Productivity change in Nigerian seaports after reform: a Malmquist productivity index decomposition approach

ABSTRACT

During the 1990s, Nigerian seaports were considered inefficient, unsafe due to massive cargo theft (wharf rat phenomenon) and one of the most expensive port systems in the world. This resulted in long turnaround times for ships and increased container dwell times. As a result, port operations were transferred to the private sector through concession contracts. This paper employs a Malmquist productivity index (MPI) technique to benchmark pre-and post-reform total factor productivity growth of the six major Nigeria seaports (Apapa, Calabar, Onne, Port Harcourt, TinCan Island and Warri) for the period 2000–2011 which represents six years before (2000–2005) and six years after (2006–2011) the reform. The results indicate progress in technical efficiency of the ports after reform but deterioration in technological progress. Overall productivity growth was higher in the pre-concession period compared to the post-concession period. The source of pre-concession period productivity growth was technological progress while the change in productivity of the post-concession period is generated by an increase in scale efficiency. This suggests that concessionaires have not brought in the much anticipated investment in modern technology to drive port efficiency. The ports of Calabar and Apapa experienced the highest productivity growth while lowest result was Onne.     

Ten years after bus deregulation in Japan: An analysis of institutional changes and cost efficiency

The local bus market in Japan was deregulated in 2002. This study examines the impact of this deregulation on the market structure and the operators' cost efficiency over the last ten years. First, we perform a qualitative before-and-after-deregulation analysis of Japan's bus market, finding that there has been little change in the structure of the Japanese bus market so far. Second, we investigate the effectiveness of the deregulation and internal organisational factors by using a dataset of publicly owned (municipal) bus companies. We estimate the total cost frontier functions in order to examine their effects, showing that it is the internal organisational factors (i.e. governance structure) that affect the operator's efficiency, not deregulation. In fact, the coefficient of subsidies to companies is positive, with statistical significance, thereby suggesting that cost efficiency decreases as the subsidy ratio increases. The coefficient of the contracting-out (MCGL) dummy also obtains statistically significant results; thus, we provide an account of how contracting out clearly improves operators' cost efficiency. The deregulation variable did not show significant results.     

The effect of governmental subsidies and the contractual model on the publicly-owned bus sector in Japan

The publicly-owned municipal bus sector that provides local transport in Japan is in a difficult situation because of operating deficits, inefficient operations and management, and budgetary constraints of expanding subsidies, and thus, it needs to be restructured to improve efficiency. This paper investigates the impact of subsidies and contractual settings on the cost structure of the publicly-owned bus sector in Japan. A trans-log cost function has been estimated by pooling cross-sectional data of 527 observations over the time period of 1990-2006 for a cross-section of 31 publicly-owned transport companies in Japan. Our analytical results confirm that governmental subsidies to this sector negatively affect the cost structure, while the contractual model may have a positive impact. We also discuss the implications of these results for Japan’s public transport policy.     

Programming, optimal pricing and partnership contract for infrastructures in PPPs

The development of various forms of public-private partnerships for the financing, building and operating of public infrastructure has not fundamentally altered the economic calculations involved. This chapter examines to what extent it is necessary, however, to change the way that government uses socio-economic and financial evaluations, whether to optimise investment programming or pricing. Ensuring a coherent match between these two types of optimisation can provide a principle for determining the optimal programming price.We begin by showing that when projects are financed by both users (toll revenues) and taxpayers (subsidies), it is socially beneficial to plan these investments on the basis of the net present value (NPV) provided by each unit of public money invested. This NPV/subsidy ratio must obviously be higher than the public-funding scarcity coefficient or else the investment would destroy more wealth than it would produce.One of the ways of improving this ratio is also to optimise the toll level, since increasing it can lower the subsidy but has an adverse impact on the user surplus, it is essential to set the optimal toll.In the case of an approved project considered in isolation, we show that the optimal toll depends upon the public-funding scarcity coefficient. If there is no scarcity, the optimal toll is zero. As public-funding becomes scarcer, the optimal toll draws closer to the toll that optimises revenue.In the case of a programme of several projects subject to budget constraint, we show that the optimal toll no longer depends upon the public-funding scarcity coefficient and that there are several scenarios depending on the relative values of the maximum revenue and the total cost of the project:

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when, whatever the toll, revenue can no longer cover over half of the cost, it is socially beneficial to choose not to levy any toll;

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when there is a toll that covers the total cost, the operator may be left free to set it at the level he sees fit, with the issue of how the profits are to be shared between the franchisee and the franchisor being settled separately;

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when the maximum revenue of the project falls between half and all of the total cost, the value of the toll that maximises the welfare function is lower than the revenue-maximising toll and must therefore be set for the private operator by government.

Thus, the partnership contract must be given a different content in these three cases of optimal pricing.

Preamble

Most of the theoretical studies devoted to optimising public investment programming and infrastructure pricing have, since the work of Jules Dupuit (1844), focused on the salient issues of the transport sector, even though this work was relevant to all sorts of public infrastructure. The analysis presented in this paper deals with transport economics, but in line with this tradition, is also applicable to any field in which public-funding is combined with commercial revenue. For example, the question of determining how the financing of an opera should be shared between taxpayers and opera-goers raises the same type of issues as the optimal combination of tolls and subsidies for financing a motorway project. This report will be focused on these issues. We shall see that certain precautions are called for in investment programming together with some new thinking on pricing principles.     

Operating differential subsidies: problems and alternatives for the United States

In this paper a proposal for a Competitive Rate of Return (CRR) based operating-subsidy system is made as an alternative to the existing US foreign-cost parity ODS system. Such an alternative, if adopted, could be successful in meaningfully relating US government maritime subsidy programmes to the legitimate financial needs of the industry. From the operator's viewpoint, the risk of drastic revenue fluctuations is removed, yet adequate opportunities are provided for firms with above average performance to be rewarded for their efficiency in higher than average profits. similarly, poorly run firms have an opportunity to lose money, in spite of government subsidies.

From the government's viewpoint, the CRR programme guarantees the provision of essential shipping services at the lowest possible cost. Because of substantial incentives to the operator on both the revenue and cost side of his profit equation, it is more likely that long-run government operating subsidies can be reduced under CRR than under the present system.

Although the CRR system has been described for use in determining subsidies for both bulk and general cargo carriers, it has been recommended that this system be considered first for implementation in the case of bulk vessels, because of the newness of the bulk subsidy programme. In addition, the 1970 Act gives MarAd the flexibility to initiate such a programme for bulk vessels without the necessity of new legislation.     

Operating differential subsidies: problems and alternatives for the United States

In this paper a proposal for a Competitive Rate of Return (CRR) based operating-subsidy system is made as an alternative to the existing US foreign-cost parity ODS system. Such an alternative, if adopted, could be successful in meaningfully relating US government maritime subsidy programmes to the legitimate financial needs of the industry. From the operator's viewpoint, the risk of drastic revenue fluctuations is removed, yet adequate opportunities are provided for firms with above average performance to be rewarded for their efficiency in higher than average profits. similarly, poorly run firms have an opportunity to lose money, in spite of government subsidies.

From the government's viewpoint, the CRR programme guarantees the provision of essential shipping services at the lowest possible cost. Because of substantial incentives to the operator on both the revenue and cost side of his profit equation, it is more likely that long-run government operating subsidies can be reduced under CRR than under the present system.

Although the CRR system has been described for use in determining subsidies for both bulk and general cargo carriers, it has been recommended that this system be considered first for implementation in the case of bulk vessels, because of the newness of the bulk subsidy programme. In addition, the 1970 Act gives MarAd the flexibility to initiate such a programme for bulk vessels without the necessity of new legislation.     

A dynamic model for marginal cost pricing of port infrastructures

ABSTRACT

A dynamic model for marginal cost pricing of port infrastructures links costs to system performance by combining a power-law function with time-dependent queueing analysis. Additionally, the model incorporates the marginal cost of capacity, including the effects of economies of scale. This allows the calculation of the marginal cost price under a dynamic framework. The model accounts for nonlinear behaviour of port demand, which is sensitive to price and service levels. The effects over time of cost and service levels on the port’s operational performance are quantified. The proposed model allows determining the optimal timing for capacity investment. The model is a starting point for the application of marginal cost pricing to ports. However, for practical application of such pricing method it is necessary to apply a system’s approach, as productivity and costs must be assessed at the terminal’s component level. This should allow the derivation of a marginal cost function at the terminal’s component level.     

效能监察在项目成本控制中的应用

本文通过在项目实施过程中开展成本管理效能监察,探讨建筑施工企业如何有效发挥纪检监察部门的作用,使之与企业中心工作有机结合,围绕"效能链"形成"大监察"工作氛围。     

基于加权最小二乘法的武器装备批量生产成本费用研究

加权最小二乘法考虑了现实情况下普遍存在的异方差性,在经济预测中有着更为广泛的应用。在系统研究我国武器装备批量生产规律和状况的基础上,结合计量经济的相关理论,提出基于加权最小二乘法的费用预测模型,并辅以实例进行分析,结果表明,该方法移植性好,由于消除了异方差性的影响,模型的拟合和预测性能较一般最小二乘法更佳。     

如何确定耙吸船最佳装舱时间

提高耙吸船开挖密实粉细砂的施工效率是疏浚工程界不断探索的问题,而采用最佳装舱时间是提高耙吸船挖砂效率最有效的方法之一。结合锦州港301泊位工程港池粉细砂的疏浚施工,通过对有效载重曲线和小时效率曲线的分析,简要介绍最佳装舱时间的计算。     

Marine Protected Area Costs as “Beneficial” Fisheries Subsidies: A Global Evaluation

Marine protected areas (MPAs) are now generally accepted as important tools in the protection of coastal biodiversity. It is also likely that they play a positive role in enhancing fisheries. Yet currently, less than 1% of the global oceans are protected, although international agreements have targets ranging from 10–30% coverage. Despite its minuscule size, we consider the current MPA “network” to be beneficial to fisheries, and its running or maintenance cost, therefore, to be a positive contribution to the sustainability of fisheries, or a “beneficial” subsidy (“harmful” subsidies enhance fishing capacity and effort). A method was derived from data in Balmford et al. (PNAS, 101: 9694–9697) to estimate the annual cost of maintaining MPAs as a function of their size, and of the degree of development of the country in question. We provide national costs of the 53 countries that jointly contribute 95% of global fisheries catch and, assuming that this type of subsidy, in a given country, cannot exceed 15% of the ex-vessel value of its fisheries catches, estimated a global MPA subsidy to fisheries of 870 million US$. Given that total subsidies to fisheries currently range from 30–34 billion US$ annually (without MPA costs), this amounts to only 2.5–2.8% of total subsidies to fisheries being devoted explicitly to the maintenance of the biodiversity that sustains them.     

Productivity change of the Spanish Port System: impact of the economic crisis

ABSTRACT

The main goal of this study was to assess the impact of the economic crisis on the productivity growth of the Spanish Port System (SPS). The Malmquist Productivity Index (MPI) was estimated for the 28 Port Authorities of the SPS, for a ‘non-crisis period’ (2005–2008) and a ‘crisis period’ (2008–2011). From a policy perspective, the MPI is a very useful approach for assessing the productivity change because it can be decomposed into the catching-up index and the frontier productivity index. The results showed that the economic crisis did not impact all of the Spanish Port Authorities equally. Some Port Authorities presented higher productivity growth during the crisis period than in the non-crisis period. Further analysis by the Mann–Whitney test revealed that Port Authority investments and productivity growth were statistically related. Information provided by this study may be very useful for stakeholders and decision-makers, in terms of long-term strategic planning and improving the competitiveness of the SPS. The findings illustrate that the economic crisis should not be seen as an international tragedy, but as an opportunity to adapt port traffics and installations to new needs and market demands.     

长江澄通河段通州沙西水道整治工程对分流比影响研究

为增加长江澄通河段沿江深水岸线资源,拟进行通州沙西水道整治工程,主要包括边滩圈围工程、洲头潜堤工程、西水道疏浚工程。利用一二维耦合潮流数学模型,模拟计算不同整治方案实施前后的汊道分流比,分析研究工程对通州沙河段的影响。研究结果表明:边滩圈围和潜堤工程、西水道航道疏浚工程、上游径流条件等都将影响通州沙西水道的分流比;仅仅实施边滩圈围和潜堤工程,将减少西水道分流比,而疏浚工程将使西水道分流比有所增加;整治工程实施后,通州沙河段分流比的改变程度主要取决于西水道的疏浚深度,因此,为维持该河段河势稳定应慎重选择西水道的疏浚尺度。     

塑料排水板在天津港工程建设中的应用

通过对天津港若干采用真空预压加固的工程进行统计 ,对塑料排水板间距与加固时间、工程造价之间的关系进行了分析 ,总结出以上三者之间的规律 ;对真空预压加固机理进行了阐述 ,并根据有关实测资料 ,指出影响加固深度的主要因素是井阻损失的大小 ,实际工程表明 ,真空预压的有效加固深度可达 30m以上。     

Spatial and Temporal Modeling of Beach Use: A Case Study of East Anglia,UK

As tourists are sensitive to weather conditions and changes to the environments they visit, it is likely that climate change will affect coastal recreation in the future. To understand these impacts, it is first important to quantify how visitor numbers are associated with beach characteristics and weather patterns. Using the East Anglian coastline, UK, as a case study, information on the spatial distribution of visitors recorded from aircraft flights is combined with beach characteristic data in a Geographical Information System. In addition, surveys are undertaken at two beaches to assess temporal variations in visitation. The study finds a diverse range of characteristics are associated with visitor numbers. These findings are evaluated alongside the anticipated effects of climate change and management policies. Although it is predicted that warmer weather will increase visitor numbers overall, sea-level rise may reduce numbers at wide sandy beaches, which are currently most preferred by tourists.     

Impact of scale increase of container ships on the generalised chain cost

In recent years, an increase in the size of the container ships could be observed. The question is how these larger ships will influence the total generalised costs from a port of loading to a destination in the European hinterland. The second question is whether a scale increase of the container ships on other loops, such as a loop from the United States to Europe, has the same impact on the generalised chain costs as on the loop from Asia to Europe. A derived question is which element of the total chain has the highest importance, and whether this balance varies as the ship size changes. In this article, a model is developed that allows answering the above research questions. The model is designed to simulate the cost of a complete loop of a container ship and of a chain that uses that same loop. For the chain cost simulation, the maritime part is determined by the loop. From the ports of loading and unloading, the port container handling and the hinterland transportation costs are also integrated. The model also allows calculating the total chain cost from a point of origin (either a hinterland region or a port) to a destination point (also a port or a hinterland region). An actual container loop of a container shipping company can be introduced in the model. An application is made to two existing container loops, namely from Asia respectively the United States to Europe. It turns out that changing ship does indeed lead to economies of scale, but also that the impact is larger on the Asia–Europe connection than on the US–Europe connection. Furthermore, the maritime component has the biggest share in the total chain cost, but as ship size increases, the shares start getting closer to each other. This research contributes to the existing literature in two ways. First of all, it quantifies the impact of the scale increase of container ships throughout the total chain. Second, this is done from a bottom-up engineering modelling approach.     

Exploring the effects of passenger rail franchising in Britain: Evidence from the first two rounds of franchising (1997-2008)

This paper provides an up-to-date review of the previous literature concerning the impact of passenger rail franchising on productivity and costs in Britain, and also presents important new evidence. In particular, the extension in time of previously-used datasets offers the first opportunity to study the impacts of re-franchising. The previous literature emphasised the failure of franchising to produce sustained productivity gains, with a sharp deterioration in productivity after 2000. The new evidence presented offers a somewhat more positive view of the British experience. It suggests that part of what was previously considered to be falling productivity may in fact be due to exogenous changes in diesel prices. Further, new data suggests that the recent increases in costs have resulted in higher quality of service. Finally, competitive re-franchising, and the associated unwinding of short-term management and re-negotiated contracts, seems to have led to improvements in productivity between 2006 and 2008. Nevertheless, it remains the case that passenger rail franchising in Britain has failed to reduce costs in the way experienced in many other industries and in rail in other European countries. The evidence is that somewhat larger franchises, avoiding overlapping and optimising train density and length, should reduce costs. We also speculate that the major increase in wages and conditions of staff might be moderated by longer franchises, although that remains to be proved. This re-appraisal of the British case is important in the context of the wider international interest in the use of franchising in passenger rail, and its relevance to the current review of ways of introducing competition into the domestic rail passenger market in Europe.     

The impact of the Merchant Marine Act of 1970 on subsidized US ship construction

The United States Congress reasserted the desire for continued financial support to domestic merchant-ship construction when in 1970 it amended the Merchant Marine Act of 1936 [1]. With regard to the shipbuilding industry, the most significant changes contained in the Merchant Marine Act of 1970 [2] are those designed to reduce the construction differential subsidy and to increase the variety of vessels that might be subsidized. Sections 501(a), 502(a), and 502(b) of the 1936 Act were amended to facilitate the reduction in subsidies; Section 905(a) was modified to encourage the subsidized construction of liquid and dry bulk cargo vessels. After a cursory review of the 1970 amendments to the 1936 Act, this paper is directed to ascertaining the results, in general, of the changes and whether they have generated increased domestic shipyard productivity and lower subsidy rates.     

A Few observations on productivity in seaports

In this paper, the author describes and discusses the cargo-handling productivity in European seaports and the various factors which may influence it. He focuses on the effects of the 'port revolution' which began in the years of reconstruction following the end of the Second World War. This involved the introduction of new (and usually mechanized) cargo-handling techniques which die so much to change the traditional approach to shipping and port operations. He goes on to assess the importance of these developments for the Port of Antwerp, stressing particularly the organization of dock labour, the physical lay-out of the port, and the type and extent of use of technical equipment. He concludes that big differences exist in port productivity between continental European ports, due to the degree to which they have been affected by, and, more importantly perhaps, responded to, the changes of the past few decades.     

A decomposition method for surrogate models of large scale structures

Analysis is computationally the most expensive part of optimization. Surrogate models, which are approximate but faster statistical models, can be used in place of more precise but more computer-intensive methods like finite element method to improve efficiency. Unfortunately, the surrogate models are limited by the number of model parameters. So large-scale problems cannot be fully defined by a single surrogate model. Furthermore, current domain decomposition methods cannot be used with black-box models. This study presents a novel approach to design thin-walled structures using surrogate models that overcome the curse of dimensionality by a special decomposition method. A parametric panel structure is defined as a building block. An interface is developed to maintain compatibility across the blocks. Finally, an iterative algorithm finds the displaced state using only local information. Three test structures are used to show the convergence of the algorithm for static analysis. In these sample cases, number of steps required for convergence of the error did not change with the number of panels. This approach offers many benefits including automatic design creation and optimization, effective usage of stream processors and model reuse.