The role for rail in port-based container freight flows in Britain

As supply chains become increasingly global and companies seek greater efficiencies, the importance of good, reliable land-based transport linkages to/from ports increases. This poses particular problems for the UK, with its high dependency on imported goods and congested ports and inland routes. It is conservatively estimated that container volumes through British ports will double over the next 20 years, adding to the existing problems. This paper investigates the potential for rail to become better integrated into port-based container flows, so as to increase its share of this market and contribute to a more sustainable mode split. It identifies the trends in container traffic through UK ports, establishes the role of rail within this market, and assesses the opportunities and threats facing rail in the future. The analysis combines published statistics and other information relating to container traffic and original research on the nature of the rail freight market, examining recent trends and future prospects. The paper concludes that this is an important market for rail, with considerable growth potential but to realize this it is important that a number of constraints are overcome, otherwise the long-term prospects for this rail market will be compromised.     

The evolution of containerization in East Asia

This paper examines the development and growth of container traffic in the Asia-Pacific region. It is hypothesised that containerization is losing its national character as the geography of container transport changes port hierarchies where only a few ports have become locationally favorable. The organizatioon of the paper is straightforward. First, the development and growth of container traffic in the Asia-Pacific region is examined in order to provide understanding of changes associated with containerization. Second, the role of selected Asian-Pacific ports as key economic players is reviewed, and container development in each port is analysed so as to measure the differences explaining the position of Asian-Pacific ports in the maritime system. Third, the degree of concentration and competition that exist among the container ports of the region is analysed with a view to evaluate what rate of expansion can be expected in the foreseeable future that will shape the network of the container market in the region. The paper concludes on a possible research agenda.     

上海港将成为东北亚转运中心

由于缺少集装箱深水港,每年我国沿海都有大量的集装箱从釜山港、高雄港等转运。上海洋山深水港区的建设将打破这个格局。随着洋山深水港区投入营运,将能保证第五代、第六代集装箱船全天候进出。凭借经济腹地优势和箱源优势,上海港将成为亚洲最重要的集装箱航线交汇港。随着上海港的发展,吸引韩国釜山、日本的货物从上海港中转将成为可能。因此,上海港可以像新加坡和香港一样发展成为东北亚轴辐式转运中心和航运交汇式转运中心。     

The mid-Atlantic load centre: Baltimore or Hampton Roads?

Competition between closely situated seaports in not new. The ports of Baltimore and Hampton Roads, located at either end of Cheaspeake Bay, have been locked in a fierece battle to gain dominance in the lucrtice mid-Atlantic container traffic for a number of years. The probability that ech will succeed is not great, as shipping lines, concerned with the high costs associated with idle port time, will select one,rther thatn serve both. Indeed, evidence is beginning to mount that, dispite massive expenditures by the Stte or Maryland, the Virginia ports a reemerging as the region' load centre. This paper examines recent trends in container movements through these two major ports and suggests the long-termprospects for each. among measures considered are the location of eachi in relation to other ports both North and South, sizes of the port cities and their immediately adjacent hinterlands, proximity to inland population centres (markets), connectivity between the ports and these inland centres (by both rail and truck), expenditures by port agencies and land crries, labour relations, and availabillity of space for expansion.     

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.     

The ports of the Russian Far East: a management strategy

The recent breakupof the former Soviet Union and the Russian Republic's movement towards a market economy wil require a considerable improvement and expansion of present port facilities in order to handle increasing cargo throughputs effectively. The Russian Far East is expected to increase trade dramatically through imports of foreign goods, exors of natural resources from Siberia and container traffic traversing teh Trans-Siberian landbridge. The ports of the region will be competing with each other to atract foreing investment and to increase central government assistance in order to facilitate development. This article examines;(1) the more important ports of the Far East and the problems they face as they compete to atract investment; (2) the establishment of a Regional Port Authority as a possible management alternative; (3)advantages of a Port Authority in developing the region' ports and fostering future growth. By analysing these data, a management and development strategy can be formulated for the optimum utilization of present resources and the benefi of reginal modernization and development.     

State-owned Spanish Port System oversizing: an analysis of maximum operational capacity

The State-owned Spanish Port System (SPS) includes 46 ports for general use that are managed by the 28 port authorities distributed along the 8000 km of Spanish coast. SPS has not grown at a rate comparable to that of international maritime transportation. In our paper, we start from the hypothesis of a port system that appears to be oversized, subsidized, with regard to container traffic. Quantifying the maximum operational capacity of the different container terminals along the Spanish coast and their mooring capacities will provide the available dimensions for this type of traffic. In a second step, we will analyse whether SPS are sufficient (according to the perspective of international standards) to meet Spain’s needs, which is related to Spain’s strategic geographic location and its need to move containerized cargo for the domestic market. The paper concludes SPS has an oversized that limits competitiveness, which is indicated by the average transshipment ratio of approximately 50% and an average unweighted idle ratio of port facilities designed for container traffic of over 60% in the eight main ports.     

Competition for transhipment containers by major ports in Southeast Asia: slot capacity analysis

Container ports in Southeast Asia accounted for an estimated 30.0% of the world's transhipment traffic in 2004. The share of the region's transhipment trade was forecasted to increase to 32.5% in 2015. The potential offered by this large and expanding market encouraged major container terminal operators located in Port Klang, Singapore and Tanjung Pelepas to compete intensively for this business by attracting major container shipping lines that operated along key east-west sailing routes to hub at their terminals.

This paper analyses the annual slot capacity connected to the three selected ports that was deployed by all the container shipping lines in 1999-2004. The data are computed and categorized based on shipping trade routes. The study aims to shed light on port competition in Southeast Asia for transhipment containers by an in-depth and quantitative analysis.

The analysis finds that competition from Port Klang and Tanjung Pelepas had a negative impact on Singapore's transhipment performance. Although Singapore continued to enjoy a dominant position as the premier transhipment hub in the region in terms of market share by both transhipment throughput and annualized slot capacity, the evidence suggested that its hold on the market appeared to be slipping, albeit gradually. Overall, Tanjung Pelepas is expected to pose the strongest challenge to Singapore's transhipment hub ambitions. Managerial implications for the ports are drawn.     

Fuzzy empty containers excess estimation as an economic indicator—the case of the north Adriatic port system

Today, approximately 90% of the world’s cargo is moved by ships and almost all general cargoes are transported in containers. Worldwide container traffic has increased over the last 20 years by 7% annually, and containerization has begun to seriously impact global trade patterns. As a result, container terminals have become very important nodes in the world’s supply chain. In this article, we have highlighted the link between the total and empty container traffic and the global economy. By way of example, we have analysed the empty container traffic in north Adriatic ports in the years before and during the global economic crisis and in a period of stability after the major economic slump. We used a fuzzy multicriteria algorithm to find out how the global crisis, which has affected ports, influences the number of excess empty containers at the terminals. We show that these factors, in particular the change of the global financial and economic situation, have different repercussions to the ports of the north Adriatic: less serious effects upon the ports that are well connected locally and substantial consequences for the ports that are well connected globally.     

The size effect of a port on the container handling efficiency level and market share in internation transshipment flow

This study examines the relationship between the size of a port, its efficiency increase and the performance growth in the transshipment market. The hypothesis tested is that the bigger size of a port would increase the market share of the port in container transshipment; only when the size effect guarantees better ‘relative’ container handling efficiency in competing port system where the port belongs. To verify the hypothesis, this study carries out two analyses. First, the overall efficiency change of major Asian ports is examined through stochastic frontier analysis (SFA)—this produces the relative efficiency indices of the ports. Second, the relationship between efficiency indices and container transshipment volumes is studied through panel data analysis. From these analyses, it is observed that larger Asian ports show better cargo handling efficiency in relative terms; they also record bigger market share in container transshipment, while the size effect of the ports starts to play a factor when the annual container throughput reaches 5 million twenty-foot equivalent units (TEU).     

Italian ports: towards a new governance?

The adoption in 1994 of the law n. 84 introducing the landlord port model marked the starting point of a prime period for the Italian port industry. It contributed to the national port industry renaissance: Italian ports became again the leaders in the Mediterranean basin, both as gateway ports and as transhipment ports. Looking back to its 15 years of enforcement, critical aspects and weaknesses have been observed. The incentive to reflect on the governance structure of ports and on the changes affecting the whole logistics transport chain is driven by the relative and absolute loss of position of Italian ports with respect to their competitors of the North as well as of the South European range (and the ports of Northern Africa which are expected to compete fiercely in the coming future). Considering only the container traffic, from 2003 to 2008 the market share of Italian ports decreased from 20.7% to 15.7% in favor of its main European competitors. The loss of attractiveness of Italian harbors is a clear symptom of the several difficulties national ports face in dealing with the rapid changes affecting the port industry. This paper discusses the bill presented by the Italian Government concerning the ports governance reform.     

Next generation mega container ports: implications of traffic composition on sea space demand

ABSTRACT

Demand for sea space brought about by increasing container-shipping traffic has important implications on how this space is managed and used. This is particularly important given the long-term nature, high-asset specificity, high- opportunity cost of investment, and significant economic impact of container port activity on a locality. The challenge is especially pressing for ports, which are facing constraints in seaside capacity where container traffic also has to co-exist with the needs of other types of ship traffic. This challenge is likely be multiplied for next generation container ports, which are expected to handle even larger traffic volumes. These ports are also likely to face competing sea space demands from other economic and social activities especially when they are concurrently major confluences of trade, logistics, and urban populations. This is the first research to investigate in detail the impact and importance of investigating sea space requirements from the perspective of cargo traffic composition and ship capacity. Results show that transshipment containers can generate much higher demand for sea space due to the higher volume of shipping capacity that accompanies such traffic. Sustainability issues and managerial and policy implications pertaining to the development of next generation container ports are provided.     

Competition between the ports of Hong Kong and Singapore: a structural vector error correction model to forecast the demand for container handling services

The objective of this paper is to provide the Hong Kong government with an alternative forecast of container throughput, by studying various interactive relationships between major ports in East and Southeast Asia. As the demand for container handling services is 'derived' from the demand for imports, the resulting market shares for the container handling services gripped by different regions inevitably become a mirror image of the relative competitiveness of their exports. When the markets of the two ports overlap, their market shares will become a function of the prices they charge and how well they meet the needs of the shippers and shipping lines. A vector error correction model (VECM) with structural identification was set up to capture this kind of trade-interdependency and oligopolistic relationship in the East and Southeast Asian market for container handling services. In the course of so-doing, the upward sloping supply curves and downward sloping demand curve for the container handling services provided by Hong Kong and Singapore are identified from the model. Interestingly, the impulse response functions display what is reminiscent of the trade-interdependency and oligopolistic relationship. The forecast of Hong Kong container throughput generated by the structural VECM is then compared with that obtained by the Hong Kong Port Development Board (PDB). The sensitivity analysis shows that, in all possible cases, the structural VECM produces higher growth paths for the Hong Kong container throughput than the PDB does and, hence, suggests an earlier construction of new terminals.     

Dynamics of liner shipping service scheduling and their impact on container port competition

Container ports provide the primary interface where physical exchange between buyers and sellers of containerised shipping capacity can be consolidated and realised. Consequently, ports that are able to complement and add value to the objectives of shipping lines and shippers will become focal points for containerised cargo flows. To evaluate container port competition, the authors propose a practical and direct approach based on revealed preferences of shipping lines with respect to container shipping service dynamics. The container shipping networks are generated as carriers formulate their service schedules to capitalise on opportunities that are presented by evolving container trade patterns along trade routes and relative changes in the competitive profile of the ports of call. Empirical results showed that this approach offers a deeper understanding on the workings and evolution of competitive dynamics between ports, which may not be obvious from observations of port performance at the aggregated level. Benefits of the approach also include raising awareness that policy makers should be aware of the need to understand the nature, extensity and intensity of competitive relationships between ports as they craft and implement policies to correct for the actual or perceived market failures in the industry.     

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.     

The 50<Superscript>th</Superscript> anniversary of container shipping the Admiral Sheldon Kinney (USN) lectures

The paper offers a historical overview of the container revolution. It starts from the origin more than 50 years ago, presenting how the pioneer Malcom McLean came to this idea that has changed the nature of Shipping. It then presents how and why container shipping was gradually accepted and what has been the main trends during the last 50 years: the increase in vessels’ and containers’ size and in vessels’ speed. Finally, the paper investigates what the future will bring and notably sheds light on the increase in containers’ size and on the improvements in terminal and rail services.     

Port competition between Shanghai and Ningbo

The objective of this paper is to analyse the relative competitiveness of the neighbouring container ports of Shanghai and Ningbo in China and to develop a view of the likely future outcome of the competition between them. After assessing the demand for their services within what is hypothesized as a shared hinterland, current supply and future expansion plans are detailed and considered within the two ports’ wider development strategies. The relative competitiveness of the two ports is then evaluated on the basis of price and quality of service, as embodied within the concept of generalized cost as incurred by customers. A critical political dimension is a necessary element of this analysis. It is concluded that continued economic development in the hinterland, central government policies on regional development and China's accession to the World Trade Organization (WTO) will all contribute to growing demand for port services. However, Ningbo will continue to gain greater market share as the result of advantages in its natural endowments (particularly depth of water), price (especially in terms of recovering the cost of capacity expansions) and quality of service improvements that are predicted to emerge as the result of currently planned enhancements to inland transport infrastructure and logistical systems.     

Asian hub/feeder nets: the dynamics of restructuring

The emergence of hub/feeder networks in the Singapore-Japan corridor through the 1970s and 1980s reflected not only the rapid growth of containerized cargo in regional Southeast and East Asia but also the exceptional importance of Far East/transPacific and Far East/Europe mainline shipping services in structuring these networks. This paper argues that the mid-1990s is a defining moment in the restructuring of these networks; that the period represents, in fact, a convergence of a number of different though related trends impacting on the regional shipping market. More particularly, continuing high growth rates of containerized cargo have not only spawned new ports but have also increased the proportion of ports handling threshold volumes of containers for which mainline calls, rather than handling thfeeder operations, are justified. Further, the quite dramatic retionalization of already large container shipping lines into mergers and alliances bestows a new level of market power that is able to underwrite major changes in shipping schedules, port rotations and feeder linkages. This paper speculates that these developments are generating, and will continue to generate new, hierarchically organized port/shipping networks in which high order networks will include high efficiency/high cost operations; and lower order networks will include a mix of hub and direct-call ports that will focus on different market segments.     

The impact of port and trade security initiatives on maritime supply-chain management

The fundamental objective of the Container Security Initiative (CSI) is to engage both so-called 'mega-ports' (ports sending the highest volume of ocean going container traffic into the US) and the national governments where these ports are located in a way that will facilitate the pre-screening of outbound containers destined to the US. The emerging issue of security as a key factor in global supply chains can be perceived as inconsistent with the objective of facilitating international trade (Dulbecco and Laporte, 2003). However, this perception does not stand up to analysis. Security is an evident part of the mainstream supply-chain paradigm while security can also become a driver for trade facilitation. The purpose of this paper is therefore to discuss the impact of the US CSI on maritime supply chains. The first section will mostly be related to the issue of security and supply chains while the second section will investigate CSI and its impact while exploring some of the financing implications of the security initiative.     

Panama Canal expansion and its impact on East and Gulf coast ports of U.S.A.

ABSTRACT

This paper focuses on the Panama Canal expansion and its impact on American port infrastructure for the attention of academic researchers in maritime transportation and supply chain management (SCM). First, it provides a comprehensive background based on a review of pertinent practitioner as well as academic publications. This is followed by a summarization of the impact of this expansion on the infrastructure of the major East and Gulf Coast (EGC) ports, since these stand to be the most affected. Then it presents a categorization scheme for these EGC ports that capture their likelihood of attracting the expected increase in cargo traffic engendered by the expansion; this is preliminarily supported by the latest data on growth in container traffic. The policy implications of this categorization are then discussed and the paper ends by identifying key SCM research problems exposed by the above.