Container Port System Research Articles

English

The Southern African container port system features a diverse range of different port types and sizes from five African countries. Collectively, ports in this region constituted a significant 40% market share of all container traffic through the African continent in 2005. One of the busiest container ports on the continent, the Port of Durban is located within the Southern African region. The region has seen strong port development in the last 15 years with new ports entering the market or existing ports expanding their supply. Competitive dynamics in the Southern African container port system are however not well researched. Building further upon economic literature and empirical studies on port competition, competitiveness and on port geography literature on the development of port systems, this paper provides an academically-sound and policy-relevant assessment of the development paths of the Southern African container port system. The paper includes a detailed container traffic analysis, applying the net shift model, for major container terminals in South Africa, Namibia, Mozambique, Madagascar and Mauritius from 1985 to 2010. The paper also discloses the level of concentration or deconcentration. Concentration/deconcentration factors applicable to the port system and its respective ranges are identified together with a port range developmental path (linear or non-linear) for each. As such, the paper complements earlier empirical research on European, North American and Asian port systems and thus contributes to advancing and broadening the methodological and empirical discussion on port system development.   Key words: Southern African container ports, Container traffic Analysis, Net Shift, Port Development Patterns.

Container port systems in China and the USA: a comparative study

This study compares the evolution of container port systems in China and the USA in terms of port throughput, number of container ports and the concentration level in the container port system, based on the time-series data on these three features over the period 1979–2009 for China and 1970–2009 for the USA. The results show that the densities of container ports in the two countries are similar, and their evolutionary processes are alike, which has led to a comparable market structure in the port industries of the two countries. In addition, the disparities between container ports closely represent the unevenness in the regional economic development. We further compare the port management regimes of the two countries in terms of the administrative processes for port development and expansion, the ownership structure and the providers of port functions, which offer some explanation on the dynamics of port evolution in the two countries. In conclusion, it can be seen that the evolution of the container port system and the management regime in the USA can be a de facto reference for the future development of the Chinese container port system.

Peripheral challenge in container port system: A case study of Pearl River Delta

The growth of peripheral ports to dominant hubs has been well documented in North America and Europe, and has led to the elaboration of several theoretical models. However, although changes in containerization growth have been taking place in the South and East Asia in recent years, particularly in China, only a few studies have focused on this region. The Pearl (Zhujiang) River Delta (PRD) has a typical port system with hub and peripheral ports, and provides an excellent case for studying the Peripheral Challenge. This paper introduces the theoretical evidence of the Hayuth model and analyzes the evolution of the container port system in the PRD with five phases: 1) phase I: preconditions for change and phase II: initial container port development in the 1970s and early 1980s; 2) phase III: diffusion, consolidation, and port concentration in the middle and late 1980s; 3) phase IV: the load center in the 1990s; and (4) phase V: the Peripheral Challenge since the late 1990s. The results illustrate that the Shenzhen port presents mounting challenges to the Hong Kong port, descending from a transshipment hub of China to a regional load center of Southeast China. Furthermore, this paper explores five points that have led to the evolution of the port system in the PRD: 1) competition in the regional port systems; 2) different interested parties; 3) shift of investment strategies of international terminal operators; 4) integration of shipping networks and reorganization of carriers; and 5) cost-based competition.

A Study on the Change of Container Port System in Northeast Asia

A Study on the Change of Container Port System in Northeast Asia

Evolution Dynamics of Container Port Systems with a Geo-Economic Concentration Index A Comparison of Japan, China and Korea

Evolution Dynamics of Container Port Systems with a Geo-Economic Concentration Index A Comparison of Japan, China and Korea

An application of multi-criteria analysis to the location of a container hub port in South Africa

The South African container port system is subject to a major revision of the existing port hierarchy. The aim is to move away from a set of gateway ports to a hub port configuration. Such a shift would allow the South African port system to benefit better from market dynamics. This paper deals with the application of multi-criteria analysis (MCA) to the evaluation of three alternative locations for the development of a large hub port in the South African container port system (i.e. Durban, Richards Bay and Ngqura). Three groups of selection criteria are identified: criteria relevant to the port users, to the terminal operators/investors and to the community. The MCA model gives the best score to Ngqura with Durban taking second place.

The development of the Yangtze River container port system

This paper sheds an empirical light on port development patterns by discussing the structure and the development of the Yangtze River ports system. We argue that the Yangtze River system is going through a regionalization phase, mainly in relation to the port of Shanghai. This process started on the lower Yangtze but is now also moving upstream. The transition towards the port regionalization phase is typically a gradual and market-driven process that mirrors the increased focus of market players on logistics integration. This paper builds on the existing literature on port systems and adapts port development models to river ports. Furthermore, we employ some statistical techniques that are common to the analysis of port systems, and introduce some techniques that have not been used much by transport geographers in ports. This paper will address the dynamics in the Yangtze River ports system by analyzing the level of cargo concentration and the degree of inequality in operations of the container ports. The paper also assesses observed differences in development of ports in different areas along the river (upstream/downstream) and reflects on the role of ownership structures in shaping regional load centre networks.

Evolution Dynamics of Container Port Systems with a Geo-Economic Concentration Index: A Comparison of Japan, China and Korea

Evolution Dynamics of Container Port Systems with a Geo-Economic Concentration Index: A Comparison of Japan, China and Korea

Concentration and the formation of multi-port gateway regions in the European container port system: an update

The European container port system features a unique blend of different port types and sizes combined with a vast economic hinterland. This paper provides an update of the detailed container traffic analysis developed by Notteboom (1997) by extending it to the period 1985–2008 and to 78 container ports. The paper also aims at identifying key trends and issues underlying recent developments in the European container port system. These trends include the formation of multi-port gateway regions, changes in the hinterland orientation of ports and port regionalization processes. While the local hinterland remains the backbone of ports’ traffic positions, a growing demand for routing flexibility fuels competition for distant hinterlands between multi-port gateway regions. The prevailing assumption that containerisation would lead to further port concentration is not a confirmed fact in Europe: the European port system and most of its multi-port gateway regions witness a gradual cargo deconcentration process. Still, the container handling market remains far more concentrated than other cargo handling segments in the European port system, as there are strong market-related factors supporting a relatively high cargo concentration level in the container sector.

From multi-porting to a hub port configuration: the South African container port system in transition

This paper addresses the tension that exists between multi-porting and a hub configuration in the South African container port system. We apply a generalised cost model to two alternative network configurations: the actual situation of multi-porting and an alternative hub port configuration. The results demonstrate that South African import and export flows are likely to face small cost increases when the port system moves to a hub port configuration. However, from a ship operator's perspective, the hub configuration is more attractive given considerable cost reductions in marine charges, port dues and ship costs. The paper concludes by underlining Transnet's pivotal role in the attractiveness of the hub option and the need for a wider Sub-Saharan strategy in view of making the hub port concept work.

Modified Herfindahl–Hirschman Index for Measuring the Concentration Degree of Container Port Systems

In the evolution of the container port system, “concentration” has been highlighted in both shipping practices and the literature. However, existing concentration measures such as the Herfindahl–Hirschman Index (HHI) cannot appropriately be used to measure the degree of concentration of port markets. This paper aims to develop a standardized index for measuring the concentration degree of container port systems on a country level. The geo-economic concentration index, a modified HHI that considers competitive interactions between ports by incorporating geographical and economic characteristics of countries, is presented. The developed index was applied to 10 selected port systems to examine how their concentration degree changed from 1975 to 2007. The results show that the modified HHI can better reflect the concentration degree of port systems than the conventional HHI.

Container Throughput Dynamics in the East Asian Container Port System

This paper analyses container throughput developments in the East Asia container port system. Throughput evolutions and concentration/deconcentration patterns in the multi-range container port system of East Asia are analysed. The paper also provides a more in-depth qualitative analysis of the reasons underlying the observed trends and results. It is demonstrated that the East Asian port system is undergoing major structural shifts in cargo patterns and is witnessing a cargo deconcentration trend as a result of the rise of the Chinese ports and the relative stagnation of the Japanese range.

Traffic inequality in seaport systems revisited

This paper discusses traffic inequality in the European and North American container port systems by means of the so-called inequality decomposition analysis. The results show that the observed traffic concentration levels in the North American container port system are emanating from strong inter-range structural differences whereby some port ranges are increasingly dominating the whole system. Alternatively, the European port system is reaching a more balanced composition of the Gini coefficients.

International Container Port System Concentration: What Does it Look Like?

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.

Structural changes in logistics: how will port authorities face the challenge?

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.

Structural changes in logistics: how will port authorities face the challenge?

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.

The evolution of a regional container port system: the Pearl River Delta

This study investigates the progress of container port system development in South China, focusing particularly on the interplay between Hong Kong and the other ports in the Pearl River Delta (PRD) region. After identifying the downgrading trend of Hong Kong from a transshipment hub port for Asia and for China as a whole to a regional load center and the emergence of other deep-sea direct-service ports, the paper looks into the causes of this structural change of the port system. Four major causes are identified: the cost-base competition, the impact of the unique “one-country two-systems” policy, the impact of globalization and container standardization, and the impact of multi-modal accessibility and connectivity. The paper reveals that the interplay between different governments and between the governments and port operators are the local mechanisms that together as a whole respond to the shippers’ needs and the shipping lines’ pressure. It confirms that the interdependencies and competitive relations between terminals are being played out at a regional level. While the particular situation of the PRD is unique in many regards, the features emerging there, with its dominant hub, its network of feeder ports and its emerging direct-service non-hub terminals, are being replicated elsewhere.

Concentration and load centre development in the European container port system

Only a few theories exist on the development of a container port system in relation to forelands, hinterlands and the technological environment. Moreover, very few were ever applied to the European container port system. This study examines recent dynamics — in particular, concentration and deconcentration tendencies and load centre development — in the European continental container port system for the period 1980–1994. It is demonstrated that the prevailing assumption that containerization leads to further port concentration is no longer confirmed. The results of the concentration analysis are fitted into some models on the development of port systems. Furthermore, the factors affecting the future concentration pattern in the European container port system are discussed.