Container Terminal Development in Mainland China and Its Impact on the Competitiveness of the Port of Hong Kong

In recent years, China's container ports have experienced a significant expansion in throughput and capacity. This paper provides a review of the sector and analyses the recent development of container ports and terminals within Mainland China. It then focuses in more depth on the competition between the ports of Shenzhen and Hong Kong. In particular, the port of Shenzhen is analysed in the context of Robinson's criteria for hub port development to try to discern whether it will become the dominant regional hub. The discussion concludes that despite Shenzhen's current competitive advantages, Hong Kong will, in all probability, retain its dominant role.     

Patterns of urbanization and energy requirements: recent regulation changes and simulation studies concerning American urban areas

In recent years, the world economy has become more integrated internationally and container transportation has become increasingly more important as the proportion of all trade using containers is continuously growing. In order to adapt to the increasing containerization trend, it is essential to plan and construct adequate ports and facilities to cope with this development.

Based on the analysis of factors influencing container movements, this paper illustrates the logical relationships for a distribution model, which has been used to predict the distribution of containers among the three main Seaports near Shenzhen and Hong Kong. A fuzzy number‐based distribution model is outlined in the paper. The paper illustrates the main influencing factors and their logical relationships and proposes a primary distribution model where the attractiveness of each port has been calibrated. The results show that the Port of Hong Kong is significantly more attractive than the other two ports modelled and is likely to continue to be so in the future.     

Planning and control of paratransit services in Hong Kong

As paratransit services, Hong Kong's taxis and public light buses (PLB) carried some 30% of the 9.7 million daily public transport boardings in Hong Kong in 1988. Most of the vehicles are individually owned, and services are operated as commercially viable concerns. While operators have a high degree of operational flexibility, taxis and PLBs are closely regulated by the Government. The fleet sizes are controlled by licensing. There is a system of zoning for taxis, and operational prohibitions and restrictions for PLBs. Over the years, Hong Kong has developed some practicable means of operational control on taxis and PLBs. It has been 20 years since PLBs were legalized in 1969. The transition experienced by this mode, from no control to regulated operations, signifies a major step forward from the point of view of transport administration. The Government's participation in the planning for PLB services has guided the development of this mode. In this paper, the planning and control mechanisms for Hong Kong's paratransit modes are introduced. Identified deficiencies are also discussed.     

Container Railfreight Services in North‐west Europe: Diversity of Organizational Forms in a Liberalizing Environment

Abstract

The institutional environment of rail transport has changed as a result of recent European directives, but the changes have taken different forms from one country to another. In the case of international maritime chains, the development of door‐to‐door services makes inland haulage from the loading and discharging ports extremely important, and it highlights the need to reshape the rail freight industry. This paper analyses the degree of involvement of different actors drawn from the maritime industry in developing and commercializing rail services in the changing regulatory environment. Several maritime operators, shipping lines, port‐handling companies and port authorities have been involved in some container rail services since the early days of liberalization. Their commitments take very different forms, however. Whereas contracts are mainly used for the provision of service, particularly for train haulage, integration by means of shareholding or creating subsidiaries or joint ventures is used for marketing. Important differences between France, the UK, Germany and the Netherlands are detailed. In the latter two countries, there is more involvement in the provision of rail services. Marketing rail services appear to be the main strategic issue for the maritime operators in all four countries     

Deregulating direct flights across the Taiwan Strait: The transformation of Eastern Asian air transport market and network

Over the past decades Hong Kong has been successfully playing a role as a gateway to China. Since 1988, it has also been the most important hub between Taiwan and China. Over 5 million passengers travelled between Taipei and Hong Kong in 1997, making the link the busiest in the world's international air links and contributing one-sixth of the passengers to Hong Kong airport, which before 1997 had the most international passengers in Asia. In the foreseeable future Taiwan will possibly start some direct services to China; the air link between Hong Kong and Taipei will then compete with many links across Taiwan Strait. These changes may cause the transformation of the market and network structure in eastern Asia. Niches of specific airlines and airports will disappear. This paper examines the issues of possible changes in eastern Asian air transport market: the current market environment, the problems for direct flights across Taiwan Strait, the possible links between Taiwan and China, the future role of Hong Kong, and the market structure in the future.     

In Search of the Link between Ship Size and Operations

Abstract

Since 1990s the liner shipping industry has faced a period of restructuring and consolidation, and been confronted with a continuing increase in container vessel scale. The impact of these changes is noticeable in trade patterns, cargo handling methods and shipping routes, in short ‘operations’. After listing factors influencing size, growth in container ship size is explained by economies of scale in deploying larger vessels. In order to quantify economies of scale, this paper uses the liner service cash flow model. A novelty in the model is the inclusion of +6000-20-foot Equivalent Unit (TEU) vessels and the distinction in costs between single and twin propeller units on ships. The results illustrate that scale economies have been – and will continue to be – the driving force behind the deployment of larger container vessels. The paper then assesses the link between ship size and operations, given current discussions about the increase in container vessel scale. It is found that (a) ship size and operations are linked; (b) optimal ship size depends on transport segment (deep-sea vs. short-sea shipping, SSS), terminal type (transhipment terminals vs. other terminals), trade lane (East-West vs. North-South trades) and technology; and (c) a ship optimal for one trade can be suboptimal for another.     

Competitiveness prioritisation of container ports in Asia under the background of China’s Belt and Road initiative

ABSTRACT

The understanding of the competitiveness of different ports under the background of China’s “Belt and Road Initiative” (BRI) is critical for drafting appropriate plans and taking suitable actions to select the best port in the logistics supply chains. A novel Multi-Attribute Decision Analysis (MADA) was proposed for the evaluation of port competitiveness. In the developed MADA method, the interval Analytic Hierarchy Process and the projection method was combined for the evaluation of port competitiveness. Three container ports in Asia including Shanghai, Hong Kong, and Singapore were studied under the background of China’s BRI. The results demonstrate that the port of Singapore is the most competitive at the initial stage of China’s BRI, followed by Hong Kong and Shanghai in the descending order. The results were validated by sum weighted method and Technique for Order Preference by Similarity to an Ideal Solution method, and sensitivity analysis was also carried out. The competitiveness of the three ports in the next ten years were also studied with the consideration of the influences of China’s BRI, and the results reveal that Shanghai port can even exceed Hong Kong port and Singapore port if it can effectively take the advantage s of China’s BRI.     

The impact of terminal handling charges on overall shipping charges: an empirical study

Before the introduction of terminal handling charges (THCs), traditional freight rates included both ocean freight charges and terminal charges at ports. Since the introduction of THCs in 1991, the freight rate has become a “port-to-port” charge that covers only the sea leg, while the on-shore costs of using the container terminals are charged separately as THCs. Although both THCs and freight rates are collectively set by conferences, in this study we argue that the former are easier to enforce because they are invariant to other attributes such as haulage distance, inland transport services and types of commodity being shipped. This argument is consistent with the empirical findings from this study that suggest the separation of ocean freight rates from terminal charges has increased the overall shipping charges. In addition, we find that THCs affect the Hong Kong container handling industry by lowering its throughput.     

Attitudes of Hong Kong residents to cars and public transport: Some policy implications

Hong Kong currently has low levels of car ownership and use due to a combination of good public transport, high population densities and high private transport costs. However, levels are rising, contributing to congestion and environmental problems. A major response by the government is to seek to increase rail's share of public transport journeys from its current level of 33% to 45% by 2016. After reviewing the transport situation in Hong Kong, the paper discusses the appropriateness of these targets as well as questioning whether they are achievable. The results of a questionnaire survey of 595 residents of Hong Kong, designed to elicit people's attitudes to cars and public transport, are analysed. It is concluded that unless the government does more to curb car ownership and use, rail targets will have little chance of being achieved.     

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.     

The development of China's railway building

Abstract

At the birth of New China in 1949, 11 000 km of railway track were in use throughout the country. This paper describes the measures taken by the State to develop railways in the interests of the national economy. By the end of 1982 more than 52 000 km were open to traffic and much more is being built in the face of great engineering difficulties. Many lines are being electrified.

The paper also describes other measures essential for the modernization of rail transport: New China's creation of locomotive and vehicle plants, the management organization under the Ministry of Railways and the development of scientific research and educational work.

The rail density and transport capacity is still far from sufficient. Railways face a formidable task in helping China achieve the goal fixed in 1982 of quadrupling the output value of industry and agriculture by the year 2000.     

Cargo Container Loading Plan Model and Solution Method for International Air Express Carriers

Abstract

In this article, a cargo container loading plan model is developed based on the operations of FedEx, the international air express carrier. The objective is to minimize total container handling cost, subject to related operating constraints. The model is expected to be a useful planning tool whereby international air express carriers such as FedEx can decide on container loading plans that will lead to lower operating costs, thus enhancing profits and market competitiveness. The model is formulated as a non-linear mixed integer program that is characterized as NP-hard. A solution method is then developed, with the use of the mathematical programming solver, CPLEX, to solve the problem efficiently. To evaluate the model and the solution method, we perform a case study using data from FedEx. The preliminary results indicate that the model and the solution method are both efficient and effective.     

The regulation of the trucking industry—deterministic replacement model application

An attempt has been made to analyze the impact of a country's regulatory policy of its trucking industry on the correlation between the preferable usage of trucks according to national interests and its counterpart according to private interests, by using a deterministic replacement model. Operational data has been obtained from time series derived from a cross‐sectional survey of the country's truck fleet. Trucks were grouped into 15 strata according to characteristics of load capacity, technological specification, and type of fuel. For each stratum the optimal replacement age was determined according to the criteria of minimal average cost of hauling ton × km, maximal average profit, and minimal average annual cost, and the corresponding costs or profits were calculated for both interests. By comparing the optimal conditions in the various strata, the preferable fuel types and load capacities were determined for the national interest and recommendations for regulation have been provided coinciding the national and private preferences in utilizing trucks.     

A flexible terminal/mobile lounge system for expanding the capacity of existing airports

One of the great dilemmas facing major airports is the problem of capacity and seasonal surges of activity. This paper suggests a system of small, inexpensive Airport Terminal Modules, which together with a new type of Mobile Lounge, could make available a considerable degree of flexibility. The ATM's are designed to allow maximum variations of aircraft type and passenger load as well as high ground utilization. This concept would allow major airports to be extended with a minimum of inconvenience as demand becomes apparent, thereby allowing financial expenditure to be carefully controlled and more evenly spread.     

External Costs of Domestic Container Transportation: Short‐Sea Shipping versus Trucking in Taiwan

Abstract

This paper explores the external costs of domestic container transportation in Taiwan by analysing the origin and destination of current container cargoes. After reviewing an extensive literature survey of methods of external cost, a comparison of external costs between trucking and short sea shipping (SSS) by corridor is made by using a model developed in this paper. Based on the findings that external costs of SSS are considerably lower than truck transport and can be a viable alternative to current domestic container cargo transportation, we discuss the significance and managerial implications of SSS from the perspective of green logistics. In so doing, a top‐down approach is employed for developing government policies, which aim to not only reduce the external costs of domestic container transportation but also promote SSS in Taiwan.     

Transport bottlenecks and Tanzania's economic problems

Abstract

The paper discusses Tanzania's transport problems in the context of the prevailing acute economic crisis. It looks at the development of the transport system, especially the rail and road network, from the German days to the new Chinese‐built Tanzania‐Zambia Railway. The East‐West orientation of the major parallel rail lines and roads reflects the dependency of the economy on export‐import trade. A major challenge to the transport system is the haulage of agricultural products, mainly for export but also for the internal market, not to mention the haulage of imported commodities.

The provision and utilization of transport services is discussed in the context of the historical, and institutional setting of the road haulage industry, particularly its public and private sector configurations. Due to scarcity of foreign exchange, both sectors, especially the private, are starved of vehicles and spare parts.

The operation of ocean and lake shipping services and Air Tanzania are discussed. It is recommended that the latter should concentrate on essential domestic services plus some limited regional services. External financing of transport projects and its implications are also considered.

It is concluded that despite the break‐up of the East African transport system, the Tanzanian transport system, although shaky, has avoided major breakdowns and in some cases, especially in trade, has provided the foundation for at least medium‐term improvements. More attention is recommended to organizational problems of track use by freight and passenger carriers and to making the best use of existing facilities.     

Shipping Lines and Logistics

Abstract

It has been acknowledged that logistics is a driving force that shapes the integration of the transport chain. This paper argues that while the liner shipping industry exhibits increased horizontal integration, its vertical integration remains limited. A clear distinction is drawn between freight logistics, container logistics and vessel logistics. Freight logistics is defined as part of the supply chain process, the focus of which is the goods being transported. The purpose of container logistics is to optimize the movements of the containers themselves, an operation that is directly related to vessel logistics which is concerned with maximizing vessel utilization. The paper demonstrates that shipping lines have to find the correct balance between these three types of logistics. Their interest in vertical integration is primarily because the management of container logistics provides direct support to vessel logistics. Their involvement in freight logistics remains unclear and uncertain.     

Productivity changes in Taiwan's port industry incorporating environmental regulations on harbor water quality

Abstract

This paper evaluates the productivity changes in Taiwan's port industry for the period 2003–2007. Based on a ‘three-year-window’ data envelopment analysis method, Luenberger productivity indicators are employed to estimate the productivity changes that account for the success of attempts by port agents to control harbor water quality. This is one of the typical environmental concerns in port operations that prior studies on port productivity changes over time have not considered. The results show that the productivity of Taiwan's port industry has experienced growth over the study period, regardless of whether water quality has been considered or not. At a disaggregated level, however, if a port agent has succeeded in controlling water quality, but we do not consider it, the results will misclassify the agent by understating the port's productivity.     

Route structures in air transportation—the situation in the federal republic of Germany

This paper deals with route structures in air transportation in general and describes the derivation of such structures. Based on an extensive analysis of scheduled air traffic in Germany, an overview of the situation in domestic and international air travel is given. In particular, relationships were found which permit—in connection with a number of influencing factors—to derive from the present situation route structures, which are also valid for a future year.

This approach was used for the assignment of origin‐destination‐passenger flows to air network routes in a forecast of demand and services in commercial air transportation of the Federal Republic of Germany for the year 1995.