How to turn an innovative concept into a success? An application to seaport-related innovation

The main objective of this paper is ‘to assess the conditions, including policy support, under which innovative concepts have a high chance of getting adopted and being successful’. The work will start from the state-of-the-art with the following goals targeted. Firstly, to identify the paths that new innovative concepts usually follow, what key determinants are, which actors are involved, and what policy has been doing and can do. As part of this, a typology of variables is established, which will be the basis for the identification of successful adoption paths. Illustrations are provided of the performance of different innovative concepts in the seaport sector. A further goal is to propose policy recommendations, identify best practices, barriers to implementation and transferability of innovative concepts and processes. Finally, the research establishes developments needed in assessment methods and a methodological framework if innovative concepts are introduced.     

Applying SMC pricing in PPPs for the maritime sector

This paper investigates whether Short-run Marginal Cost (SMC) pricing is feasible to implement in seaports and with what type of consequences, e.g. concerning cost coverage. Answering these questions requires an analysis of the cost structure of seaports and especially of seaport calls, as well as of how the division of these costs over the different actors runs. As from the moment that this information becomes available, it can be analysed to what extent SMC pricing can be applied in Public-Private Partnerships (PPPs) within the seaport sector. Till now, mainly seaport infrastructure is involved, including the seaport entry from the open sea.     

Impact of scale increase of container ships on the generalised chain cost

In recent years, an increase in the size of the container ships could be observed. The question is how these larger ships will influence the total generalised costs from a port of loading to a destination in the European hinterland. The second question is whether a scale increase of the container ships on other loops, such as a loop from the United States to Europe, has the same impact on the generalised chain costs as on the loop from Asia to Europe. A derived question is which element of the total chain has the highest importance, and whether this balance varies as the ship size changes. In this article, a model is developed that allows answering the above research questions. The model is designed to simulate the cost of a complete loop of a container ship and of a chain that uses that same loop. For the chain cost simulation, the maritime part is determined by the loop. From the ports of loading and unloading, the port container handling and the hinterland transportation costs are also integrated. The model also allows calculating the total chain cost from a point of origin (either a hinterland region or a port) to a destination point (also a port or a hinterland region). An actual container loop of a container shipping company can be introduced in the model. An application is made to two existing container loops, namely from Asia respectively the United States to Europe. It turns out that changing ship does indeed lead to economies of scale, but also that the impact is larger on the Asia–Europe connection than on the US–Europe connection. Furthermore, the maritime component has the biggest share in the total chain cost, but as ship size increases, the shares start getting closer to each other. This research contributes to the existing literature in two ways. First of all, it quantifies the impact of the scale increase of container ships throughout the total chain. Second, this is done from a bottom-up engineering modelling approach.