Strategic responses to institutional forces pressuring sustainability practice adoption: Case-based evidence from inland port operations

This article investigates strategic responses of inland ports to institutional forces pressuring their adoption of sustainability practices. We postulate that even though inland port operators strive for economic viability, there are growing pressures from various stakeholders for continuous enhancement of their environmental and social sustainability practices. We apply institutional theory to classify the effects of these forces based on five institutional antecedents – cause, constituents, content, control, and context – and further expand our theoretical framework with resource dependence tenets to discuss the spectrum of strategic responses available to inland ports to deal with institutional forces. We examine our theoretical arguments with empirical evidence collected from four inland ports using a case study-based approach. We conclude that while inland ports have a strong disposition towards social sustainability, economic considerations are still most emphasized, and environmental issues are mostly regarded in compliance with the legally mandated minimum. The most important sources of institutional pressure are identified as cause, constituents, and control. In a further step, we present evidence of the inland ports’ potential strategic responses. The study also provides insights for managers and policy makers on strategic options as appropriate organizational responses to proliferating institutional pressures for sustainability practices adoption.     

Ports and regional development: A spatial analysis on a panel of European regions

This paper analyses the impact of port activities on local development for a sample of 621 TL-3 regions located in thirteen European countries and observed over the period 1998–2009. Using a spatial panel econometric framework which controls for spatial fixed effects, the paper provides an estimate of both the direct and indirect (i.e. spillover) effects associated to port activities. Results suggest that ports might have non-negligible effects on local GDP: interestingly, an important share of the effects takes place outside the region where the port is located.     

Quasi-landlord port financing in China: Features,practice and a contract theory analysis

Since the 1970s and 80s, landlord port has been the dominant port financing model in western large and medium-sized container ports. In China, many prospective port projects have also explored a landlord port financing model. However, some evidence suggests that landlord port financing in China is a variant of the international mainstream landlord port financing model. Based on an explanation of their unique features and practices, this paper analyzes the Chinese quasi-landlord port financing model from a contract theory perspective, in which it can be viewed as a double-level principal–agent relationship and two-layer profit distribution contract with three participants: the state-owned assets administration department, the port investment company and the operators. Furthermore, the results show that in the Chinese quasi-landlord port financing model, whether in the case of both joint venture and port land lease (fixed rent), or in the case of both joint venture and port land transfer, the optimal incentive scheme is the same as in the international landlord port financing model with profit sharing rent or mixed rent.     

Modal-split effects of climate change: The effect of low water levels on the competitive position of inland waterway transport in the river Rhine area

Future climate change is expected to affect inland waterway transport in most main natural waterways in Europe. For the river Rhine it is expected that, in summer, more and longer periods with low water levels will occur. In periods of low water levels inland waterway vessels have to reduce their load factors and, as a result, transport prices per tonne will increase. One possible consequence of these higher transport prices is a deterioration of the competitive position of inland waterway transport compared with rail and road transport, and thus a change in modal split. We study this issue using a GIS-based software model called NODUS which provides a tool for the detailed analysis of freight transportation over extensive multimodal networks. We assess the effect of low water levels on the costs of transport operations for inland waterway transport in North West Europe under several climate scenarios. It turns out, that the effect on the modal split is limited. Under the most extreme climate scenario, inland waterway transport would lose about 5.4% of the quantity that is currently being transported annually in the part of the European inland waterway transport market considered. The very dry year of 2003 can be seen as an analogue for this scenario.     

Modeling the cost sensitivity of intermodal inland waterway terminals: A scenario based approach

Cost characteristics of differently sized inland waterway terminals (IWTs) have not received much scientific attention. This observation is remarkable given the importance of costs in transportation decision-making. Classification of differently sized IWTs and their cost structure will lead to more insight into the container cost per terminal. Therefore, the goal of our research was to determine both the characteristics of the cost structure associated with different inland waterway (IWW) container terminal types and the sensitivity of the system to cost/TEU changes in input and operational conditions. We show that terminals with a higher container throughput encounter fewer costs, and can therefore charge a lower price. Assumed delays of 2 h per day on the waterside cause a 4.7–6.6% cost increase per container, mainly caused by extra labor costs. It is also assumed that the changing climate will influence terminal operations and results in extreme water levels (lasting two weeks occurring four times a year) causing a cost increase of 1.0–3.4%. Subsidies can cause cost reductions of 0.3–10.4% depending on the exact form, with the smaller terminals benefiting more because their investment costs are higher relative to operational costs. A subsidy can lower costs by up to 10.4%, but it is questionable whether small and medium terminals will have a lower cost price than the market price, showing that it is important for small and medium terminals to quickly grow in size.     

Sustainability assessment of inland transportation in China: A triple bottom line-based network DEA approach

The transport sector accounts for nearly one third of the world’s total energy use, while inland transport alone is responsible for half of the global petroleum consumption. The expansion of motorization in newly industrialized economies necessitates setting realistic targets. To support decision-makers in better assessment of transport sustainability performance, we introduce a systematic triple bottom line-based approach to evaluate inland transport, considering social, economic, and environmental dimensions of sustainability. The proposed network data envelopment analysis (DEA) measure organizes the three components of the system into a parallel structure, allocates shared input across subsystems, and incorporates undesirable output. The empirical application determines the efficiency of regional inland transportation systems in China from 2006 to 2015. The results indicate a rise in overall transport efficiency between China’s 11th and 12th five-year development plan periods and link the economic growth with a decrease in environmental transport efficiency in the Central and Western zones and with a decline in social efficiency in the Eastern zone. Since 2012, the social sustainability remains the weakest component of inland transport, which requires special attention by policy-makers to support vulnerable groups of transport users. This study provides further insight into the investigated measures and proposes recommendations for the improvement of inland transport in China.     

Coordination problems in container barging in the port of Rotterdam: an institutional analysis

Container barging has gained in importance in port-related transport along with the need for sustainable transport. Nevertheless, coordination problems between terminal operator and barge operator exist, and performance lags behind. This paper analyses factors that may hinder or stimulate a better future performance of container barging in the port of Rotterdam. A case study is accomplished and guided by a framework rooted in Institutional Economics. Despite favourable conditions set by governments and the port authority, the share of container barging has hardly grown. The container barging sector in Rotterdam is embedded in a history with many alliances, a high degree of organisation, and a good track record in the development of institutional arrangements to solve coordination problems. However, the present contractual relations in the transport chain form an inadequate condition. From a theoretical perspective, the paper shows the value of studying port-related transport chains by acknowledging their institutional context.     

The Greening of Ports: A Comparison of Port Management Tools Used by Leading Ports in Asia and Europe

Abstract

From the policy and management perspective, this study aims to investigate the port management tools that port/public authorities have at their disposal and then to analyse to what extent the tools are used to enforce or encourage green port development at functional activities of port operations and development. We conduct an exploratory and comparative review based on two axes: on the one hand, the range of tools available to port authorities (pricing, monitoring and measuring, market access control and environmental standard regulation) and on the other hand, the functional activities in ports (shipping traffic, cargo handling and storage operations, intermodal connection, industrial activities, and port expansion). The situations in the leading ports in Asia and Europe, namely Singapore, Shanghai, Antwerp and Rotterdam are studied and compared, whereby the policies' effectiveness is discussed accordingly. Findings show that the ports are particularly mature in exercising environmental standard regulations which reveals that the enforcement approach is more prevalent. The most focused functional activity is shipping traffic which reflects that the ports are driven by the International Maritime Organisation. The respective port authorities in Antwerp and Rotterdam have a higher level of influence on devising green port policy in comparison to the two Asian ports.     

Logistic performance evaluation of provinces in Turkey: A GIS-based multi-criteria decision analysis

Logistics performance evaluation of provinces is considered in this study. To do so, a three-step solution approach is developed: (i) determination of 16 geographic and economic indicators, (ii) using geographic information system to assign a logistics score and (iii) prioritizing the indicators and ranking the provinces using multi-criteria decision analysis tools. Proposed methodology is applied to 81 provinces in Turkey as a case study. Results show that the provinces of Istanbul, Izmir, and Hatay are the pioneers. The proposed methodology provides the ability to analyze the impacts of indicators on logistics performance and create a logistics performance map of countries.