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.     

Port choice in container market: a literature review

As a result of the intense changes occurring in port environment over the last decades, new models of competitiveness have been developed, where port authorities try to increase their attractiveness. In this context, one of the most debated issues in this area of research is still the role played by port authorities in defining port competitiveness. The aim of this paper is to provide a review of port choice literature enabling to identify the main port choice’s criteria in order to define the role played by Port Authorities and to point out future lines of research that should be undertaken to fully incorporate current ports’ environment and performance. The results show that although some studies point out the importance of geographical factors in port choice, a larger number of studies defend the increasing role played by port authorities in determining the competitiveness through investing in port infrastructure, improving port efficiency or hinterland accessibility. Despite the existing models contributing on this topic, there are still some gaps in terms of measuring the port performance, including port strategies and studying the port choice for specific industries.     

Strategic beliefs of port authorities

Over the last decade, insights from the strategic management discipline have increasingly been applied to ports. A review of literature shows that in the analysis of port authority strategy, mainly outside-in approaches are applied. This paper adds to the emerging understanding of the port authority’s strategy by applying a cognitive perspective. Specifically, the strategic cognition of firms’ executives is one of the explanatory variables behind firms’ strategic decisions. Furthermore, cognitions are influenced by the organisational contexts in which port authority executives have worked. As a result, managerial “mental maps’ may vary across industry contexts and over time. This research investigates the strategic cognition of a global set of port authority executives through a survey-based instrument. The results show that, to a large extent, PAs resemble “regular” for-profit companies, but that they possess some specific beliefs that distinguish them from “regular” companies.     

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.     

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.     

Classifying Ports for Efficiency Benchmarking: A Review and a Frontier-based Clustering Approach

Abstract

Port efficiency and port clustering are two aspects that have received different degrees of attention in the existing literature. While the actual estimation of port efficiency has been extensively studied, the existing literature has paid little attention to developing robust methodologies for port classification. In this paper, we review the literature on classification methods for port efficiency, and present an approach that combines stochastic frontier analysis, clustering and self-organized maps (SOM). Cluster methodologies that build on the estimated cost function parameters could group ports into performance metrics’ categories. This helps when setting improvement targets for ports as a function of their specific cluster. The methodology is applied to a database of Spanish port authorities. The dendrogram features three clusters and five outlier Spanish Port Authorities. SOM are employed to track the temporal evolution of Spanish Port Authorities that are of special interest for some reasons (i.e. outliers). Results show that use of a combination of cost frontier and cluster methods to define robust port typology and SOMs, jointly or in isolation, offers useful information to the decision-makers.     

The effect of institutional factors on public–private partnership success in ports

Port public–private partnerships (PPPs) are considered to be an important emerging mechanism for port development and improvement in port performance especially for developing countries. This paper empirically investigates the effect of institutional factors in the success of port’s PPPs; the latter defined as the attractiveness of the PPP project for private bidders and the market competitiveness of the facility. The empirical investigation of a large sample of ports finds that ‘regulatory quality’, ‘market openness’, ‘ease to start a business’ and ‘enforcing contracts’ are important institutional determinants of port PPP success and may ultimately contribute to port development and economic growth. The results are consistent with and add to the theoretical literature whereas practical implications for port authorities, managers and investors are discussed.     

Port privatization,efficiency and competitiveness: Some empirical evidence from container ports (terminals)

Few studies have investigated the quantitative relationship between port ownership structure and port efficiency with mixed results. This study applies a stochastic frontier model proposed by Battese and Coelli [Battese, G.E., Coelli, T.J., 1995. A model for technique inefficiency effects in a stochastic frontier production function for panel data. Empirical Economics 20, 325–332], which incorporates the inefficiency effect, to show whether port privatization is a necessary strategy for ports to gain a competitive advantage. While this stochastic frontier model has been used to a wide number of industries where the technical inefficiency effect is required, this method has rarely been employed to port industry. This study also investigates the determinants of port competitiveness. Both the principal component analysis (PCA) and the linear regression model are used to examine the effects of identified key factors on port competitiveness. Based on a sample of selected container terminals around the world, the results of this study have shown that private sector participation in the port industry to some extent can improve port operation efficiency, which will in turn increase port competitiveness. Another important determinant of port competitiveness is the adaptability to the customers’ demand. All these results provide some policy implications and guidance for port authorities and port operators in formulating effective strategies to improve their competitiveness vis-à-vis rivals.     

Traffic consolidation in East Asian container ports: A network flow analysis

The proliferation of hub-and-spoke operations in maritime container transportation has resulted in the widespread consolidation of traffic flows. Utilising liner shipping network configurations, this paper assesses the impact of freight traffic consolidation in the container port industry by exploring the spatial pattern of traffic flow movements and identifying the variety of roles that container ports play within this context. On the basis of the network concept, the spatial inequality of freight traffic consolidation is determined by the density and direction of all meaningful connections (i.e. significant flows) identified by applying Multiple Linkage Analysis (MLA) to an initial traffic flow matrix.The effectiveness of the chosen methodology is tested empirically using a sample comprising the 18 major container ports in East Asia, together with another 21 important container ports located on the East–West trading route. Based on this sample network, the spatial structure of traffic flow consolidation reveals the nature and structure of hub-and-spoke operations within a port system, the relative hub-dependence of ports, the variety of roles which individual ports play within the overall structure of inter-port interactions and the hierarchical configuration of the port industry structure. The paper concludes that MLA offers new insights into the distributional inequality of traffic flows, the spatial and economic interactions between ports and the extent to which hinterlands overlap. Furthermore, the analysis clearly shows that inter-port relationships can no longer be evaluated as isolated phenomena; any change in a specific port’s competitiveness will directly impact upon the structure of the whole maritime transportation system. Port authorities and terminal operators will need, therefore, to carefully analyse and disentangle specific inter-port relationships in order to provide the most appropriate basis for their decision making.     

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.     

Competition Between New Port Governance Models on the Iberian Peninsula

The aim of this article is to analyze the interaction between port devolution processes in Portugal and Spain in their common geographical environment, the Iberian Peninsula. Firstly a review is done of the different port devolution processes in the world which specifically analyses the transition of numerous public and centralized ports to the landlord model. Among the conclusions that we can highlight with respect to the Iberian port systems are the need for a reflection process before any change is made to the port governance model, and greater cooperation between the two countries to avoid any possible future port tariff price wars. The over-investment process that the Spanish port devolution process, especially, has generated must also be mentioned, for highlighting once again the almost inexhaustible ability of ports to eat up public funds for investment that precludes profitability.     

A ‘Less-flexibility-first’ Heuristic for the Placement of Inland Vessels in a Lock

Abstract

Inland vessels move goods along waterways (canals and rivers) and they visit ports. Because of their tidal nature, vessels make use of locks to enter ports or waterways. From a port management point of view, fast access to and from the port and high utilization of locks are important objectives. Where the former relates to low inbound and outbound waiting times, the latter relates to the placement of as many vessels as possible in the lock before its operation. This article includes a case study that relates to the operation of the Van Cauwelaert lock in the port of Antwerp, Belgium. Lock operation policy is as follows: vessels wait in front of the lock for a port administrator to assign places in the lock based on knowledge of the vessels’ dimensions. As such, there is no FIFO-discipline, but a ‘group-FIFO’-discipline, i.e. if n vessels are allowed into the lock, they are the first n vessels in the arrival queue. A heuristic algorithm is formulated for the placement of vessels in the lock. This algorithm supports the decision where to place the vessel in the lock, aiming to place as many vessels as possible from the arrival queue. At the same time, it supports the decision to start a locking operation or not, based on information about vessels that are announced but which have not yet arrived at the lock's entrance. The heuristic is called a ‘less-flexibility-first’-heuristic as it looks for pseudo-placements, showing which flexibility is left for the remaining vessels after placing a vessel. This article describes the implementation of the heuristic and provides numerical examples. A comparison is made between the heuristic results and daily practice, based on real-life vessel movements through the Van Cauwelaert lock in 2002.     

A critical review of conventional terminology for classifying seaports

Seaports are complex and dynamic entities, often dissimilar from each other, where various activities are carried out by and for the account of different actors and organisations. Such a multifaceted situation has led to a variety of operational, organisational and strategic management approaches to port systems. It is noticeable in the current body of port literature that the conceptualisation of the port business has taken place at different disciplinary levels without producing a comprehensive and structured port management discipline. Much of the current literature on ports has been developed by international organisations and institutions in the field (United Nations Conference on Trade and Development (UNCTAD), World Bank Group, etc.) and a resulting terminology has evolved depicting specific concepts hardly understood by professionals and academics outside the field. On the other hand, many areas of port operations and management still remain unexplored, and there are few academic references outlining the different features of operational and strategic management in ports.This paper examines the validity of the conventional terminology for classifying ports, questioning the assumption that ports should be conceptualised as separate markets and distinct operational and business ventures. It seeks to demonstrate that in today’s inter-related global markets and businesses with integrated logistics and supply chain flows, there is less of a case for the traditionally isolated and restricted port terminology.     

An Institutional Analysis of Coordination in Liberalized Port-related Railway Chains: An Application to the Port of Rotterdam

Abstract

The European railway market has gone through a period of liberalization over the last two decades. The liberalization of the railway market has also affected port-related railway transport. Efficient port-related transport chains are key in the competition among ports, however providing this efficiency is to a large extent a coordination challenge. Many forms of coordination are needed to ensure that the railway chain operates efficiently, including the bundling of cargo, and good organization between railway companies, terminal operators and the infrastructure managers to realize an efficient use of assets. From the literature, it appears that less attention has been paid to the economic organization of port-related railway transport in general, and specifically in the new liberalized institutional environment. The goal of this paper is to come up with a framework to better understand the issue of coordination in port-related railway chains in a liberalized institutional environment. This paper presents a conceptual framework rooted in Transaction Cost Economics (TCE). Based on an in-depth study into coordination in liberalized container railway market at the Port of Rotterdam, empirical illustrations are used to adjust the TCE approach toward a dynamic model influenced by Douglas North's theory on economic and institutional change. Empirics from the port of Rotterdam show that new players have entered the railway market and their role has changed. This paper shows that coordination of railway operations has become more complex after the regime change. From a port perspective, liberalization does not lead to an optimal allocation of resources in a process that is highly operationally interdependent. In the liberalized environment, coordination arrangements are necessary to enable efficient coordination of railway operations in Rotterdam.     

百色港总体规划探讨

百色港属于典型的河谷型内河港口,文章介绍了该港口的地理位置、区位优势及存在的问题,阐述了其规划原则与思路,提出了岸线规划、港区规划的具体方案,并总结了规划成果特点,为同类型港口的规划工作提供借鉴。     

Charting a New Paradigm of Container Hub Port Development Policy: The Asian Doctrine

This paper proposes the conceptual model of the Asian (Port) Doctrine to explain the successful development of top ranking container ports in Asia during the past four decades. This paper draws a new paradigm for the role of government as a third governance approach in addition to Anglo-Saxon and European doctrines by describing how Asian countries have developed container hub ports by investing in infrastructure as social overhead capital to support export-led growth. We survey characteristics and outcomes in major Asian container port developments and one European port in terms of a port development policy. The findings are presented in a comparative overview of government investment in functional elements of port, maritime infrastructure and landside connections to container ports. This paper confirms that the existing two doctrines—Anglo-Saxon and European doctrines—are not sufficient to explain the Asian success in major container port developments. The proposed framework contends that a newly proposed Asian Doctrine can accomplish this with the help of cross-subsidization, strategic and administered port pricing mechanism.     

From hierarchy to networking: the evolution of the “twenty-first-century Maritime Silk Road” container shipping system

ABSTRACT

Container shipping gives a rise of international trade since the 1960s. Based on navigation data start from the mid-1990s to 2016, this paper empirically analyses the spatial pattern of China’s international maritime linkages along the “twenty-first-century Maritime Silk Road”. We interpret such evolutionary dynamics in terms of growth, hierarchical diffusion and networking phases. Networking is a new stage of the evolution of the port system, which is approached based on the graph theory, complex network methods and geomatics, the paper discusses the networking’s basic characteristics: multi-hub spatial agglomeration, the connection of the network develops across space, functional differentiation and a division of labour appear among ports. Our results show that, while the scope of China’s maritime linkages had expanded overtime, more foreign ports become connected to the “Maritime Silk Road”. In addition, the external linkages of domestic ports tend to be dispersed, reflecting upon the decline of Pearl River Delta ports and the rise of Yangtze River Delta ports, with mixed evidence for the Bohai Rim region. Lastly, the analysis underlines the emergence of a polycentric shipping system, from the Hong Kong dominance to the more diversified Shanghai/Ningbo/Shenzhen configuration. Academic and managerial implications are included.     

The Impact of Container Type Diversification on Regional British Port Development Strategies

Abstract

Despite a concentration of container traffic in the southeast of the UK over the last few decades, regional ports are attempting new development strategies to capture or retain specific traffic segments. These include intra-European short-sea traffic and a potentially increasing feeder market. These trends are reflected in the movement of different container types, which result in a number of planning challenges related to changing infrastructural and operational requirements. This paper uses highly disaggregated data on container type movements to address three issues that can inform these planning challenges. First, the imbalance of trade resulting in empty container repositioning; second, the requirement for gauge-cleared rail routes to cater for the increasing proportion of high-cube containers; and third, the specialisation of European short-sea traffic at secondary UK ports. The results reveal the disproportionate repositioning of empty containers at Scottish ports and the importance of 45?ft, high-cube and pallet-wide containers at regional ports, highlighting their focus on intra-European short-sea traffic and raising difficulties relating to their lower quality of landside infrastructure (particularly rail) in comparison to the large south-eastern ports. The potential repercussions on hinterland infrastructure development raise questions about both public and private sector responses to regional port development.     

广西北部湾港口保税物流腹地经济圈构建研究

广西北部湾港口保税物流群的设立是我国为发展西部地带经济,推动中国-东盟自由贸易区而采取的重要举措。文章结合我国保税物流兴起的背景,介绍了广西北部湾港口保税物流业务分工内容及其对腹地经济区域的辐射作用,分析了广西北部湾港口保税物流腹地经济圈发展存在的问题,提出相应的发展思路和对策。     

An Application of the Hierarchical Fuzzy Process to Container Port Competition: Policy and Strategic Implications

This paper aims to empirically identify the competitiveness of container ports in Asia by examining factors influencing the perceived competitive edge of each port using the Hierarchical Fuzzy Process, a method embracing human knowledge and/or judgement into a mathematical framework. This analysis is unique in that the ‘human-perceived’ competitiveness on Asian container ports is examined under the quantifiable framework. The findings reveal that Singapore is the most competitive port among the sampled ports. Moreover, the methodology employed here shows the potential to be applicable to other transport and logistics related service industries.