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.     

Port co-opetition in concept and practice

The port industry has undergone a rationalization process over the last decade. An increasing proportion of port management and operations is being taken over by global port operating groups. Many port operators who previously ran only their local business now extend their business scope to the regional or global scale; today's port operators can be regarded as multinational corporations. In the era of global economy, a port no longer enjoys a natural monopoly, as was the case in the past. To cope with this changing business environment, a certain form of competition and co-operation among ports is necessary so as to provide services that fit into shipping lines' strategies. It is suggested that ports have to concentrate on new ways for co-operation in an effort to establish a countervailing power. This paper proposes a new strategic option known as co-opetition , the combination of competition and co-operation, for the port industry, and explains a case of co-opetition between the container ports in Hong Kong and South China. The results of this research will provide a useful insight into the port industry, which is currently required to carry out its business in an ever-changing business environment.     

Port co-opetition in concept and practice

The port industry has undergone a rationalization process over the last decade. An increasing proportion of port management and operations is being taken over by global port operating groups. Many port operators who previously ran only their local business now extend their business scope to the regional or global scale; today's port operators can be regarded as multinational corporations. In the era of global economy, a port no longer enjoys a natural monopoly, as was the case in the past. To cope with this changing business environment, a certain form of competition and co-operation among ports is necessary so as to provide services that fit into shipping lines' strategies. It is suggested that ports have to concentrate on new ways for co-operation in an effort to establish a countervailing power. This paper proposes a new strategic option known as co-opetition, the combination of competition and co-operation, for the port industry, and explains a case of co-opetition between the container ports in Hong Kong and South China. The results of this research will provide a useful insight into the port industry, which is currently required to carry out its business in an ever-changing business environment.     

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 e-Transformation,customer satisfaction and competitiveness

ABSTRACT

e-Transformation in container ports means port organization-wide innovative transformation encompassing internal and external value chains based on information and communication technology. There is a considerable theoretical literature on the impact of e-Transformation on business performance, but there is very little empirical study on its effectiveness in ports. The objective of this paper is to empirically investigate how e-Transformation in container port management can influence customer satisfaction and port competitiveness. The findings reveal that e-Transformation in container ports can affect customer satisfaction and port competitiveness through e-Workplace, customer relationship management and security, implying that container ports should make every effort to focus on e-transformation in these critical areas. Due to limited empirical studies in this area, the findings have provided an empirical support for the importance of e-Transformation in container terminal management and shed more light on how e-Transformation can affect customer satisfaction and port competitiveness.     

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.     

(Law for the Promotion of Competition and Consumer Protection) was passed in early 1995. The impact this law will eventually have, however, is uncertain because rules for its implementation have not yet been established.

Governments in their port reform efforts have experimented with liberalization and commercialization to improve port operations. Because of their failure to meet expectations or because of changing competitive environments, these options have generally been discarded in favour of privatization. In mature large-volume port systems, privatization was a relatively obvious solution, because interport or interterminal competition would be achieved to the extent that the monopolistic tendencies characteristic of their predecessor organizations would cease to exist. In countries with a limited number of ports having relatively small cargo volumes, however, the case is quite different. These countries would have to pursue strategies that would still induce competition in spite of their limited cargo volumes if they hoped to achieve the same privatization benefits and market disciplines enjoyed in other countries. This article examines the port reform approaches used in three distinct competitive settings;the experiences in these countries offer some guidance on how to assure that ports will feel competitive pressures even under conditions of limited cargo volumes.     

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.     

An investigation into the suitability of an enclosed seaport for cruise ships the case of Leith

This paper considers port infrastructure, in terms of the physical limitations placed on vessel size, at the major cruise ship ports in northern Europe. Physical design characteristics and vessel size restrictions common to these ports are identified. The same physical design charactersitics and vessels limitations are considered in the context of a port with cruise ship ambitions, viz. Leith. The subsequent analysis suggests that infrastructure design weaknesses at a given port, in this case the presence of an entrance lock and tidal delay, may act as a deterrent to cruise ships. Primary data gathered from cruise lines and from observation of cruise ship activity at Leith supports this hypothesis. These findings have implications for both seaports and cruise lines.     

Integrated ports clusters and competitive advantage in an extended resource pool for the Antwerp Seaport

In the context of increased scale of carriers and vessel sizes, stakeholder opposition to port expansion, and heavy regulation, ports prepare their strategic response. A port’s competitive strength strongly depends on its capability of developing or retaining competitive advantages. Ports consider options such as strategic partnerships, or any form of collaboration, which could help them to create more or alternative combinations of unique resources as sources of competitive advantage. Taking an extended resource base perspective, the competitive advantages of the Antwerp port cluster are analyzed, using both linear regression and factor analysis, for its integrated hinterland network area, on data of 59 port experts. The results of our analysis show that the port’s hinterland extension did not (yet) result in new sources of competitive advantages. This leads us to the reflection that we cannot assume integrated port clusters always lead to projected positive strategic outcomes.     

Co-operation and competition in international container transport: strategies for ports

This paper focuses on the response of port authorities to the changing market environment in which they operate. It documents the changes taking place in the relationships between port authorities and terminal management companies and considers the strategic issues faced by these groups and other port interests. In particular, it investigates the potential conflicts of interest for a port authority in matters related to the level of competition amongst terminals within a port and the amount of competition amongst ports.     

Co-operation and competition in international container transport: strategies for ports

This paper focuses on the response of port authorities to the changing market environment in which they operate. It documents the changes taking place in the relationships between port authorities and terminal management companies and considers the strategic issues faced by these groups and other port interests. In particular, it investigates the potential conflicts of interest for a port authority in matters related to the level of competition amongst terminals within a port and the amount of competition amongst ports.     

The dynamics of port reform: different contexts,similar strategies

Research into port reform in Taiwan and Australia indicates that reform was undertaken in different contexts while committed and adopting similar strategies. Reform in both countries has been consistent with paradigmatic shifts towards market orientation, and within this context, privatisation was considered the preferred option. In both Taiwan and Australia, however, governments, reluctant to relinquish control over their ports, opted for corporatisation models. This article discusses the dynamics and drivers of reform and examines the outcome of these strategies. Both countries commenced port reform with deregulation of dock labour employment and introduced enterprise-based employment replacing the labour pool system. Privatisation of stevedoring operations was introduced at the same time in Taiwan. In the second reform phase, Taiwan amalgamated the four major commercial ports under a single state-owned port company in March 2012, with the objective of reducing inter-port competition and creating a central port planning mechanism. Australian ports, on the other hand, have undergone restructuring with the implementation of corporatisation, privatisation and commercialisation strategies since 1990s. Reform strategies in both countries display some similarities, e.g. rationalisation strategies in both Taiwan and Tasmanian ports, but also display some distinct dissimilarities with the increasing move to privatisation in Australia, e.g. the sale of South Australian ports and in 2010 the sale of the port of Brisbane.     

The new governance structure of French seaports: an initial post-evaluation

France undertook a large port reform in 2008, which came into force in 2010–2011. It mostly applies a landlord port model to major French seaports, with the prediction that doing so will restore competiveness. This article presents the 2008 port reform, discusses why it was needed, notably with regard to the underperformance of container traffic, and details how new governing bodies are sharing their responsibilities amongst themselves. To this end, a textual analysis of the agenda items for the governing bodies created since 2011 of the largest French seaport, Port of Marseille, provides a means to compare the items discussed by the former management bodies. This analysis identifies a trend, in which the supervisory board focuses on global issues, the advisory board addresses local issues, and the board of directors considers internal issues. Even if ongoing, this transition creates favorable conditions to work more efficiently and may represent a step toward the better performance of French seaports.     

Candian port administraion: its future structre

The administration, management and development of ports in Canada is a Federal government responsibility. This centralist control of ports has been the subject of criticism by many for a variety of reasons, not the least of which is that it is not responsive enough to the affairs of the local level. This problem, along with others, has resulted in the introduction in the Canadian Parliament of proposed legislation over the past five years to alter port administration and development in Canada. The proposals culminated in the recent passage of the Canada Ports Corporation Act which, among other things, will see the abolition of the National Harbours Board. A review of the administrative structure the new Act replaces, along with a review and assessment of the Act itself and the proposed legislation which predated it, forms the basis of this paper. It will be seen that because of the new Act the centralist approach to port administration is maintained, but greater local autonomy and financial self-sufficiency will also be available to ports. However, the central administration will still have the problem of co-ordinating the development of Canadian ports, since ports will continue to be constituted under at least four different pieces of legislation.     

Candian port administraion: its future structre

The administration, management and development of ports in Canada is a Federal government responsibility. This centralist control of ports has been the subject of criticism by many for a variety of reasons, not the least of which is that it is not responsive enough to the affairs of the local level. This problem, along with others, has resulted in the introduction in the Canadian Parliament of proposed legislation over the past five years to alter port administration and development in Canada. The proposals culminated in the recent passage of the Canada Ports Corporation Act which, among other things, will see the abolition of the National Harbours Board. A review of the administrative structure the new Act replaces, along with a review and assessment of the Act itself and the proposed legislation which predated it, forms the basis of this paper. It will be seen that because of the new Act the centralist approach to port administration is maintained, but greater local autonomy and financial self-sufficiency will also be available to ports. However, the central administration will still have the problem of co-ordinating the development of Canadian ports, since ports will continue to be constituted under at least four different pieces of legislation.     

Strategies of developing part administration in Ireland

This paper reivews a programme recently undertaken by the Irish Government aimed at reforming the administration of Irish ports. Arising from that programme, and as a result of legislative changes, eight key ports were vested as commerical harbour companies (prior to this they were administered by large Boards and were very restricted in their ability to perform commercially). The context for the paper is the global trend towards port reformation, and the paper draws particuarly on the effects of the privatization of UK ports. The paper starts with a review of the role of parts, both generally and within the context of Ireland's growing, geographically peripheral, economy. Observations of the UK ports privatization process are next considered. The history, development and recent performance of Irish ports, together with port investment strategies, are critiqued and the background to the recent programme of administrative reform undertaken by the Irish Government concerning the ports is reviewed. Various observations from a number of sources (including 12 interviews by the authors with key actors in the sector) on the reform process are discussed. It is concluded that there is no uniformity of opinion as to the suitability of the chosen model for Irish ports administration and that it is too soon to judge whether it has been a success (the eight ports were commercialized in March 1997). The paper concludes that, given the critical role of ports within the Irish economy, the situation should be periodically reviewed to ascertain the current applicability of the extant port administration model.     

Strategies of developing part administration in Ireland

This paper reivews a programme recently undertaken by the Irish Government aimed at reforming the administration of Irish ports. Arising from that programme, and as a result of legislative changes, eight key ports were vested as commerical harbour companies (prior to this they were administered by large Boards and were very restricted in their ability to perform commercially). The context for the paper is the global trend towards port reformation, and the paper draws particuarly on the effects of the privatization of UK ports. The paper starts with a review of the role of parts, both generally and within the context of Ireland's growing, geographically peripheral, economy. Observations of the UK ports privatization process are next considered. The history, development and recent performance of Irish ports, together with port investment strategies, are critiqued and the background to the recent programme of administrative reform undertaken by the Irish Government concerning the ports is reviewed. Various observations from a number of sources (including 12 interviews by the authors with key actors in the sector) on the reform process are discussed. It is concluded that there is no uniformity of opinion as to the suitability of the chosen model for Irish ports administration and that it is too soon to judge whether it has been a success (the eight ports were commercialized in March 1997). The paper concludes that, given the critical role of ports within the Irish economy, the situation should be periodically reviewed to ascertain the current applicability of the extant port administration model.     

新时期广东省沿海港口发展环境分析与发展战略思路探讨

经过30多年的改革开放,广东省沿海港口已基本形成了布局合理、层次分明、与地区生产力布局高度相关的港口发展格局。当前,广东省港口正面临新的发展环境,需要对未来港口发展方向和思路进行重新梳理。针对广东沿海港口发展现状与发展环境,以国家区域发展战略实施为导向,对广东省沿海港口的长远发展进行战略思考,为相关行业部门制定战略规划提供参考。