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1 – 10 of over 1000Stefania Kollia and Athanasios A. Pallis
Container liner shipping companies started expanding their business by investing in container port terminals in the late 1990s. This market entry results in an extensive presence…
Abstract
Purpose
Container liner shipping companies started expanding their business by investing in container port terminals in the late 1990s. This market entry results in an extensive presence of vertically integrated liners and terminals. This study aims to explore the competition effects of this vertical integration trend based on a regional (European) analysis. In particular, it extracts lessons from the European Commission (EC) cases on the competition effects of vertical integration. The critical analysis of the cases examined at the institutional level intends to reach conclusions on whether liner–terminal vertical integration harmed or advanced competition in the relevant markets and/or the extent that there is a need to revise the current policy practices.
Design/methodology/approach
This study critically assesses the EC’s decisional practices in port container terminal vertical mergers in the last 25 years (1997–2021). Based on a literature review comparing maritime and competition economists' perspectives, it reviews the types of mergers examined, the methodology followed for relevant market definition and calculation of market shares and the estimated competition effects. The Hamburg–Le Havre area is the port range used as a case study for comparing the decisional practice with actual market developments. These container ports serve the greatest consuming market of final and intermediate goods in Europe and are gateways to Central and Eastern Europe.
Findings
The assessment identifies a need for expanding the investigation as a precondition for reaching conclusions on both the anti- and pro-competitive effects. First, only a limited number of transactions have been notified to the EC. Second, the empirical research identified a gap in this process, as there were no decisions (phase I) on vertical mergers between 2008 and 2016. Third, the exante assessment has not applied a phase II in-depth analysis to any case due to the absence of competition concerns. Finally, due to the absence of complaints, there is a lack of any ex post assessment of the effects of vertical integration.
Research limitations/implications
This assessment is important for understanding the current and emerging features of intra-port and inter-port competition and the potential effects that the continuation and expansion of liner companies' vertical integration strategies will have along maritime supply chains. It also contributes to the broader discussion on liner companies' strategies, such as the research and policy-making efforts around the globe to understand the impact of both vertical and horizontal integration.
Practical implications
These discussions are critical for a diversity of businesses that use liner shipping services or provide facilities and services to container shipping lines or ports. They are important for the interests of customers and consumers as they could inform any needed re-visiting of competition policy to protect from the dominance of any market developments that would lead to conditions limiting competition. Expanding analysis on the competition effects of non-notified mergers would help a better understanding of market changes.
Social implications
Enhancing competition and limiting monopolies is valuable from a consumer's perspective. This is more so in the case of maritime trade that serves the needs of societies. The study contributes by generating a better understanding of how decision-makers have worked towards that direction and what realignments are worthy.
Originality/value
There are no previous comprehensive reviews and analyses of the ways that policy-makers at the regional level have addressed the competition effects of vertical integration strategies of liner shipping companies when enhancing competition is valuable from a consumer perspective. Comparing maritime economists and competition, the study, via its literature review, also offers a comparison of maritime and competition perspectives on these competition effects, allowing positioning of how effective decisional-making practices have been.
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Darren Fraser, Thando Mpikeleli and Theo Notteboom
Increased economic activity in sub-Saharan Africa (SSA) has given rise to increased demand for port development. Given the often scarce availability of national public funding…
Abstract
Purpose
Increased economic activity in sub-Saharan Africa (SSA) has given rise to increased demand for port development. Given the often scarce availability of national public funding, port institutional reform programmes have been implemented to pave the way for the inclusion of external port investors. Notwithstanding this fact, some sub-Saharan African Governments remain institutionally locked into the notion that state-owned enterprises remain an appropriate vehicle for port terminal operations. This, despite the fact that terminal operational concessions globally and within the continent of Africa are increasingly being managed by global terminal operators. Given this context, this study aims to evaluate different port valuation and funding strategies. Two research questions form the core of this research: what is the financial value of a concession? What is the most cost advantageous funding strategy? The methodology is applied to the development of a two-berth container terminal in SSA.
Design/methodology/approach
After reviewing a range of financial valuation and funding techniques, the study presents valuation and funding model applicability-fit tests. Thereafter, a suitable valuation technique is selected and applied to the case study providing a concession valuation. Different funding strategies are applied to the valuation model to determine the cost implications of each funding instrument given the local context and institutional constraints applicable to SSA. Finally, the study discusses the significance of the results to potential SSA port investors by highlighting the impact of each funding approach on key financial metrics.
Findings
The study presents a range of financial investment appraisal results for the case study concession in consideration of four specific funding strategies. The highest concession valuation could be attributed to a higher debt ratio as a principal funding strategy. In addition, this funding approach (100% debt) realised the shortest payback period and the highest internal rate of return values. The authors, however, maintain that the optimal funding strategy for a concession depends ultimately on the financial goals of the investor.
Originality/value
This research makes a contribution to the existing literature on port finance and development by presenting a structured approach to the evaluation of the valuation and funding techniques, which can be used in terminal development subject to the specific local context and institutional constraints (in this case applicable to SSA). The study provides practical insight into the potential cost of the considered terminal concession for private or public sector participants and a view of the most cost advantageous funding strategy available for interested investors.
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Liu-Liu Li, Young-Joon Seo and Min-Ho Ha
Seaports are a signifier for the world economy and international trade. Notwithstanding the considerable role of Chinese ports in global trade, only few studies have explored the…
Abstract
Purpose
Seaports are a signifier for the world economy and international trade. Notwithstanding the considerable role of Chinese ports in global trade, only few studies have explored the efficiency of Chinese container terminals. Furthermore, studies on Chinese port efficiency has typically centered on port-level analysis, not terminal level. Therefore, this study aims to examine the operation efficiency of Chinese container terminals.
Design/methodology/approach
This study uses super-efficiency data envelopment analysis (SE-DEA) approach. SE-DEA is superior than basic DEA model because it is feasible for categorizing and ranking the efficiency of container terminals more accurately and comprehensively. In the basic model, if the several decision-making units (DMUs) are efficient, the efficiency value of them is “1.” However, in the SE-DEA model, the most efficient DMU is over “1.” Based on the level of container throughput in 2018, the top 20 Chinese container terminal companies were selected. Various production quotas were selected as inputs, while the container throughput was considered output.
Findings
The findings show that Terminal Shanghai Mingdong Container Terminal Co., Ltd. was ranked 1, followed by Shanghai Shengdong International Container Terminal Co., Ltd., Shanghai International Port (Group) Co., Ltd. and Yidong Container Terminal Branch.
Originality/value
This study contributes to providing some insights into Chinese container terminal industry to augment the efficiency. This study also provides practical and policy implications (e.g. better terminal operations) for container terminals.
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Veerachai Gosasang, Tsz Leung Yip and Watcharavee Chandraprakaikul
This paper aims to forecast inbound and outbound container throughput for Bangkok Port to 2041 and uses the results to inform the future planning and management of the port’s…
Abstract
Purpose
This paper aims to forecast inbound and outbound container throughput for Bangkok Port to 2041 and uses the results to inform the future planning and management of the port’s container terminal.
Design/methodology/approach
The data used cover a period of 16 years (192 months of observations). Data sources include the Bank of Thailand and the Energy Policy and Planning Office. Cause-and-effect forecasting is adopted for predicting future container throughput by using a vector error correction model (VECM).
Findings
Forecasting future container throughput in Bangkok Port will benefit port planning. Various economic factors affect the volume of both inbound and outbound containers through the port. Three cases (scenarios) of container terminal expansion are analyzed and assessed, on the basis of which an optimal scenario is identified.
Research limitations/implications
The economic characteristics of Thailand differ from those of other countries/jurisdictions, such as the USA, the EU, Japan, China, Malaysia and Indonesia, and optimal terminal expansion scenarios may therefore differ from that identified in this study. In addition, six particular countries/jurisdictions are the dominant trading partners of Thailand, but these main trading partners may change in the future.
Originality/value
There are only two major projects that have forecast container throughput volumes for Bangkok Port. The first project, by the Japan International Cooperation Agency, applied both the trend of cargo volumes and the relationship of volumes with economic indices such as population and gross domestic product. The second project, by the Port Authority of Thailand, applied a moving average method to forecast the number of containers. Other authors have used time-series forecasting. Here, the authors apply a VECM to forecast the future container throughput of Bangkok Port.
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Buddhi A. Weerasinghe, H. Niles Perera and Phillip Kießner
This paper examines how the altering nature of planning decisions affects operational efficiency in seaport container terminals. The uncertainty and the role of the planner were…
Abstract
Purpose
This paper examines how the altering nature of planning decisions affects operational efficiency in seaport container terminals. The uncertainty and the role of the planner were investigated considering the dynamic integrated planning function of the quay to yard interface.
Design/methodology/approach
A system dynamics model has been built to illustrate the integrated dynamic environment. Data collection was conducted at a leading container terminal at a hub port. The model was simulated for different scenarios to derive findings.
Findings
The planner has been identified as the agent who makes alterations between the initial operational plan and the actual plan. The initial plan remains uncertain even when there is no impact from crane breakdowns, requiring a significant number of alterations to be made. The planner who had worked on the yard plan had altered (approximately 45%) the initial plan than the alterations done by the planner who had worked on the vessel plan. As a result, the feedback loop that is created by the remaining moves at each hourly operation influences the upcoming operation as much as crane breakdowns influence.
Originality/value
The uncertainty and the role of the planner were investigated considering the dynamic integrated planning function of the quay to yard interface. The findings of this study are significant since terminal efficiency is examined considering the quayside and landside as an integrated system.
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Chin-Shan Lu, Hsiang-Kai Weng and Chih-Wen Lee
Container terminal operation is one of the most risky industries. Many of the accidents that occurred were found to be caused by human errors. However, it seems relatively little…
Abstract
Purpose
Container terminal operation is one of the most risky industries. Many of the accidents that occurred were found to be caused by human errors. However, it seems relatively little research has been conducted to examine the influence of leader-member exchange (LMX) relationship on employee safety behavior. Therefore, the purpose of this study is to examine the effects of leader-member exchange and safety climate on employees’ safety organizational citizenship behaviors (SOCB) in the container terminal context based on the social exchange theory.
Design/methodology/approach
A structural equation modeling was used with confirmatory factor analysis, and survey data are collected from 265 employees in major container terminals in Taiwan.
Findings
Results indicated that LMX is positively associated with safety climate, whereas safety climate positively influences employees’ safety citizenship behavior. Specifically, results indicated that safety climate mediates the effect of LMX on employees’ SOCB.
Research limitations/implications
This study was limited to LMX dimensions adapted from the studies of Li and Liao (2014) and Vidyarthiv et al. (2014). Future research could examine the linkages between LMX, ethical climate, safety performance and supervisor leadership influence. Furthermore, this research focused specifically on employees from the container terminal operators in Taiwan. It would be valuable to collect data from employees from other countries to obtain a balanced view of the relationship between LMX, team-member exchange (TMX), safety climate and employee SOCB in container terminal operations.
Practical implications
This research provides a useful implication for container terminal operators to enhance LMX qualities and employee safety behavior through organizational participation, employee-helping behaviors and informing workers to obey safety rule and regulation.
Originality/value
Given the prevalence of accidents and unsafe behavior in container terminal operations, this research sought to examine the relationships among LMX, safety climate and employee SOCB in the container terminal context. Theoretically, this study highlights the importance of LMX and safety climate in explaining the SOCB of employees.
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W.K. Kon, Noorul Shaiful Fitri Abdul Rahman, Rudiah Md Hanafiah and Saharuddin Abdul Hamid
Since the first automated container terminal (ACT) was introduced at Europe Container Terminals Delta Terminal in Port Rotterdam back in the year 1992, a lot of research had been…
Abstract
Purpose
Since the first automated container terminal (ACT) was introduced at Europe Container Terminals Delta Terminal in Port Rotterdam back in the year 1992, a lot of research had been done to improve the management of ACT. However, up until recently, the number of literature available still appeared scarce. Hence, this paper aims to review the collection of literature about ACT to generate an exhaustive summary to answer the formulated review question in this study.
Design/methodology/approach
Preferred reporting items for systematic reviews and meta-analyses to narrow down the search parameters of literature retrieved so that only relevant articles were only selected. The systematic literature reviews were applied to analyse the content of the articles retrieved to determine its journal ranking, research findings and timeline of publications.
Findings
The adoption of ACT technology by container terminal operators could increase the terminal efficiency in productivity, cost reduction and environmental sustainability. Owing to global environmental awareness, the research trend of container terminal field and container terminal operator in the terminal design is much more environmentally friendly oriented.
Research limitations/implications
The limited numbers of experts in the management of ACT are causing challenges in data collections.
Practical implications
The analysis of the global ACT trend could help academicians and industrial investors to review the revolution timeline of maritime technology in port and shipping that is happening rapidly.
Originality/value
The analysis of timeline and collective literature leads to the propose of the conceptual framework to determine the relationship between increased productivity, cost reduction and environmentally sustainable.
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Mid-stream operation has had a significant role in Hong Kong’s economic development since the 1960s. Prior to the building of container terminals in Hong Kong, cargo was mainly…
Abstract
Purpose
Mid-stream operation has had a significant role in Hong Kong’s economic development since the 1960s. Prior to the building of container terminals in Hong Kong, cargo was mainly loaded onto and discharged from ocean-going vessels by mid-stream operations and then shipped to Europe and North America. This paper aims to reinforce mid-stream operation is considered a “must” in supporting the substantial growth of maritime industry and strengthening Hong Kong’s role as an entrepôt.
Design/methodology/approach
The authors undertake a historical review of the evolution of Hong Kong’s mid-stream operation over the past half-century and investigate the future of mid-stream operation in light of the Hong Kong Special Administrative Region government’s policy of allocating Public Cargo Working Areas through an open auction process. Semi-structured, in-depth interviews are also undertaken in this study.
Findings
The emergence of container terminals generated competition for cargo between container terminals and mid-stream operators. In addition, the Hong Kong Special Administrative Region government’s policy of allocating Public Cargo Working Areas to mid-stream operators through an open auction process intensified negative influences on the survival of the mid-stream operation sector.
Originality/value
To date, mid-stream operation has been abandoned nearly everywhere except in Hong Kong. Yet, Hong Kong’s container system has become the most advanced in the world. The authors explain how and why mid-stream operation still plays such a key role in Hong Kong and how to enhance its sustainability. The authors also discuss the academic and managerial implications of their findings.
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Kambiz Mokhtari, Noorul Shaiful Fitri Abdul Rahman, Hamid Reza Soltani, Salim Ahmed Al Rashdi and Kawkab Abdul Aziz Mohammed Al Balushi
At the substantive level, there exists a gap in knowledge about the position of security risk management (i.e. SRM) during the terminals’ operations and management; particularly…
Abstract
Purpose
At the substantive level, there exists a gap in knowledge about the position of security risk management (i.e. SRM) during the terminals’ operations and management; particularly when there is potential for deliberate anti-security acts. Correspondingly, the purpose of this paper is a need for more practical research to find out the justification for the existence of the SRM and different techniques for its appropriate execution on these logistics infrastructures principally with due regard to the potential requirements in the near future.
Design/methodology/approach
Both qualitative and quantitative techniques are used in this study incorporating fuzzy set theory and risk assessment matrix to achieve the research objective.
Findings
A designed SRM framework tailored for Qalhat liquefied petroleum gas (LNG) terminal in Sultanate of Oman was established to manage the security threats which can be resulted from any probable terrorist attacks.
Research limitations/implications
The limited numbers of experts for the purpose of the addressed SRM are causing challenges in data collection.
Practical implications
The pressures for enhanced attention to critical infrastructure security have fostered new challenges for petrochemical seaports and terminals (PSTs). These tendencies dictate to maintain comprehensive security regimens that can be integrated with national and international strategies to support the country’s security against terrorism.
Originality/value
The development of the security risk factor table model in the case of Qalhat LNG Terminal.
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Ahmet Selcuk Basarici and Tanzer Satir
The purpose of this study is to reveal the magnitude of empty container movements (ECM) arising from cargo seasonality by means of long-term datasets of Turkish terminals. Trade…
Abstract
Purpose
The purpose of this study is to reveal the magnitude of empty container movements (ECM) arising from cargo seasonality by means of long-term datasets of Turkish terminals. Trade imbalance is one of the well-known major reasons of ECM. Cargo seasonality apart from some other operational drivers and market effect, i.e. commercial decisions of the ship operators, is the major operational driver in Turkish terminals effecting ECM. Furthermore, this study highlights the significance of market effect, leading to take measures for more effective empty container operations in terms of decision makers leading the ship operators.
Design/methodology/approach
Time series analysis of full container datasets was performed through X-13ARIMA-SEATS methodology, implementing seasonal adjustment.
Findings
The results indicate that 17 of 112 time series in hand, based on a terminal/hinterland, container type and “in and out” foreign trade, exhibit cargo seasonality. Roughly, the amount of ECM originating from cargo seasonality in Turkish terminals represents 10 per cent of total ECM except trade imbalance in those terminals where seasonality is present. This reveals that ECM arising from market effect should not be underestimated.
Research limitations/implications
Reefer container traffic could not be sorted from the datasets.
Originality/value
This paper focuses on one of the major reasons of ECM, cargo seasonality. It brings a novel point of view and interpretations which were not suggested previously about ECM, motivating to overcome inefficiency in container operations.
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