Transformation of port terminal operations: from the local to the global
TL;DR: In this article, the authors explored the bases for the internationalization of the port terminal industry and highlighted the important regional differences between Europe and North America, where the lead actors are companies that have arisen out of the industry itself.
About: This article is published in Transport Reviews.The article was published on 2005-01-01. It has received 210 citations till now. The article focuses on the topics: Port (computer networking) & Horizontal integration.
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TL;DR: In this paper, the authors demonstrate 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.
Abstract: 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.
355 citations
Cites background from "Transformation of port terminal ope..."
...Musso et al (2001), Slack and Frémont (2004), Brennan (2002) and Cariou (2003) provide a more in-depth analysis on the issue of dedicated terminals....
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...However, forms of operational co-operation in the market do not come easily and most of the time they end up in mergers or acquisitions (Notteboom, 2002; Musso et al, 2001; Slack and Frémont, 2004)....
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...Slack and Frémont (2004) demonstrate that the non-carrier based global terminal operators have not been able to penetrate the North American stevedoring market, while at the same time they have expanded business considerably in Asia and Europe....
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TL;DR: The everchanging environment in which ports operate has put strong pressure on the traditional role of public port authorities as discussed by the authors, and the need for ports to be part of wider logistics networks and to provide value-added services.
Abstract: The ever-changing environment in which ports operate has put strong pressure on the traditional role of public port authorities. Market developments have created the need for ports to be part of wider logistics networks and to provide value-added services. Powerful private players who are organised on a global scale, such as carriers, terminal operators and logistics service providers, struggle to gain control over port-oriented logistics networks whereas port authorities very often seem to remain local spectators with limited influence on these market-driven processes. Port authorities are on the other hand, the focal point of criticism from societal interests such as local government, NGOs and citizens for negative externalities related to port development and port operations even if these do not always fall within their direct responsibility. In 1990, Richard Goss questioned, albeit rather rhetorically, the need to have public sector port authorities. Since then scholars have demonstrated a true renais...
247 citations
Posted Content•
01 Jan 2001
TL;DR: In this paper, the authors focus on the response of port authorities to the changing market environment in which they operate and investigate the potential conflicts of interest for a port authority in matters related to the level of competition amongst terminals within a port and the amount of competition among ports.
Abstract: This paper focuses on the response of port authorities to the changing market environment in which they operate. It documents the changes taking place in the relationships between port authorities and terminal management companies and considers the strategic issues faced by these groups and other port interests. In particular, it investigates the potential conflicts of interest for a port authority in matters related to the level of competition amongst terminals within a port and the amount of competition amongst ports.
233 citations
TL;DR: In this paper, the authors investigated the attractiveness of the major ports in Northern Europe acting as transhipment hubs and found that Hamburg and Rotterdam are the most attractive options acting as Transhipment Hubs within Northern Europe, with Antwerp and Bremerhaven closely behind.
Abstract: Persistent development in global trade has significantly increased the demand for liner shipping, of which the industry is now being characterised by larger vessel size, comprehensive geographical coverage and frequent restructuring of shipping lines like transhipment. In turn, this has led to tense port competition, and port attractiveness is playing a pivotal role in this aspect. Understanding this and using container transhipment as a case study, this paper investigates the attractiveness of the major ports in Northern Europe acting as transhipment hubs. Through a Likert-style questionnaire directed towards the top 30 shipping lines, it was found that Hamburg and Rotterdam are the most attractive options acting as transhipment hubs within Northern Europe, with Antwerp and Bremerhaven closely behind. Felixstowe and Le Havre are the least attractive options requiring substantial improvements to change the current situation. In general, the opinion of shipping lines in port attractiveness seems to be in accordance to their decisions on transhipment hub choices. It is believed that this paper can shed some light on the attractiveness of major North European ports and the methodology of assessing port attractiveness, as well as providing a springboard for further research related to port competition.
200 citations
TL;DR: In this article, the authors evaluated how port institutional reforms influenced efficiency gains between 1991 and 2004, and found that ownership restructuring contributed to total factor productivity gains, especially for large ports, as it allowed specialized private entities to concentrate on terminal operation and cargo handling services.
Abstract: This paper evaluates how port institutional reforms influenced efficiency gains between 1991 and 2004. We constructed a panel data for port ownership, corporate structure, and port inputs and outputs for 98 major world ports, and we implemented the Malmquist Productivity Index (MPI) model. The MPI provides efficiency measures for input combinations that allow for obtaining the outputs in the presence of institutional reforms, ownership changes, main agent problems, technological progress, efficient scale growth, and many other reasons for efficiency and the lack of it. The results illustrate that ownership restructuring contributed to total factor productivity gains. The restructuring induced optimized operation of container terminals, especially for large ports, as it allowed specialized private entities to concentrate on terminal operation and cargo handling services.
167 citations
References
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01 Jan 1997
516 citations
TL;DR: In this paper, the authors discuss the impact of some structural changes in international trade, transport and shipping on strategic and operational issues in the framework of port management, and the central hypothesis put forward is that a successful port (authority), like a successful actor, must be prepared to constantly adopt new roles in order to cope with the changing market environment.
Abstract: The market environment in which ports operate has changed dramatically, and this continuous process of change raises questions on the role of port authorities. This paper discusses the impact of some structural changes in international trade, transport and shipping on strategic and operational issues in the framework of port management. The central hypothesis put forward is that a successful port (authority), like a successful actor, must be prepared to constantly adopt new roles in order to cope with the changing market environment. The content and strategic scope of these new roles are highlighted, especially with regard to the European container port system.
507 citations
"Transformation of port terminal ope..." refers background in this paper
...This state of affairs has already received much academic attention (Evangelista et al., 2001; Heaver et al., 2001; Notteboom and Winkelmans, 2001)....
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...The literature on the subject suggests that the restructuring has come about due to a number factors, including globalization, economic restructuring, deregulation and privatization (Musso et al., 2001; Notteboom and Winkelmans, 2001; Heaver, 2002)....
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Posted Content•
01 Jan 2001
TL;DR: In this paper, the authors focus on the response of port authorities to the changing market environment in which they operate and investigate the potential conflicts of interest for a port authority in matters related to the level of competition amongst terminals within a port and the amount of competition among ports.
Abstract: This paper focuses on the response of port authorities to the changing market environment in which they operate. It documents the changes taking place in the relationships between port authorities and terminal management companies and considers the strategic issues faced by these groups and other port interests. In particular, it investigates the potential conflicts of interest for a port authority in matters related to the level of competition amongst terminals within a port and the amount of competition amongst ports.
233 citations
"Transformation of port terminal ope..." refers background in this paper
...This state of affairs has already received much academic attention (Evangelista et al., 2001; Heaver et al., 2001; Notteboom and Winkelmans, 2001)....
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TL;DR: In this article, the authors focus on the response of port authorities to the changing market environment in which they operate and investigate the potential conflicts of interest for a port authority in matters related to the level of competition amongst terminals within a port and the amount of competition among ports.
Abstract: This paper focuses on the response of port authorities to the changing market environment in which they operate. It documents the changes taking place in the relationships between port authorities and terminal management companies and considers the strategic issues faced by these groups and other port interests. In particular, it investigates the potential conflicts of interest for a port authority in matters related to the level of competition amongst terminals within a port and the amount of competition amongst ports.
199 citations
TL;DR: In this article, the authors reviewed the organization strategies of lines in relation to terminal management, intermodal services and logistics services, and found that lines are under pressure to expand the geographical reach of their services and to invest in value added services.
Abstract: Shipping lines are under pressure to expand the geographical reach of their services and to invest in value added services. The former, addressed by a number of strategies including slot charters, alliances and mergers and acquisitions, has been quite widely treated in the literature. The ways in which the lines are enhancing the range of their services has been subject to less study and is the focus of this paper. Viewed within the context of the economics of vertical integration, the paper reviews the organisation strategies of lines in relation to terminal management, intermodal services and logistics services. There is only close integration with shipping in the management of dedicated terminals and intermodal services. With one exception, P&O Nedlloyd's Value Added Services, the management of logistics services remains ostensibly quite distinct from shipping. In terms of pricing practices, this is reality but it leaves uncertain the level and ways of sharing information and resources related to logistics. The interest of lines in developing new relationships with shippers will place further pressure on collective pricing practices in liner shipping.
194 citations
"Transformation of port terminal ope..." refers background in this paper
...The other source of global management of terminals has come from the shipping industry (Heaver, 2002)....
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...…proposed in the literature is the potential of adding further value and of exploiting the greater levels of profitability that have been realized in the port terminal industry as compared with shipping (Evangelista et al., 2001; Notteboom and Winklemans, 2001; Brennan, 2002; Heaver, 2002)....
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...The literature on the subject suggests that the restructuring has come about due to a number factors, including globalization, economic restructuring, deregulation and privatization (Musso et al., 2001; Notteboom and Winkelmans, 2001; Heaver, 2002)....
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...Waiting time for berths is minimized, and the particular needs of the traffic or the stacking sequences can be planned to the complete satisfaction of the carrier (Heaver, 2002)....
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