A model for forecasting future supply of shipping services at Australian ports

This paper aims to develop an integrated model for forecasting both the number of ship visits and their characteristics in the medium and long term. Knowledge of future shipping trends for any port is no doubt important, as the future number of ship visits and their characteristics may have implications for the physical facilities of a port. In addition, more reliance on tonnages as a revenue source has made this knowledge more valuable. The proposed model identifies such major economic determinants as the expected trade throughput, world shipping trends, standards of facilities and future plans of shipping companies/agents. The model examines three possible scenarios for the Port of Melbourne and produces a range of shipping forecasts based on certain assumptions. From the model the major findings were:

world trends in shipping did not have any immediate impact on the shipping trends at the Port of Melbourne;

Future shipping services at the Port of Melbourne in the next 11 years are most likely to be determined by trade demand rather than by technological developments overseas;

there has been no evidence to indicate that the Port of Melbourne has been excluded from the schedule of general cargo ships due to the Port's physical constraints.     

Revisiting port pricing; a proposal for seven port pricing principles

A review of seven large landlord port authorities around the world reveals a notable diversity of pricing structures. While port authorities increasingly act as commercial undertakings, port pricing often seems to be not driven by commercial considerations. In this paper, we argue that ports can be regarded as “business ecosystems” with multiple users. This provides a valuable perspective on pricing and raises the question of whether ports can be regarded as two-sided markets. We argue this is not the case. The business ecosystem perspective provides a basis for deducing seven pricing principles for port authorities that are detailed in the paper and illustrated with cases these principles. These pricing principles are broadly follow a direct user pays approach; capture value from “non-core” tenants; price aggressively for activities with a high strategic value; differentiate pricing based on price elasticity and connectivity improvements; maximize revenue from long-term lease agreements, price port dues competitively; critically consider differentiation of charges based on environmental performance; and finally use incentives to align interests of terminal operators and shipping lines. We conclude that the ecosystem perspective is central to the understanding of pricing decisions of port authorities and that various pricing issues deserve more attention.     

‘Tool port’ to ‘landlord port’: a game theory approach to analyse gains from governance model transformation

This study investigates potential port users’ surplus and terminal operators’ profits due to transforming port governance from the ‘tool port’ model to the ‘landlord port’ model. Although the landlord port model is one of the most adopted and successful port governance models, many ports still operate under other models. Chittagong Port, the largest port in Bangladesh, currently operates under the tool port model, while the country’s second-largest port, Mongla Port, operates under the service port model. Chittagong Port is currently facing many challenges, including capacity expansion and renovation of port facilities. Therefore, we form four hypothetical situations for port governance model transformation, assuming that Chittagong Port will transform to the landlord port model but that Mongla Port will run under the existing governance model. Estimating a Bertrand game model, we present a cost-benefit analysis for port users and terminal operators (or port authorities) in hypothetical game situations. The results reveal that privatising one of the container terminals under a landlord setting is the most profitable scenario for Chittagong Port Authority, but privatising all terminals of Chittagong Port yields the highest users’ surplus. However, privatising two of the terminals while they cooperate yields the lowest users’ surplus.     

Improving port effectiveness through determinance/performance gap analysis

Port managers, governments, and stakeholders bring different perspectives to the challenges of port management. One of the greatest of these challenges is identifying and prioritizing investments to take advantage of the opportunities for future growth and to meet the needs of customers and users seeking value in the supply chains served by the port. Importance–performance gap analysis, based on discrepancies between performance effectiveness and user expectations, has been illustrated to be one means of guiding these decisions while determinance scores offer another. However, user perceptions of satisfaction and effectiveness often lead to conflicting signals between these two methods when port managers seek to allocate resources for performance improvements. The authors develop a mapping process based on determinant/performance gap analysis to address conflicting signals between the methodologies for evaluating performance effectiveness and thereby assist port managers in making appropriate performance investment decisions that will address users’ requirements.     

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.     

Debt—equity conversion and port privatization

Port privatization has been perceived as an instrument for the improvement in port management operations and marketing, yet it also provides a major opportunity for public debt reduction by converting debt incurred in port development into equity or other assets. There are many different ways in which debt, particularly foreign debt, can be converted. It can be directly converted into equity, it can be swapped for other debt, converted into various portfolio investments or exchanged for future services or exports. In recent years, 'ecological' swaps have also been considered in which some debt is written off in return for improvements in environmental management. This paper reviews the reasons for port privatization, the different methods for port ownership financing, and the role debt-equity conversion could play in it.     

Productivity change of the Spanish Port System: impact of the economic crisis

ABSTRACT

The main goal of this study was to assess the impact of the economic crisis on the productivity growth of the Spanish Port System (SPS). The Malmquist Productivity Index (MPI) was estimated for the 28 Port Authorities of the SPS, for a ‘non-crisis period’ (2005–2008) and a ‘crisis period’ (2008–2011). From a policy perspective, the MPI is a very useful approach for assessing the productivity change because it can be decomposed into the catching-up index and the frontier productivity index. The results showed that the economic crisis did not impact all of the Spanish Port Authorities equally. Some Port Authorities presented higher productivity growth during the crisis period than in the non-crisis period. Further analysis by the Mann–Whitney test revealed that Port Authority investments and productivity growth were statistically related. Information provided by this study may be very useful for stakeholders and decision-makers, in terms of long-term strategic planning and improving the competitiveness of the SPS. The findings illustrate that the economic crisis should not be seen as an international tragedy, but as an opportunity to adapt port traffics and installations to new needs and market demands.     

面向二十一世纪的中国港口和航运

<正>一、中国港口、航运现状 中国是海运大国,也是港口大国。改革开放以来,我国航运发展很快,现有年吞吐量万吨以上的港口2000余个,其中对外开放港口达130多个,每年接纳世界100多个国家和地区36000多艘船舶。至1997年底,我国江海主要港口万吨级以上深水泊位达到490多个,完成货物吞吐量近13亿吨,其中外贸吞吐量3.8亿吨。我国民用船舶已发展到32万艘,近5000万载重吨。从事国际航运的船公司有310多家,沿海运输的船公司1300多家,内河运输的船公司5100多家。目前我国从事国际海运的船队规模已达到2400多万载重吨,并连续4届当选为联合国海事组织A类理事国,跻身世界航运大国的行列。中国远洋运输(集团)公司的集装箱船队,在世界20大班     

The process of capital investment at US public portst

It is virtually impossible for a US public port authority to be totally proactive in its behaviour since there are too many major factors that affect its future that cannot be controlled or even anticipated by the port staff. Conversely, it is also virtually impossible for a public port authority to be totally reactive since the time window between decision and implementation often exceeds the time window of opportunity. For a public port authority to maintain long-term viability, it must constantly review the facilities it owns, the services it offers, and the source of the revenues it generates. This on-going review should determine how well the Port is adhering to its mission and accomplishing its goals and objectives as set out in the Port's strategic plan. Today, a major management challenge for any viable Port is prioritizing goals and maintaining a policy that ensures clear focus on the highest priority goals. Determining priorities amongst capital projects should be high on the list of any public port authority. This paper provides an overview of the decision-making processes used by American public port authorities in evaluating new capital projects and, we hope, an insight into processes for determining the desirability of expanding, contracting, or terminating present facilities and services.     

A Few observations on productivity in seaports

In this paper, the author describes and discusses the cargo-handling productivity in European seaports and the various factors which may influence it. He focuses on the effects of the 'port revolution' which began in the years of reconstruction following the end of the Second World War. This involved the introduction of new (and usually mechanized) cargo-handling techniques which die so much to change the traditional approach to shipping and port operations. He goes on to assess the importance of these developments for the Port of Antwerp, stressing particularly the organization of dock labour, the physical lay-out of the port, and the type and extent of use of technical equipment. He concludes that big differences exist in port productivity between continental European ports, due to the degree to which they have been affected by, and, more importantly perhaps, responded to, the changes of the past few decades.     

The British port transport industry part 2. Employment, working practices and productivity

The abolition of the national Dock Labour Scheme presented with the oppurtunity radically to transform their cargo handling operations. Port employers have seized this oppurtunity and introduced radical changes to workforce compositions, their skills, work practices, and employee relations. The main factor behind these changes has been the desire of operation to minimize labour costs and maximize labour utilization in order to amintain traffic volume and competitive advantage. The short-term effect has been to improve productivity and profitablity(at least for the major port authorities), but it has also produced iinstablity in employee relations ans may in the long term prove counter productive>     

Evaluating seaport policy alternatives: a simulation study of terminal leasing policy and system performance

The competitive characteristics of the North American seaport industry have, in theory, been causally linked to excess investment and low terminal throughput productivity. This paper empirically examines the link between seaport authority container terminal leasing policy and throughput productivity. Recent advances in inventory theory applied to service industries suggest the pooling of demand uncertainty can yield lower costs without sacrificing customer service. This concept is applied to a container seaport using simulation. The effort compares key output measures from a realistic base case model of the seaport to those generated by an alternative terminal leasing policy. It is shown that the pooling of demand in a common-user seaport reduces total vessel time in port by 17.1% with no reduction in TEU throughput. Throughput productivity is improved for the highest capacity terminals, while lower capacity terminals are made available for additional users or alternative uses.     

Influential factors in the design of port infrastructure tariffs

ABSTRACT

The main aim of this article is to examine the factors influential to the practical process of port infrastructure tariff design. The analysis is based on the survey data of 67 seaports representing the Australasian, East Asian, European, North American and South American regions. Exploratory factor analysis (EFA) was first carried out to identify the factors influential to the selection of the infrastructure tariff design model. Subsequently, confirmatory factor analysis (CFA) was used to confirm the relationship between the variables. The findings showed that demand, knowledge about pricing theories, the dynamics of port and shipping sectors (including competition and ship size), pricing objectives and port cost consideration are influential factors in infrastructure tariff design. Most ports use a mix of pricing approaches including price discrimination, cost-based pricing and market-based pricing. Ports are aware of the basic pricing approaches but have limited knowledge of their application. Based on the results of analysis, policy implications for port management in designing port infrastructure tariffs, limitations and recommendations for future research are discussed.     

The emergence of Vladivostok as a commercial port: US versus Japanese development

The Russian port of Vladivostok, closed to foreigners since before the Second World War, hsa been opened to foreign commerce by the government of the newly-created Russian Rupublic. Although the port faces many difficulties in establishing itself, many nations, Japn and the United States included, believe that Vladivostok will become a major centre to commerce between Russian and other Pacific nations. This article examine; (1) problems facing Vladivostok and the Russian Far Eatern Ports, (2) recent cargo throughputs and potential for growth, (3) investements by Japanese and United States corporations, (4) recent policy of the Japanese and United States governments regarding economic aid and cooperation with Russia. By analysing these data, it is possible to test the hypothesis that because of Japn' geographic advantage, its reliance on imports of raw materials that could easily be supplied by Russia,and its pre-eminence as an economic power in the region, Japnese corporation will become the major economic force in the development of the Russian Far East and the Port of Vladivostok in particular.     

Evaluating seaport policy alternatives: a simulation study of terminal leasing policy and system performance

The competitive characteristics of the North American seaport industry have, in theory, been causally linked to excess investment and low terminal throughput productivity. This paper empirically examines the link between seaport authority container terminal leasing policy and throughput productivity. Recent advances in inventory theory applied to service industries suggest the pooling of demand uncertainty can yield lower costs without sacrificing customer service. This concept is applied to a container seaport using simulation. The effort compares key output measures from a realistic base case model of the seaport to those generated by an alternative terminal leasing policy. It is shown that the pooling of demand in a common-user seaport reduces total vessel time in port by 17.1% with no reduction in TEU throughput. Throughput productivity is improved for the highest capacity terminals, while lower capacity terminals are made available for additional users or alternative uses.     

Systematizing international benchmarking for ports

The subject of port efficiency is one of the important issues facing port authorities and policy makers today. A number of studies have been undertaken which compare ports in terms of their efficiency. But any port comparison can only be valid and meaningful if a port's efficiency is compared with a similar port. The principal objective of this paper is to introduce a systematic approach to identifying similar ports based on the technique of principal component analysis. Secondly, it seeks to identify the most important factors underlying the port classification. Lack of awareness of which factors differentiate ports has resulted in an unnecessary collection of data which are of limited use in port classification. This study has identified three groupings of similar ports within which port comparison can be justifiably made. This approach can be used for any future port comparison and can be applied to other areas of activity facing the same difficulty.     

The Port of Baltimore: off the beaten track?

The Port of Baltimore has recently experienced alarming traffic trends. Most measures of port vitality have been going the wrong way—tonnage, ship calls, market share, steamship service. rail service. Baltimore has been squeezed by external forces and circumstances. Dergulated rail and truck rates have not favoured Baltimore, nor have railroad mergers that have led to rail traffic concentrations at rival seaports. Federal approval of dredging projects has been delaed. Crises in the labour market have created a climate of uncertainty. Global trade patterns and intermodel itineraries have shifted, again, it seems, not to Baltimore'advantage. Baltimore needs new public port policy recommendations. This paper explains some of the problems and offers preliminary suggestions.     

Port development within the framework of Malaysia's transport policy: some considerations

There is disjunction between the national port policy and the national transport policy in Malaysia, as the latter, for much of its time, focused on national integration rather than trade facilitation. During Malaysia's concentration on national integration, it relied on Singapore as its main port. This allowed Singapore to develop as a centre of transport for Malaysian trade. To break Singapore's stranglehold on its cargo and to make Port Klang a regional hub port, Malaysia must reconcile its national transport and port policies, with the main aim of facilitating trade. In view of the strong presence of transnational corporations in its trade and the fact that world trade today is based on reciprocity, Malaysia may have to consider a more laissez faire approach with regard to port development.     

The choices of employing seafarers for the national shipowners in Taiwan: an empirical study

This paper focuses on the binary choice behavior of employing seafarers for the Taiwanese' national shipowners and embraces the empirical investigation based on the Binary Logit Model. First, three groups of important factors have been identified having a bearing on the national shipowners' hiring preferences: crew cost, competence and efficiency (including knowledge, skills, communication, physical and psychological attitude and conditions), as well as quality standard system complying with STCW95. Then, an empirical analysis, based on a Binary Logit Model about the national shipowners' choosing seafarers, is conducted to demonstrate the conceptual framework developed in this paper. The results show that the hiring decision is significantly affected by the crew cost. The national shipowners also consider several other factors when hiring officers and ratings. In addition, there are significant differences in hiring preference between the sailing international services and operating the liner ships. In the future, when the Measure shall be amended, the national shipowners will change their behavior to re-choose the foreign seafarers.     

Systematizing international benchmarking for ports

The subject of port efficiency is one of the important issues facing port authorities and policy makers today. A number of studies have been undertaken which compare ports in terms of their efficiency. But any port comparison can only be valid and meaningful if a port's efficiency is compared with a similar port. The principal objective of this paper is to introduce a systematic approach to identifying similar ports based on the technique of principal component analysis. Secondly, it seeks to identify the most important factors underlying the port classification. Lack of awareness of which factors differentiate ports has resulted in an unnecessary collection of data which are of limited use in port classification. This study has identified three groupings of similar ports within which port comparison can be justifiably made. This approach can be used for any future port comparison and can be applied to other areas of activity facing the same difficulty.