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Article
Publication date: 3 April 2020

Henrik S. Sternberg, Erik Hofmann and Robert E. Overstreet

The purpose of this paper is to examine the impacts of the ongoing freight market deregulation in the European Union (EU). Specifically, this case study focuses on cabotage…

Abstract

Purpose

The purpose of this paper is to examine the impacts of the ongoing freight market deregulation in the European Union (EU). Specifically, this case study focuses on cabotage penetration rates in Germany, the largest logistics market in Europe. In light of the upcoming trade barriers, we intend to move this topic forward by emphasising its interdisciplinary nature.

Design/methodology/approach

Based on the analysis of Eurostat data, expert interviews and a review of related literature, we elaborate and discuss four propositions related to the factors affecting cabotage penetration, future cabotage levels and the effects on modal split and empty runs.

Findings

We found that cabotage in Germany plays a more important role than officially reported and has increased drastically since 2008. Given our analysis, increased cabotage penetration seems to thwart efforts within the EU to promote a modal shift from road to rail and increased national empty runs are the future outcome of current regulations. In Germany, the cabotage share is likely to reach 16% in the next five years.

Research limitations/implications

This paper highlights the need for incorporating a more contextual understanding in freight carrier selection theory development in general as well as country-specific investigations in particular.

Practical implications

Logistics managers and policymakers looking at future strategies are advised to take the ongoing deregulation trend into consideration. European freight movement using cabotage operators may represent significant cost savings; however, these cost savings come at an environmental and social sustainability price as the modal shift to rail and fill rates suffer.

Originality/value

This paper represents an empirical and unbiased point of view, in contrast to the reports of the European Commission (pro-deregulation) or the reports of the haulage associations and labour unions (anti-deregulation).

Details

The International Journal of Logistics Management, vol. 31 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 17 October 2010

Miika Mäkitalo and Olli‐Pekka Hilmola

The entire sector of railway transport is in a state of flux in Europe as deregulation and structural changes are affecting the traditional transport mode. Even though the aim has

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Abstract

Purpose

The entire sector of railway transport is in a state of flux in Europe as deregulation and structural changes are affecting the traditional transport mode. Even though the aim has been to increase railway freight competition, markets have changed only slightly, and the market shares of incumbent railway companies are remaining high. Some EU countries have not attracted any new entrants, which is also the current situation in Finland. This paper aims to assess how the Finnish railway freight competition develops and to analyze different views on railway transport policy.

Design/methodology/approach

This research work analyses a Delphi questionnaire directed at 52 Finnish experts in this branch. Responses on the questionnaire were gathered during year 2005 (competition in Finland in railway freight started 2007) within two rounds with appropriate amount of response rate. Respondents were from the public and private sectors, actors working closely with railway transports and logistics. With an expert profiling matrix, three different railway transport policy viewpoint groups are identified, and character descriptions for these are constructed.

Findings

Based on a qualitative expert profiling analysis, it is argued that there exist three different argument types in Finnish railway transport policy. The authors have constructed character descriptions for each group based on material collected by the Delphi technique. They conclude that the policy definitions have followed the views of the moderate group and the realization of the deregulation process has been slow, even though a great amount of competition was expected.

Research limitations/implications

The research work is limited to the Finnish railway freight transport market, where development of competition on rails has been sluggish. To further confirm the used methodology, and the identified railway freight competition policy group types, the research work should be repeated in some other country, and particularly in an environment where competition has shown activity immediately after deregulation.

Originality/value

The research represents methodology to foresee the future development of deregulated industries, and especially in the transportation sector. The paper's approach can be used to divide stakeholders into groups and to make policy analysis. The problem with to‐be‐deregulated industry is often lack of competition, new actors and governmental actions, and therefore the used Delphi technique offers potential to gather empirical material before any activity has actually started in the observed industry.

Details

Foresight, vol. 12 no. 6
Type: Research Article
ISSN: 1463-6689

Keywords

Article
Publication date: 6 January 2012

Milla Laisi, Miika Mäkitalo and Olli‐Pekka Hilmola

The purpose of this paper is to understand the main market entry barriers confronted by the new operators in liberalized railway freight market (Poland and Sweden), as well as to…

1044

Abstract

Purpose

The purpose of this paper is to understand the main market entry barriers confronted by the new operators in liberalized railway freight market (Poland and Sweden), as well as to analyze the inaugurating market of Finland.

Design/methodology/approach

Swedish and Polish markets were scrutinized utilizing qualitative case study, implemented through semi‐structured theme interviews. Among primary observations, numerous second‐hand sources were used to gain triangulation. Research was conducted during early 2009. The Finnish material was collected with Delphi technique‐based questionnaires in 2005.

Findings

The main findings support previous studies arguing that the main barriers to entry are rolling stock acquisition, needed investments and bureaucracy. In Sweden, companies were start‐ups established on the grounds of the incumbent. The Polish market obtained new operators via vertical integration with a significant competitive presence of a governmental operator. Inaugurating Finnish market is identified as a combination of these two. Therefore, it is easier to understand why new entrants are not operating in the Finnish market.

Originality/value

The research contributes novel, first‐hand data to the subject, which earlier have been studied mostly via second‐hand data and literature analyses.

Details

Baltic Journal of Management, vol. 7 no. 1
Type: Research Article
ISSN: 1746-5265

Keywords

Book part
Publication date: 31 May 2016

Stefan Sjögren

This paper aims to develop and test a new way of modeling airline operations and apply it to measure and compare the efficiency of international airlines, with a special focus on…

Abstract

This paper aims to develop and test a new way of modeling airline operations and apply it to measure and compare the efficiency of international airlines, with a special focus on deregulation effects. The paper elaborates on the choice of variables, following the early work of Schefczyk (1993) and Scheraga (2004). The value chain of the airlines determines the variables included in three different models. Using data envelopment analysis, the efficiency scores show that North American airlines are more efficient in producing services offered to customers. Few differences are found between regions in allocating service output to match demand. One plausible explanation for this difference is that airlines operate within competitive environments. In a highly competitive market, management decisions focus on productive actions and cost reduction. In a less competitive environment, there is a higher degree of adjustments of the services produced. Using the Malmquist productivity index, measurements reveal that there is a catch-up effect for the European and Asian/South American airlines service production during the studied time period, which was from 1990 to 2003.

Abstract

Details

Chinese Railways in the Era of High-Speed
Type: Book
ISBN: 978-1-78441-984-4

Article
Publication date: 8 July 2019

Ioannis Koliousis, Dongmei Cao and Panagiotis Koliousis

This paper aims to examine the impact of deregulation on the European transport industry in the form of privatization, on the managerial efficiency of a panel of deregulated…

Abstract

Purpose

This paper aims to examine the impact of deregulation on the European transport industry in the form of privatization, on the managerial efficiency of a panel of deregulated transport companies.

Design/methodology/approach

This research examines a data set of 25 deregulated transport companies from a sample of 12 EU nations from 1988 to 2015. Some studies have analyzed deregulation by using non-parametric models. However, only a limited number of studies focus on the impact of deregulation on the managerial efficiency. This study answers two questions: whether deregulation, in the form of privatization, in the transport sector has any effect on the managerial efficiency, on the profitability and on the investment decisions of the firm, and whether this premise is robust enough across the European transport industry. This study formulates a multivariate regression framework utilizing data from major privatized European transport companies. The final panel includes 25 companies, from 12 EU - Member States for the period 1988-2015, equaling 375 firm-year observations based on a rigorous selection methodology.

Findings

The study confirms that transport companies, post-privatization, are more efficient regarding operating efficiency and profitability. The authors find no evidence that deregulation improves investment efficiency.

Social implications

The study addresses the regulators’ dilemma, whether to deregulate, by focusing on analyzing the improvement of the managerial efficiency.

Originality/value

This study contributes to the transport industry management literature in three ways. First, the authors update the literature of the economic theory of regulation with an empirical examination which covers the latest years across the EU Member States. Second, the authors introduce a comparison of the effects of deregulation on different components of the managerial efficiency, namely, investment, profitability and operating efficiency of the incumbents in the EU transport industry. Third, they examine deregulation by using two approaches: a traditional one where deregulation is a dummy variable assessing the overall effect on incumbents’ efficiency performance; and a novel approach where the Organisation for Economic Co-operation and Development’s deregulation index is used to measure the regulation intensity, accounting also for industry-wide impact assessment. This two-sided approach increases the robustness of the results.

Details

Management Research Review, vol. 42 no. 9
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 20 March 2007

Olli‐Pekka Hilmola

Railway freight transportation in Europe is in a state of change. The system has been freed from protection from the beginning of 2007 and market forces will start to act. Demand…

4033

Abstract

Purpose

Railway freight transportation in Europe is in a state of change. The system has been freed from protection from the beginning of 2007 and market forces will start to act. Demand for, and the market share of, this form of transportation has been declining for decades. Therefore, there is a need to know more about the efficiency and productivity of this sector, in order to understand the nature and magnitude of potential restructuring changes. This paper aims to address this issue.

Design/methodology/approach

Data envelopment analysis (DEA) is used to analyze different European countries throughout the longitudinal observation period of 1980 to 2003. Also partial productivity analysis is used to support DEA evaluation.

Findings

Based on DEA results, it is found that those countries that were showing the highest efficiency levels in the 1980s, without exception, experienced an efficiency collapse in the 1990s. These include both former Eastern Bloc and West European countries. Based on partial productivity analysis, it is proposed that productivity of locomotives and railway tracks should be the primary target of productivity improvement in these formerly highly efficient countries. The efficiency analysis shows also that currently the most efficient railway freight transportation is located in the Baltic States, namely Estonia and Latvia. If one does not include data from Estonia and Latvia in the overall analysis, in a European context the only truly improving performance indicators are partial productivities of freight wagons, and staff.

Research limitations/implications

In contrast to previous efficiency studies in this sector, railway freight transportation shows high differences between European countries; it is necessary to address further research in the efficiency and productivity area in this respect to identify ongoing structural change.

Practical implications

Restructuring in European railways is just taking its first steps, and a combination of downsizing and greater freight volumes is needed if this mode of transportation is going to prosper in the future, and take market share back from others. Restructuring within this sector will most probably result in increased internationalization, mergers and acquisitions, and intermodal transportation solutions. These all represent new avenues for research.

Originality/value

This article helps to advise clear remedies for European railways and suggests interesting avenues for further research.

Details

International Journal of Productivity and Performance Management, vol. 56 no. 3
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 1 April 1989

Alan C. McKinnon

The volume of road freight movement in the UK has more than doubledover the past 25 years and its present growth is considerably exceedingofficial forecasts made in 1984. An…

Abstract

The volume of road freight movement in the UK has more than doubled over the past 25 years and its present growth is considerably exceeding official forecasts made in 1984. An attempt is made to explain why this growth has occurred, taking account of the close relationship between tonne‐kilometres and economic growth and outlining several spatial processes likely to have contributed to freight traffic growth. The spatial concentration of economic activity is identified as the dominant influence. The growth process appears to have undergone a major change during the 1980s, with the increase in average length of haul easing and the earlier downward trend in freight tonnage being sharply reversed. The implications of these recent trends for future freight traffic growth are discussed and an assessment made of the likely impact of the Channel Tunnel and deregulation of international haulage on the volume of road freight movement in the 1990s.

Details

International Journal of Physical Distribution & Materials Management, vol. 19 no. 4
Type: Research Article
ISSN: 0269-8218

Keywords

Book part
Publication date: 28 February 2017

Aisling J. Reynolds-Feighan

Abstract

Details

Handbook of Logistics and Supply-Chain Management
Type: Book
ISBN: 978-0-8572-4563-2

Article
Publication date: 1 March 2000

Jay Sankaran

It is well known that within an economic region, shippers’ practice of logistics is shaped significantly by various factors, such as transportation regulation. The precise purpose…

4434

Abstract

It is well known that within an economic region, shippers’ practice of logistics is shaped significantly by various factors, such as transportation regulation. The precise purpose of this paper is to describe these factors and their influence on logistics practice in the New Zealand context. Discusses the various modes of domestic freight transport, as well as the deregulation and privatization of the transportation sector of the New Zealand economy. Also examines international shipping and airfreight in the context of New Zealand’s foreign trade. Identifies three sets of contextual factors (structural, regulatory, and developmental) that, in the New Zealand situation, shape shippers’ practice of freight logistics.

Details

International Journal of Physical Distribution & Logistics Management, vol. 30 no. 2
Type: Research Article
ISSN: 0960-0035

Keywords

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