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.     

Black Boxes - Pathetic progress but some success now in sight

Little has been written about the ship demolition market, an essential element in the supply/demand balance for shipping. Either technical or economic obsolescence may be the cause for scrapping a ship, where the latter is strongly influenced not only by anticipated freight market levels, but the rate at which more efficient ships are being introduced. The scrap value of a ship is a function both of the realizable value of the materials within the ship and cost of demolition. Both are strongly influenced by the cost structures prevailing in the likely country of demolition. The paper explores not only the fundamentals of the ship demolition market, but the trends from the 1960s to the present. The shipbreaking market has moved in that time from being West European-centred to Asian-centred, concentrating for some years in Taiwan, but now shifting to the Indian subcontinent.     

The economics of double-hulled tankers

A cost-benefit analysis is conducted on the double-hull requirements for oil tankers in United States' waters contained in the U.S. Oil Pollution Act of 1990. The benefits of reduced spillage are compared with the increased construction and operations costs of double-hulled vessels. In the most probable scanario, the expected benefits are only 20% of the expected costs. Double-hulls do not even show a positive net present value with the most favorable assumptions. Even if double-hulls prevent all of the spillage that occurs due to collisions and groundings, and that the damage per gallon spilled is as extensive as in the ‘Exxon Valdez’ incident, the benefits are under half of the costs.     

National road mortality reduction targets under European Union road safety policy: 2011–2020

The European Union (EU) has proposed renewing the target for halving the number of road fatalities in the period 2011–2020. In this paper, a nonlinear distribution method for dynamic fatality reduction targets is applied for the purpose of finding individual national mortality reduction targets for each of the 27 member countries in the EU. Weighting is undertaken for four scenarios based on the following indicators: road mortality rates, fatality rates, fatality risks, and fatality density. Results are presented for four proposals to reduce the number of fatalities in each Member State, based on the original situation of the indicators considered in the study. The results seek to provide policy-makers with a broader vision with regard to the achievement of the goals of EU road safety policy.     

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.     

The design of a terminal for dangerous goods

This paper aims at examining the possibility of setting up a model terminal for the transportation of dangerous goods. It should be designed in such a manner that its use would be possible for any kind of transportation.

This consideration has been prompted by the interface between transportation planning and technology, as well as by the tendency for harmonizing international recommendations pertaining to the transportation and handling of dangerous goods, especially during the last decades where unified transport has gained ground due to the advantages provided for the safe consignment of dangerous cargoes.

Since the large increase in terminal productivity is due to the heavy investments that were effected in terminal installations and to the modernization of the administration‐management of terminals, a mathematical simulation has been adopted to assist the determination of the capacity of a terminal for dangerous goods.

It is evident that different criteria and various assumptions have been taken into account in order to facilitate a deeper analysis, without ignoring the contribution of dangerous goods to the socio‐economic development.

From the outset of the study, it was already clear that the said process will make it possible to present—as a model—a simple but well defined situation for the purpose of drawing useful conclusions.     

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.     

Optimal traffic assignment to urban streets with air pollution consideration

Traffic assignment is usually determined solely on the basis of minimum travel time through the network. The present study on traffic assignment has taken into account not only traffic performance but also air quality over the street. A simple model of highway air pollution is developed by considering macroscopic material balance of polluted air mass over a segment of a highway that passes through an urban area, A new traffic assignment scheme has been developed based on the air pollution model. The optimal traffic assignment obtained by the new scheme is affected significantly by meteorological conditions.     

Review of computer software for traffic engineers

The mid‐1970s saw the initiation of several lengthy research and development programmes in the United Kingdom which culminated in a range of software for the traffic engineer. The early 1980s brought cheap, powerful microcomputers, thereby enabling the facilities offered by the software to be exploited to the full. This article describes the range of programs now available and in common usage for the design and appraisal of traffic management schemes in the United Kingdom, and suggests a few of the areas where some research and development effort is still needed.