Economic policies and seaports: The economic functions of seaports

This paper argues that the economic functions of seaports are to benefit those whose trade passes through them, i.e. through providing increments to consumers' and producers' surpluses. Whilst recent developments in the technologies of seaports (containers, bigger ships, more rapid handling of bulk cargoes) have increased technical efficiency, they have also provided such economies of scale as to reduce some opportunities for competition and, therefore, the probability that cost reductions are actually passed on in this way. For this purpose port costs need to be considered in their entirety, i.e. as generalized transport costs per tonne, comprising money, time and the risks of loss, damage and delay. Such cost reductions will lead to expanded trade in a variety of ways.

This statement of the economic function of seaports is contrasted with views that they should try to increase employment in their locality, or that they should maximize profits.     

The privatization of United Kingdom seaports

The background is described to U.K. port administration and the implementation of the Conservative Goverment's privatization policy is reivewed. The objectives of privatization and the ways in which it has been achieved with trust and municipal port authorities are discussed. The paper goes on to discuss the difficulties encountered in privatizing statutory undertakings and concludes by examining the benefits port managers claim have arisen from the introduction of teh policy.     

Economic policies and seaports: The diversity of port policies

This paper contrasts the economic policies adopted towards seaports by different countries in terms of their approaches to national, regional or local control. Various examples are presented and described, together with some of the difficulties that have been encountered. Examples are cited where national, regional and local governments have become involved, even though constitutional provisions appeared to present this. It is argued that national, regional and local governments all have interests in the efficiency of ports from various points of view; hence all should be involved. The arguments for and difficulties experienced in centralized planning and co-ordination are also discussed.

The variety of activities directly undertaken by port authorities is discussed, with the extreme positions labelled 'landlord' and 'comprehensive'. The remarkable variety of intermediate positions is also described. Whilst oversimplification is dangerous, the opportunities for expanding the private sector are analysed, even to the extent of wondering whether public sector port authorities are needed at all. This, therefore is the subject of the next paper.     

Public subsidy of seaports

There is much contraversy regarding this issue. On the one hand there are the 'islanders' Which are generally the countries of Anglo-Saxon culture or influence in Which ports are often considered as mere commercial enterprises, and on the other hand the continentals where ports are instruments of national or local policy. The French belong by tradition to the latter. But a further examination of the subject would be useful; this article presents this reappraisal.

I would like first of all to examine what lies behind the notion of government subsidy for ports, and then to draw conclusions regarding 20 years of French law which have steadily reformed the status of French Ports.     

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.     

The foreign non-fuel cargo-traffic demand of the major British seaports in 1980 and 1985, a Markov Chain approach

Projections of the future traffic demand of British seaports are of great importance to port management bodies because of the huge capital investment required for installing modern port facilities. In this paper, the author uses a first order Markov Chain model to forecast the non-fuel cargo traffic demand of the major British seaports in 1980 and 1985.     

Economic policies and seaports: Strategies for port authorities

This paper discusses the strategies which might be adopted by port authorities, given that modern port technologies have considerably limited the scope for competition. It therefore analyses the several forms of competition relevant to ports, any or all of which may apply in any given instance.

It describes the 'minimalist strategy, which consists of recognizing that public sector bodies have many faults, may make many mistakes and that well-intentioned attempts to rectify faults in the private sector may make matters worse. Second, it describes the 'pragmatic' strategy, which involves establishing committees to examine problems and to recommend actions, if they can reach a consensus. Third, it describes the 'public sector' strategy, which involves the port authority taking over all port functions. Finally, it describes the 'competitive' strategy, which involves a careful reproduction of the circumstances of competition, even though there may be room for only one efficiently-sized operator at a time. Franchising, or short-term leasing on any of a variety of competitive bases, so as to produce serial competition is described. Each of these strategies is presented as having its own advantages and disadvantages, and each may be suitable to particular circumstances.     

The economics behind the awarding of terminals in seaports: Towards a research agenda

Terminal concessions in seaports have only recently gained interest in academic circles. Issues such as the allocation mechanisms (to be) used for granting those concessions, the determination of the concession term and concession fees, as well as the inclusion of special clauses aimed at assuring that the terminal operator will act in the interest of the port authority and the wider community, are increasingly relevant to both academics and the port industry. So far, insights from established economic theories have rarely been applied to terminal concessions in seaports. It, therefore, remains to be seen which kind of awarding procedure would be best for which type of terminal concession. This contribution provides a detailed overview of the different phases of the terminal awarding process, including a classification scheme for awarding procedures, and contains an extensive discussion on the economic issues that require further investigation. The paper concludes by proposing a comprehensive research agenda on the topic.     

Economic policies and seaports: Are port authorities necessary?

This paper first presents arguments for having public sector port authorities. They can deal, flexibly and permanently, with property rights within their own areas. They can plan and regulate port areas comprehensively. They can provide 'public goods'. They can deal, in various ways, with externalities. They can promote efficiency, whether their own (if they operate as a comprehensive port) or that of the private sector (if they are largely landlords). For example, if their policy is to rely on the private sector to produce efficiency through competition then they can see to it that there actually is competition and not any kind of cartel or monopoly. Examples are cited where this last function has not been performed. The exception for single-user ports is noted.

Against them are the general disadvantages of public authorities (or bureaucracies)—though examples are cited where port authorities had very small staffs. The common instances of 'market failure' may thus be contrasted with those of 'government failure'. Finally, a pragmatic approach is advocated, tailored to the needs and resources of the country in question. The increasing effect of the economies of scale in port technology, and its limitation on competition, is, however, noted and to be discussed in the next paper.     

Environmental sustainability in seaports: a framework for successful innovation

Environmental sustainability in the port industry is of growing concern for port authorities, policy makers, port users and local communities. Innovation can provide a solution to the main environmental issues, but often meets resistance. While certain types of technological or organisational innovation can be satisfactorily analysed using closed system theories, in the case of seaports and in particular in the area of environmental sustainability, more advanced conceptual frameworks have to be considered. These frameworks need to be able to account for the multiple stakeholder nature of the port industry and of the network and vertical interactions that environmental sustainability calls for. This article investigates successful innovations improving environmental sustainability of seaports. The proposed framework builds in part on research concepts developed in the InnoSuTra EU FP7 project. From a methodological perspective, this article develops a method for quantifying the degree of success of innovation with respect to a set of specific objectives. Several case studies are used to test the framework against real innovation examples, such as onshore power supply, or alternative fuels. In this article, we argue that only those innovations that fit dynamically port actors’ demands and the port institutional environment stand a chance to succeed.     

Marketing communications for seaports: a matter of survival and growth

Perhaps the most critical issue facing seaports is their survival and growth in today's highly competitive environment. Seaports are facing challenging times as the once monopolistic position of having captive markets diminishes. This situation is being replaced by growing sections of the hinterland now being considered by competing seaports as being contestable. In effect, for many business opportunities, captive and contestable hinterland regions are blurring resulting in attracting and retaining trade throughput becoming a major key to seaport survival and growth. One strategic tool that seaport management can utilize to both attract new customers and retain current customers is the use of marketing communications. An examination of the literature on marketing communication efforts by seaports tends to focus mainly on advertising and activities more suited to promoting physical products. Instead, this paper argues the need for a much broader approach to marketing communications that takes into account the challenges of seaports that are service-based businesses. That is, there tends to be a greater need for marketing communication efforts to be able to tangibilise the intangible service offered by seaports to reduce perceptions of increased risk and uncertainty on using another seaport. The purpose of this paper is to examine the benefits to seaports of managing marketing communications strategically and holistically for effective outcomes. More specifically, this paper explains the role of public relations, publicity, personnel selling, sales promotions, word-of-mouth communications, electronic communications, and the management of the seaport's servicescape and the sources of physical evidence provided by seaports in developing a broader and services-based approach to marketing communications. This includes thinking wider than attracting and retaining customers as being the purpose of marketing communications but to also include informing and educating other stakeholders such as employees and the local community about the benefits provided by the seaport. Also discussed is the necessity of a consistent message being provided by all marketing communication activities to customers and stakeholders that results in the development of a desired image of the seaport and appropriate positioning of the seaport in relation to competitors. To facilitate discussion, results from a recent empirical study of the Australian seaport sector are used.     

外商直接投资与中国沿海港口发展的实证分析

沿海港口在经济全球化的影响下获得了良好的发展时机。利用计量经济计划模型,就外商直接投资对我国沿海主要港口吞吐量增长的影响进行实证分析,并根据实际情况作相应的解析。     

Public goods and the public financing of major European seaports

Seaports are recognized for their importance in facilitating trade growth and associated economic development. These attributes often give rise to the notion that seaports, or infrastructure elements of seaports, are public goods. Public goods are regarded as goods or services which a market acting in isolation might have difficulty in providing, or at least providing in sufficient quantity and/or at a competitive price. An important element of a public good relates to its non-rival consumption, the implication being that it is impossible to exclude anyone, whether they pay or not. Key questions this paper seeks to address are, what constitutes public goods in seaports, to what extent is it necessary for the public sector to provide these goods, and can such intervention lead to market distortion in respect of competing ports? The paper describes the more common examples of public goods in seaports. This is followed by discussion of public and private sector investment at major north European seaports. The paper considers the potential for market distortion due to public sector expenditure on so-called public goods in seaports, and proposes that a more cohesive policy for major ports, particularly those very large containerports serving a common European hinterland, is necessary in order to deliver a sustainable transport system in the long term.     

An integrated framework for carbon footprinting at container seaports: the case study of a Chinese port

The objective of this research is to establish an integrated framework for carbon footprinting (CF) at container seaports (CSs). Three methodological approaches are used in this research: the multiple case study to choose suitable evaluation methods, the case study for verification of the proposed framework, and the quantitative method to calculate the emissions. The proposed integrated framework consists of five modules: policy components, sources structure, input data, emissions estimation and mitigation strategies. The effectiveness of the integrated framework is demonstrated through the practical application in Qingdao Port in China. The case study results in the detailed estimation of CO₂ emissions and detects the problem of data collection and data accuracy for CF and the necessity of stakeholders’ cooperation. The integrated framework serves to evaluate, analyze and control CO₂ emissions from the CS operations.     

减速:应对高油价的另一种选择

为克服国际燃油价格上涨带来的运营成本压力,1月18日,中远集运对外宣布,将在维持各航线原有服务的基础上,降低船队平均运营速度10％。在全球原油价格飙升、不堪船舶油耗成本重负的状态下,新年伊始出台减速航行的船公司已非中远集运一家。     

Methodological solutions for increased efficiency of modelling and simulation of seaports and inland freight terminals

The paper outlines the results of research aimed at developing an efficient simulation modelling capability for seaports and inland freight terminals. By providing the domain-oriented process of simulation modelling with a uniform and coherent methodological basis and integrating it with artificial intelligence concepts, it was possible to construct a powerful tool—Transnode. This is a decision-support expert system which enables efficient and fast modelling and simulation of any seaport or inland freight terminal, or a group of terminals, large or small, multipurpose or specialized, at optional scale. It produces simulation results which enable a comprehensive analysis of the port or inland terminal to be made as an element of the total transportation framework. Both methodological aspects of the developed solutions and practical features of the Transnode system are discussed in the paper.