Since the major container port facilities are very often on long-term lease to large intermodal carriers, the latter are making the important shipping and routeing decisions. The carriers tend in fact to set the tone and level of port competition.

What is the nature of the competition between container ports? Is it a figment of the publicist's imagination and perpetuated by irrelevant statistical boasting? Is it perhaps something forced on the ports by carriers eager to play one port off against another in a 'lowest bid' game? At what geographical scale might port competition be most useful or, maybe, least wasteful?     

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.     

Effective corporatization of ports is a function of effective legislation: legal issues in the existing paradigm

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.     

Illusion as a factor in determining policy in development of a port: the case of Haifa

The mayor and citizens of Haifa live under the illusion that their city port possesses geographical advantages over competitor-ports, an attitude which gives rise to great hopes for the city's prosperity, especially after the peace agreement with Egypt.

On the basis of this illusion, decisions are made that may have severe consequences for the development of the port and the city. The aim of this article is to demonstrate that the changes in the Middle East over the years have deprived Haifa of most of the geographical advantages it had, and so expose the illusion for what it is.     

Economic policies and seaports: The economic functions of seaports

This paper argues that the economic functions of seaports are to benefit those whose trade passes through them, i.e. through providing increments to consumers' and producers' surpluses. Whilst recent developments in the technologies of seaports (containers, bigger ships, more rapid handling of bulk cargoes) have increased technical efficiency, they have also provided such economies of scale as to reduce some opportunities for competition and, therefore, the probability that cost reductions are actually passed on in this way. For this purpose port costs need to be considered in their entirety, i.e. as generalized transport costs per tonne, comprising money, time and the risks of loss, damage and delay. Such cost reductions will lead to expanded trade in a variety of ways.

This statement of the economic function of seaports is contrasted with views that they should try to increase employment in their locality, or that they should maximize profits.     

The impact of US regularory practices on the productivity of ocean liner services?

This United States stands alone amongst the nations of the world in its attempt to unilaterally regulate transnational ocean linear services. The major reason for current US regularity policies with regard to scheduled ocean transportation lies in its fundamental distruct of any form of co-operation amongst competitors as demonstrated by its history of antitrust legislation.

The linear industry, because of its unique technical and economic charectersitics has given rise to the establishment of ocean conferences—co ordinating sgreements between the operators of linear vessels. Whilst ocean conferences are permitted—even encouraged—by the their most diluted form, the so-called 'open conferences.

This Paper offers a critical review of Successive US regulatory practices in maritime transport. It is argued that these practices result in excess costs in US trades to the order of $1 billion annually, and that the linear industry's efficient functioning is seriously impaired by these rules-rules imposed by a government administration which fails to recognize that the linear industry's technical efficiency is of far greater importance than its market performance.     

Conference-shipper loyalty contacts: Time for a re-think?

This paper examines the purposal by the British Shipper's Council (BSC) and the UK government to place a statutory limit, by means of a regulations implementing the EEC rules for competition, upon the proportion of a shipper's cudstom that may be demanded in a loyalty agreement with a liner conference.

The development of 70% loyalty is traced through the following the various drafts of the EEC competition rules for sea transport; the department of trade investigation which found freight rate disparities that were caused partially by the less competitive environment in the UK than on the Continent; and evidence given on 70% loyalty beforew the house of Lords Select Commitee on the European Communities.

By considering the precise proposals, as suggested by the BSC, and means of enforcing them, 70% loyalty is found to be eminently practicable. the short-term consequences of its introduction are unlikely to be great, considering the shippers' needs for a good quality service; but in time the additional competition fostered by a less-than-100% tie would cause radical changes; conferences would have to aopt limit-pricing and respond to competition loyalty ties might be restricted to service contracts with large shippers. These effects would be felt far more in the UK since the continental environment is in any case more competitive.

It is concluded that 70% loyalty should be imposed upon conferences by means of the EEC Regulations in order to enhance the competitive environment of linear shipping.     

Economic policies and seaports: Are port authorities necessary?

This paper first presents arguments for having public sector port authorities. They can deal, flexibly and permanently, with property rights within their own areas. They can plan and regulate port areas comprehensively. They can provide 'public goods'. They can deal, in various ways, with externalities. They can promote efficiency, whether their own (if they operate as a comprehensive port) or that of the private sector (if they are largely landlords). For example, if their policy is to rely on the private sector to produce efficiency through competition then they can see to it that there actually is competition and not any kind of cartel or monopoly. Examples are cited where this last function has not been performed. The exception for single-user ports is noted.

Against them are the general disadvantages of public authorities (or bureaucracies)—though examples are cited where port authorities had very small staffs. The common instances of 'market failure' may thus be contrasted with those of 'government failure'. Finally, a pragmatic approach is advocated, tailored to the needs and resources of the country in question. The increasing effect of the economies of scale in port technology, and its limitation on competition, is, however, noted and to be discussed in the next paper.     

Economic policies and seaports: Strategies for port authorities

This paper discusses the strategies which might be adopted by port authorities, given that modern port technologies have considerably limited the scope for competition. It therefore analyses the several forms of competition relevant to ports, any or all of which may apply in any given instance.

It describes the 'minimalist strategy, which consists of recognizing that public sector bodies have many faults, may make many mistakes and that well-intentioned attempts to rectify faults in the private sector may make matters worse. Second, it describes the 'pragmatic' strategy, which involves establishing committees to examine problems and to recommend actions, if they can reach a consensus. Third, it describes the 'public sector' strategy, which involves the port authority taking over all port functions. Finally, it describes the 'competitive' strategy, which involves a careful reproduction of the circumstances of competition, even though there may be room for only one efficiently-sized operator at a time. Franchising, or short-term leasing on any of a variety of competitive bases, so as to produce serial competition is described. Each of these strategies is presented as having its own advantages and disadvantages, and each may be suitable to particular circumstances.     

Work simplificafion through the tansformation of work on board

Through a series of research on 10 Japanese ships since 1961, it was found that the relationship between number of crew and the resulting structural change of work on board ship can be formulated by a linear regression. Some of the major findings that are obtained from this new method are summarized as follows. As the number of crew decreases, the proportion of work for operating the ship (manoeuving and controlling work) increases, while the proportion of work which is not directly related to the operation decreases. This structural change can be attributed to work simplification resulting from four types of the transformation of work:

(a) The replacement of man'al work by putting machines on board.

(b) The transformation of work on board into work done by machines on shore.

(c) The transfer of work previously done on board to the shore.

(d) The transformation of work within a ship.     

Market structures and competitive strategies: the carrier-stevedore arm-wrestling in northern European ports

Over the last few years, liner and stevedoring markets have been facing new challenges. The progressive concentration on the demand side (carriers) and the emergence of global alliances in the mid-1990s have triggered a similar process of consolidation on the supply side (stevedores). In turn, more recently, the strategic choices of pure terminal operators have led to the progressive involvement of carriers in port operations, both from a financial and a managerial point of view. This paper aims at analysing the current contest in northern Europe between customers and suppliers of port services. Substantial concentration in the stevedoring market and the emergence of dedicated facilities in that area, make this arm-wrestling stronger and stronger.

At present, the liner market is following a number of strategic directions including the pursuit of economies of scale (larger vessels) and the supply of services using faster vessels (deployment of 'fewer' assets) in order to offer either new services or additional loops (scope). By exploring the strategic behaviours of the top carriers ('bigger' or 'more effective'), the paper attempts to outline the future evolution of the two industries in a 2015 vision, highlighting in particular scenarios for north European ports. Global alliances are weakening and a new era of M&As is probably approaching: how will the bargaining power change between port users and port customers? Which competitive paradigm will dominate?     

Who pays the ferryman? An analysis of the ferry passenger's selection dilemma

Purpose: based on the known in the literature difference between expected and perceived quality, this study examines the factors and the ways that influence the passenger to select a ferry operator.

Methodology/approach: the research attempts to shed some light on the importance of every selection determinant by employing multinomial logistics analysis which identify that the convenience determinant is pivotal when selecting a service.

Findings: the main findings of the study indicate that among six different combinations of factors—models—perceived service quality together with price and convenience (satisfaction determinants) best describe the choice procedure followed by the passenger. The evidence is drawn from a survey performed in the Greek coastal shipping sector.

Originality/value of the paper: to survive in a competitive market, organizations must continuously strive to understand their customers' wants and needs. Although this is a highly recognized issue in the marketing agenda little or no research has been done on passenger satisfaction and the subsequent selection of a ferry operator.

Practical implications: by using the findings of this work, ferry operators may deeply and timely understand their customers' purchasing behaviour and adapt their marketing policies especially in a competitive and fast-changing environment.