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.     

On the use of mathematical programming in the evaluation of transport policies

This paper focuses on the evaluation processes by which decisions regarding transportation alternatives can be assisted. A multidimensional approach usually called multiple criteria decision making is required to represent the complexity of transportation policy and systems.

The multiple criteria decision making techniques can be divided into two groups. The first is based on a ranking scheme approach and the second on a mathematical programming approach.

A multiple objective mathematical programming procedure known as Goal Programming is presented. The authors examined the use of that procedure in real transportation problems.

The results suggest that multiple objective mathematical programming techniques in general do not appear to be appropriate in transportation policy analysis involving mutually exclusive alternatives. Their use can be limited to special cases in the private sector.     

Alternative fuels for transportation

The alternatives to the oil based fuels for transportation are considered and analysed. These are the synthetic fuels, made from coal, the liquid petroleum gases of propane and butane, compressed natural gas and methanol. The problems associated with the use of electric vehicles are discussed; the main problem being that of range.

The possible use of hydrogen as a fuel is analysed in some detail. Since its supply can be tied directly to nuclear energy sources, rather than hydrocarbon feed stocks, it could be an alternative in the long term. The main problems of the storage of hydrogen on the vehicle and of its propensity to “back‐fire” into the engine intake are discussed. The first can be ameliorated and the second eliminated by dual fuelling; with petrol. It is advocated that the on‐board storage of hydrogen be by the use of hydrides for private cars. However, it is expected that it may be as liquid hydrogen for some forms of transport and will certainly be in this form for aircraft.     

Examining the influence of firm performance on business risk-taking and the mediation effect of scale of operations in the container terminal industry

Container shipping and its related service sectors help accelerate globalization of the world economy. This industry has been experiencing rapid growth, prompting container terminal operators to increase their handling capacity in response. Providing container terminal services requires substantial capital investment in physical assets such as cargo handling facilities and information systems. On the other hand, operating container terminals is a long-term investment that typically spans several business cycles. Hence prudent asset management using appropriate tools is critical for container terminal operators to sustain their businesses. Generally, due to risk-adverseness, investors are unwilling to take more risk in their investment unless they can reap a higher return. Contrary to this argument, this study finds no direct influence of better firm performance as a proxy of higher return on business risk-taking by container terminal operators. Instead, scale of operations is positively associated with business risk-taking, suggesting that container terminal operators with a larger scale of operations are willing to take more business risk.     

Impacts of biodiesel blending on freight emissions in the Midwestern United States

We use a combination of petroleum–diesel models, datasets and tools along with biodiesel-specific corrections to create a roadway-level emissions inventory capable of evaluating spatial, temporal and scale aspects of fuel distribution options for the Midwestern US. Specifically, we compare the emissions of a year-round “low-blend” biodiesel implementation scenario, already under consideration in a variety of states, with a more strategic summer-only, interstate-only “high-blend” scenario. Our results indicate that spatial and seasonal distribution decisions do affect the overall emissions impacts of any biodiesel deployment, even those at low-blend levels. However, we also finds that changes in emissions due to biodiesel are considerably smaller than those anticipated from improvements to engine and control technologies.     

A Training Framework for Understanding Conflict in the Coastal Zone

The coastal zone is attractive for human settlement because it tends to be resource rich, providing a good location to generate incomes and livelihoods. Equally, however, it is a complex and powerful natural environment, which means that the coastal zone often becomes a focus of conflict with multiple users competing for limited space and resources. Understanding the causes of, and determining solutions to, the ensuing problems requires inputs from a range of analyses across sectors and disciplines. However, different disciplinary and sectoral approaches frequently use different investigative methods, language, and means of presenting results. This article presents a framework that has been developed in collaboration with Indian institutions over the past three years in an effort to address some of these fundamental problems of analysis and translation into policy action. Key components addressed by the framework are strengthening the capacity to practice, knowing how to proceed and how to find out what needs to be known using experience-based problem solving.     

Design and evaluation of an integrated inventory and transportation system

This paper proposes the adoption of an integrated inventory and transportation system (IITS) to minimize the total costs of inventory and transportation. A non-linear programing is developed by analyzing transportation and inventory costs with one supplier and many retailers in the distribution environment. The paper compares the proposed model with the traditional approach in computing total costs with numerical data. The results indicate that the total costs can be optimized by adopting integrated programing rather than the traditional approach, along with achieving improved customer service levels. In particular, sensitivity analysis is applied to determine the performance of the IITS under various transportation costs, holding costs and shortage costs. It shows that the transportation cost per unit is most sensitive in the proposed model. In this situation, the IITS is more effective for cost saving when set-up cost, holding and shortage costs are high, but is less effective for situations involving high per-unit transportation costs.     

Urban sports anglers and Lake Michigan fishery policies

Abstract

Over the past few years an unusually intense struggle over the future of the Lake Michigan fishery has occurred in the coastal communities of Racine and Kenosha. This struggle has engaged participants on the local, state, and national levels in the debate over the fishery as it is potentially impacted by the presence of environmental toxins, the rising cost of fish stocking and management, and conflicting user group demands. We describe three cases where urban sports anglers, with the assistance of university based social scientists, participated in state and city public policy decisions. After discussing this research and its policy implications, we propose a general public participation paradigm termed the Reciprocal Development Model.     

Transport and nation‐state governments worldwide

The Sydney Olympics held in September 2000 provided an opportunity to monitor the planning of transport provision for the world's greatest sporting spectacular. As the single largest major event, the pressures on a city's transport system are enormous, as witnessed by the previous Games in Atlanta and Barcelona. This paper takes a value-chain approach to assess transport performance as a crucial element in the delivery of the Sydney Olympic Games. We begin with a brief overview of strategic value, highlighting some generic aspects of value chains followed by the transport delivery system that came to the fore as significant 'drivers' in the value chain. This is followed by a summary of the effectiveness of the buses, trains, taxis, roads and the airport. A more detailed look is provided of the private bus sector where the problems leading up the opening of the Games received a great deal of media attention. The paper concludes with two stories, one good, one not so good, about transport and the Olympic Games.     

Restructuring the Lebanese Railway and Public Transport Authority (RPTA): From losing operator to effective regulator

The Lebanese Council of Ministers has recently endorsed a plan for the reform and organization of the Land Public Transport Sector (LPTS). The plan implies a new role for the government: it would cease being just a loss-making service provider and become the planner and regulator of the sector under a new strategy. The strategy would aim at creating the enabling environment and conditions that allow and ensure the existence of sufficient, affordable and efficient transport services provided by several private-sector operators functioning under competitive conditions. Thus, the existing autonomous Railway and Public Transport Authority (RPTA) will be restructured to serve as the effective regulator, its bus operations will be corporatized (for possible eventual privatization), and all existing private sector service providers will be regulated. Following a brief overview of the problems of the sector and the components of the reform and organization plan, this paper focuses on developing options for the restructuring of the RPTA to carry out its new role.