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.     

(Law for the Promotion of Competition and Consumer Protection) was passed in early 1995. The impact this law will eventually have, however, is uncertain because rules for its implementation have not yet been established.

Governments in their port reform efforts have experimented with liberalization and commercialization to improve port operations. Because of their failure to meet expectations or because of changing competitive environments, these options have generally been discarded in favour of privatization. In mature large-volume port systems, privatization was a relatively obvious solution, because interport or interterminal competition would be achieved to the extent that the monopolistic tendencies characteristic of their predecessor organizations would cease to exist. In countries with a limited number of ports having relatively small cargo volumes, however, the case is quite different. These countries would have to pursue strategies that would still induce competition in spite of their limited cargo volumes if they hoped to achieve the same privatization benefits and market disciplines enjoyed in other countries. This article examines the port reform approaches used in three distinct competitive settings;the experiences in these countries offer some guidance on how to assure that ports will feel competitive pressures even under conditions of limited cargo volumes.     

Port strategic planning: Canadian port reform

Recent port reform established major commercial ports as Canadian Port Authorities (CPAs) as federal non-profit, business corporations. Canadian port reform was aimed at allowing CPAs to compete effectively. Canada's major ports operate in an increasingly competitive business environment. To gain advantage over their competition, Canadian ports must develop business strategies dealing with their organizational cultures, institutional structures, operations, and facility provision. Developing appropriate strategies involves creating a strategic plan that considers external and internal port environments. This paper outlines the evolution of strategic planning and its applicability to Canadian ports. The initial literature review is followed by a brief review of Canadian port reform and an analysis of external and internal port environments. This analysis determines the resources available to exploit external opportunities and defend against threats, and considers the internal strengths and weaknesses of Canadian ports. A list of strategic issues facing Canadian ports and how the Canada Marine Act affected them is derived from the analysis.     

Port strategic planning: Canadian port reform

Recent port reform established major commercial ports as Canadian Port Authorities (CPAs) as federal non-profit, business corporations. Canadian port reform was aimed at allowing CPAs to compete effectively. Canada's major ports operate in an increasingly competitive business environment. To gain advantage over their competition, Canadian ports must develop business strategies dealing with their organizational cultures, institutional structures, operations, and facility provision. Developing appropriate strategies involves creating a strategic plan that considers external and internal port environments. This paper outlines the evolution of strategic planning and its applicability to Canadian ports. The initial literature review is followed by a brief review of Canadian port reform and an analysis of external and internal port environments. This analysis determines the resources available to exploit external opportunities and defend against threats, and considers the internal strengths and weaknesses of Canadian ports. A list of strategic issues facing Canadian ports and how the Canada Marine Act affected them is derived from the analysis.     

完善基础设施 加大改革力度——构筑现代化国际大港

<正>厦门港是我国东南沿海重要的深水良港。这几年来,随着厦门市“以港立市”战略的实施,港口生产建设不断发展,港口规模日益扩大,厦门港已经由地方小港,发展成为一个以外贸运输和临海工业为主,兼有旅游、客运、国际中转、过境贸易、商贸多功能,配套设施较齐全的国家大型一类港口,迈入国家主枢纽港、基本港行列。厦门港目前拥有生产性码头81个,其中万吨级以上深水泊位16个。1997年全港货物吞吐量达到1753.7万吨,跻身我国沿海十大港口行列,排名第十位;集装箱吞吐量首次突破50万标箱,达54.6万标箱,在世界100个集装箱大港中排名第78位,在我国大陆排名第6位;国有企业实现利润连续四年超亿元,去年达13100万元。厦门港目前与40多个国家和地区的60多个港口有海运往来,开辟     

The strategic role of ports in regional development: conceptualising the experience from Australia

Regional ports, as infrastructure in regions, influence transport and regional development policies and planning. The interaction and involvement of regional ports with their stakeholders in the region are pivotal. The conundrum on what constitutes a regional port and thus its region has further complicated this limited researched area. In the extant literature, port and region relationship mainly centres on major metropolitan ports, and pays little heed to regional ports. In this context, this study investigates on how the Australian regional ports can be better involved in regional development. The study adopts a qualitative methodology to explore the Australian regional port stakeholders’ perceptions on port’s role in regional development through 38 semi-structured telephone interviews. Thematic analysis of data assisted by a mixture of NVivo software and manual techniques proposes a conceptual model that may assist policy-making. The key findings suggest that symbiotic growths of ports and concerned regions accelerate regional development. To contribute to regional development, the Australian regional ports can be proactive in building collaboration with regional organisations. The findings have major implications for port managers and port policy-makers for developing a region-oriented long-term port planning and for creating environment for Australian regional ports for regional resource configuration.     

两岸“三通”后闽台港口合作发展展望

运用SWOT分析方法,指出闽台两地港口共建的优势和劣势,机遇和面临的强大挑战.提出了两地当务之急是要建立港口战略合作沟通机制,深度整合双方港口资源,研究突破双方开展港口合作的制度障碍,加大两地临港工业和港口物流建设的力度,不断加强双方的港口货物集疏运系统建设,增加对腹地货源的吸引力.     

两岸“三通”后福建港口对台发展形势的SWOT分析及对策研究

福建省地处东南沿海,与我国台湾隔海相望,港口资源丰富。两岸实现“大三通”以后,福建港口对台发展既面临着机遇,也遭受着挑战。运用SWOT分析方法对福建港口对台发展进行了分析,并在此基础上提出了相应的对策,旨在为福建省加快海峡西岸港口群建设、提升港口竞争力提供参考。     

Strategies of developing part administration in Ireland

This paper reivews a programme recently undertaken by the Irish Government aimed at reforming the administration of Irish ports. Arising from that programme, and as a result of legislative changes, eight key ports were vested as commerical harbour companies (prior to this they were administered by large Boards and were very restricted in their ability to perform commercially). The context for the paper is the global trend towards port reformation, and the paper draws particuarly on the effects of the privatization of UK ports. The paper starts with a review of the role of parts, both generally and within the context of Ireland's growing, geographically peripheral, economy. Observations of the UK ports privatization process are next considered. The history, development and recent performance of Irish ports, together with port investment strategies, are critiqued and the background to the recent programme of administrative reform undertaken by the Irish Government concerning the ports is reviewed. Various observations from a number of sources (including 12 interviews by the authors with key actors in the sector) on the reform process are discussed. It is concluded that there is no uniformity of opinion as to the suitability of the chosen model for Irish ports administration and that it is too soon to judge whether it has been a success (the eight ports were commercialized in March 1997). The paper concludes that, given the critical role of ports within the Irish economy, the situation should be periodically reviewed to ascertain the current applicability of the extant port administration model.     

Strategies of developing part administration in Ireland

This paper reivews a programme recently undertaken by the Irish Government aimed at reforming the administration of Irish ports. Arising from that programme, and as a result of legislative changes, eight key ports were vested as commerical harbour companies (prior to this they were administered by large Boards and were very restricted in their ability to perform commercially). The context for the paper is the global trend towards port reformation, and the paper draws particuarly on the effects of the privatization of UK ports. The paper starts with a review of the role of parts, both generally and within the context of Ireland's growing, geographically peripheral, economy. Observations of the UK ports privatization process are next considered. The history, development and recent performance of Irish ports, together with port investment strategies, are critiqued and the background to the recent programme of administrative reform undertaken by the Irish Government concerning the ports is reviewed. Various observations from a number of sources (including 12 interviews by the authors with key actors in the sector) on the reform process are discussed. It is concluded that there is no uniformity of opinion as to the suitability of the chosen model for Irish ports administration and that it is too soon to judge whether it has been a success (the eight ports were commercialized in March 1997). The paper concludes that, given the critical role of ports within the Irish economy, the situation should be periodically reviewed to ascertain the current applicability of the extant port administration model.     

Will a national port regulator solve congestion problems in Australian ports?

Australia's ports are an integral part of the nation's economy, which relies heavily on trade. In Australia, the governance of ports is the responsibility of the governments of Australia's six states and the Northern Territory, all of which have their own legislation covering the running of the ports and the establishment of port corporations. The respective legislation governing the running of Australia's ports is not uniform, and neither are the models for port management that they create. In May 2005, the then Deputy Prime Minister and Federal Transport Minister announced that the Commonwealth planned to take control of the planning and investment decision making of Australia's ports. The reasoning behind this is said to be Australia's poor trade performance and bottlenecks in ports which hold up trade and ultimately cost money. The Federal government has sought to do this under Section 51(i) of the Australian Constitution in order to update and integrate Australia's transport system. This announcement has caused disquiet among the states that had no previous notice of the announcement and for which ports are a major source of revenue. The transfer of power to the Commonwealth may lead to the Commonwealth being able to take further powers from the states, not only in relation to the ports but in relation to other areas such as industrial relations. Industry groups claim they have been pushing for a larger role for the Commonwealth in the running of the nation's ports, but question as to what extent the Commonwealth should be involved.     

Disruption risks and mitigation strategies: an analysis of Asian ports

The critical nature of a seaport is a connection point. In addition to the effect on port operations, a port disruption will be a strain on trade flows and the various parties concerned. Climate change, oil spill, security, social and political instability are increasing concerns over the years which would lead to higher risks. With significant growing trade volume in Asia, there is a pressing need for comprehensive studies to prepare ports for disruptions. This paper aims to analyse and categorise the disruptions that have occurred in Asian ports and estimate the likelihood of recurrence based on the data since the year 1900. Results reveal a rising trend of disruptive events. Natural disasters and labour strikes are the two main causes of port disruptions, while natural disasters lead to the highest severity in terms of cargo tons affected. Mitigation strategies proposed in terms of both preventive and reactive measures are specifically designed to reduce the likelihood and severity of the various types of port disruptions. The paper provides recommendations on risk mitigation for relevant parties.     

The mid-Atlantic load centre: Baltimore or Hampton Roads?

Competition between closely situated seaports in not new. The ports of Baltimore and Hampton Roads, located at either end of Cheaspeake Bay, have been locked in a fierece battle to gain dominance in the lucrtice mid-Atlantic container traffic for a number of years. The probability that ech will succeed is not great, as shipping lines, concerned with the high costs associated with idle port time, will select one,rther thatn serve both. Indeed, evidence is beginning to mount that, dispite massive expenditures by the Stte or Maryland, the Virginia ports a reemerging as the region' load centre. This paper examines recent trends in container movements through these two major ports and suggests the long-termprospects for each. among measures considered are the location of eachi in relation to other ports both North and South, sizes of the port cities and their immediately adjacent hinterlands, proximity to inland population centres (markets), connectivity between the ports and these inland centres (by both rail and truck), expenditures by port agencies and land crries, labour relations, and availabillity of space for expansion.     

Port reform in Australia: regulation constraints on efficiency

Privatization and corporatization of ports in Australia has meant the transfer of government-owned monopolies to privately owned monopolies. This has required the introduction of a regulatory regime to protect the interests of users as in some cases the privatized terminal owner or operator is also a customer of that facility. A complex regulatory regime for ports at the commonwealth and state government levels has, as a result, been created. This has meant that pricing policies and reinvestment strategies are constrained by the regulator. Inefficiencies and disruptions are likely to occur. This paper examines the regulatory regimes in place—the role of the state government regulator, the Queensland Competition Authority, and that of the Australian Competition and Consumer Commission, the national regulator. It will examine the impacts and constraints these have imposed on coal terminal expansion and operations. Recommendations have been made suggesting the transfer of state government ports to a single national regulator. This paper examines whether the proposed regulatory overhaul will resolve the dilemma of the Goonyella coal supply chain. It will argue that while regulation rationalization and overhaul will expedite the complex regulatory process, the solution lies with an integrated approach to the entire supply chain rather than the port focus.     

Development of port service network in OBOR via capacity sharing: an idea from Zhejiang province in China

The ‘Silk Road Economic Belt and the 21st-Century Maritime Silk Road’ (One Belt One Road, OBOR) strategy initiated by the Chinese government has a significant impact on the business and logistics modes which involves Asia, Europe, Africa, and their adjacent seas. Many countries and ports are developing new strategies that are suitable for this economic environment. Compared with many ports in the world, the ports in Zhejiang province of China have a novel property. In addition to Ningbo-Zhoushan port, there are several other sea ports and river ports in that province. In this paper, we propose a concept of port service network that consists of a huge hub and multiple ports. Ports of small and medium sizes can share their capacities of different types of port service with the hub when the service capacities are integrated into the network. We develop a mixed integer nonlinear programming model to determine the optimal decisions in such a network with constraints on the budget to conduct integration. An optimization algorithm incorporated with a genetic algorithm is developed to solve large size problems. We provide managerial insights on the policies of government, including expanding port capacity, reducing fixed integration cost, and providing better financial condition.     

U.S. import/export container flow modeling and disruption analysis

International containerized freight movement is a vital part of the supply chain for many companies, and a critical element of moving consumer goods to points of retail sale within the U.S. Containerized imports also present a clear security concern (e.g., terrorists attempting to ship “dirty bombs,” chemical, biological or even nuclear weapons, into the U.S. in a shipping container). The goal of the research presented here is to create a modeling tool for analyzing flows of U.S. imports and exports of containerized freight, and the potential changes in those flows under a variety of conditions (e.g., port disruptions, extensive security-related delays, etc.). Our focus is on movements through maritime container ports, and not overland movements between the U.S. and Canada or Mexico.The network model, referred to as the System for Import/Export Routing and Recovery Analysis (SIERRA), represents container movements between the U.S. and 46 other countries that account for the vast majority of U.S. imports and exports. The SIERRA model is a network equilibrium model that predicts flows between foreign countries and North American ports, the total volumes handled (import and export) by each port, the modal volumes (truck and rail) moving domestically into and out of each port, and volumes between each port and a set of transportation analysis zones within the U.S.     

Cruise Traffic Seasonality Patterns in the Western Mediterranean and the Adriatic Sea: A Challenge to Port Operators

The positive trend in the cruise industry since the beginning of the twenty-first century brings with it a series of challenges, mainly for cruise lines and ports. Among them is the seasonality of cruise traffic. This study examines the seasonality of the cruise traffic in the Western Mediterranean and the Adriatic Sea. A sample of 26 ports in 7 countries forms the basis of the empirical analysis, which uses the monthly total cruise passenger movements of each port during the period from 2005 to 2015 as a variable. Methodologically, a “dynamic” classification of ports structured in three sizes is proposed, the seasonality pattern of each port is determined, a cluster analysis is applied to group the ports in clusters with homogeneous patterns, and the changes in seasonal concentration during the analysis period are determined using a Gini coefficient. The main findings suggest the heterogeneity of the ports in the analyzed area and the existence of two clusters with different seasonality patterns. Furthermore, a list of strategies is provided to address the negative effects of cruise traffic seasonality in the management of cruise terminals, taking into account that each cluster obtained requires different strategies.     

Analysing training and education in ports

The quality and availability of labour is important for the performance of ports. Insights from cluster theories are relevant for analysing training and education in ports, as ports can be regarded as clusters. In general, labour in clusters is relatively mobile, education services in clusters are relatively good and employees have a high willingness to invest in specific skills. However, skilled and talented labour still may be scarce, especially in regions with tight labour markets. Thus, in many clusters, including port clusters, firms and governments actively aim to improve the quality of labour. This paper presents an analysis of these efforts of firms and governments to improve the quality of the labour force in three seaport clusters. In this paper the concept of a ‘training and education regime’ is presented as an approach to analyse efforts of firms and governments to improve the quality and availability of labour. Important results of three case studies include first, the observation that the quality of training and education regime differs substantially between clusters. Second, the presence of aregime manager in Rotterdam adds to the quality of Rotterdam’s training and education regime. Such an organisation may be effective across countries and clusters. Finally, the presence ofleader firms, willing to invest in training and education also improves an education regime.     

The political economy of ports in the United States and Great Britain

Abstract

This is an exploration of the political economy of ports in the United States and Great Britain. A number of technical, economic, and political issues concerning ports are examined. Particular attention is paid to the institutional evolution of ports from private to public ownership, and its consequences for port efficiency. The paper concludes with a set of recommendations designed to reverse the trend toward port nationalization in both countries.     

Italian ports: towards a new governance?

The adoption in 1994 of the law n. 84 introducing the landlord port model marked the starting point of a prime period for the Italian port industry. It contributed to the national port industry renaissance: Italian ports became again the leaders in the Mediterranean basin, both as gateway ports and as transhipment ports. Looking back to its 15 years of enforcement, critical aspects and weaknesses have been observed. The incentive to reflect on the governance structure of ports and on the changes affecting the whole logistics transport chain is driven by the relative and absolute loss of position of Italian ports with respect to their competitors of the North as well as of the South European range (and the ports of Northern Africa which are expected to compete fiercely in the coming future). Considering only the container traffic, from 2003 to 2008 the market share of Italian ports decreased from 20.7% to 15.7% in favor of its main European competitors. The loss of attractiveness of Italian harbors is a clear symptom of the several difficulties national ports face in dealing with the rapid changes affecting the port industry. This paper discusses the bill presented by the Italian Government concerning the ports governance reform.