Consolidation and contestability in the European container handling industry

The first part of this paper brings into discussion some recent changes in the dynamics of the European container handling business, in particular as a result of vertical and horizontal integration strategies of container terminal operators. The industry structure has become sufficiently consolidated to raise a fundamental question about whether market forces are sufficient to prevent the abuse of market power. In this context, reference is made to the theory of contestable markets. The second part of the paper looks more closely to the issue of contestability by means of an exploratory and qualitative study of elements that could prevent other players entering or exiting the European container handling market. As such, a first indication is given of the degree of contestability in the container handling industry.     

Maritime liner shipping and the stevedoring industry: market structure and competition strategies

Globalization, liberalization, competition and spatial interaction are significant factors affecting the transformation of manufacturing industries worldwide. In the transportation and logistics industry, however, cooperation is becoming even more critical than competition in determining firms' efficiency. Cooperation has always characterized the liner sector in which strategic alliances, mergers and acquisitions have generated twin effects: notable increases in ship size and falls in freight rates. Meanwhile, the stevedoring industry is undergoing privatization-driven consolidation and the emergence of global pure terminal operators. This article focuses on vertical integration between global carriers and terminal operators. We address the following key current issues:

• dedicated terminals as a strategy for cutting costs and controlling integrated transport chains;
• the struggle for supply chain control, involving global carriers versus global terminal operators, driven by financial power and technical and managerial capability.

We close analysing one of the core problems of the market, namely the evolving role of the dedicated terminals. For the pure stevedores they represent an opportunity to secure a cargo, while in the hands of the liners they enable cost stability and the possibility to put pressure on pure terminal operators.     

Valuation of externalities through neo-classical methods by including institutional variables

Externalities are uncompensated influences that are not expressed in a market but that affect the production possibilities or the welfare level of third parties. An example is the noise pollution in airport areas. Although air transport is an important source of economic growth and employment in many countries, the social and environmental problems connected with this sector are rising rapidly. Consequently, airports are becoming a matter of concern to many politicians. On what kind of values should they base their decisions as to further growth or consolidation of the current situation? In this paper we discuss two approaches, one based on mainstream, neo-classical, economics, and one based on institutional approaches, more in particular new institutional economics, which can be seen as a development complementary to the mainstream.     

Joint development at transit stations in the United States

Joint development, as the term is generally used in connection with transit systems in the United States, is real estate development that is closely linked to public transportation services and station facilities, and takes advantage of the market and locational advantages provided by them. Research conducted by LEK Associates for the Urban Mass Transportation Administration (UMTA) suggests that, in addition to helping shape urban growth and land development, joint development is also a surprisingly effective means of increasing transit system ridership and farebox revenues, as well as a source of increasingly significant revenues from the sale or lease of air rights.The completion of nine joint development projects in as many different cities, started under the former Urban Initiatives Program, for example, net additional annual ridership might reach 12000000 one-way trips. Net additional annual farebox revenues might reach over $9000000. This added revenue would be sufficient to repay the $62 million combined UMTA/transit operator investment in the nine projects, exclusive of the costs of the basic transit system improvements around which the projects are planned, in less than six years.Among transit authority-administered joint development programs examined in a separate study, the Washington Metropolitan Area Transit Authority (WMATA) has had the most success in generating significant value capture income. For example, the cumulative revenue realized by WMATA from just six joint development projects in the Washington, DC region, through September 1983 exceeded $ 6.9 million. Projections through fiscal year 1986 indicate cumulative revenues approximating $ 28 million will be received from developer leases.     

Performance indicators for transit management

Transit performance can be evaluated through quantitative indicators. As the provision of efficient and effective transit service are appropriate goals to be encouraged by federal and state governments, these goals are used to develop performance indicators.Three efficiency and four effectiveness indicators are described, together with two overall indicators. These nine indicators are analyzed for comparability utilizing operating and financial data collected from public transit agencies in California.Performance indicators selected for this study should not be viewed as final. Twenty-one performance indicators proposed by previous studies were reviewed. Theoretical considerations and unavailability or unreliability of data caused omission of several useful measures like passenger-miles. Circumstances such as improved data, emphasis upon goals other than efficiency and effectiveness, and local conditions might warrant the inclusion of indicators deleted from this research.This paper is based on work conducted for the Urban Mass Transportation Administration under University Research and Training Grant CA-11-0014, Development of Performance Indicators for Transit. The views expressed herein are those of the authors and not necessarily those of the University of California or the United States Government. We are indebted to John Feren for assistance with the statistical processing and data gathering.     

Correlation between automotive CO, HC, NO, and PM emission factors from on-road remote sensing: implications for inspection and maintenance programs

Carbon monoxide (CO), hydrocarbon (HC), and nitrogen oxide (NO) emission factors (EFs) are measured with a commercial vehicle emissions remote sensing system (VERSS) during a large-scale vehicle exhaust emissions study in Las Vegas. Particulate matter (PM) EFs are simultaneously measured for individual vehicles with a newly developed PM-VERSS based on ultraviolet backscatter light detection and ranging (Lidar). The effectiveness of CO and HC EFs as proxy for NO and PM EFs for spark-ignition vehicles is evaluated. Poor correlations were found between EFs for pollutants on an individual vehicle basis indicating that high EFs for one or more pollutants cannot be used as a predictor of high EFs for other pollutants. Stronger functional relationships became evident after averaging the EF data in bins based on rank-order of a single pollutant EF. Low overlap between the highest 10% emitters for CO, HC, NO, and PM was found. These results imply that for an effective reduction of the four pollutants, inspection and maintenance (I/M) programs, including clean screening, should measure all four pollutants individually. Fleet average CO and HC concentrations determined by gaseous VERSS were compared with fleet average CO and HC concentrations measured at low-idle and at high-idle during local I/M tests for spark-ignition vehicles. The fleet average CO concentrations measured by I/M tests at either idle were about half of those measured by remote sensing. The fleet average high-idle HC concentration measured by I/M tests was about half of that measured by VERSS while low-idle I/M and VERSS HC average concentrations were in better agreement. For a typical vehicle trip, most of the fuel is burned during non-idle conditions. I/M measurements collected during idling conditions may not be a good indicator of a vehicle’s potential to be a high emitter. VERSS measurements, when the vehicle is under a load, should more effectively identify high emitting vehicles that have a large contribution to the mobile emissions inventory.     

Hub location with flow economies of scale

A characteristic feature of hub and spoke networks is the bundling of flows on the interhub links. This agglomeration of flows leads to reduced travel costs across the interhub links. Current models of hub location do not adequately model the scale economies of flow that accrue due to the agglomeration of flows. This paper shows that current hub location models, by assuming flow-independent costs, not only miscalculate total network cost, but may also erroneously select optimal hub locations and allocations. The model presented in this paper more explicitly models the scale economies that are generated on the interhub links and in doing so provides a more reliable model representation of the reality of hub and spoke networks.     

Parametric Hull Form Optimization of Containerships for Minimum Resistance in Calm Water and in Waves

This paper described the process of generating the optimal parametric hull shape with a fully parametric modeling method for three containerships of different s...