Competition in ship handling: a study of market turbulence in North European harbour towage

This paper addresses the issues of an increasingly competitive towage industry in Northern European ports. Enhanced competitiveness reflects the trends in the global mobility of capital, labour, enterprise and management within the context of deregulated port markets. Up until the early 1990s, the long term trend in major North European ports had been towards market concentration. Many small towage firms have been taken-over, bought out or merged. Alternatively, a pattern of consortia has emerged with co-operation and market sharing seen as preferable to ruinous competition. A contrasting trend has occurred in the 1990s, with new entrants into hitherto stable markets. In a number of ports—Antwerp, Rotterdam, Bremerhaven, Hamburg, Southampton, Thamesport, Bristol Channel—new fleets have brought competitive challenge to the incumbent towage fleets. The process of enhanced competitiveness raises questions of safety, reliability, investment and professionalism. The movement towards an openly competitive shipping industry has been in evidence from the 1960s onwards. The momentum of a dynamic shipping industry, with its competitiveness sharpened by the use of global supply factors, has intensified from that period. The movement in European tonnage towards flags of convenience and global labour supplies began in the tanker and bulk carrier markets; more recently this has spread to deep sea liner, short sea and even cabotage trade shipping. The towage industry is the last North European shipping sector to make this transition, following the trends towards port deregulation in the 1990s. From this perspective, this paper considers the impact on the towage market of global mobility and deregulation in North European towage markets—the impact of increased competition on the traditional operators and the likely effect on operational towage standards.     

Competition in ship handling: a study of market turbulence in North European harbour towage

This paper addresses the issues of an increasingly competitive towage industry in Northern European ports. Enhanced competitiveness reflects the trends in the global mobility of capital, labour, enterprise and management within the context of deregulated port markets. Up until the early 1990s, the long term trend in major North European ports had been towards market concentration. Many small towage firms have been taken-over, bought out or merged. Alternatively, a pattern of consortia has emerged with co-operation and market sharing seen as preferable to ruinous competition. A contrasting trend has occurred in the 1990s, with new entrants into hitherto stable markets. In a number of ports Antwerp, Rotterdam, Bremerhaven, Hamburg, Southampton, Thamesport, Bristol Channel new fleets have brought competitive challenge to the incumbent towage fleets. The process of enhanced competitiveness raises questions of safety, reliability, investment and professionalism. The movement towards an openly competitive shipping industry has been in evidence from the 1960s onwards. The momentum of a dynamic shipping industry, with its competitiveness sharpened by the use of global supply factors, has intensified from that period. The movement in European tonnage towards flags of convenience and global labour supplies began in the tanker and bulk carrier markets; more recently this has spread to deep sea liner, short sea and even cabotage trade shipping. The towage industry is the last North European shipping sector to make this transition, following the trends towards port deregulation in the 1990s. From this perspective, this paper considers the impact on the towage market of global mobility and deregulation in North European towage markets the impact of increased competition on the traditional operators and the likely effect on operational towage standards.     

Accessing the global seafaring labour market

As a global labour market exists for international shipping, a challenging issue facing this industry is to get access to reliable, accurate and timely information of seafarers’ demand and supply. Related to the deregulation environment and great variety in the availability and quality of relevant information, an enquiry into the global seafaring labour market is more complex than a national labour force survey. To cope with the challenge, a novel approach has been developed by the Seafarers International Research Centre (SIRC) at Cardiff University. Viewing capital (ship), labour (seafarers) and services (cargo or passengers) as interconnected and interwoven to each other, it collects and analyses crew lists from main ports world-wide, resulting in the creation of the first global seafarers database. The purpose of this paper is explain its methodological principles, and to illustrate its application potential. Taking the cruise sector as an example, research findings and methodological implications are highlighted.     

The dynamics of port reform: different contexts,similar strategies

Research into port reform in Taiwan and Australia indicates that reform was undertaken in different contexts while committed and adopting similar strategies. Reform in both countries has been consistent with paradigmatic shifts towards market orientation, and within this context, privatisation was considered the preferred option. In both Taiwan and Australia, however, governments, reluctant to relinquish control over their ports, opted for corporatisation models. This article discusses the dynamics and drivers of reform and examines the outcome of these strategies. Both countries commenced port reform with deregulation of dock labour employment and introduced enterprise-based employment replacing the labour pool system. Privatisation of stevedoring operations was introduced at the same time in Taiwan. In the second reform phase, Taiwan amalgamated the four major commercial ports under a single state-owned port company in March 2012, with the objective of reducing inter-port competition and creating a central port planning mechanism. Australian ports, on the other hand, have undergone restructuring with the implementation of corporatisation, privatisation and commercialisation strategies since 1990s. Reform strategies in both countries display some similarities, e.g. rationalisation strategies in both Taiwan and Tasmanian ports, but also display some distinct dissimilarities with the increasing move to privatisation in Australia, e.g. the sale of South Australian ports and in 2010 the sale of the port of Brisbane.     

Vertical integration and its implications to port expansion

ABSTRACT

Over the years many shipping lines have established terminal operation companies, with some set up as independent firms. However, port authorities and local governments have not always welcomed external investment and control with open arms. The economic implications and each stakeholder’s best strategies remain unclear. This study develops an analytical model in order to study the effects of vertical integration, with a focus on shipping lines’ investment in ports’ capacity. Modelling results suggest that vertical integration between terminal operator and a shipping line leads to higher port capacity, port charge, market output and consumer surplus. It also reduces delay costs. All these results suggest that vertical integration can be an important source of synergy for the maritime industry. Although vertical integration increases the participating carrier’s output at the expenses of non-integrating rival shipping firms, our numerical analysis suggests that the overall social welfare is likely to increase. Preliminary empirical tests confirm that vertically integrated ports handle more traffic volumes and are associated with better infrastructure and equipment. Therefore, port authorities and government regulators should carefully review the market competition status as well as port expansion plans.     

Book review

According to the latest BIMCO and Drewry reports, there is a global shortage of officers for the worlds’ merchant fleet. This article focuses on the South African labour market for officers and examines some of the maritime education and training challenges facing these officers in accessing global labour markets. The paper argues that despite processes of globalisation, the nation state can still be an important actor in shaping global labour markets. Using a qualitative approach, interviews were conducted with 10 key informants in the maritime human resources management sectors in South Africa. Interview data was analysed and coded for themes using NVivo qualitative data analysis software (QSR International Pty Ltd., Version 10, London, UK). This was theoretically informed by Braun &; Clarke’s six-step method of thematic analysis. This was combined with a review of labour market statistics to demonstrate that the key challenges facing South African officers are the lack of training berth availability and the lack of South African ship ownership. The solutions adopted by the state includes a limited adoption of best practices adopted by global MET institutions in the United Kingdom, Australia, Singapore, Taiwan and Nigeria. The article contributes to filling the gap in empirical-based maritime studies that are located on Africa.     

Labour/management relations in North American ports

Labour/management practices in North American ports are undergoing fundamental changes in their shift from confrontation to Cooperation. Cooperation is increasing to counter competitive threats from other ports arising from intermodalism and transportation deregulation. Technological advances in port operations are reducing the number of longshore forces required and changing the skills required of those which remain. A recent survey of North American container terminals provided a 'snapshot' of current approaches of improving labour/management relations. Focusing on growth and development needs of individual port workers enhances morale and motivation resulting in environment. Many ports are introducing new management techniques including improved communications and training to enhance the motivation and productivity of their longshore forces.     

A well-functioning port is a stimulus for economy——Anita van der Laan, Manager, Marketing Communication, Port of Rotterdam Authority

Until just a few years ago, ports in Europe had a rather wishy-washy image. In the eyes of both the public and politicians, ports were a necessary fact of life. The upsurge of the Chinese economy and globalisation in general have changed this. People have again become aware that ports are the lifeblood of the world economy. In many countries of Western Europe, they are again realising that a wellfunctioning port is a stimulus for the economy. In the Netherlands, the positive revaluation even led to State participation in the Port of Rotterdam Authority.     

Clustering and performance: the case of maritime clustering in The Netherlands

Over the last years, the concept of clustering has become a central concept for analysing the competitiveness of nations, industries and firms. The cluster concept can be usefully applied to study clustering of maritime activities. Maritime activities, such as shipping, shipbuilding and port and maritime services, are clearly geographically concentrated in a number of maritime clusters. Due to ongoing internationalization in these industries, the concentration of maritime activities in clusters is likely to increase. This observation leads to two important research questions: what are the advantages for firms to locate in clusters and what factors influence the development of maritime clusters? This study identifies four agglomeration economies that attract firms to cluster: a joint labour pool, a broad supplier and customer base, knowledge spillovers, and low transaction costs. Furthermore, it discusses the effects of aspects of the cluster structure, being the presence of internal competition, the heterogeneity of the cluster population, the entry and exit barriers, and the presence of (above mentioned) agglomeration effects. It also briefly discusses the important issue of cluster governance. This overview allows one to develop a theoretical framework to analyse clusters. In the empirical part, this framework is applied to the maritime cluster in The Netherlands. Based on empirical data, from surveys amongst firms in the maritime cluster, studies commissioned by the Dutch maritime Network and regional statistics, the presence of agglomeration economies in the cluster is shown. Secondly, it is shown that the cluster structure is beneficial for the performance. This paper finishes with conclusions and suggestions for further research.     

Making the Australian flag fleet efficient: dysfunctional policy processes and the 'play of power'

In 1997 the Australian government introduced reform measures aimed at improving the efficiency and cost effectiveneess of the Auistralian maritime sector. These measures are part of an ongoing reform programme initiated in the early 1980s; but despite concerted efforts by a succession of governments and the payout of high labour redundancy costs the problems of inefficiency, high costs and low profitability persist. This paper focuses on the structure and mechanism of the policy making processes that have attempted to deal with the problem of making the Australian national flag fleet efficient and competitive. It does so because it is a fundamental tenet of the paper that it is the process of policy making that so frequently—if not invariably—determines policy content and outcomes.     

Regional governance of port development in China: a case study of Shanghai International Shipping Center

When China enters the World Trade Organisation (WTO) and becomes more involved in the global economy, her major seaports will be pivotal places where the international shipping and terminal operators interact, conflict and co-operate with the local and the central governments. To demonstrate and understand these interactions, this article analyzes the case of the Yangtze River Delta (YRD), where the competition, co-operation and governance of Shanghai and Ningbo, the two largest ports on Chinese mainland, concern all stakeholders from the central and local governments of China to the container terminal operators and shipping lines overseas.

This paper first develops a conceptual framework for analyzing port development in a regional context. The article then introduces the case of the Shanghai International Shipping Center with a focus on the efforts of the Shanghai Government to establish a regional hub port, which also involves two nearby provinces. This case study reveals the course of the decision-making processes and the power networks currently governing the port development in the YRD. Two domains of port governance are discussed: the role of port authorities in port internal governance, and the crucial influences of local and central governments on the port external governance. It provides evidence that the power of shipping lines and international terminal operators are not as prevalent as in many ports in western countries. It is suggested that the lack of good regional port governance in the region is due to structural problems in administration.     

Global regimes,regional adaptation; environmental safety in Baltic Sea oil transportation

Despite significant efforts to improve environmental safety in marine oil transportation, the risk of a major accident with devastating oil spills has most likely increased. Building on the regime analytical approach where it is assumed that international collaboration may benefit participating countries, it is argued that bilateral and sub-regional initiatives may increase maritime safety significantly, compared to exclusive reliance on universal conventions. A distinction is made between on the one hand investments in safety-increasing infrastructure and local capacity building and on the other, vessel design, on-board installations and crew qualifications. It is suggested that bilateral and sub-regional initiatives are more likely to be taken on the former kind of objects, targeting issues, such as modernization of port facilities, monitoring support, assistance in emergency capacity building and designation of ports of refuge, because the interaction between the involved countries are comparably stable in the cases. Actual efforts to improve safety seem to follow the logic of separation between these two types of safety-increasing measures. It is concluded that similar drivers of bilateral and sub-regional initiatives targeting specific aspects of marine safety and contributing to overall collective benefits from improved environmental protection probably exist also in other regions than the Baltic Sea.     

Port reform in Australia: issues in the ownership debate

Australia port reform initiatives have taken on a variety of forms — from out-right sale and transfer of ownership, to the sale of particular assets of infrastructure or services, or to long-term lease arrangements; or in some cases state governments, unable to relinquish control, have opted for corporatization or commercialization strategies. Reform is driven by the belief that ownership impacts on efficiency and efficiency is perceived to suffer if governments either retain ownership or direct control. As a result a major aim of reform is to either remove or distance governments from day to day port operations. The sale of ports removes government control outright and privatized ports are subject to identical regulatory constraints as any company in the private sector. But corporatization strategies are such that government ownership is retained and ports have been transformed into statutory state owned corporations. Effectiveness of this strategy requires legislation to be such that port corporations are free to operate like their private sector counterparts. To date this has not occurred and some serious impediments are emerging which are embedded in legislation and which, rather than reduce, have indeed, increased government control.     

Trends and Opportunities for the Long-Term Development of Rotterdam's Port Complex

This article presents an overview of trends relevant for the long-term development of Rotterdam's port complex and resulting opportunities for this complex. These trends resulted from a literature review and conversations with 20 professors in fields relevant for port development. Nine trends that can be expected to become increasingly important in the next decades are discussed. These trends include the rise of manufacturing and logistics platforms, higher land efficiency, increasingly mixed land use in port areas, and rising importance of a “regional innovation system” in ports. Opportunities and concerns for the port of Rotterdam resulting from the trends are discussed.     

UNCTAD activities in the field of ports and their future

UNCTAD's work in the field of ports started, soon after its establishment in 1964, as a result of a 'Common measure of understanding on shipping questions'. It resulted in a three pronged effort in research, training and technical assistance, carried by the secretariat in close collaboration with the industry. Technical publications were published and are widely used by practitioners throughout the world. Port managers and government officials responsible for ports in developing countries were the beneficiaries of large-scale training programmes. Technical assistance to improve port services was conducted in several developing countries. During the 1990s, new mandates were agreed in the field of transport in which ports are not explicitly mentioned. This paper argues that the stakes in ports are so vital for trading countries, notably those seeking accelerated economic development, that a broad interpretation of the current mandate is needed.     

Management and labour in shipping: A role for co-operatives

The employment and management policies of the shipping industry are in legal and administrative confusion. The shipping industry is struggling with an unworkable global governance based on flag state sovereignty and a sanctionless international regulatory regime. Seafarers suffer most from this state of affairs, but so do the shipping industry’s public image. Few co-operatives of maritime workers exist in national or international shipping. A new employment theory is long overdue. Human centred management policies can only attain their full potential through co-operative or mutual associations. This paper describes the application of enlightened and socially conscious management principles to the shipping industry. Seafarers’ co-operatives are the future organisational building blocks of the shipping industry. Co-operatives can rescue maritime workers from developing countries from exploitation and the debilitating effects of casual labour by providing “all in one” seagoing and shore based professional careers. Seafarers’ co-operatives can solve the shipping industry’s maritime training and education problems. The seven universal principles of co-operative management will guide shipping management in setting human centred objectives that command respect of those who come in contact with the shipping industry.     

Maritime education in cross cultural settings

Cross-cultural interaction is growing in our global economy. Expanding maritime trade in ports around the world reinforces the need for standardized training and education to cope with new global technologies and logistics systems. Working, studying and interacting in cross-cultural settings can lead to problems of misunderstandings and misinterpretations among people having different worldviews.     

U.S. ports: evolution and structure

U.S. ports are facing competitive pressures similar to those being felt by ports elsewhere around the world. Despite the public enterprise nature of U.S. port authorities, they tend to function as 'business-like' organizations. This enterprise-like approach stems from their evolution from being primarily private railroad ports in the 19th century to public competitive port authorities in the 20th century. This paper provides an overview of the evolution of U.S. ports and the ongoing effect of earlier legislation, the varied resulting institutional structures, and current national and regional level issues. Although there is no national ports plan or strategy in the U.S.A. (the Constitution limits federal actions in the ports field) the federal government is involved in providing dredging services through the Army Corps of Engineers, navigation aids via the Coast Guard and other minor port-related services. U.S. ports typically come under the jurisdiction of state or local governments. Increasing competition coupled with other port issues (growing financial constraints, difficulties in obtaining dredging permits, environmental concerns and restricted landside access) is forcing some U.S. ports to enter into strategic alliances with others at a regional level.     

Sustainable development in seaports: a multi-case study

Seaports are a vital part of the maritime transport industry and have a key role in integrated transport chains and regional economies. However, ports are also sites of environmental pollution originating from land-based activities, ship movements and ports’ own activities. It is, therefore, increasingly recognised that economic growth in ports must be balanced with environmental protection and social progress. This has led to enhanced appreciation of the need for sustainable development (SD) in ports. Whilst much has been written about port environmental practices in European and American ports, there is limited synthesis and comparison of sustainable port practices from different parts of the world. Furthermore, in-depth case analysis and critical examination of the practices and challenges of sustainable port development in a globalised era is limited. This paper presents findings from a qualitative multi-case study that aimed to compare sustainable policies and practices of ports in four different continents and to understand the dilemmas, challenges and opportunities they face in attaining SD. This paper reports findings pertaining to the following research questions: (1) What policy frameworks do ports adopt to attain sustainable development? (2) What specific sustainable practices do ports utilise to manage environmental aspects such as air pollution, water quality, ballast water, dredging and disposal of dredged materials, waste disposal, hazardous substances and land/resource use? (3) What are the driving and constraining forces in achieving sustainable development in ports? Port authorities were studied by reviewing documents and secondary data. The following ports were studied: Port of Long Beach (USA), Port of Rotterdam Authority (The Netherlands), Sydney Ports Corporation (Australia) and Transnet Limited that owns and manages South African ports. Findings of the study demonstrate that the SD paradigm has gained momentum, albeit to differing degrees, in the functioning, organisation and the very ethos of case study ports. An important theme from all case studies is that, whilst there is definite progress towards SD, several practices deemed to be sustainable can be controversial and must be critically examined from the perspectives of different stakeholders including shippers, port-related businesses and the local and global community. Lack of data to monitor environmental impacts, economic costs of implementing sustainable practices and complexities of international, regional and national regulations were other constraining factors. On the other hand, reconciling differences between stakeholders and capitalising on economic opportunities, operational efficiencies and cost savings offered by environmental friendliness can advance port SD. Public–private partnerships and policies negotiated by involving all stakeholders were found to foster port sustainability. Most importantly, this study found that, with globalisation, environmental impacts of ports are not always localised. ‘Sustainable’ practices can have unintended consequences in other parts of the world. Therefore, globalisation necessitates a more critical and global analysis of port operations and environment practices in order to be truly sustainable. Although the scope of the research findings is limited to case study ports, the lessons drawn can be constructively applied to any port operating within an institutional system of structured SD.     

航道投资战略主体的博弈分析

在对航道基础设施的差异和物权分析的基础上,提出目前航道基础设施的战略主体仍然是政府,并对各级政府投资航道基础设施建设进行了博弈分析。