Port privatization policy and practice

In recent years a significant number of countries have implemented policies aimed at reforming their port industry. In the belief that it will improve efficiency and reduce the heavy financial burden placed upon governments that attempt to support such a capital-intensive industry, privatization has often formed an important strand of such policies. A key claim in favour of privatization is that the transfer of ownership from public to private hands will ultimately lead to an improvement in economic efficiency and, hence, financial and operational performance. This paper investigates the theoretical underpinnings and practical validity of this claim and concludes that privatization is only a partial cure for what ails the world's ports and that, if implemented in isolation, it simply cannot deliver the much-needed panacea for the industry's woes.     

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.     

The utility analysis of risk attitudes in shipping

Many methodologies have been developed in order to optimize business decision making. By definition, optimization is only possible when an objective, or set of objectives, has been specified. However, the presence of risk obscures the potential payoffs of a particular decision. How different decision makers react to this phenomenon is reflected in the different objectives which they adopt. One corollary of this diversity of objectives is that any generally applicable optimization method must explicitly take into account the influence of risk attitude on decision choice. Because of the magnitude of the risks involved, virtually nowhere is this requirement more relevant than in relation to shipping decisions. This paper presents and justifies a method for assessing and measuring attitudes towards market risk. The method is applied to a sample of shipowners in Britain, Norway, Hong Kong and Greece and the risk profiles that are developed have some surprising, and important, implications for decision making in shipping.     

IAME 2011 – contemporary studies on maritime transport in Latin America

Latin America and the Caribbean have evolved as a region of increased interest for the maritime and port industry as well as for academic research. Maritime transport activity in the region has experienced sustained growth rates over the last decades, resulting in ever-increasing demand for maritime services and port infrastructure. At the 2011 Annual Conference of the International Association of Maritime Economists (IAME), Latin America received significant attention. This editorial responds to growing research by giving a brief overview of the current situation and contemporary issues in maritime transport within the region. It also introduces the six selected papers for this Special Issue.     

The implications of the sharing economy for transport

ABSTRACT

The sharing economy has gained a lot of attention in recent years. Despite the substantial growth in shared services, its impact overall on transport is unclear. This paper analyses the literature on sharing in transport and includes government and consultant reports, websites and academic journals. The drivers of ride-sharing, car-sharing, car-pooling and freight-sharing are largely economic and convenience related for participants. Trust, technology platforms and the trend to avoid ownership of assets are facilitating factors in its growth. Over-regulation, inconsistent quality of service and the need for recommendation are potential barriers. The transport journals in particular are relatively slow to research this topic with more focusing on bike-sharing than other modes of vehicle sharing. The paper discusses the impact of sharing on transport suggesting it is likely to be part of a solution to transport problems and congestion perhaps in combination with other developments such as driverless vehicles. It also warns of the dangers of over-regulation and under-regulation. The future will require holistic transport strategies that consider sharing options and will require government departments to work cooperatively.     

Who's using Biffex? Results from a survey of shipowners

The continued survival of the Baltic International Freight Futures Exchange (Biffex) would certainly have come as a surprise to many critics that were present at its inauguration. In an effort to explain, at least partially, the reasons for its continued existence, this paper presents the results from a behavioural and attitudinal survey of shipowners. Through the analysis of the responses received, the paper attempts to evaluate the degree of success achieved by Biffex in providing shipowners with a powerful, flexible and viable mechanism for hedging their market risk. The results imply that there is great scope for improving the acceptability of the market amongst shipowners, particularly as a hedging tool. In the light of these results, the paper comments on potential future innovations within Biffex and suggests changes in marketing policy that might lead to an increased level of acceptance amongst shipowners. In conclusion, recommendations are made with respect to aspects of Biffex that are worthy of further investigation and analysis.     

From Bricks to Clicks: The Impact of Online Retailing on Transport and the Environment

Abstract

Online retailing is growing fast and claims are being made about its positive environmental impact relative to traditional shopping, particularly by the retailers themselves. There is, however, little concrete evidence to support the claims. Whilst there exists some research into the passenger travel implications of e‐shopping, this paper seeks to analyse the issues involved in online shopping from both a passenger and freight transport perspective. The objectives of the paper are first, to set out the complex transport relationships involved in online shopping and in particular the interaction between the passenger and freight aspects and second, to shed some light on the environmental impact of online shopping. It concludes that as things currently stand, it cannot be stated with any degree of certainty that clicks are any more environmentally responsible than bricks. The paper is conceptual in nature and is the pre‐cursor to an empirical study of the issue.     

The mispricing of transportation initial public offerings in the Chinese mainland and Hong Kong

The main objective of this study is to determine the level of mispricing of transportation IPOs in the Chinese mainland and Hong Kong. A subsidiary objective is to test the hypothesis that there is a strong positive correlation between the initial day returns that are required for new equity issues and the level of ex ante uncertainty associated with the IPO. By applying a standard methodology in finance for assessing the existence and scale of mispricing, the study finds significant underpricing for transportation IPOs in the Chinese mainland and Hong Kong. There is also evidence that freight-related IPOs are subject to more severe underpricing than non-freight related IPOs, and that water-transport IPOs are underpriced more than IPOs of other types of transport business. It is concluded that there does exist support for the hypothesis that the level of ex ante uncertainty is strongly associated with the level of mispricing and that this explains cross-sectional differences in the degree of underpricing of IPOs. In this respect, the results from the Chinese mainland and Hong Kong are consistent with the results of similar studies conducted elsewhere.     

Cutting vehicle emissions with regenerative braking

This paper presents an analysis of vehicle regenerative braking systems as a quick and relatively easy means of achieving higher overall fuel efficiency and lowering carbon emissions. The system involves the installation of an additional electric motor/generator in parallel to the vehicle’s internal combustion engine and is used in conjunction with a DCDC converter and ultracapacitor. The system is used to recapture the energy lost in vehicle braking, significantly reducing a vehicle’s overall energy consumption and lowering vehicle emissions. Experimentally-based evidence is collected and compared for two sample vehicles to deduce the potential fuel and emissions saving.