Logistics integration and network orientation in the port and maritime industry have redefined the functional role of ports in value chains and have generated new patterns of freight distribution and new approaches to port hierarchy. Existing models on the spatial and functional evolution of ports and port systems only partially fit into the new freight distribution paradigm. This paper aims to add to existing literature by introducing a port regionalization phase in port and port system development. It is demonstrated that the regionalization phase and associated hinterland concepts demand new approaches to port governance and a functional focus that goes beyond the traditional port perimeter.

Port regionalization: towards a new phase in port development

This paper argues that, with the rapid and pervasive restructuring of supply chains and of the logistics pathways in which ports are embedded, existing paradigms no longer offer adequate insights into the functions of ports or port authorities. Rather, ports must now be seen as elements in value-driven chain systems or in value chain constellations. They deliver value to shippers and to third party service providers; customer segmentation and targeting is on the basis of a clearly specified value proposition; and the port captures value for itself and for the chain in which it is embedded. The role of ports and port authorities, and the way in which they position themselves in the new business environments beyond 2001 must be defined within a paradigm of ports as elements in value-driven chain systems, not simply as places with particular, if complex, functions.

Ports as elements in value-driven chain systems: the new paradigm

Few studies have investigated the quantitative relationship between port ownership structure and port efficiency with mixed results. This study applies a stochastic frontier model proposed by Battese and Coelli [Battese, G.E., Coelli, T.J., 1995. A model for technique inefficiency effects in a stochastic frontier production function for panel data. Empirical Economics 20, 325–332], which incorporates the inefficiency effect, to show whether port privatization is a necessary strategy for ports to gain a competitive advantage. While this stochastic frontier model has been used to a wide number of industries where the technical inefficiency effect is required, this method has rarely been employed to port industry. This study also investigates the determinants of port competitiveness. Both the principal component analysis (PCA) and the linear regression model are used to examine the effects of identified key factors on port competitiveness. Based on a sample of selected container terminals around the world, the results of this study have shown that private sector participation in the port industry to some extent can improve port operation efficiency, which will in turn increase port competitiveness. Another important determinant of port competitiveness is the adaptability to the customers’ demand. All these results provide some policy implications and guidance for port authorities and port operators in formulating effective strategies to improve their competitiveness vis-a-vis rivals.

Port privatization, efficiency and competitiveness: Some empirical evidence from container ports (terminals)

The dry port concept: connecting container seaports with the hinterland

Globalisation, deregulation, logistics integration and containerisation have reshaped the port and shipping industry. Port and maritime companies are challenged to redefine their functional role in the value chain for the sake of creating customer value and of ensuring the survival and growth of the company. Companies are busily trying to disrupt the status quo rather than preserve it. Based on empirical evidence, this paper demonstrates that because of the rapidly changing environment the port and liner shipping markets are not stable any longer. Individual terminal operators and shipping lines tend to walk different paths on a quest for higher margins and increased customer satisfaction. And more than once they (have to) change paths.

/pdf/container-shipping-and-ports-an-overview-xka4m1jlz4.pdf

Container Shipping And Ports: An Overview

In Europe, ports are confronted with a closer integration in the maritime and shipping industries. The co-operation agreements can take several forms such as alliances and mergers among shipping lines, conferences, involvement of shipping companies in terminal management, and extending interests in inland transport of shipping companies. In this paper we give a brief overview of these different types of agreement and we examine the consequences of this evolution of the market structures in which ports and shipping companies have to operate. More specifically, attention goes to the competitive position of the port in this new environment. It is clear that the role of the port and the port authorities has to be redefined to guarantee that it remains a fully fledged player in this fast evolving integrated market.

/pdf/do-mergers-and-alliances-influence-european-shipping-and-2h7ysoc86z.pdf

Do Mergers and Alliances Influence European Shipping and Port Competition

Mergers and alliances in liner shipping: what do European port authorities have to fear?

Forecasting potential throughput

Inland navigation in Belgium and the Netherlands has been liberalized since November 30, 1998 in consequence of European Directive 96/75/EC. The purpose of this Directive is, amongst other things, to make the sector more competitive. This paper, which was written before the liberalization took effect, constitutes a first attempt to model the consequences of deregulation. The first part describes the structure of the inland navigation market and the European situation before deregulation. In the second part, a set of empirical results is presented that helps to clarify the impact of deregulation on inter- as well as intra-modal competition.

Regulation and deregulation in inland navigation

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Papers

Do Mergers and Alliances Influence European Shipping and Port Competition

Do Mergers and Alliances Influence European Shipping and Port Competition

Mergers and alliances in liner shipping: what do European port authorities have to fear?

Forecasting potential throughput

Regulation and deregulation in inland navigation