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Selection, introduction, and editorial matter © Hercules E. Haralambides 2015 Individual Chapters © Palgrave Macmillan Ltd, 1999–2013 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2015 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978–1–137–47576–3 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Port management / [edited by] Hercules E. Haralambides, Professor of Maritime Economics and Logistics, Erasmus University Rotterdam, Netherlands. pages cm ISBN 978–1–137–47576–3 (hardback) 1. Harbors—Management. 2. Infrastructure (Economics) Haralambides, Hercules E. HE551.P69 2014 387.1068—dc23 2014029183 Typeset by MPS Limited, Chennai, India. Copyrighted material – 978–1–137–47576–3 Copyrighted material – 978–1–137–47576–3

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Selection, introduction, and editorial matter © Hercules E. Haralambides 2015Individual Chapters © Palgrave Macmillan Ltd, 1999–2013

All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission.

No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS.

Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages.

The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988.

First published 2015 byPALGRAVE MACMILLAN

Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS.

Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010.

Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world.

Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries.

ISBN 978–1–137–47576–3

This book is printed on paper suitable for recycling and made from fullymanaged and sustained forest sources. Logging, pulping and manufacturingprocesses are expected to conform to the environmental regulations of thecountry of origin.

A catalogue record for this book is available from the British Library.

Library of Congress Cataloging-in-Publication DataPort management / [edited by] Hercules E. Haralambides, Professor of Maritime Economics and Logistics, Erasmus University Rotterdam, Netherlands.pages cmISBN 978–1–137–47576–3 (hardback)1. Harbors—Management. 2. Infrastructure (Economics) Haralambides, Hercules E. HE551.P69 2014387.1068—dc23 2014029183

Typeset by MPS Limited, Chennai, India.

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Copyrighted material – 978–1–137–47576–3

v

List of Figures and Tables vii

Notes on Editor and Contributors xii

IntroductionHercules E. Haralambides 1

1 Containerization, Box Logistics and Global Supply Chains: The Integration of Ports and Liner Shipping Networks 5Jean-Paul Rodrigue and Theo E. Notteboom

2 A New Approach to Port Choice Modelling 29Mateus Magala and Adrian Sammons

3 Coordination in Hinterland Transport Chains: A Major Challenge for the Seaport Community 57Martijn R. Van Der Horst and Peter W. de Langen

4 An Optimization Model for the Inland Repositioning of Empty Containers 84Alessandro Olivo, Massimo Di Francesco and Paola Zuddas

5 The ISPS Code and the Cost of Port Compliance: An Initial Logistics and Supply Chain Framework for Port Security Assessment and Management 109Khalid Bichou

6 Governance in Seaport Clusters 138Peter W. de Langen

7 The Size Economies and Network Efficiency of Large Containerships 155Sidney Gilman

8 Port Infrastructure: An Access Model for the Essential Facility 180Lincoln Flor and Enzo Defi lippi

9 Concession Agreements and Market Entry in the Container Terminal Industry 195Athanasios A. Pallis, Theo E. Notteboom and Peter W. de Langen

Contents

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vi Contents

10 Competition, Excess Capacity and the Pricing of Port Infrastructure 221 Hercules E. Haralambides

11 The Efficiency of European Container Terminals and Implications for Supply Chain Management 253Tengfei Wang and Kevin Cullinane

12 An Alternative Approach to Efficiency Measurement of Seaports 273Ro-kyung Park and Prabir De

13 Efficiency in European Seaports with DEA: Evidence from Greece and Portugal 293Carlos Pestana Barros and Manolis Athanassiou

14 An Application of AHP on Transhipment Port Selection: A Global Perspective 314Tai-Cherng Lirn, Helen A. Thanopoulou, Malcolm J. Beynon and Anthony K. C. Beresford

15 A Competitive Analysis of Chinese Container Ports Using the Analytic Hierarchy Process 339Dong-Wook Song and Gi-Tae Yeo

Index 360

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1

Port Management has been a most rewarding project, to put under one roof some of the best and most cited papers on ports, published in Maritime Economics and Logistics (MEL) since the journal’s inception in 1999. Certainly these articles are by no means all, and certainly the selection has not been easy. One thing is certain though. All chapters in this book, updated when necessary to reflect subsequent developments in the port sector since their original publication, have broken new ground in the way we look at ports, their governance, and their performance. In this sense, it is my hope that this volume will be a precious addition to any maritime bookshelf or graduate classroom.

Two themes, as well as two parts, of the Reader will be distinguished by the discerning reader: the first and largest is a macro one, dealing with port governance and the new, entrepreneurial, role of ports, being the crucial ‘make-or-break’ nodes of global supply chains. The last five chapters – which comprise a micro part – deal with port per-formance, efficiency, and their measurement: an issue that has become of utmost importance in the competitive environment ports are now operating in.

Without intention to undervalue the significance of bulk, general cargo, or passenger ports and terminals, the emphasis of the Reader is on containerized transport. Containerization has often, and quite rightly, been described as a revolution in transport. But it goes beyond this. Being the locomotive in front of logistics and global supply chain management, containerization has revolutionized the very way we live

IntroductionContainerized Ports: The Entrepreneurial Kindle Wood under Global Supply Chain ManagementHercules E. HaralambidesProfessor of Maritime Economics and Logistics, Erasmus University Rotterdam, The Netherlands

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2 Hercules E. Haralambides

our lives and go about our business. For instance, the bypassing of the waterfront in the stuffing and stripping of the ‘through container’, thus having it ready in port to be handled by automated equipment, has increased immensely the predictability and reliability of cargo move-ments, enabling manufacturers and traders to reduce high inventory costs through the adoption of flexible Just-in-Time and Make-to-Order production technologies. Inter alia, such technologies have helped manufacturers to cope with the vagaries and unpredictability of the business cycle and plan business development in a less risky operational environment.

The impact of containerization on ports has been equally profound: Containerization has transformed ports from the asphyxiating public bureaucracies of the past to the modern enterprises of the present. Automation and mechanization of container terminals has bypassed expensive port labor, it has relieved pressure on port space, and it has minimized ship time in port. These developments have increased ship and port productivity immensely and have allowed ships to become even bigger thus achieving economies of scale and low prices. Nowadays, containers are increasingly carried by specialized ‘cellular’ containerships some of which are able to carry more than 18,000 twenty-foot equivalent units (TEUs), while designs of even larger vessels are already on the drawing boards of naval architects. As I often teach my students, it is the port efficiency itself that has encouraged the growth in containership sizes and not the other way around; and of course, both port efficiency and technological advance have been the result of port competition, abolition of port monopolies, and the liberalization of port services.

Around the world, the port industry has invested massively so as to cope with competition and the technological demands of containeriza-tion. Modern container terminals – and suitable cargo-handling equip-ment – have been built; operational practices have been streamlined; the element of uncertainty in cargo flows has been largely removed; for-ward planning has been facilitated; port labor has been regularized and customs procedures simplified. These developments have taken place under the firm understanding of governments and local authorities that ports, now, constitute the most important link (node) in the overall door-to-door transport chain and thus inefficiencies (bottlenecks) in the port sector can easily whither all benefits derived from economies of scale in liner shipping. This understanding has often led ports, parti-cularly those of northern Europe, to adopt a new, more proactive and entrepreneurial business model: that of extending their gate inwards,

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Introduction 3

through hinterland investments, as well as by coordinating, and often managing, the various actors in the supply chain. Port administrations see clearly these days that the former port competition has now been transformed into supply chain competition.

However, both port competition and global logistics have not been without their downside; something that is often neglected in our enthu-siasm with efficiency. The unabated development of land infrastructure, together with transhipment and the footloose nature of the container and its carrier, have intensified competition among ports. Today it makes little difference if a bicycle manufactured in Wuhan, China, will reach Paris through Le Havre, Antwerp, Rotterdam or Hamburg, while the same bicycle can reach Milwaukee, USA, in 147 different ways.

Such competition and the eagerness of ports to attract transship-ment traffic (often at the cost of their neighbor) has often led to the development of excessive port infrastructure, paid, often reluctantly, by the taxpayer who does not always enjoy himself the benefits of such investments. In other words, the benefits of container terminal investments are not always localized but often defused all the way from the foreign exporter to the, also foreign, consignee. This fact is often making governments reluctant to finance port terminal infrastructure. Luckily, the private sector has been found ready to fill the gap through successful public–private partnerships, encouraged by higher port effi-ciency and the global trend of the often painful albeit necessary port reforms.

Logistics and distribution on the other hand are making heavy use of land infrastructure, both inter- and intra-city, and the external costs of such use – i.e. pollution, congestion, accidents, and global warming – are often not internalized in the price of the transport service. This is particularly evident in long distance land transport as a result of transshipment, port concentration, and the emergence of hub ports.

As should be fairly obvious from the above, port efficiency is driven by competition; by the ‘footloose’ nature of the container; and by the private sector involvement in the financing and management of con-tainer terminals, many of which dedicated terminals. At the same time, the spectacular increase in containership sizes, together with the carri-ers’ need for fast turnaround times, are posing a real headache to many ports: Although increasingly bigger ships are calling at our ports, turn-around times need to remain the same if not shorter. No matter how large the ship, today it has to be turned around in no more than 48 hours. I remember quite vividly when Emma Maersk visited Rotterdam for the first time: Maersk complained that this port could only guarantee a

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4 Hercules E. Haralambides

cargo-handling rate of 150 TEUs per hour, while in Singapore they were able to achieve 200. Moreover, the consequently less frequent utiliza-tion of berths by bigger ships, as well as the fact that these berths were originally designed to host more than one ship at the same time, lowers overall berth utilization and this poses a problem in terms of port plan-ning and financing. Finally, the relative easiness by which carriers can modify their itineraries, and select different ports of call, has led ports to benchmark their performance against each other and use these metrics as a marketing tool in order to attract new traffic.

Port productivity and its measurement have thus become hot topics in the academic agenda and Operations Researchers have found a new optimization field to keep them off the streets. The MEL journal has pioneered and encouraged this research direction, first in 2003, when it coined the term Maritime Logistics, and then in 2005, when the for-mer International Journal of Maritime Economics (IJME) became Maritime Economics and Logistics (MEL).

Acknowledgments

I would like to thank all autho rs for having enthusiastically responded to our call, and Rachel Sangster and her staff at Palgrave Macmillan who have so diligently put up with my often frustrating demands, as well as my limited time which, still, I am unable to optimize equally efficiently as that of the container terminals I have been talking about above.

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360

Index

activity-based costing (ABC), 131, 132Analytic Hierarchy Process (AHP)

Chinese container ports, competitive analysis of, 339–57

transhipment port selection, 314–33

choice of methodology, 316–17future research, implications for,

331–2geographical scope of research,

317global carriers vs. terminal

operators, 325–7port selection criteria, 317–23results analysis, 324–5survey, 323–4, 332–3transhipment purchase attributes,

searching for, 327–31Antwerp Port

awarding of concessions, 201–2duration of concessions, 213–14dynamics in terminal consortia,

207–9APM Terminals, 9, 198, 201, 202, 211ATENCO (Analysis of the main

Trans-European Network ports’ COst structures), 242, 243, 245

average cost pricing (ACP), 230

balanced scorecard (BSC), 131, 132balking, 237Barcelona Port

awarding of concessions, 202tendering of container terminal,

business experience in, 204Barge Infolink, 74Barge Planning Centre, 70Bargelink, 71benchmarking models, 285–7Booz Allen Hamilton port security

war game (BAH), 118box logistics, 9

brainstorming technique, for hazard identification, 120

bundle, bundling, 40–2Burness Corlett & Partners, 164

Callao Peru terminal concession, Demsetz auction at, 211

cargo exchange, 72cargo theft, 120carrier selection, 33–4CCS, 72CEM, 70Central Bureau for Rhine and Inland

Shipping (CBRB), 74Chinese container ports, competitive

analysis using AHP process, 339–57

CKYHE, 13Clarkson Containership Register, 156,

164CMA CGM, 202, 208Coase Theorem, 183collective action, in cluster

governance, 142–5Collective Action Problems (CAPs),

142–5in Rotterdam’s port cluster,

solutions for, 148–51collective action regime (CAR), 142,

143–4competition versus regulation, 182–4concentrated mother ship itineraries,

172–4concession(s/ing)

awarding of, 201–2duration of, 213–14evaluation criteria competing bids

for, 203–9favor to global terminal operators,

214–15and pricing, 209–12procedures, rise of consortia in, 206process of granting, 201–3

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Index 361

container(s/ships/ization)barging

coordination arrangements in, 70, 71

coordination problems in, 62–3cellular, 2empty, repositioning of, 20–2,

84–107handling performance, 169–70large see large containershipsmaturity phase of, 8–10prices, 162–3role in global supply chains, 10terminals see container terminal(s)transferium, 73vessel, loading/discharging, 9

Container Security Initiative (CSI), 113, 128

container terminal(s)automation of, 2efficiency measurement see

efficiency measurement, of container terminals

industry, market entry into, 195–217

dominant mode of, 196–9barriers of, 200–1

investments, benefits of, 3mechanization of, 2tendering of, business experience

in, 204see also terminal(s)

Containerisation International Yearbook, 261

coordination problems, in hinterland chains, 59–67

container barging, 62–3container rail transport, 63–5container trucking, 65general arguments about, 60–2general problems, 66–7

COSCO, 202, 203cost of large containerships, 162–3

structure of, 163–4cost recovery, 228–30

through marginal cost pricing, 238–9

cost–benefit analysis (CBA), 119, 120, 123, 126, 130

cost–efficiency analysis (CEA), 119, 126, 130

crane outreach, 171CSAV, 211Customs–Trade Partnership Against

Terrorism (C-TPAT), 113

data envelopment analysis (DEA)BCC model, 257–8, 262–6, 278–80,

294CCR model, 257–8, 262–6, 278–80,

294container terminals efficiency

measurement using, 256–8, 262–3, 267–8, 275

empirical analysis and explanation, 280–1

European container terminals, 257–8, 262–6

Greece and Portugal, 293–311policy implications for, 287–8survey of studies, 276–7

Delphi method, 120Demsetz approach, 183deterministic dynamic optimization

model, 90DHS/USCG CSI model, 127discounted cash-flow (DCF) models,

119diseconomies in port, 168–9DP World, 9, 198, 202, 206, 211drug smuggling, 120Dutch Inland Shipping Association,

74dynamic and discrete modelling, 119

economic cost approach to port security, 117–24

analysis of, 119–20implications of, 117–19limitations of, 120–4

complexities and dissimilarities among world ports, 121–3

cost of operational redundancies and supply chain disruptions, ignoring, 124

disintegrating ports from other logistics members and SCM, 123

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362 Index

economic cost approach to port security – continued

security as sub-category of safety, considering, 121

security expenses, cost spin-off and exponential computations of, 124

economic impact analysis, 230ECT, 74

Extended Gate Model, 72–3efficiency measurement, of container

terminalsalternative approach to, 273–89BCC model, efficiency results using,

282benchmarking models, 285–7CCR model, efficiency results using,

281–2congestion measurement, 284–5empirical analysis and explanation,

280–1European container terminals,

253–69empirical analysis, 262–6methodology, 256–8variable definition and data,

258–62factor-specific efficiency

measurement, 285marketability, 277–87policy implications for, 287–8productivity, 277–87profitability, 277–87returns to scale, efficiency results

with, 282–4empty container repositioning, 20–2

challenges in, 87–8experimentation, 103–6future research, 106–7inland, 84–107literature review of, 88–90maritime, 88–9mathematical model, 94–103problem definition, 90–4

ENAPU, 187equatorial round-the-world system, 13Eurobarge, 70European Commission, 198, 202, 203,

213, 235, 238, 242, 243, 245

European container terminals, efficiency of, 253–69

empirical analysis, 262–6methodology, 256–8variable definition and data, 258–62

European Sea Ports Organisation (ESPO), 195, 200

excess capacity, issue of, 231–5

Fahrgemeinschaft Oberrhein (PENTA Container Line), 70

fleet of containershipaverage ship size and, 158–9composition of, 157growth of, 156–9size structure and lags, 158

formal safety assessment (FSA), 111, 119–20

framework for maritime safety, 125Frankenbach, 72free into store (FIS), 51, 54n6

G6, 13gantry crane, 8

rail-mounted, 9rubber-tyred, 9

GATT, 6Global Production Networks (GPN)

containerized, 10–11global supply chains, containers role

in, 10global trade imbalances, 20–2Greece

container terminals efficiency measurement, 293–311

data issues, 305–6economic implications, 308–10institutional setting, 294–6limitations and extensions,

310–11literature review, 296–7, 298–301results of, 307–8theoretical framework, 297, 302–4

Green Paper on Ports and Maritime Infrastructure, 242

HHLA, 211hierarchical information integration

approach, 44–5, 46

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Index 363

Hinterland Access Regimes (HARs), 59hinterland transport chains,

coordination in, 57–80arrangements of, 69–74, 76–80

container rail transport, 79–80container trucking, 80

mechanisms of, 67–9problems of, 59–67

container barging, 62–3container rail transport, 63–5container trucking, 65general arguments about, 60–2general problems, 66–7

Huangpu Port, 52Hull and Machinery (H&M) insurers,

110Hutchison Port Holdings (HPH), 9,

113, 198, 202

ICTI, 211ICTSI, 211IMDG

class seven product, 38, 53n2code, 115

IMO, 110, 112, 119, 122incentives, 68–9Independent Regulatory Authority,

245information integration theory, 42,

44, 53n4initial framework to port security

assessment (IFPSA)cost control and performance

monitoring, 130–2decision-making, 132–3process mapping, 126–8risk assessment and management,

128–30vulnerability identification, 128–30

Inland Container Terminals and Depots (ICT/D), 52

inland distribution, pressures on, 18, 20

inland nodes, role in port network, 145

inland repositioning, of empty containers, 84–107

inland shipping hinterland chain, 61innovation regimes, 144

integrated coastal zone management (ICZM), 111

Inter-American Development Bank, 181

intercontinental shipping routes, 16Interfeeder, 70intermediaries, in cluster governance,

142in Rotterdam’s port cluster, 147–8

International Association of Maritime Economists Conference, 49

International Journal of Maritime Economics (IJME) see Maritime Economics and Logistics (MEL)

International Ship and Port Facility Security (ISPS) code, 110, 115

Part A, 110, 111, 123Part B, 110–11, 112, 123cost implications on ports,

estimation of, 117–19ISM code, 115ISO 9002 series, 115ISSC

Part B, 115

joint cost allocation problem, 231Just-In-Time technology, 2, 10, 226

Kalmar, 9Kwai Chung Container Terminals, 52

large containerships, 155–78dimensions of, 176–8fleet, growth of, 156–9

average ship size, 158–9composition, 157size structure and lags, 158

lightweight and propulsive efficiencies, 164–8

network efficiency ofconcentrated mother ship

itineraries, 172–4specialisation in itineraries,

174–6transhipment hubs, general

development of, 174path of development

containership prices, 162–3cost structure, 163–4

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364 Index

large containerships – continuedpost Panamax and super post

Panamax ships, 161–2stowage efficiency, 159–60

port sector, see port sectorleader firms, 142

in Rotterdam’s port cluster, 147Less than Container Load (LCL), 117life cycle theory, 7lightweight efficiencies, 164–8limit pricing, 228–30, 233linear service networks, in transition,

12–14Lloyd’s Ports of the World, 261Lloyd’s Register See-threat

programme, 127Lloyds Shipping Economist, 162logistics, 10

box, 9maritime, 4pathways, 36–7

long-run equilibrium (LRE), 236, 237long-run marginal cost pricing

(LRMC), 235–6, 238, 241Lumpesammler, 72

Maersk, Emma, 3–4Maersk Line, 13, 14–15Make-to-Order technology, 2, 226Management Information System, 74marginal cost pricing (MCP), 230, 231

cost recovery through, 238–9long-run, 235–6, 238, 241measuring, 239short-run, 231, 235–6

Maritime Economics and Logistics (MEL), 1, 4

maritime gateways, 23–5, 26maritime logistics, 4maritime repositioning, of empty

containers, 88–9maritime transportation, 21market entry into container terminal

industry, 195–217barriers of, 200–1dominant mode of, 196–9

MARPOL, 111, 115MCA, 119mergers and acquisitions (M&A), 198

MIS-CoBiva, 74MSC, 202, 206MSC PSA European Terminal (MPET),

208–9MSG Alexa, 166multinomial logit model (MNL), 44,

47–8multiple criteria decision making

(MCDM) methodology, 316

Nansha Port, 52Nash Equilibrium, 183, 192NAVIS, 14New World Alliance, 175, 202NOL Sardonyx, 165–6non-ISPS security initiatives, 112–14,

123Northern Circum-Hemispheric

Routes, 19

ocean carriers, 49–50, 52OECD, 118Operation Safe Commerce (OSC), 113,

125OSITRAN, 184, 186, 187

P&O Ports, 113, 201, 207, 211Panamax ships, fleet of

post and super post, 161–2Pasir Panjang, 171Peru

Callao Peru terminal concession, Demsetz auction at, 211

port infrastructure, access model forAccess Regulation, 184–5

port services, forecasting market evaluation for, 191–2

piracy, 120Piraeus Port

awarding of concessions, 202policy intervention, 242–3port choice modelling, 29–53

bundling, 40–2carrier selection, 33–4drayage distance, 33literature review of, 32–6new approach to, 42–8

choice estimation model, specifying, 47–8

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choice model, deriving, 45–7modelling framework, 43–5

port, as element in supply chain, 36–8, 50–1

by shipping lines, 33systems theory, 38–9key variables of, 48–9ocean carriers, 49–50, 52

Port Economics Policy and Management, 81

port facility security assessment (PFSA), 112, 115, 121, 130

port facility security officer(s) (PFSO), 112, 121, 123

port facility security plans (PFSP), 112, 121, 128, 130

port infrastructure, 180–92access contract and conditions,

185–6access procedures, 186access strategies, analysis of, 187–90competition versus regulation,

182–4Peruvian access model for, 184–5Peruvian port services, forecasting

market evaluation for, 191–2port services markets, consequences

on, 186–7pricing of, 230–1

port sectorchoice modelling see port choice

modellingcluster activities, 139, 140competition, 225–8, 340contingency plan, 120coping, 16–18as element in supply chain, 36–8facility security versus supply chain

security, 122infrastructure see port infrastructureranges, access to, 171–2regionalization, 22–4security assessment see port security

assessmentselection, by shipping lines, 33services see port servicesterminal congestion, 14throughput, forecasting, 239–40see also individual ports

port security assessmentthreats and risk factors, 116–17

assets, 116–17facilities, 116–17non-physical flows and processes,

117physical movements of, 116–17scope and nature of, 114, 116

economic cost approach to, 117–24analysis of, 119–20implications of, 117–19limitations of, 120–4

initial framework of, 124–33cost control and performance

monitoring, 130–2decision-making, 132–3process mapping, 126–8risk assessment and management,

128–30vulnerability identification,

128–30port services

kinked demand for, 240–2markets, consequences on, 186–7production of, 224–5

PortBase, 74Portinfolink see PortBasePortugal

container terminals efficiency measurement, 293–311

data issues, 305–6economic implications, 308–10institutional setting, 296limitations and extensions,

310–11literature review, 296–7, 298–301results of, 307–8theoretical framework, 297, 302–4

post Panamax ships, fleet of, 161–2premium-price analysis, 119pricing

concessions and, 209–12limit, 228–30of port infrastructure, 230–1

Private Participation in Infrastructure (PPI) Database, 197

propulsive efficiencies, 164–8Protection and Indemnity (P&I)

underwriters, 110

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366 Index

PSA, 9, 113, 198, 202, 206, 335n18PSA Hesse Noordnatie (HNN), 201,

207, 208public–private partnerships, 3

railway hinterland chain, 61coordination arrangements in,

79–80coordination problems in, 63–5

Ramsey Pricing, 230random utility theory (RUT) model,

46–7Reader in Port Management, The, 1‘Regolamento Marco de Acceso a la

Infraestructura de Transporte de Uso Público’, 193n3

regulation versus competition, 182–4reneging, 237reservation price, 53n3returns to scale (RTS)

constant, 238container terminals, efficiency

measurement of, 282–4diminishing, 237increasing, 236–7

revealed preference method (RPM), 119

Rhinecontainer, 72risk-analysis, 112RMG (rubber-tyred gantry cranes), 9Rotterdam port

awarding of concessions, 202cluster governance in, 145–51

Collective Action Problems, solutions for, 148–51

importance of, 146intermediaries, 147–8leader firms, 147trust, 146–7

concessions, evaluation criteria competing bids for, 204

RTG (rail-mounted gantry cranes), 9

Safety of Life at Sea (SOLAS), 111, 112schedule integrity, 14–15schedule reliability, 15seaport clusters, governance in,

138–52quality of, 139–45

collective action in clusters, 142–5

intermediaries, 142leader firms, 142trust, 141

in Rotterdam port, 145–51cluster governance, importance

of, 146Collective Action Problems,

solutions for, 148–51intermediaries, 147–8leader firms, 147trust, 146–7

Secure Trade programme in the APEC Region (STAR), 113

sensitivity analysis, 119ship

length, 172operating draft, 171–2safety management system, 120size at sea, economies of, 168–9

shipping linesMaersk Line, 13, 14–15port selection by, 33

shipping routes, intercontinental, 16short-run marginal cost pricing

(SRMC), 231, 235–6simulation, 119Single Market Program (SMP), 293–4single-channel-multiserver queuing

model, 232Smart and Secure Tradelanes (SST),

113social cost-benefit analysis, 230spreader, 8SSA, 115, 128, 211SSP, 115stakeholder analysis (SHA), 126,

130–1, 132stated preference method (SPM), 119Stochastic Frontier Analysis (SFA), 256stowage efficiency, 159–60, 164, 166,

168stowaways, 120straddle carriers, 9super post Panamax ships, fleet of,

161–2Superintendencia de Puertos de

Colombia, 181

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Copyrighted material – 978–1–137–47576–3

Index 367

supply chain power, 60systems theory, 38–9

Teleship, 71tendering of container terminal,

business experience in, 204terminal(s)

capacity, scarcity of, 18, 26container see container terminal(s)coping, 16–18development options, 21and ports, coping, 16–18

terminal operating companies (TOCs), 63, 65, 67, 72

3PLs (third-party service providers), 37, 39, 50, 51, 53

Tokyo Express, 164, 166total cost analysis (TCA), 131, 132transhipment hubs, general

development of, 174transhipment port selection, AHP

application on, 314–33choice of methodology, 316–17future research, implications for,

331–2geographical scope of research,

317global carriers vs. terminal

operators, 325–7port selection criteria, 317–23results analysis, 324–5survey, 323–4, 332–3transhipment purchase attributes,

searching for, 327–31Triple-E container carriers, 8

truck hinterland chain, 62coordination arrangements in, 80coordination problems in, 65

trust, in cluster governance, 141in Rotterdam’s port cluster, 146–7

twenty-foot equivalent units (TEUs), 2, 4, 6, 9, 12, 52, 155, 156, 158–9

two-way tariffs, 230

UNCLOS, 111UNCTAD, 6URCA Upper Rhine Container

Alliance, 70US Maritime Transportation Act

(MTS) of 2002, 112, 113USCG, 118

value chain analysis (VCA), 131, 132Van Uden, 73velocity of freight, 10Voyage Records, 170

WCT MTA, 70World Bank, 130

Private Participati on in Infrastructure (PPI) Database, 197

World Bank Institute, 181WTO, 6

Yantian Port, 52

ZIM Port Logistics, 202ZPMC, 8, 9

Copyrighted material – 978–1–137–47576–3

Copyrighted material – 978–1–137–47576–3