Evaluating the competitiveness of container ports in Korea and China

Changes in world trade and the shipping environment have created ever-increasing competition between ports in North-east Asia, especially Korea and China. Following intensive state investment in port developments through large-scale projects, Chinese ports now threaten to oust Busan in Korea as the regional hub. To identify and evaluate the competitiveness of major ports in the region, this paper identifies the components influencing their competitiveness and presents a structure for evaluating them. Based on the literature related to port selection and competition, a regional survey of shipping companies and owners employed factor analysis to reveal that port service, hinterland condition, availability, convenience, logistics cost, regional centre and connectivity are the determining factors in these regions.     

Framing the Nexus of Globalisation,Logistics and Manufacturing in Europe

Abstract

Under the ongoing influence of globalisation, supply chains have changed significantly. New logistics and manufacturing systems have emerged, causing longer transport distances and increasing transport emissions. The existing research into the sustainability impacts of freight transport has largely viewed it as being a macro-level economic and political phenomenon and has ignored the interdependencies amongst micro-level economic actors, including firms and businesses in the private sector. In this paper, we presume that the lack of conceptualisation of freight transport in relation to wider institutional contexts and firm behaviour results in the lack of a holistic approach to understanding freight governance in the face of globalisation. We argue for the use of institutional economic geography lenses to elucidate the distribution networks of emerging logistics and manufacturing practices and its implications for freight transport. We illustrate our argument through a broad look at the European logistics and manufacturing practices and global production.     

Assessment of hub status among Asian ports from a network perspective

This paper proposes a novel network-based hub port assessment (NHPA) model through explicit formulations of connectivity and cooperation indices. Such a model is useful for port operators and policy makers to evaluate the relative influences of various quality characteristics from which carriers base their port choices on and identify port partners. Key insights can be obtained for port authorities to improve their port infrastructures and operations to achieve a competitive and sustainable hub port status. Three comprehensive case studies are conducted to assess the current standings and potentials of major Asian ports within networks of major carriers.     

Goods transport in Etarea

Etarea is a planned satellite town for Prague, the capital of Czechoslovakia, located some 10 km from the outskirts of the capital. Its projected population of 135,000 will live in 13 residential areas, each of which will have its own retail centre in addition to the main retail centre.The plans for Etarea incorporate a unique approach to the related problems of the storage and distribution of goods within urban areas. All incoming goods will be delivered by road or rail, and possibly in the future by water, to a central storage complex. Goods for the retail trade are distributed from this central store by automated trains pulled by battery-powered trucks, each train having a capacity of 8.75 tons. The trains, which run in a network of underground tunnels, 2 \sX 2.5 meters in cross section, are guided by an optical sensing system. The underground network comprises 3 main routes with branches serving the individual centres. Secondary storage facilities are planned for each of the 14 retail centres where unit loads received from the main storage centre are subdivided for retail sale.One of the proposed methods of retail distribution provides for the fully automated delivery of goods from the retail centres direct to the consumer's household. This is accomplished by means of a pneumatic tube system similar to that used for handling cash in some large stores. Orders will be placed by dialling the code number assigned to the required item, given in a catalogue of available goods. Provided that the customer's account is in credit the order will be accepted and the goods automatically dispatched from the local centre; delivery is estimated to take between 2.5 and 11.5 minutes depending on the distance of the customer's house from the centre. The same system is utilised for the delivery of regular orders for such items as newspapers and magazines as well as for mail and for the the removal of household refuse. In addition to the automated system each retail centre will also have over-the-counter, self-service and slot machine facilities for the sale of goods.All proposals for goods storage and distribution planned for Etarea are based on existing technologies.     

A critical review of conventional terminology for classifying seaports

Seaports are complex and dynamic entities, often dissimilar from each other, where various activities are carried out by and for the account of different actors and organisations. Such a multifaceted situation has led to a variety of operational, organisational and strategic management approaches to port systems. It is noticeable in the current body of port literature that the conceptualisation of the port business has taken place at different disciplinary levels without producing a comprehensive and structured port management discipline. Much of the current literature on ports has been developed by international organisations and institutions in the field (United Nations Conference on Trade and Development (UNCTAD), World Bank Group, etc.) and a resulting terminology has evolved depicting specific concepts hardly understood by professionals and academics outside the field. On the other hand, many areas of port operations and management still remain unexplored, and there are few academic references outlining the different features of operational and strategic management in ports.This paper examines the validity of the conventional terminology for classifying ports, questioning the assumption that ports should be conceptualised as separate markets and distinct operational and business ventures. It seeks to demonstrate that in today’s inter-related global markets and businesses with integrated logistics and supply chain flows, there is less of a case for the traditionally isolated and restricted port terminology.     

Integrating intermodal transport with logistics: a case study of the UK retail sector

Retail traffic is one of the main drivers for the growth of intermodal transport services in the UK. This paper examines the key factors underpinning this modal shift in order to learn lessons for other market and geographical contexts. Since successful retail intermodal logistics involves many actors, this paper is based on semi-structured interviews with major UK retailers, third-party logistics providers (3PLs) and rail operators, supplemented by document analysis. The qualitative data are analysed via a conceptual framework derived from the literature. Despite past successes and the presence of drivers for future growth, the paper identifies many operational issues without current solutions and the presence of ongoing public subsidy. The major conclusion is that the importance of 3PLs, aggregation and multi-user platforms must be recognised by transport planners in supporting the use of intermodal transport by retailers and other large shippers.     

Balancing the economic and environmental performance of maritime transportation

This paper looks at the implications of various maritime emissions reductions policies for maritime logistics. There can be important trade-offs that have to be made between the environmental benefits associated with such measures as reduction in steaming speed and change in the number of vessels in the fleet, and more conventional logistics attributes such as in-transit inventory holdings.     

Positive impact of distribution centres on the environment

The transport sector in general, and trucks in particular, generates a significant amount of emissions in Australia. It appears the trend will escalate unless different measures are taken to reduce the reliance of freight transport on trucks. This paper discusses the benefits of distribution centres as a means to reduce road congestion, increase safety, protect the environment by reducing atmospheric pollution and improve freight distribution. It also provides the effective use of the existing rail network and its infrastructure and improves the lead-time as well as lowering the cost of transportation of cargo. It also investigates the positive impact of distribution centres located near to manufacturing and farming production units. A simulation model has been developed and used to help determine the amount of atmospheric pollution produced by two modes of land transport, rail and road, for the movement of containers between port and destination. Results derived from the model provide evidence about a preferred land-transport regime. The paper has two sections: (1) the role of distribution centres in the chain of transport and (2) the impact of distribution centres on the environment. The first section investigates the feasibility of the implementation of distribution centres in the State of Victoria with respect to rail line capacity and location allocation. The second section presents an additional simulation model that investigates the role of a distribution centre in relation to the amount of atmospheric pollution produced by rail and road, while containers are carried between port and destination.     

Protection of Critical Waterborne Transport Infrastructures: An Economic Review

It is essential that transport infrastructures are protected against events which cause their failure. At an optimal level of protection, the sum of protection costs and expected residual damages following from disruptions will be minimized. In most cases however, this optimal level is not achieved because infrastructure protection is susceptible to various market and government failures. This brings us to the question who (a private or public actor) should do how much (the level of protection and intervention). This question is addressed in the present paper.

The starting point of the paper is the Directive of the European Council on the identification and designation of European Critical Infrastructures. We review the protection of critical waterborne transport infrastructures from an economic perspective. The review is based on a literature study and several interviews with Critical Infrastructure experts. For the studied infrastructures, we have identified causes and effects of their failure and examined the private–public roles in protecting them. Considering the market and government failures which occur in such configuration of roles, we propose several changes. We conclude that from a national policy perspective there are two important routes: (1) reinforcement of private sector roles among others by defining liabilities and providing information on risks and (2) strengthening of supra-national collaboration via improving and standardizing regulations, cost-sharing initiatives and penalty systems.     

An advanced solution for efficient logistics management at both company and network level

This paper proposes an advanced solution for efficient logistics management in urban areas based on a unified scheme able to address both static and dynamic decision making at a company and network level. The proposed solution generates the most efficient urban distribution plan utilizing an evolutionary metaheuristic approach and a backpressure framework that provide competitive scheduling and routing decisions. An empirical study based on real data is conducted assessing the performance of the proposed advanced solution and the reported results of the evaluation experiments demonstrate its generality and robustness.     

ICT Adoption among Logistics Companies in ASEAN Countries

In this era of globalization, adoption of information and communication technology (ICT) is one of the critical determinants of logistics companies' competitiveness and growth. This is especially so for the ASEAN countries as they pursue the vision of regional economic development and integration. Existing empirical studies on ICT adoption by logistics companies in developing countries are, however, scarce and have limited theoretical support and so far no comparative analysis of ICT adoption among ASEAN logistics companies and its determinants has been undertaken. This paper investigates the level of ICT adoption among ASEAN logistics companies and also develops an investment-based model to explain it. The model is evaluated with logistic regression using firm-level data collected from interviews with a sample of ASEAN logistics companies. The study finds that ICT adoption level varies significantly among the ASEAN countries and provides an empirical support for an investment-based view of ICT adoption. It also finds no further evidence for the relevance of the institutional theory to the ASEAN logistics industry. These findings have important strategic and policy implications for the ASEAN policy-makers and logistics industry.     

Greening ports and maritime logistics: A review

This paper aims to examine the past and present research on ‘green ports and maritime logistics’ in order to identify established research streams and fertile research areas with potential for future investigations. Using rigorous bibliometric and network analysis tools, the paper completes a systemic mapping of the existing literature and identifies the key investigators, collaboration patterns, research clusters and interrelationships, and the “seminal research areas” that have provided the field with the foundational knowledge, concepts, theories, tools, and techniques. Major articles within each seminal research area are also identified. This will allow new researchers to quickly build understanding in a particular sub-field by reading these major articles. The findings obtained from the evolution of seminal research areas over time are important from both research and practice perspectives and can help the field grow in many dimensions.     

Train design and routing optimization for evaluating criticality of freight railroad infrastructures

Freight transportation by railroads is an integral part of the U.S. economy. Identifying critical rail infrastructures can help stakeholders prioritize protection initiatives or add necessary redundancy to maximize rail network resiliency. The criticality of an infrastructure element, link or yard, is based on the increased cost (delay) incurred when that element is disrupted. An event of disruption can cause heavy congestion so that the capacity at links and yards should be considered when freight is re-routed. This paper proposes an optimization model for making-up and routing of trains in a disruptive situation to minimize the system-wide total cost, including classification time at yards and travel time along links. Train design optimization seeks to determine the optimal number of trains, their routes, and associated blocks, subject to various capacity and operational constraints at rail links and yards. An iterative heuristic algorithm is proposed to attack the computational burden for real-world networks. The solution algorithm considers the impact of volume on travel time in a congested or near-congested network. The proposed heuristics provide quality solutions with high speed, demonstrated by numerical experiments for small instances. A case study is conducted for the network of a major U.S. Class-I railroad based on publicly available data. The paper provides maps showing the criticality of infrastructure in the study area from the viewpoint of strategic planning.     

Relationship between logistics infrastructure and trade: Evidence from Spanish regional exports

Geographical factors and transport infrastructure are two of the key determinants that influence international competitiveness. In this sense, the quality of such infrastructure and how widespread it is, the distribution and capacity of logistics facilities in a country, as well as the number of private operators and their degree of specialisation, all play an increasingly important role in the design of business strategies aimed at increasing a country’s share of the international market. Until recently, however, availability and access to logistics services have been considered secondary factors when defining business competitiveness. This paper estimates an augmented gravity model of trade that specifically includes logistics and transport infrastructure indicators as explanatory variables. The model is estimated by using bilateral exports from 19 Spanish regions to 64 destinations (45 countries and 19 Spanish regions) with data for the period 2003–2007. The findings show that logistics is indeed important for the analysis of trade flows in goods and they highlight the importance of logistics measures at the regional level. In particular, the number, size and quality of logistics facilities positively influence export flows.     

广西水运规费征收的现状和对策趋议

自“八五”期间全面开征水运规费以来,广西全区各项水运规费征收管理工作取得了令人瞩目的成绩。但是,随着水运市场经济和港航体制改革的不断深入发展,广西水运规费征收管理当中的各种矛盾和问题也日益凸现,对此,文章提出了一些解决的办法和措施,以供参考借鉴。     

Selection Criteria of Transportation Mode: A Case Study in Four Finnish Industry Sectors

Abstract

This paper takes a closer look at the very basics of logistics and it analyses the selection criteria of transportation services from the industrial point of view as the main research problem. It also tries to establish a better understanding of which industrial sectors are using which mode of logistics services and why. According to the analysis, the high value and especially high price/kg ratio of products, short life cycles and worldwide markets are typical reasons to use rapid modes of transport. The high price/kg ratio of products and the short life cycles, for example in the electronics industry, cause high price erosion and support selecting transport based on speed, as proportional transport costs remain small, even when using expensive transportation modes. Based on the results, some of the future logistics needs were identified, and the aim is to help logistics service providers offer the exact services needed, providing better competitiveness for Finnish shipping companies operating in global markets. Logistics service providers are, for example, expected to have more powerful supply chain management capabilities than a single‐service provider can typically offer. Additionally, logistics service providers should have compatible operating systems with different parties of various supply chains to enable deliveries to different customer groups according to their industry’s required speed.     

The economic impact of logistics infrastructure: the case of PLAZA – the Zaragoza Logistics Platform

Abstract

The economics literature offers many examples of studies of the economic impact of transportation infrastructure such as highways, ports, and airports; however, little attention has been paid to other types of infrastructure such as logistics platforms. This article is a first assessment of the economic effects of the largest logistics platform in Europe – PLAZA, the Zaragoza Logistics Platform – located in Spain. More precisely, this paper analyzes the economic significance of PLAZA on the economy of the Aragon region where it is located. The methodology is based on the application of input–output analysis to the final demand of logistics platform-based companies in a manner that is similar to well-established studies of the economic impacts of tourism on tourist expenditure. This makes it possible to quantify the various levels of economic effects (direct, indirect, and induced) in terms of jobs, salaries, and wages, turnover, gross operating surplus (GOS), and gross value added (GVA). The conclusions reveal the economic importance PLAZA has for the regional economy of Aragon, representing just over 2% of total GVA and 3% of turnover.     

Incorporating Knightian uncertainty into real options analysis: Using multiple-priors in the case of rail transit investment

This paper revisits the real option investment problem from a ‘Knightian’ perspective of uncertainty. We examine the decision to invest in rail transit infrastructure (i.e., transport improvement) by treating population scale and the attitudes of decision-makers or social planners as sources of risk and ambiguity. An α-maxmin multiple-priors expected utility framework is developed to solve for the option value of rail transit investment under Knightian uncertainty. We find that the threshold for investment varies with the ambiguity attitudes (i.e., pessimism or optimism) of decision-makers regarding future population dynamics, and show that option value can in fact either increase or decrease with uncertainty subject to κ-ignorance and ambiguity. We also underline the effect of transport improvement on traffic congestion under various states of nature, and determine the specific population scale ranges for which investment is warranted under (1) risk and (2) Knightian uncertainty. These dynamics are illustrated in a numerical application adapted from a Chinese rail transit initiative specific to the Xiamen region.     

Path-constrained traffic assignment: A trip chain analysis under range anxiety

This paper proposes and analyzes a distance-constrained traffic assignment problem with trip chains embedded in equilibrium network flows. The purpose of studying this problem is to develop an appropriate modeling tool for characterizing traffic flow patterns in emerging transportation networks that serve a massive adoption of plug-in electric vehicles. This need arises from the facts that electric vehicles suffer from the “range anxiety” issue caused by the unavailability or insufficiency of public electricity-charging infrastructures and the far-below-expectation battery capacity. It is suggested that if range anxiety makes any impact on travel behaviors, it more likely occurs on the trip chain level rather than the trip level, where a trip chain here is defined as a series of trips between two possible charging opportunities (Tamor et al., 2013). The focus of this paper is thus given to the development of the modeling and solution methods for the proposed traffic assignment problem. In this modeling paradigm, given that trip chains are the basic modeling unit for individual decision making, any traveler’s combined travel route and activity location choices under the distance limit results in a distance-constrained, node-sequenced shortest path problem. A cascading labeling algorithm is developed for this shortest path problem and embedded into a linear approximation framework for equilibrium network solutions. The numerical result derived from an illustrative example clearly shows the mechanism and magnitude of the distance limit and trip chain settings in reshaping network flows from the simple case characterized merely by user equilibrium.