Modelling the investment decision of the entrepreneur in the tanker sector: choosing between a second-hand vessel and a newly built one

It is often the case that the investor in the shipping sector faces the dilemma of investing in a second-hand vessel or building a new one. This happens because an active second-hand market for almost all kinds of vessels exists. We argue that one of the prime considerations for the investment decision should not be the price of the vessel per se, second-hand (SH) or newly built (NP) but

• ?(a)?the relative price ratio (SH/NP) second-hand price over the new building price and

• ?(b)?the movement of this ratio.

We investigate the determinants of this ratio across different vessel sizes in the tanker sector and show that it can be used as an effective tool in investment decision as well as in asset appraisal.

We employ monthly data between 1995 and 2006 for four different ship sizes–VLCC, Suezmax, Aframax and Handysize–and implement an error correction model.

The investment decision depends on a number of risk and return variables as well as the perceived speed of adjustment of the price ratio to its equilibrium level.

Overall we claim that the cyclicality of the shipping sector together with expectations formed by the agents operating in it (the entrepreneur, the ship-owner and the broker), determine the movement of the ratio and hence the decision of the entrepreneur.     

Some Difficulties inherent in applying Congestion Theory to Marine Problems

This paper sets out to evaluate the main areas of focus within maritime sociology and to link more closely than hitherto the various substantive discussions with general theoretical and conceptual approaches. More specifically, it suggests directions in which maritime sociology may be advanced at both empirical and conceptual levels in the future.     

The EEZ and the progress of fisheries negotiations January to May 1977

This paper discusses negotiations, relative to sea fisheries, in terms of international arrangements—arrangements between the European Economic Community (EEC) and Third Countries; and those between member states of the EEC.     

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.     

Towards a common ports policy? EU-proposals and the ports industry's perceptions

This paper discusses the European Union's (EU) proposals to improve the efficiency and infrastructure of European ports, and investigates the extent to which these proposals are welcomed by the ports industry. On the one hand, the analysis of the recent EU policy developments makes apparent that the EU is increasingly impinging upon the port industry's life. On the other hand, the findings of the semi-structured interviews with the industry's representatives suggest that although port authorities and port operators remain in principle against a coherent common EU ports policy, the industry believes that certain EU initiatives can enhance the competitiveness of the maritime transport system.     

Attitudes toward Participation in Cooperative Coastal Management: Four European Case Studies

Findings are reported of the VALCOAST project that had as one of its research objectives to ascertain: (a) stakeholder willingness to participate and cooperate in coastal management (CM), given local and national CM practices; and (b) stakeholder assessment of the "accessibility" and "friendliness" of current CM processes. The project involved case studies and stakeholder interviews in Belgium, Greece, Spain, and the UK. Major findings include: (1) most stakeholders are willing to cooperate in three out of the four case areas, but not to the same extent; (2) the participating "officials" in the case studies are expecting the stakeholders to be less willing to cooperate than the latter indicate; (3) stakeholders in all case studies do not expect to be heard by those responsible for CM, find it difficult to learn about the relevant institutional arrangements, and consider the communication of the objectives and anticipated impacts of CM policies to be inadequate. It is concluded that the strong evidence of stakeholders' potential willingness to cooperate in local initiatives is very encouraging for a devolved, regional approach to European Union coastal management policies, provided that this potential is capitalized upon in such policy processes.     

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.     

Northern Abalone: Using an Invertebrate to Focus Marine Conservation Ideas and Values

Marine invertebrate species have usually been overlooked in favor of high-profile vertebrate species for facilitating dialogue towards area conservation. The northern abalone (Haliotis kamtschatkana) is proposed as a focal ("flagship") species whose protection and recovery could concentrate public concern for abalone and its associated kelp forest ecosystems in Haida Gwaii (Queen Charlotte Islands), British Columbia. I explain how issues of culture, commerce, and conservation unite to create a strong role for northern abalone in preparations for creating a large marine conservation area within Haida Gwaii. Culture is relevant, as local indigenous people (the Haida) are currently denied access to constitutionally established subsistence fishing rights for northern abalone. Commerce is involved as ongoing kelp forest-associated fisheries co-occur with northern abalone. Finally, this is a challenging precedent in Canadian marine conservation, as restoring two "listed" species- at risk (northern abalone and their predator, the sea otter (Enhydra lutris)) is potentially mutually exclusive. As part of the forthcoming public consultations towards establishing a marine conservation area, the opportunity provided by northern abalone to focus ideas and values should be seized.     

Synergies between Adjacent Beach-Nourishing Communities in a Morpho-Economic Coupled Coastline Model

Beach “nourishment” consists of placing sand on an eroding beach. The widened beach provides increased storm protection to adjacent structures and improved recreational benefits, but is most often transient, requiring on-going, repeated nourishment episodes. Numerical models of beach nourishment typically address such questions as how long a widened beach will last; economic models compare the benefits and costs of preserving a stretch of beach without regard to its geomorphic evolution. Neither have addressed the physical nor economic interactions between adjacent nourishing communities. Here, we couple a numerical model of coastline evolution and a cost-benefit model of beach nourishment, allowing adjacent communities to make dynamic nourishment decisions. Beach nourishment benefits adjacent communities both “updrift” and “downdrift.” The total amount of money spent on nourishment activities can decrease by as much as 25% when adjacent communities both conduct on-going nourishment projects, as opposed to the case where each community nourishes in isolation.