Should the user pay?

The paper puts the case that historical analysis helps to understand current discussions on user-pays principles and practice. In particular, (a) it is demonstrated that the nature of funding systems is dominated by political considerations, and (b) user-pays systems lead to inadequate funding of infrastructure when politically controlled, but provide funds for expansion when “market-driven” (in pursuit of profit maximisation). The case is illustrated by reference to the experience of interregional transport infrastructure in 19th century in England and 20th century Australia. Revenue deficiencies arising from government-controlled rates can lead to the demise of private transport infrastructure. The problem is considered in the context of the history of interregional roads and railways in England between the 15th and 19th century in England and in Australia in the 19th and 20th century. The current embrace by government of the user-pays system in transport services arises from fiscal deficiencies, as much from economic philosophy. User-pays policies are part of the global re-emergence of economic rationalism since the 1970s. The lesson for other nations from Australia's experience is twofold. First, in a federal system of government, despite the efficiency benefits of user-pays in interregional land transport, fiscal and political objectives will prevail. Second, in sparsely populated and/or developing countries, deregulation of long distance road transport will make funding a national highway system a critical concern.     

Investment strategies in market uncertainty

The nature of the global economy is one of dynamic change. Shipping is a service industry with its demand related to changes in international trade levels and patterns. As a consequence shipping is subject to sometimes unpredictable swings in demand so that the operator is required to make strategic planning decisions while navigating through boom or bust environments. While boom economies generate rising freight rates which are welcomed and encourage investment, ship operators may also have to face falling freight demand and declining freight rates that may have significant impact on profitability, often falling to uneconomic levels for extended periods. In such a period of uncertainty and declining profitability management will make operational decisions to reduce costs. However, shipping lines operate in a market environment so any decisions made to rationalize the trade may have significant long-term competitive implications. For example, traditional micro economic theory might suggest that the prudent strategy to adopt would be to close down the operation and reopen when the market conditions improve. In a world of certainty or when costs of taking this action are zero, this would be a valid strategy. However, because of fear of competitors taking up a line's market share if the shipping company exits, even temporarily, this strategy cannot be valued simply in terms of shut-down and start-up costs. A further consideration is the fact that standard capital budgeting techniques, such as Net Present Value (NPV), cannot incorporate the flexibility to respond to new information and strategic responses explicitly into their investment analysis. This paper will demonstrate the use of Real Option Analysis (ROA) to provide guidelines for decisions about closing operations in adverse market conditions.     

Reliable container line supply chains

Container line supply chains, based on a near-frictionless international transport belief, have contributed to economic prosperity and also rendered themselves uniquely vulnerable to various risks. 9/11 terrorists attacks, the lock-out of American West Ports and the global breakout of SARS disease have gradually shown that a) the safety and reliability in the chains are facing an unprecedented challenge and b) traditional engineeringbased risk assessment methods are inadequate to deal with the threats from variational environments, especially in the era of terrorism rampancy. The purpose of this paper is, therefore, to develop a conceptual risk assessment model for container line supply chains based on a modified Formal Safety Assessment (FSA) methodology that takes risks from vulnerability rather than only hazards into account. It gives particular emphasis on the analysis of the threats with a high level of uncertainty from both safety and economic viewpoints. The advantages of the vulnerability-based risk analysis approach to the hazard-based one are clarified and both engineering-based and managerial risk assessments are also discussed.     

Analysis of the effectiveness of control measures to mitigate road dust emissions in a regional network

The effectiveness of control measures to reduce road dust emissions is analyzed using a year’s data of road dust emissions collected with a mobile sampling platform and a survey of road maintenance practices in the Lake Tahoe Basin of Nevada and California US. Attributes such as sweeping practices, anti-icing, shoulder improvement, pavement condition, trackout, and abrasive material from road segments were analyzed with a feature subset selection algorithm. Street sweeping was found to be an effective means of controlling dust emissions from roads. Road dust from dirty tertiary roads served as a continuous source of suspendable material for adjacent high-speed roads in the winter time. To be most effective, emission control strategies require that not only primary roads, but all roads be swept after snow storms to recover applied abrasive material.     

Planning considerations for preservation and use of the national seashores

This article reviews the historical development of the category of national park known as “national seashore,”; and traces the evolution of basic planning and management policies that are applied to such areas. Also reviewed is the current sequential approach applied by the National Park Service in all its planning efforts, including a discussion of the impact of the National Environmental Policy Act on park planning. Several examples are provided to illustrate a variety of planning problems common to the sashore environment. Finally, comments are provided on the future promise of seashore and barrier island conservation and development, as well as the future role of other agencies and private organizations.     

Building Philippine Local Government Capacity for Coastal Resource Management

The responsibility for managing coral reefs and other coastal resources was largely devolved to coastal municipalities and cities in the Philippines in 1991 with the passage of the Local Government Code. Devolution of powers and responsibilities to local government has paved the way for mainstreaming coastal resource management at the local level. However, the capacity to carry out this mandate has only recently begun to mature as municipalities and cities gain an increased awareness of the importance of coastal resources to communities and economic development. Approaches and strategies to increase local government capacity for coastal resource management are described based on the experiences of the Coastal Resource Management Project of the United States Agency for International Development. Qualitative and quantitative data are used to illustrate the possible impact of these capacity building efforts and to describe the current capacity of local government to undertake coastal resource management. After five years of project implementation, coastal municipalities have increased technical capacity, have allotted financial resources, and have achieved key performance benchmarks in the delivery of coastal resource management as a basic service.     

Economic Valuation of Coastal and Marine Resources: Bohol Marine Triangle,Philippines

This article provides results on the net benefits generated from the natural resources in the Bohol Marine Triangle (BMT) in the Philippines. The BMT spans over 112,000 ha and its coastal ecosystems are rich in biodiversity and provide economic opportunities to the coastal communities. With a 10% discount rate, the accumulated total net benefits for the BMT resources over a 10-year period is US$11.54 million. Tourism and the municipal fisheries are the most important direct use values of the coastal and marine resources of the BMT accounting for 44% and 39% of the total net benefits. Annual revenues attributed to ecosystems were as follows: coral reefs, US$1.26 million; beach/intertidal area, US$1.12 million; marine waters, US$646,501; mangrove, US$239,561; and seagrass, US$105,990. The large market values indicate the dependence of the local community on the BMT coastal and marine resources. In the same way, non-market values show the important life-support functions of coastal and marine ecosystems. The net benefits reflect the magnitude of potential losses due to improper management of coastal and marine resources in the BMT. This valuation highlights the importance of the coastal services to the BMT economy and draws attention to the benefits the local stakeholders derive from BMT coastal resources. Policy measures can now take into account these values to justify a sufficient investment in coastal management efforts to sustain the flow of coastal services in the interest of current and future generations.     

Lagrangian flow in the California Undercurrent, an observation and model comparison

During the period 1992–1998, 38 isobaric RAFOS floats were deployed to sample the subsurface flow of the California Undercurrent. The deployments, released over the California continental slope west of San Francisco, have sampled robust year-round poleward subsurface flow associated with the Undercurrent most seasons and the combined inshore current and Undercurrent in winter. Two other types of flow have been seen: a region of weak flow with little net displacement just west of the California Undercurrent, and an active westward propagating eddy field. This eddy field appears to be the primary mechanism for moving floats from the Undercurrent into the ocean interior. The observations and statistics from the RAFOS floats are compared with Lagrangian estimates of particles tracked in a global high resolution ocean simulation in order to evaluate the fidelity of the model along an eastern boundary. The results show that the model reproduces the general character of the flow reasonably well, but underestimates both the mean and eddy energies by a substantial amount.     

Origin–destination table disaggregation using biproportional least squares estimation

This paper describes a group of techniques for disaggregating origin–destination tables for travel forecasting that makes explicit use of observed traffic on a network. Five models within the group are presented, each of which uses nonlinear least-squares estimation to obtain row and column factors for splitting trip totals from and to larger geographical areas into smaller ones. The techniques are philosophically similar to Fratar factoring, although the solution method is quite different. The techniques are tested on a full-sized network for Northfield, MN and are found to work effectively.