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.     

Overview of public transport policy developments in South Africa

In South Africa, a restructuring of the public transport system is currently under way. In the bus industry the tender for contract system is being implemented, the commuter rail sector is being recapitalised and the minibus taxi industry recapitalization programme is in its early stages. Progress with policy implementation across the modes of transport, modal split trends and issues that hamper the full development of the public transport industry are discussed in this paper. Medium to long term policy and strategy initiatives that will further inform the development of the industry are also highlighted in this chapter.     

The public administrator: Regulating for maritime transport efficiency

One role often fulfilled by public administrators is to regulate private enterprise in the public interest. The academic literature has not developed this area fully because public administration is not always tasked with this function. Nevertheless, when regulation forms a part of the responsibilities of the public administrator, it is among the most important. An essential foundation for effective regulation is a complete understanding of the implications and impact of regulatory action. In the absence of regulation, entrepreneurial awareness is applied in the private sector exclusively to satisfying consumer wants. In a regulated market, the entrepreneur’s focus is shifted toward regulatory imperatives. Regulation offers non-market opportunities for entrepreneurial innovation, as well as imposing new market constraints. This paper examines regulation of the maritime industry by the US federal government as an example.     

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.     

The Japan coastal ferry system

This paper provides analysis of the medium- and long-distance ferry sectors in Japan. Data has been obtained from semi-structured interviews with ferry operators, port authorities, government officials and from secondary sources. The Japanese ferry industry is assessed on the basis of a range of criteria, including routes and operators, traffic flows, vessels, ports and modal competition. Today, approximately one in every four trucks travelling over distances in excess of 100km in Japan are carried by ferry, and this notwithstanding the alternative of an expanding expressway system. There are clearly lessons here for other countries with long coastlines and congested highways. Many ferry operators in Japan are nevertheless unable to make a profit and clearly there will have to be action taken to secure the future of the industry in the face of high crew costs and competition from low-cost trucking. A potential future opportunity may exist for Japanese ferry lines to extend services to other parts of Asia. Given the success of the European ferry sector as a result of the Single European Market, and pending continued economic cooperation in Asia, potential for any expansion of ferry links between Japan and its near neighbours needs to be evaluated.     

New security measures for the international shipping community

On 1 July 2004 the new maritime security regulatory regime set out in the International Convention for the Safety of Life at Sea (SOLAS), 1974 as amended, namely the new chapter XI-2 on Special measures to enhance maritime security and the International Ship and Port Facility Security (ISPS) Code entered into force only 18 months after adoption by the SOLAS Conference in December 2002. Following the devastating terrorist acts of 11 September 2001 in the United States, the international community recognised the need to protect the international maritime transport sector against the threat of terrorism. IMO responded swiftly and firmly by developing these new requirements, which represent the culmination of co-operation between Governments, Government agencies, local administrations and shipping and port industries.     

Seaports and the structural implications of the economic crisis

The 2008 credit crunch and the subsequent economic crisis ended a period that lasted over two decades wherein international seaports around the globe experienced double-digit volume increases. This chapter provides an analysis of the structural effects that the crisis has on seaports, focusing mostly on developments in Europe. It does so via an examination of (a) the crisis implication for each of the four major types of transport flows that account for the vast majority of port throughput worldwide; (b) the prospects for future capacity organisation and development, given the realignment of the involvement strategies that the various stakeholders (i.e., governments, port authorities, service providers, users, investors) endorse in reaction to the financial tsunami; and (c) the adjustment opportunities, that the trade downturn unintentionally provides, allowing for correction of existing misallocations in the sector via the deployment of relevant adjustment strategies by the related actors. Recapping the identified structural consequences, the final section concludes on the changing role and responsibilities of port authorities and the ‘new issues’ that will require further investigation in the post-financial tsunami era.     

Challenges in the application of spatial computable general equilibrium models for transport appraisal

The use of spatial computable general equilibrium (SCGE) models for assessing the economic impacts of transport projects is one of the key items on the research agenda for project appraisal in the Netherlands. These models are particularly suitable for analysing indirect effects of transport projects through linkages between the transport sector and the wider economy. Potentially, according to the literature, indirect effects that are additional to first-order direct cost reductions can turn out to be up to almost 80% in magnitude of the direct impacts. Given the relevance of these models for policy appraisal, experiences with this new modelling approach are important to report. After two years of development and application of SCGE models for transport appraisal, we found that the translation of theory behind the spatial equilibrium models into practical model specifications and empirical applications is a challenging task, and may lead to problems in project appraisal in terms of inaccuracies in the assessment of impacts. This paper discusses some key challenges we encountered with the specification of the Dutch SCGE model RAEM. This chapter is especially useful for researchers developing SCGE applications for use in transport appraisal and those who want to get a better understanding of differences between theoretical and computable SCGE modelling.     

Violation or strengthening of the self-financing doctrine at international airports by SMCP funded PPP schemes?

International airports are among the few examples of transport infrastructures which can well achieve self-financing. The growing interest of private companies in airport construction and operation is the visible testimony to this fact. However, the financing structures of airports are complex, involving not only traffic, passenger and goods handling, but also non-aviation services, such as retail, car parking or intermodal facilities. The integration of social marginal cost pricing schemes into this organizational structure according to the strategic plans of the European Commission, however, is challenging. This paper investigates whether they comply with a second strategic policy objective at European and national level, which is to foster public-private partnerships (PPPs) in transport financing in terms of full cost coverage, risks and incentives.The cases analysed in this paper deal with two sites with very different characteristics: Munich Airport which has been publicly operated since 1991 and the Bulgarian airports Varna and Burgas, which have been managed since 2007 by one concessionaire and whose planning and future development is being accomplished with private capital. The results of both cases showed that self-financing is possible in case congestion costs are considered in the SMCP schemes, and given that air traffic growth rates return to the significant levels prior to the economic crisis. The chapter will discuss the legal implications of congestion pricing at European airports which are violating current EC legislation, as well as the impact of alternative pricing schemes on the environmental performance and technological innovation in aviation.     

Short sea shipping

This paper quantifies the potential environmental benefit of short sea shipping. Critical strategic issues relevant to formulating public policy are developed. Coastal shipping has traditionally been a major sector of the maritime industry. This continues to be the case in the European Union, but the sector has diminished in relative importance in North America as the transport industry has become increasingly dominated by less environmentally-friendly interstate trucking and railroads. Congestion threatens to overwhelm overland carriage and limit economic growth. An alternative strategy is to revitalize coastal shipping as short sea shipping to alleviate traffic congestion and enhance economic development by maintaining freight flow efficiency. Because ship transport offers higher fuel economy and lower emission of harmful pollutants, the environmental benefits of short sea shipping over land transportation can be quantified and used to inform public policy.     

Sustainability and national policy in UK port development

Given the private sector character of the UK port system it might well be thought that, so far as port development is concerned, the market ruled. There are of course permissions to be obtained, including planning consent under the Town and Country Planning Acts; but this process has not so far been considered to interfere with market function. Ports are already well used to the process of obtaining approval, to negotiations with objectors and environmental interests, and to mitigating the effects of development when defining projects and seeking approval.

However, as ports policy is being brought into line with transport policy generally, and in particular with Government policy for sustainable development, ports are being faced with a more challenging regulatory framework. The search for sustainable transport is leading Government towards a broader based approach to the approval of development applications in which market need and commercial viability are simply two of a number of considerations which ports must take into account in designing projects which also meet environmental concerns.

There has been a long standing requirement for developers of major projects to carry out Environmental Impact Assessments. In addition Government policy is set out in a number of publications, applying sustainability and the associated “New Approach to Transport Assessment” (NATA) to the ports sector. In a separate and broader initiative it has also considered a radical reform of the planning system and the establishment of national priorities for infrastructure combined with a simplification of the Public Inquiry process. In the event it has been decided not to establish national priorities in the ports sector, although the aim of simplification of the Inquiry process remains.

The aim of this paper is to explore the emerging theoretical and practical issues arising within the development approval process. These are of most concern in the development of major projects for cargoes which have broad hinterlands, and where there are competing locations for new facilities. The most important example of this is in the deep sea container sector where there is a demand for new capacity and a choice of widely spaced locations in the south east of the UK. Some comment will be made on this sector and on the issues arising at the Public Inquiries for the proposed container port developments at Dibden Bay (Southampton) and the London Gateway at Shellhaven on the north bank of the Thames.     

百年梦圆长江口

3月14日,长江口深水航道治理三期工程在沪顺利通过交通运输部的交工验收。至此,汇聚全国科技精英和水上施工力量,历时12年奋力完成的我国最大的水运工程,终于以前无古人的恢宏气势和新貌展现于世：两条各约50公里的长堤,犹如水上长城横卧长江人海口;全长92．2公里、     

Sustainability and national policy in UK port development

Given the private sector character of the UK port system it might well be thought that, so far as port development is concerned, the market ruled. There are of course permissions to be obtained, including planning consent under the Town and Country Planning Acts; but this process has not so far been considered to interfere with market function. Ports are already well used to the process of obtaining approval, to negotiations with objectors and environmental interests, and to mitigating the effects of development when defining projects and seeking approval.

However, as ports policy is being brought into line with transport policy generally, and in particular with Government policy for sustainable development, ports are being faced with a more challenging regulatory framework. The search for sustainable transport is leading Government towards a broader based approach to the approval of development applications in which market need and commercial viability are simply two of a number of considerations which ports must take into account in designing projects which also meet environmental concerns.

There has been a long standing requirement for developers of major projects to carry out Environmental Impact Assessments. In addition Government policy is set out in a number of publications, applying sustainability and the associated “New Approach to Transport Assessment” (NATA) to the ports sector. In a separate and broader initiative it has also considered a radical reform of the planning system and the establishment of national priorities for infrastructure combined with a simplification of the Public Inquiry process. In the event it has been decided not to establish national priorities in the ports sector, although the aim of simplification of the Inquiry process remains.

The aim of this paper is to explore the emerging theoretical and practical issues arising within the development approval process. These are of most concern in the development of major projects for cargoes which have broad hinterlands, and where there are competing locations for new facilities. The most important example of this is in the deep sea container sector where there is a demand for new capacity and a choice of widely spaced locations in the south east of the UK. Some comment will be made on this sector and on the issues arising at the Public Inquiries for the proposed container port developments at Dibden Bay (Southampton) and the London Gateway at Shellhaven on the north bank of the Thames.     

Overseas trade vis-a-vis overseas shipping: Growth and performance in India (1999–2009)

Maritime trade has been and even continues to account for about a lion's share of India's total cargo volumes. Despite the growth of multimodal transport (by land, water and air), shipping still continues to be the major mode of transport in the bulk carriage of country's overseas trade. In view of this vital role of shipping, in the first four decades of independence, under the initiative of planned development and active government support, India's shipping and port sector saw dramatic growth in their performance to build adequate national fleet, in keeping up with the transport of overseas cargo. However, the onset of economic liberalization in 1991 has given rise to many new dimensions in the development of the shipping and port sector of the country with a significant redefinition of shipping and port services, in response to the new global trend patterns. For instance, it has also established the new era of containerization in the mode of cargo delivery from the dominance of the era of bulk and break-bulk trade during the decade of sixties and seventies. Moreover, as global competition increases, in response to this emerging trade patterns within this country, India's volume of traffic growth also increases manifold. So, India's shipping and port sectors need, significantly, to build up and furnish their capacity by increasing the frequency of this mode of transport i.e. the growth of the national overseas fleet to meet this surging demand. This paper, therefore, have focused on this role of shipping in such rising overseas trade, with a view to examine the shipping performance (the growth of overseas fleet) in response to the growing overseas trade at all ports of India during the period (1999–2000 to 2008–2009), in terms of both a mathematical model and a graphical representation. Finally, it concludes that the absolute overseas trade, being highly import dependent, have led to a more or less stagnant performance in overseas shipping, owing to the lack of the adequate growth of absolute overseas exports during this period.     

Innovation types in the Finnish maritime cluster

The Finnish maritime cluster is an important sector of Finland's economy. However, literature on innovative activities within the cluster is limited. This article focuses on Finnish shipbuilding and marine industry firms. Several innovation types are identified. These are analyzed according to general characteristics of firms. The data is from a survey of 148 shipbuilding and marine industry companies; most of the variables are ordinal scale and are analyzed with standard statistical survey methods. Considering the significance and past technological achievements of the sector the results indicate surprisingly low radical innovation related-activity and attitudes towards it. As well, the results provide no evidence to support previous research, suggesting that the shipbuilding and marine industry produces more organizational than technological innovations. The innovativeness of the firms varies according to distinct characteristics such as size, intensity of in-house and collaborative R&D activities, and level of internationalization. The empirical results provide a platform for policy implications and directions for future research; innovations concerning environmental efficiency are raised as an important future area of development.     

Applying social marginal costs pricing to the road sector

This chapter, following the results of the case studies analyzed in the Enact project, will identify and analyze the implications of the possible application of SMCP in PPP’s in the road sector. The main issues analyzed include SMCP revenue formation and its ability to finance the PPP. The paper will focus on market and competition issues like: 1) the problems due to mispriced substitutes; 2) the interdependencies between the tolls and the capacity of different road infrastructures when these are competing for the same demand; 3) since short run social marginal costs do not repay for the investments costs (except in special cases), in the case tolls should cover also the investment costs this will lead to totally different pricing schemes between roads in a same area, with problem of demand shift toward cheaper existing infrastructures, therefore increasing the problem of cost recovery. The incentives caused by the introduction of prices based on SMC’s are also investigated.     

Mediterranean maritime transport: fields and strategies

Emerging megalopolises and a new industrial polarization, a growing upper tertiary sector and offshore oil and gas industry are relevant elements of the present Mediterranean framework.Within the bulk market, crude oil transport has been affected by structural changes; LNG and LPG transport are growing and deep-sea steam-coal terminal are going to be built. Cellular maritime transport has been affected by the propensity to link the deep-sea routes to a thick web of intraMediterranean feeder routes. Refrigerated and ventilated cargoes, as well as heavy and large cargoes, possess remarkable perspectives. Because of the progress of the European waterways the relationships between sea and land transport in the Mediterranean are changing.     

Lessons in ownership, regulation and management from 100 years of bus transport in Sri Lanka

Sri Lanka observes 100 years of bus passenger transport in 2007. During this period the country has seen different forms of service providers ranging from private sector monopolies to state sector monopolies. It also has seen several changes in state policy ranging from welfare orientated service provision to entire market determined without any regulation. The existing regulated mixed competition is also characterized by poorly equipped regulators. In conclusion, the paper traces the different stages of failure that have led to the poor quality of bus transport services existing at present.     

Recent aspects of the EU maritime transport policy. A comment on the paper by Theo Kiriazidiz and George Tzanidakis

This paper provides a commentary on the paper by Kiriazidis and Tzanidakis which examined a very significant area of policy relating to the European Union and the Maritime sector. Whilst providing a stimulus for discussion, their paper leaves out far more from the policy framework, than it includes and as such contributes little to the broader debate.