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Article
Publication date: 6 August 2018

Axel Merkel

The purpose of this paper is to empirically examine the relationship between intensity of competition and technical efficiency of large European container ports, accounting for…

1383

Abstract

Purpose

The purpose of this paper is to empirically examine the relationship between intensity of competition and technical efficiency of large European container ports, accounting for regional diversities and spatial aspects of inter-port competition.

Design/methodology/approach

The analysis consists of applying a stochastic production frontier approach to a dataset of 77 large European container ports over the period 2002-2012, with inefficiency terms simultaneously modeled as a function of (among other factors) a constructed index of competitive intensity at different spatial levels.

Findings

The results indicate that there is no significant negative effect of competitive intensity on efficiency. In fact, for competing European ports within a proximity of 300 km, a higher level of competition is found to be associated with a higher level of technical efficiency.

Originality/value

The originality of the paper stems from its particular focus on European port regions and its novel findings in this context, which have implications for the discussions regarding pro-competitive port policy and regulation in the European Union.

Details

Maritime Business Review, vol. 3 no. 2
Type: Research Article
ISSN: 2397-3757

Keywords

Content available
Article
Publication date: 18 January 2024

Stefania 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.

Details

Maritime Business Review, vol. 9 no. 1
Type: Research Article
ISSN: 2397-3757

Keywords

Open Access
Article
Publication date: 30 June 2007

Young-Tae Chang and Paul T.W. Lee

Port competition attracted much scholarly attention in Northwest Europe during the 1980s. Following the rise of powerful economies in East Asia, particularly during the 1980s and…

Abstract

Port competition attracted much scholarly attention in Northwest Europe during the 1980s. Following the rise of powerful economies in East Asia, particularly during the 1980s and 1990s, port competition has become an important phenomenon with the top five container ports in the world being located in the region. This paper aims to overview major port competition issues and outlines and analyzes the main alternative methodologies that researchers have employed to address them, referring to 70 items, mostly papers but including a few books and reports

Details

Journal of International Logistics and Trade, vol. 5 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 6 March 2017

Sanghack Lee and Jungran Cho

Many governments around the world have strategically privatized their ports. The privatized ports try to maximize profits by setting higher charges for port services and…

Abstract

Purpose

Many governments around the world have strategically privatized their ports. The privatized ports try to maximize profits by setting higher charges for port services and attracting transship cargos. This paper shows that such privatization of ports can be complemented by adjusting the number of ports. Specifically, the purpose of this paper is to derive the optimal number of ports in cases in which ports serve transship and domestic cargos.

Design/methodology/approach

This paper constructs a theoretical model in which ports compete with each other for transship and domestic cargos. In the first stage, the government determines the number of ports. In the second stage, the ports compete with each other in quantity to maximize profits. The authors have derived the optimal number of ports that maximizes national welfare.

Findings

The optimal number of ports is expressed as a function of the slope of the demand curve, the slope of the supply curve, and the share of domestic demand relative to total demand for port services. It is shown that the optimal number of ports tends to increase as the share of domestic cargo increases. The optimal number of ports, n*, is given as n*=1/(1−θ), where θ denotes the share of domestic demand in total demand for port services, when the unit cost of port services is constant.

Research limitations/implications

The analysis in the present paper is confined to the case of unilateral intervention by the government of the domestic country. Analyzing interaction among governments via competition policy would offer valuable policy implications.

Practical implications

The results of the current research offer important implications for Korean port policy in the context of maritime industrial changes, in particular, China’s New Silk Road initiative. In particular, the findings of this study suggest that Korea’s investment in ports should be concentrated on ports with competitive advantages.

Originality/value

Relatively scant attention has been paid to the possibility, or need, of strategic privatization being complemented by governmental competition policy. Filling this knowledge gap, the authors have shown that the government can mitigate the negative effects of privatization on domestic consumer surplus by introducing competition in the supply of port services.

Details

Journal of Korea Trade, vol. 21 no. 1
Type: Research Article
ISSN: 1229-828X

Keywords

Open Access
Article
Publication date: 30 June 2007

Peter J. Rimmer

An examination is made of developments in port dynamics since 1965. Initially, this task is addressed by studying changes in past port patterns using a simple descriptive model to…

Abstract

An examination is made of developments in port dynamics since 1965. Initially, this task is addressed by studying changes in past port patterns using a simple descriptive model to accommodate shifts induced by containerization. Over time these changes have led to the reversal of the concentration and centralization of port activities. Then consideration is given to the behavior of stakeholders active in the contemporary port scene by elaborating a bipolar global-local analytical framework through an invocation of the hybrid concepts of glocalization and loglobalization. This analysis leads to an examination of emerging economies to gauge future trends in port dynamics following the dramatic emergence of China. Finally, there is a discussion of the need to go beyond inter-port competition to comprehend global production-distribution networks by exploring synergies between the supply chain and the total transport network to bring out parallels in the hub-and-spoke structure not only underpinning maritime activities but also air transport and telecommunications.

Details

Journal of International Logistics and Trade, vol. 5 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Book part
Publication date: 12 January 2012

Ioannis N. Lagoudis

There is significant amount of literature tackling different issues related to the port industry. The present chapter focuses on a single business unit of seaports aiming at the…

Abstract

There is significant amount of literature tackling different issues related to the port industry. The present chapter focuses on a single business unit of seaports aiming at the documentation of works related to container terminals.

An effort to review, collect and present the majority of the works present in the last 30 years, between 1980 and 2010, has been made in order to picture the problems dealt and methods used by the authors in the specific research field. To facilitate the reader, studies have been grouped under five categories of addressed problems (productivity and competitiveness, yard and equipment utilization, equipment scheduling, berth planning, loading/unloading) and four modelling methodologies (mathematics and operations research, management and economics, simulation, stochastic modelling).

The analysis shows that most works focus on productivity and competitiveness issues followed by yard and equipment utilisation and equipment scheduling. In reference to the methodologies used managerial and economic approaches lead, followed by mathematics and operations research.

In reference to future research, two fields have been identified where there is scope of significant contribution by the academic community: container terminal security and container terminal supply chain integration.

The present chapter provides the framework for researchers in the field of port container terminals to picture the so far works in this research area and enables the identification of gaps at both research question and methodology level for further research.

Details

Maritime Logistics
Type: Book
ISBN: 978-1-78052-340-8

Keywords

Book part
Publication date: 12 January 2012

Alexandros M. Goulielmos, Venus Y. H. Lun and Kee-Hung Lai

To examine the EU ‘Short Sea Shipping’ (SSS), its ‘motorways of the sea (MoS)’ and green ports, within short sea maritime logistics.To present past research and report recent…

Abstract

To examine the EU ‘Short Sea Shipping’ (SSS), its ‘motorways of the sea (MoS)’ and green ports, within short sea maritime logistics.

To present past research and report recent developments speculating on future trends.

The dominance of SSS over road is questioned; as road transport has expanded, hubs are expected to become larger and fewer with feeders. Road transport is not certain to follow SSS and its four motorways. This result was responsible for the relocation of industry from West to East and North–East inter-port competition.

The SSS ship size and port are undefined; specific data on these concepts are unavailable.

‘Door-to-door’ services are highly sought after in this sector, but difficult to establish.

The green element introduced here, mainly for ports, will dominate future discussions because of the high importance given to climate change.

This chapter outlines for the first time the development of the policy on EU Eco-ports, the relocation of industry, the West–East port competition, the MoS and the long-term deterioration of SSS logistics which is likely to persist in the future.

Article
Publication date: 8 June 2012

Mengying Feng, John Mangan and Chandra Lalwani

The purpose of this paper is to report a comparative investigation of port performance between Western Europe and Eastern Asia and develop a strategy to improve their port

5865

Abstract

Purpose

The purpose of this paper is to report a comparative investigation of port performance between Western Europe and Eastern Asia and develop a strategy to improve their port performance accordingly.

Design/methodology/approach

A comprehensive literature review is conducted in order to identify factors for port performance evaluation. A large‐scale questionnaire survey is employed in two port regions for comparative analysis.

Findings

Descriptive techniques and t‐tests indicate that port performances in the case port regions are different from each other in some factors and that they share some common features in certain other factors. The findings reveal that the most critical differences between the case ports are government support, proximity, speed of cargo handling, safety and port technical infrastructure in descending order. The Western European ports need to improve on government support, reduce port charges, diversify port ownership and improve port connectivity, while the Eastern Asian ports need to improve customs services, expand hinterlands, enhance logistics demand, encourage intermodalism and set up “dry ports”.

Research limitations/implications

This study was restricted to two port regions in China and the UK and data used in this research were mainly generated from questionnaire surveys, responses to which are, to some extent, subjective.

Practical implications

Ports must provide services that meet and exceed customers' expectations to be competitive. This research yields practical insights for port managers to improve port performance as quantifying factors allows them to prioritize and compare the factor performance. The results of the empirical study can also assist port stakeholders to formulate their operational strategy for port performance improvement.

Originality/value

The paper contributes to knowledge by addressing a gap in empirical research concerning performance comparison between Western European and Eastern Asian ports.

Details

International Journal of Physical Distribution & Logistics Management, vol. 42 no. 5
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 23 May 2008

John Mangan, Chandra Lalwani and Brian Fynes

The purpose of this paper is to examine traditional, current and emerging roles played by ports in the context of logistics and supply chain management practice and strategy. The…

12068

Abstract

Purpose

The purpose of this paper is to examine traditional, current and emerging roles played by ports in the context of logistics and supply chain management practice and strategy. The paper also seeks to elaborate the emerging concept of port‐centric logistics.

Design/methodology/approach

The paper draws its insights and conclusions from a review of the literature, and an analysis of current trends and data concerning the ports and maritime transport sector.

Findings

The paper shows that ports can play a variety of different roles within supply chains and that they are not restricted to their traditional role of simple transhipment point for freight.

Research limitations/implications

While the paper reviews the roles played by ports in logistics and supply chain management generally, a useful next step would be to analyse specific flows and activities at/through ports within selected supply chains, thus allowing validation of a framework of roles for ports in the context of various supply chain strategies.

Practical implications

The paper highlights the potential, which in many cases is still latent, for ports to engage in port‐centric logistics activities.

Originality/value

The paper both highlights (given the fact that the vast majority of freight at some point transits ports) and extends the understanding of the role(s) of ports within supply chains.

Details

The International Journal of Logistics Management, vol. 19 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Open Access
Article
Publication date: 30 September 2004

Prabir De and Ro-Kyung Park

Since the 1980s the economic development of countries in East Asia has had a marked impact on the world port community, particularly in container transport. This paper analyses…

Abstract

Since the 1980s the economic development of countries in East Asia has had a marked impact on the world port community, particularly in container transport. This paper analyses changes in the competitive environment of the world container port sector using some standard tools of market concentration. Initially, this paper reviews the competitive position of world container port system and then examines the East Asian economic environment. Both ordinal and cardinal measures of port system inequality are used to demonstrate both the rankings and levels of container throughput have been diverging in the world's major economic blocs. Conversely, East Asian countries during the 1990s have shown a trend towards convergence. Measures of dispersion suggest that ports in East Asian countries have become more competitive in their levels of container throughput.

Details

Journal of International Logistics and Trade, vol. 2 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

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