The mispricing of transportation initial public offerings in the Chinese mainland and Hong Kong

The main objective of this study is to determine the level of mispricing of transportation IPOs in the Chinese mainland and Hong Kong. A subsidiary objective is to test the hypothesis that there is a strong positive correlation between the initial day returns that are required for new equity issues and the level of ex ante uncertainty associated with the IPO. By applying a standard methodology in finance for assessing the existence and scale of mispricing, the study finds significant underpricing for transportation IPOs in the Chinese mainland and Hong Kong. There is also evidence that freight-related IPOs are subject to more severe underpricing than non-freight related IPOs, and that water-transport IPOs are underpriced more than IPOs of other types of transport business. It is concluded that there does exist support for the hypothesis that the level of ex ante uncertainty is strongly associated with the level of mispricing and that this explains cross-sectional differences in the degree of underpricing of IPOs. In this respect, the results from the Chinese mainland and Hong Kong are consistent with the results of similar studies conducted elsewhere.     

Global shipping IPOs performance

We analyze the short- and long-run price performance of 143 global shipping IPOs listed during the 1984–2007 period in major stock exchanges, computing Buy-and-Hold Abnormal Returns (BHARs) and Cumulative Average Returns (CARs). We find the average underpricing for shipping IPOs to be 17.69%. The light underpricing is positively related to the age of the firm, the reputation of the stock exchange the IPO is listed in and the market condition of the period in which the firm went public, and negatively related to the reputation of the underwriters. In the long run, shipping IPOs underperform after a five-month holding period. Specifically, using the BHARs as a benchmark for long-run performance, we reveal that investors who buy immediately after listing and hold shares for 3 years will make a loss of 15.72%. The conclusions suggested by this survey of the global shipping industry surprises us regarding the maturity in the behavior of its investors.     

Does ISO 9000 series certification matter for the financial performance of ports? Some preliminary findings from Europe

This article investigates the role of ISO 9000 certification on the financial performance of the port authorities. The financial and scale efficiency of 18 European port authorities, some certified and some not, have been reviewed and results derived using data envelopment analysis. The inputs and outputs used in the analysis were selected following the literature and after employing regression analysis on the whole data set and the results reveal that ISO certified ports are more efficient financially than their non-certified competitors. By further using the efficiency slacks from the frontier, an indicative estimation of the magnitude of this inefficiency has been also calculated. The method followed may provide the impetus for a research agenda aiming explicitly on the exact contribution of certification on the financial ‘below the line’ results of the companies.     

The nexus between port governance and performance

The diversity of port governance models in the world, sometimes even within the same country, has aroused the interest of researchers. This study is based on contingency theory to support the port governance model. The purpose is to understand the port governance model and the relation with port performance. There are three objectives: to analyze the port governance mechanisms; to analyze the port performance factors; and to understand the influence of the governance model mechanisms on port performance. A factorial analysis was used to determine the main components, and the methodology of the structural equation model was used to analyze a survey sample of 105 valid responses from specialists and managers of port user’s companies that operate in the main Portuguese ports. This study demonstrates that port governance model influences directly the port performance. The main contribution of this paper to the literature is providing a set of factors that public managers may decide when changing the characteristics of the port governance models to ensure their performance. It was also observed the approximation of the port expert vision of port governance with models described in literature.     

The Nigerian shipping industry and indigenous shipping companies

The shipping industry in Nigeria since the early 1990s has been experiencing a continuous disastrous downturn. Nigerian shipping companies' participation in international shipping has continued to be very limited. Their presence and impact is hardly felt in the world's shipping industry. Both the national carriers (that is shipping companies with national carrier status) and other indigenous private shipping companies have vessel as well as management problems. These problems have led to the poor performance of the Nigerian shipping industry for over a decade now. The carriers in the industry are not attaining for the country the gains that are supposed to emanate from shipping. This paper points out the importance of shipping to a nation, identifies the problems the country's shipping companies are facing and proffers solutions that include merging of the companies to have strong financial standing and a competitive edge.     

Barriers to energy efficiency in shipping

The shipping industry shows potential for improvements in energy efficiency. Nonetheless, shipping companies appear reluctant to adopt these seemingly cost-efficient technical and operational measures aiming at reducing energy costs. Such phenomenon is not specific to the shipping industry and is commonly referred to as the energy efficiency gap. Decades of research in other sectors have contributed to the development of taxonomy of economic, organizational and psychological barriers that determine energy efficiency gaps through the use of a variety of research frameworks. This article aims to apply this research in the shipping context through interviews and review of existing literature and applications from other industries, with the objective of providing useful insight for shipping managers. The article discusses examples of barriers that are typical to shipping and that are related to information asymmetries and power structures within organizations. Managers of shipping firms are encouraged to look through their organizations in search of principal agent problems and power structures among the possible causes for energy efficiency gaps in their companies’ operations and possibly strive towards organizational change.     

Book Reviews

The ever-changing environment in which ports operate has put strong pressure on the traditional role of public port authorities. Market developments have created the need for ports to be part of wider logistics networks and to provide value-added services. Powerful private players who are organised on a global scale, such as carriers, terminal operators and logistics service providers, struggle to gain control over port-oriented logistics networks whereas port authorities very often seem to remain local spectators with limited influence on these market-driven processes. Port authorities are on the other hand, the focal point of criticism from societal interests such as local government, NGOs and citizens for negative externalities related to port development and port operations even if these do not always fall within their direct responsibility. In 1990, Richard Goss questioned, albeit rather rhetorically, the need to have public sector port authorities. Since then scholars have demonstrated a true renaissance or renewed interest in the role of port authorities, recommending repositioning and development of new strategies. Parallel to the concept of the ‘renaissance man’, which is defined as a person who is well educated and excels in a wide variety of subjects or fields, a kind of ‘renaissance port authority’ is emerging from literature which may take on a variety of facilitating and even entrepreneurial tasks. The purpose of this article is to develop a conceptual framework for the various options at hand, based on an extensive literature review of port authority functions. The framework also identifies the principal governance-related factors that may in practice enable or prevent port authorities, particularly in Europe, from assuming the renaissance ambitions advocated by scholars. The hypotheses developed in this article form the basis of a wider empirical research agenda into reform of port governance in Europe and elsewhere in the world.     

Vertical integration and its implications to port expansion

ABSTRACT

Over the years many shipping lines have established terminal operation companies, with some set up as independent firms. However, port authorities and local governments have not always welcomed external investment and control with open arms. The economic implications and each stakeholder’s best strategies remain unclear. This study develops an analytical model in order to study the effects of vertical integration, with a focus on shipping lines’ investment in ports’ capacity. Modelling results suggest that vertical integration between terminal operator and a shipping line leads to higher port capacity, port charge, market output and consumer surplus. It also reduces delay costs. All these results suggest that vertical integration can be an important source of synergy for the maritime industry. Although vertical integration increases the participating carrier’s output at the expenses of non-integrating rival shipping firms, our numerical analysis suggests that the overall social welfare is likely to increase. Preliminary empirical tests confirm that vertically integrated ports handle more traffic volumes and are associated with better infrastructure and equipment. Therefore, port authorities and government regulators should carefully review the market competition status as well as port expansion plans.     

The implications of increased competition among ports for port policy and management

The increased competition faced by ports is more focused than previously on the performance of logistics systems of which the individual terminals in ports are critical hubs. The changes in competitive conditions raise issues about appropriate public port policies and strategies of port managements. This paper argucs that the port industry should (and is) moving in the direction of more harmonized policies based on economic principles. Port policies based on cost recovery from users of port facilities and services need to be adopted as the international standard. The competitive environment favours considerable local autonomy. Port management, in addition to possible direct responsibility for terminal management, needs to focus on activities with economies of scale or scope. Such activities, which span the requirements of terminals and may even warrant inter-port cooperation, enhance the services available for many port users.     

The Indian dry ports sector, pricing policies and opportunities for public-private partnerships

At the time of writing (2010), the world is witnessing the aftermath of the most severe financial sector meltdown in modern economic history caused by the real estate bubble in the United States. Its consequences on the real economy, especially in Europe, are yet to be fathomed, and this of course includes the longer-term impacts on international ocean transportation, ports and the distribution of global production.The economic recession has left the international shipping and port sectors with substantial overcapacity. This has resulted in drastic cost cutting measures on the one hand, and voluntary, often consensual, and coordinated reduction of supply on the other. These measures, together with a noticeable recovery in demand, are gradually leading again to improvement in prices charged by carriers and other transport service providers.In view of the country’s expanse; size of population; and regional inequalities, India’s dry ports (inland cargo consolidation and distribution centres) are seen by the government as a pivot of export-led growth and economic development (Haralambides & Gujar, 2011). Moreover, public and private sectors alike see the coordinated development of dry ports as the only way forward in terms of easing pressures at congested coastal ports, thus improving supply chain efficiency. In spite of this, dry port development and operations are still dominated by the public sector, under prices, capacity, land acquisition policies and other conditions that make private sector participation risky and comparatively unattractive. In order to rationalize dry port capacity and prices, this paper argues in favour of greater devolution through competition-enhancing Public-Private Partnerships (PPPs). The paper puts forward recommendations for the necessary legal, regulatory and general economic policy interventions based on international best practice, while keeping Indian specificities in the right perspective.     

水运工程勘察设计企业BIM技术体系探索

针对传统的水运工程技术体系不足以支撑以BIM为工作方式的勘察设计企业的运行等问题,以某水运工程勘察设计企业为例,从标准、关键技术、平台和软件、人力资源、配套的管理体系及项目应用等方面进行探索,提出一套合适的水运工程BIM技术体系,为国内外水运工程勘察设计企业BIM技术体系建设提供参考。     

Results so far and prospects of Kazakhstan passenger rail franchising

From 1991 till 2004 passenger rail transportation in Kazakhstan was organized by a public company without financial contribution from the state budget. As in any post-Soviet country losses from passenger sector in the integrated rail company were covered at the expense of the freight transportations. From 2005 the Government is trying to introduce competition in passenger rail industry by competitive tendering rights to operate on particular route and providing subsidies.This paper reviews the Kazakhstan passenger rail franchising policy from statement and implementation with analysis of results so far. To get sense about the current policy’s perception survey among managers of the government bodies and railway companies had been performed. It indicates respondents’ opinion about main concerns and suggestions for improvement in passenger rail industry. According to provided analysis there are opportunities for improvements in operation of public and private companies as well as in the Government policy.     

市场需要理性

在去年举办的第五届海运年会上,我们以"度势运筹"(Navigating Cross Currents)为题,对航运业在国际金融危机冲击下的发展形势进行了深入探讨。而一年来航运业的实际发展形势,验证了我们当初的判断。     

上海中远集运临港国际物流中心总体布置及建筑设计

结合上海芦潮港仓储和加工产业发展需要,从有利于洋山港区物流配套产业发展的角度,对上海中远集运临港 国际物流中心建筑项目的总体规划、合理布局及建筑形式和建筑功能的和谐统一进行分析研究。通过对本项目平面布局、 交通组织以及各建筑单体功能设计的优化,力求打造一个新型现代化的国际物流中心。     

用功效系数法对船舶行业上市公司进行财务预警

以船舶行业上市公司的2003年和2004年年报为资料，运用功效系数法，构建出适用于船舶行业上市公司的财务预警模型，并就该模型对船舶行业上市公司2003年和2004年财务状况分别进行了预警结果分析。     

港口的区域垄断和竞争:圆周模型

港口具有一定的地理垄断性,同时港口竞争也日益加剧,交叉腹地日益扩大。区域垄断和竞争成为港口共同的发展特征,协调两者之间的关系对于港口产业发展具有重要意义。圆周模型对于分析港口产业经济特性非常恰当。通过运用圆周模型来理解港口的区域垄断和竞争特性,可以为实现港口产业规模型竞争的公共政策制定提供基础性的理论依据。具体的政策建议包括港口业务的垂直分解及构建地主港模式、加快港口民营化进程、在放松规制的同时重建规制及推动形成区域内邻近港口间的协同竞争关系。     

The relative efficiency and financial risk assessment of shipping companies

Since shipping companies are highly competitive, we ask whether financial risk assessment tools impact company performance and, therefore competitiveness and efficiency. Stochastic Frontier Analysis (SFA) is used in the evaluation. Based on distinct features of the risk-return relationship, three cargo segments in the shipping industry are studied—dry bulk, liquid bulk, and containerized cargo. The influence of the risk assessment indicators on market and operational efficiency is subsequently determined using a panel regression to determine whether different asset allocation and risk management techniques improve the performance of shipping companies. In this analysis, 79 international shipping companies listed in Bloomberg Shipping Indices are included in the data collected from Thomson One for the period of 2001–2010. Efficiency estimation from the SFA shows that containerized cargo firms have better performance in both market and operating efficiencies. Operating efficiency performance is achieved by lowering liquidity. Market efficiency is improved by well-managed leverage level.     

Evaluation of factors for carrier selection in the China Pearl River delta

The efficient integration of logistics modes is critical for international cargo shipping. The local transportation connecting to the export port then plays a vital role in such integration. This paper investigates the problems of carrier selection in the China Pearl River delta area, with respect to international shipping. The analytical hierarchy process (AHP) model is constructed based on a comprehensive industrial interviews and statistical analysis. Rather than simply ranking the given alternatives, we use AHP is used to analyse the weakness and strength of impacting factors in carrier selection. The model is implemented under different types of shipper. Seven criteria are statistically summarized from the questionnaire for evaluating eight different modes. The results are useful to those liner companies serving the PRD region in relationship to port selection and fleet deployment.     

Evaluation of factors for carrier selection in the China Pearl River delta

The efficient integration of logistics modes is critical for international cargo shipping. The local transportation connecting to the export port then plays a vital role in such integration. This paper investigates the problems of carrier selection in the China Pearl River delta area, with respect to international shipping. The analytical hierarchy process (AHP) model is constructed based on a comprehensive industrial interviews and statistical analysis. Rather than simply ranking the given alternatives, we use AHP is used to analyse the weakness and strength of impacting factors in carrier selection. The model is implemented under different types of shipper. Seven criteria are statistically summarized from the questionnaire for evaluating eight different modes. The results are useful to those liner companies serving the PRD region in relationship to port selection and fleet deployment.     

Shipper's councils: role and responsibility—a western view

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.