Minimum Efficient Scale (MES) and preferred scale of container terminals

The decision on the scale of a port terminal affects the terminal’s managerial, operational and competitive position in all the phases of its life. It also affects competition structures in the port in which the terminal is operating, and has a potential impact on other terminals. Port authorities and terminal operators need to know the scale of the terminal when engaging in concession agreements. In economic theory the scale of a plant/firm is typically defined in relation to the Minimum Efficient Scale (MES), the long-run output where the internal economies of scale are fully exploited. However, there are a number of theoretical and empirical indications that in ports the scale of a terminal is commonly guided by a combination of the MES and other determining factors. The “preferred” scale is the result of a complex interaction between the MES, the port governance framework and objectives, the market size and structure, technological change and operational considerations, physical and geographical limitations, and the business patterns of shipping lines. This study analyses the factors resulting in a preferred container terminal scale that in most of the times is different from the MES. The analysis of the technical, market-related and governance-related factors is supported by theoretical and empirical insights that illustrate the presence of a range of actual ”preferred” scales of terminal concessions that usually are different, below or above, MES.     

Decision Support Systems for Public Transport Management: The Athens Public Transport Authority Project

This article reports on an implementation study of a computerised decision support system for public transport management for the Athens Public Transport Authority (APTA). The study analysed the current situation, specified user requirements, determined system functionality, designed the system architecture, organised the project and, finally, planned dissemination activities. The decision support system covers the main public transport management activities of APTA - transport service provision, economic and financial planning, passenger complaints and suggestions, and personnel management - offering its users the possibility to study the potential effects of their decisions before implementation. To achieve this, the system will consist of a data warehousing system, for the integrated management of a wide variety of data sources, and of online analytical processing tools, for information analysis and scenario testing. The system architecture has been designed to offer robustness, flexibility, rich functionality and open connectivity. The system aims to help APTA reduce operational costs and provide a better transport service, attracting more passengers to public transport and reducing, in the process, congestion and pollution.     

Towards a common ports policy? EU-proposals and the ports industry's perceptions

This paper discusses the European Union's (EU) proposals to improve the efficiency and infrastructure of European ports, and investigates the extent to which these proposals are welcomed by the ports industry. On the one hand, the analysis of the recent EU policy developments makes apparent that the EU is increasingly impinging upon the port industry's life. On the other hand, the findings of the semi-structured interviews with the industry's representatives suggest that although port authorities and port operators remain in principle against a coherent common EU ports policy, the industry believes that certain EU initiatives can enhance the competitiveness of the maritime transport system.     

Maritime interests in the EU policy-making: Structures,practices, and governability of collective action

Throughout Europe, a number of maritime interests have re-targeted their lobbying structures and strategies aiming to influence the development of the maritime related European Union (EU) policies. The paper examines these maritime interests’ mobilisation in the making of the Common EU Maritime Transport Policy (CMTP). First, it provides a review of the role of these interest groups and the implications of the observed collective interests’ representation. Then, with the contribution a data-set of replies to a questionnaire distributed to all the interest groups that are involved in EU maritime affairs, the paper analyses the variety of interest groups representing the maritime sector in EU affairs. The focus is on the structures (i.e. membership numbers and types, location, internal structures, budget) and the lobbying practices of the 37 identified EU level maritime related organisations. The paper also presents an evaluation of the most positive and most negative parameters of the ‘EU environment’ and the ‘economic environment’ that assist, or undermine, the governability cohesiveness of this collective action. This study provides information on whether and under what conditions maritime interests are able to form comprehensive EU-level organisations capable of representing their members and their interests in the EU policy making process     

A chance-constrained based stochastic dynamic traffic assignment model: Analysis, formulation and solution algorithms

This paper is concerned with the system optimum-dynamic traffic assignment (SO-DTA) problem when the time-dependent demands are random variables with known probability distributions. The model is a stochastic extension of a deterministic linear programming formulation for SO-DTA introduced by Ziliaskopoulos (Ziliaskopoulos, A.K., 2000. A linear programming model for the single destination system optimum dynamic traffic assignment problem, Transportation Science, 34, 1–12). The proposed formulation is chance-constrained based and we demonstrate that it provides a robust SO solution with a user specified level of reliability. The model provides numerous insights and can be a useful tool in producing robust control and management strategies that account for uncertainty in applications where SO-DTA is relevant (e.g. evacuation modeling, computing alternate routes around freeway incidents and establishing lower bounds on network performance).     

Advances in port studies: the contribution of 40 years Maritime Policy & Management

Port economics, management and policy have progressively emerged as a distinctive research field, and a core part of maritime economics. This paper provides an analysis of all the 267 port studies published in Maritime Policy & Management (MPM) since its inception in 1973. This paper provides a content analysis for seven interrelated research theme categories including main research topics and methods, authorship distribution and citation counts. It is demonstrated that MPM played, and continues to play, a key role in publishing research on seaports. The published research increasingly applies established analytical frameworks to ports. The paper concludes with a discussion on current challenges for port-related research.     

The economics behind the awarding of terminals in seaports: Towards a research agenda

Terminal concessions in seaports have only recently gained interest in academic circles. Issues such as the allocation mechanisms (to be) used for granting those concessions, the determination of the concession term and concession fees, as well as the inclusion of special clauses aimed at assuring that the terminal operator will act in the interest of the port authority and the wider community, are increasingly relevant to both academics and the port industry. So far, insights from established economic theories have rarely been applied to terminal concessions in seaports. It, therefore, remains to be seen which kind of awarding procedure would be best for which type of terminal concession. This contribution provides a detailed overview of the different phases of the terminal awarding process, including a classification scheme for awarding procedures, and contains an extensive discussion on the economic issues that require further investigation. The paper concludes by proposing a comprehensive research agenda on the topic.     

Slot misuse phenomena in capacity-constrained airports with seasonal demand: the Greek experience

Abstract

Airport slot misuse disturbs the efficient and continuous operation of capacity-constrained airports, leading to congestion and delay problems. Deviations from the coordinated schedule in regional airport systems that feature seasonal demand and delays in certain peak periods are studied in this article. The Greek airport system is considered as a case study. Deviations are quantified by computing the difference between scheduled and actual aircraft arrival times as well as the hourly slot capacity utilization ratio. Two collective indicators for airport benchmarking are proposed. An in-depth analysis of slot allocation deviations and the delays they cause is carried out for a representative sample of airports that are classified according to the proposed indicators. A brief discussion on potential measures to mitigate slot misuse is also presented.     

Seaports and the structural implications of the economic crisis

The 2008 credit crunch and the subsequent economic crisis ended a period that lasted over two decades wherein international seaports around the globe experienced double-digit volume increases. This chapter provides an analysis of the structural effects that the crisis has on seaports, focusing mostly on developments in Europe. It does so via an examination of (a) the crisis implication for each of the four major types of transport flows that account for the vast majority of port throughput worldwide; (b) the prospects for future capacity organisation and development, given the realignment of the involvement strategies that the various stakeholders (i.e., governments, port authorities, service providers, users, investors) endorse in reaction to the financial tsunami; and (c) the adjustment opportunities, that the trade downturn unintentionally provides, allowing for correction of existing misallocations in the sector via the deployment of relevant adjustment strategies by the related actors. Recapping the identified structural consequences, the final section concludes on the changing role and responsibilities of port authorities and the ‘new issues’ that will require further investigation in the post-financial tsunami era.