Privatization trends at the world's top-100 container ports

Over recent years, the role of the private sector in seaports has been greatly expanded. Yet, in practice, the extent of privatization in ports can vary significantly, in part due to the different methods employed to bring about private sector participation. This paper identifies and analyses, through a survey of ports, recent trends in regard to privatization at the world's top-100 container ports. The survey has benefitted from, and seeks to extend, a previous survey undertaken by the International Association of Ports and Harbours (IAPH). Findings suggest that, although the influence of private sector actors in ports is growing, the role of public sector agencies also remains significant.     

Privatization trends at the world's top-100 container ports

Over recent years, the role of the private sector in seaports has been greatly expanded. Yet, in practice, the extent of privatization in ports can vary significantly, in part due to the different methods employed to bring about private sector participation. This paper identifies and analyses, through a survey of ports, recent trends in regard to privatization at the world's top-100 container ports. The survey has benefitted from, and seeks to extend, a previous survey undertaken by the International Association of Ports and Harbours (IAPH). Findings suggest that, although the influence of private sector actors in ports is growing, the role of public sector agencies also remains significant.     

Shipper's councils: role and responsibility—a western view

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: The diversity of port policies

This paper contrasts the economic policies adopted towards seaports by different countries in terms of their approaches to national, regional or local control. Various examples are presented and described, together with some of the difficulties that have been encountered. Examples are cited where national, regional and local governments have become involved, even though constitutional provisions appeared to present this. It is argued that national, regional and local governments all have interests in the efficiency of ports from various points of view; hence all should be involved. The arguments for and difficulties experienced in centralized planning and co-ordination are also discussed.

The variety of activities directly undertaken by port authorities is discussed, with the extreme positions labelled 'landlord' and 'comprehensive'. The remarkable variety of intermediate positions is also described. Whilst oversimplification is dangerous, the opportunities for expanding the private sector are analysed, even to the extent of wondering whether public sector port authorities are needed at all. This, therefore is the subject of the next paper.     

The role of dry port in hub-and-spoke network under Belt and Road Initiative

Dry port plays increasingly an important role in the integration of inland regions with seaports, and cross-border inland ports especially in the context of Belt and Road Initiative (BRI) originally proposed by China. This paper studies a logistics network connecting the inland regions by dry ports based on a two-stage logistical gravity model. First, a basic logistical gravity model is developed to analyze the radiated inland regions from dry ports, where the logistical quality of dry ports is calculated by principal component analysis. Second, considering mutual impacts among dry ports, seaports and cross-border inland ports, the influence of logistical gravity on the network is examined by using a coefficient based on the Ordered Weighted Averaging Operator in multi-attribute decision theory. An improved logistical gravity model is further developed to investigate the logistical connections among various ports (e.g. dry ports, seaports and cross-border inland ports; hub and feeder ports). Then, a hub-and-spoke network can be established. Dry ports are potential to connect to the Silk Road Economic Belt and the 21st-Century Maritime Silk Road. So a Chinese case is used to verify the proposed method. The strategies of embedding inland regions in the BRI are discussed based on the experimental studies.     

Entry barriers in seaports

The different types of entry barrier in seaports are analysed and the policies and practices to reduce them are discussed in this paper. In most seaports, economic, regulatory, and geographical entry barriers are substantial and increasing in complexity as ports become embedded in supply chains and multilayered networks with multiple entry-levels. Various entry barriers in seaports are identified through an overview of the relevant literature and their presence is confirmed by empirical data describing them. The case is then made for lowering these barriers. This would be desirable from an economic point of view, since lower barriers strengthen the contestability of markets and increase the level of intra-port competition. The latter might yield substantial benefits, such as fostering specialization and preventing the abuse of market power. Finally, low entry barriers would facilitate the faster implementation of new technologies and business models. In the third part of the analysis, policies and practices designed to reduce entry barriers are examined. The implications are discussed of current national and supranational (EU) policy initiatives aimed to liberalize service provision in seaports. Other (de)regulatory policies that could contribute to the reduction of entry barriers are analysed.     

Entry barriers in seaports

The different types of entry barrier in seaports are analysed and the policies and practices to reduce them are discussed in this paper. In most seaports, economic, regulatory, and geographical entry barriers are substantial and increasing in complexity as ports become embedded in supply chains and multilayered networks with multiple entry-levels. Various entry barriers in seaports are identified through an overview of the relevant literature and their presence is confirmed by empirical data describing them. The case is then made for lowering these barriers. This would be desirable from an economic point of view, since lower barriers strengthen the contestability of markets and increase the level of intra-port competition. The latter might yield substantial benefits, such as fostering specialization and preventing the abuse of market power. Finally, low entry barriers would facilitate the faster implementation of new technologies and business models. In the third part of the analysis, policies and practices designed to reduce entry barriers are examined. The implications are discussed of current national and supranational (EU) policy initiatives aimed to liberalize service provision in seaports. Other (de)regulatory policies that could contribute to the reduction of entry barriers are analysed.     

Ship, port and supply chain security concepts interlinking maritime with hinterland transport chains

As maritime processes do no stop at sea ports, hinterland operations have to be considered and addressed as well. This becomes obviously on designing and managing seamless cargo and information flows from/to hinterland regions via sea ports from/to transcontinental markets. Nowadays, also security-related aspects need to be tackled in order to enable continuous flows corresponding to security legislations and technical requirements set up in the field of maritime and intermodal hinterland transport. Ensuring transport security within the European transport market requires both adequate security legislations and innovative concepts. While for the maritime sector, including sea ports, security regulations are already in force, hinterland operations (road, rail and Inland Waterway Transport) are only indirectly affected today, either on carrying out transports from/to sea ports or exporting commodities to overseas territories. This results in the need for innovative security strategies and concepts combining maritime with hinterland transport enabling seamless security processes.     

Dynamics of Russian dry ports

The transportation of cargos in containers has been intensively developing over the last decades. The world pace of growth in container transport is about 11% annually while in the Russian Federation from 2003 to 2007 the average growth was 21%. Container transportation is going to increase due to the construction of huge infrastructure projects for the Winter Olympics games in Sochi 2014, which implies the transportation of the required material flow. Foreign car assembly on Russian territory is developing, supplied by component parts delivered from Japan and the Republic of Korea, as well as from China that now bring 21.3% import container transport to Russia. About 60% of Russian container traffic passes through seaports Saint Petersburg, Novorossiysk and Vladivostok. The scenarios for increasing capacity to meet demands ahead are enhancing the productivity of seaports sites or leading to the creation of terminals in the hinterland. Although the phenomenon of dry ports is spread all over the world, in Russia none of the seaports has sufficient number of these facilities. The inland terminals of Russian seaports will be analysed from a dry port perspective. Despite the impediments, there are ecological and economical benefits that are discussed in the article. The advantages to the transport chain suggest that dry ports are a promising area for Russian seaports’ welfare.     

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.     

Applying SMC pricing in PPPs for the maritime sector

This paper investigates whether Short-run Marginal Cost (SMC) pricing is feasible to implement in seaports and with what type of consequences, e.g. concerning cost coverage. Answering these questions requires an analysis of the cost structure of seaports and especially of seaport calls, as well as of how the division of these costs over the different actors runs. As from the moment that this information becomes available, it can be analysed to what extent SMC pricing can be applied in Public-Private Partnerships (PPPs) within the seaport sector. Till now, mainly seaport infrastructure is involved, including the seaport entry from the open sea.     

Transport decision-marks speak: the Seaport Development in the Europena communities Reasearch Project —Part I

This paper, in two parts, reports on the Seaport Development in the European Communities Research Project wherein forty interviews with decision-makers were help in European seaports, and another forty were held with shipowning organization. Respondents were also asked to fill in a questionnaire, and it is these questionnaire, and it is these questionnaire findings that are reported in this the first part of the paper. Expected contrasts between planning philosophies in Britain, Ireland, and Denmark on the one hand and the rest of the EEC on the other were confirmed, and regularity of cargo on offer appears generally belived as the most important factor in route planning of ships. Among other major conclusions (see table 5) are the view that ship congestion at ports is a more scute problem than the over-provision of berths and that short-term low operating costs are considered more important than the security offered by mediumterm plans.     

The impact of dry port operations on container seaports competitiveness

The concepts of intermodal logistics and distribution networks have made integration of the inland freight distribution system essential for an efficient container seaport system. Inland components, such as dry ports, which exist within the seaport system, have become important in shaping the performance and competitive strategies of container seaports. Owing to the importance of interdependence between dry ports and container seaports, this paper aims to investigate the impact of dry port operations on container seaport competitiveness. It conducted an empirical study in Malaysia through 120 online surveys to key stakeholders of dry ports, including freight forwarders, shippers, seaports, rail operator, shipping lines, and haulers. The data collected were analysed using exploratory factor analysis (EFA). The results from EFA show that Malaysian dry port operations have impacts on seaport competitiveness. These include enhancing seaport performance, increasing service variations for seaports, improving seaport-hinterland proximity, increasing seaport trade volume, and enhancing seaport capacity.     

Transport decision-makers speak: the Seaport Development in the European Communities Research Project†—Part II

This paper, in two parts, reports on the Seaport Development in the European Communities Research Project wherein forty interviews with decision-makers were held in European seaports, and another forty were held with shipowning organizations. This part of the paper reports on analysis of the open-ended tape-recorded responses of the interviewees to six separate sets of propositions they were shown. The first major conclusion is that decision-makers in the ports and shipping industries have a great deal to offer in helping to shape future EC policies about seaports. The second is that these decision-makers on the whole agree with students of the subject, but outside the industries, that a step-by-step approach is possible towards a Common Seaports Policy. Indeed, without prompting, some respondents even confirmed a previously published suggestion for the first stage of this process—the necessity for an agreed standard basis for ports' accounts. It is believed that a small secretariat within the Brussels Commission could weld representatives of the industries into a working group which could make real progress by consulting their colleagues through interviews similar to those successfully conducted for this project.     

Transport decision-makers speak: the Seaport Development in the European Communities Research Project —Part II

This paper, in two parts, reports on the Seaport Development in the European Communities Research Project wherein forty interviews with decision-makers were held in European seaports, and another forty were held with shipowning organizations. This part of the paper reports on analysis of the open-ended tape-recorded responses of the interviewees to six separate sets of propositions they were shown. The first major conclusion is that decision-makers in the ports and shipping industries have a great deal to offer in helping to shape future EC policies about seaports. The second is that these decision-makers on the whole agree with students of the subject, but outside the industries, that a step-by-step approach is possible towards a Common Seaports Policy. Indeed, without prompting, some respondents even confirmed a previously published suggestion for the first stage of this process—the necessity for an agreed standard basis for ports' accounts. It is believed that a small secretariat within the Brussels Commission could weld representatives of the industries into a working group which could make real progress by consulting their colleagues through interviews similar to those successfully conducted for this project.     

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.     

Competition in ship handling: a study of market turbulence in North European harbour towage

This paper addresses the issues of an increasingly competitive towage industry in Northern European ports. Enhanced competitiveness reflects the trends in the global mobility of capital, labour, enterprise and management within the context of deregulated port markets. Up until the early 1990s, the long term trend in major North European ports had been towards market concentration. Many small towage firms have been taken-over, bought out or merged. Alternatively, a pattern of consortia has emerged with co-operation and market sharing seen as preferable to ruinous competition. A contrasting trend has occurred in the 1990s, with new entrants into hitherto stable markets. In a number of ports Antwerp, Rotterdam, Bremerhaven, Hamburg, Southampton, Thamesport, Bristol Channel new fleets have brought competitive challenge to the incumbent towage fleets. The process of enhanced competitiveness raises questions of safety, reliability, investment and professionalism. The movement towards an openly competitive shipping industry has been in evidence from the 1960s onwards. The momentum of a dynamic shipping industry, with its competitiveness sharpened by the use of global supply factors, has intensified from that period. The movement in European tonnage towards flags of convenience and global labour supplies began in the tanker and bulk carrier markets; more recently this has spread to deep sea liner, short sea and even cabotage trade shipping. The towage industry is the last North European shipping sector to make this transition, following the trends towards port deregulation in the 1990s. From this perspective, this paper considers the impact on the towage market of global mobility and deregulation in North European towage markets the impact of increased competition on the traditional operators and the likely effect on operational towage standards.     

Competition in ship handling: a study of market turbulence in North European harbour towage

This paper addresses the issues of an increasingly competitive towage industry in Northern European ports. Enhanced competitiveness reflects the trends in the global mobility of capital, labour, enterprise and management within the context of deregulated port markets. Up until the early 1990s, the long term trend in major North European ports had been towards market concentration. Many small towage firms have been taken-over, bought out or merged. Alternatively, a pattern of consortia has emerged with co-operation and market sharing seen as preferable to ruinous competition. A contrasting trend has occurred in the 1990s, with new entrants into hitherto stable markets. In a number of ports—Antwerp, Rotterdam, Bremerhaven, Hamburg, Southampton, Thamesport, Bristol Channel—new fleets have brought competitive challenge to the incumbent towage fleets. The process of enhanced competitiveness raises questions of safety, reliability, investment and professionalism. The movement towards an openly competitive shipping industry has been in evidence from the 1960s onwards. The momentum of a dynamic shipping industry, with its competitiveness sharpened by the use of global supply factors, has intensified from that period. The movement in European tonnage towards flags of convenience and global labour supplies began in the tanker and bulk carrier markets; more recently this has spread to deep sea liner, short sea and even cabotage trade shipping. The towage industry is the last North European shipping sector to make this transition, following the trends towards port deregulation in the 1990s. From this perspective, this paper considers the impact on the towage market of global mobility and deregulation in North European towage markets—the impact of increased competition on the traditional operators and the likely effect on operational towage standards.     

The Indian dry ports sector, pricing policies and opportunities for public-private partnerships

At the time of writing (2010), the world is witnessing the aftermath of the most severe financial sector meltdown in modern economic history caused by the real estate bubble in the United States. Its consequences on the real economy, especially in Europe, are yet to be fathomed, and this of course includes the longer-term impacts on international ocean transportation, ports and the distribution of global production.The economic recession has left the international shipping and port sectors with substantial overcapacity. This has resulted in drastic cost cutting measures on the one hand, and voluntary, often consensual, and coordinated reduction of supply on the other. These measures, together with a noticeable recovery in demand, are gradually leading again to improvement in prices charged by carriers and other transport service providers.In view of the country’s expanse; size of population; and regional inequalities, India’s dry ports (inland cargo consolidation and distribution centres) are seen by the government as a pivot of export-led growth and economic development (Haralambides & Gujar, 2011). Moreover, public and private sectors alike see the coordinated development of dry ports as the only way forward in terms of easing pressures at congested coastal ports, thus improving supply chain efficiency. In spite of this, dry port development and operations are still dominated by the public sector, under prices, capacity, land acquisition policies and other conditions that make private sector participation risky and comparatively unattractive. In order to rationalize dry port capacity and prices, this paper argues in favour of greater devolution through competition-enhancing Public-Private Partnerships (PPPs). The paper puts forward recommendations for the necessary legal, regulatory and general economic policy interventions based on international best practice, while keeping Indian specificities in the right perspective.     

Productivity change in Nigerian seaports after reform: a Malmquist productivity index decomposition approach

ABSTRACT

During the 1990s, Nigerian seaports were considered inefficient, unsafe due to massive cargo theft (wharf rat phenomenon) and one of the most expensive port systems in the world. This resulted in long turnaround times for ships and increased container dwell times. As a result, port operations were transferred to the private sector through concession contracts. This paper employs a Malmquist productivity index (MPI) technique to benchmark pre-and post-reform total factor productivity growth of the six major Nigeria seaports (Apapa, Calabar, Onne, Port Harcourt, TinCan Island and Warri) for the period 2000–2011 which represents six years before (2000–2005) and six years after (2006–2011) the reform. The results indicate progress in technical efficiency of the ports after reform but deterioration in technological progress. Overall productivity growth was higher in the pre-concession period compared to the post-concession period. The source of pre-concession period productivity growth was technological progress while the change in productivity of the post-concession period is generated by an increase in scale efficiency. This suggests that concessionaires have not brought in the much anticipated investment in modern technology to drive port efficiency. The ports of Calabar and Apapa experienced the highest productivity growth while lowest result was Onne.