Port-centric Logistics Research Articles

Regulative Intervention on the Relationship between Quality Management and Operational Performance of Third Party Port-Centric Logistics Firms in Kenya

This research paper explores the effect of regulated environment under which third-party port-centric logistics (3PL) firms in Kenya operate by looking at the relationship between quality management and operational performance. The study tested the conceptual model of the relationship between quality management and operational performance variables. The objective of the study was to determine the effect of the regulative intervention on the relationship between customer orientation and operational performance of third party port-centric logistics firms in Kenya. Port-centric logistics services providers are highly regulated firms and therefore critical to find out the effect of this regulated context on the operational performance of these firms. The relationship between quality and operational performance has been tested and documented in numerous environments in varied studies. A survey design based on disproportionate-stratified sampling approach consisting of 164 firms (18% of the population) guided the methodology of this study. The sampled firms (164) were served with questionnaires and a response rate of 75.6% (124 firms) was achieved. Data analysis was carried out using moderated multiple regression (MMR) analysis where relationship between the quality and other variables and the dependent variable was computed. Test of internal consistency, validity test, reliability, and normality test, were conducted, all indicating appropriateness of data. The strength of the regression model was 53.6% (adjusted R2) which was considered good enough, appreciating the fact that operational performance is also affected by myriad factors outside the model. The null hypothesis (H0) was tested, and the results indicated that there was statistically significant evidence that regulative context affects the relationship between quality and operational performance. The results indicate that R = 0.709, R² = 0.502 and [F (2, 120) = 60.582, p = 0.000] with the value of R² showing that 60.582% of the variance in the third-party port-centric logistics firms’ performance can be accounted for by quality management scores and regulation and statistically significant. The results detected an R² change of 0.022, [F (1, 119) = 0.022, p = 0.022], indicating presence of moderation effect, in such levels that are statistically significant (p < 0.05). By inclusion of the moderator, regulation gained 2.2% variance in the operational performance generating a conclusion that regulation significantly moderates the relationship between quality management and operational performance. The study was a success and the goal was achieved with the findings critically providing baseline information and knowledge that will play a critical role in the research agenda in the area of lean and operational performance, particularly in service management. The study also provides fundamental information, knowledge, foundational anecdote and a platform from which research agenda and policy discussions can be referenced. The study recommends policy formulation that will support measures to boost operations and quality amongst 3PL firms towards continuous improvement and growth. The findings will essence inform and booster 3PL firms that are efficient, and effective emanating from superior operational performance. This will also benefit customers (importers and exporters), and the national economies within and without the east and central Africa region. The study recommends that 3PL firms, although sometimes affected negatively by regulatory frameworks, take it upon themselves to device smart interventions that will lead to efficient operations in order to compete and emerge victorious in operational excellence and outwit in the competitive battle.

Cross-Border Capacity-Building for Port Ecosystems in Small and Medium-Sized Baltic Ports

Abstract One of the key challenges related to the threat posed by the COVID-19 pandemic is preservation of employment and protecting staff who are working in port operations and struggling to keep ports operating for ship calls. These activities performed by port labour are deemed to be crucial for the EU and European ports, since 75% of the EU external trade and 30% of intra-EU transport goods are moved by waterborne transport. As a response to the global lockdown and the vulnerability of global supply chains, the majority of international organisations and maritime ports networks have shortlisted measures necessary to keep the severe effects of the lockdown to a minimum. One of the key measures identified is how to limit physical interaction. As an effect, millions of people and organisations across the globe have had to use and/or increase their deployment of digital technologies, such as digital documentation, tracing information systems and digital group-working platforms. Hence, blockchain and data-enabling systems have become to be recognised as a core element maintaining the uninterrupted flow of goods and services at ports. In pursuing uninterrupted trade and keeping ports open and running, this research paper addresses how the current situation afflicts the small and medium-sized ports located on the Baltic Sea which are argued to be critical actors of the port-centric logistics’ ecosystem. Given the topicality of this research and addressing the research gap, the authors suggest a conceptual capacity-building framework for port employees. This suggested framework is based on empirical insights: primary and secondary data collected from the project Connect2SmallPorts, part-financed by the Interreg South Baltic Programme 2014–2020 from the European Regional Development Fund (ERDF). The conceptual framework aims towards a practical training programme dedicated to fill in the missing skills or expand the limited competence of human resources and ports’ capacity when adapting or advancing digitalisation in the ports’ ecosystems. In particular, specific areas of capacity building are addressed and individual solutions suggested to foster a digital transformation of ports. The conceptual training framework is designed as a training tool indicating opportunities to help ports upgrade their competences with the blockchain technology, and to advance their transportation, environmental and economic performance with improved digitalisation. For this purpose, the conducted research employed mixed methods and applied concepts and approaches based on the field of management. For example, the construct of absorptive capacity, organisational learning, transformation, resource-based view and the concept of dynamic capabilities are included in the ecosystem discourse and are linked with open innovation and service design. The research presented in this article provides both theoretical and practical contributions, in which the affected stakeholders can test and utilise the developed tool as well as transfer it to other regions.

Where to open maritime containers: A decision model at the interface of maritime and urban logistics

After an era of developing large-scale hinterland access for maritime containers by use of rail and inland waterways, research interest and practice has witnessed a slight shift towards port-centric logistics. The big question is where to open import containers and close and seal the ones for export goods. Is it better done in the port vicinity or should the maritime containers also be used for transport to and from the hinterland? In other words, where is the stuffing and stripping operations best located? Focusing on the import of goods loaded in maritime containers, this article provides a model for assessing the options of locating Distribution Centres (DCs) in the vicinity of the port or in the hinterland, or using a combination of the two. The model is illustrated by a case study of import through the Port of Gothenburg, Sweden, comparing a port-centric DC with a location in Falkoping, 130 kms inland. Unless more than 85% of the shipments out of DCs are bound for Gothenburg and its vicinity, the assessment favours stripping the maritime containers in the DC in Falkoping.

Supply Chain Integration Barriers to Port-Centric Logistics—An Emerging Economy Perspective

Abstract Despite the growing interest in supply chain integration and port performance in the maritime literature, there is a lack of detailed studies into the barriers to integration in port-centric logistics. This study explores the barriers to port-centric supply chain integration from an emerging economy and multistakeholder perspective by using the DEMATEL (Decision Making-Trial and Evaluation Laboratory) analysis technique. The findings indicate that institutional requirements, lack of awareness by stakeholders, and port-centric supply chain integration all significantly impact supply chain projects that have been designed to offer maximum value to customers at a low cost. Other crucial barriers include the absence of benchmarking standards and lack of an innovation culture. The policy and managerial implications are explained.

Identifying the market areas of port-centric logistics and hinterland intermodal transportation

Many port authorities have developed ambitious strategies to foster hinterland intermodal transportation. In addition, port-centric logistics, that is, the provision of distribution facilities and value-adding activities in the port area, has expanded in multiple ports. Obviously, such port-centric logistics may impact the operations in the hinterland substantially and could potentially reduce opportunities for intermodal transport in the hinterland. We analyze the interaction between port-centric logistics and hinterland intermodal transportation. We take a logistics service provider's perspective and we include some key elements in the model, such as detention fees, extra handling, transport efficiency and empty container repositioning. We develop new analytical results identifying the optimal market areas of truck-only transportation, port-centric logistics and hinterland intermodal transportation. Our results show that tension between port-centric logistics and hinterland intermodal transportation is quite likely to happen in practice. We additionally study the use of continental containers as a way to reconcile port-centric logistics and hinterland intermodal transportation and we derive further results. We illustrate our results via an example and we highlight managerial insights.

Proposing of a port-centric hierarchical logistics clustering model for Turkey

Logistics clusters, which are the spatial concentration areas of many logistics processes and operations of logistics related firms, make significant contribution to the competitiveness of economies and logistics companies via the development of logistics infrastructure and the creation of synergy based on cooperation. Therefore, establishing logistics clusters in areas which are close to the production and consumption centres, national and international transportation corridors, have developed transportation infrastructure and high access to airports and ports and are essential. This study performed qualitatively to respond to the needs of developing and promoting clusters and clustering in the logistics industry of Turkey. In this regard, the current situation of logistics centres in Turkey has been investigated, and by comparing with the best practices in logistics clustering in the world, the importance of port-centric clustering has been emphasised. Finally, considering the proposed model in the literature and by benefiting current and ongoing logistics centre investments a port-centric hierarchical logistics clustering model has been proposed via heuristic decision technique.

Evaluating Determinants of Effective Port-Hinterland Connectivity in Shanghai Ports

The development of globalization has caused sea transport to be incorporated into global logistics supply chains. With the hinterland being a key portion of the global supply chain, it has an increasingly close connection with container ports. Notwithstanding the hinterland’s importance for the development of the container port, extant studies overlooked the determinants of port hinterland connectivity. Therefore, this study firstly identifies the main factors that influence port hinterland connectivity from prior studies, and is followed by collecting data from port-related logistics companies in Shanghai ports through questionnaires. After presenting an overview of questionnaire results, this study then discusses the findings by employing an Importance-Performance Analysis. It indicates that Shanghai container ports should concentrate on the punctuality of hinterland transportation and regional accessibility. It is also implied that it should maintain work with government support, in terms of both policy and finance. There are some factors that are suggested to pay lower priority to or even possibly overkill, such as value-added services. Additionally, Shanghai container ports are far more suited to employ a strategy of dry port rather than port-centric logistics.

Port-centric cities: The role of freight distribution in defining the port-city relationship

The goal of this paper is to explore the intersection between two streams of literature: port cities and port-centric logistics. While many ports have moved out of city locations, partly facilitated by intermodal corridors, some ports remain in city locations, many retaining a large share of distribution activity in or near the port. This paper will consider distribution challenges arising from the port-city dynamic in relation to the port-inland distribution axis, in particular the role of port and city planners and decision makers in managing this process. The case analysis is based on the Port of Gothenburg, the largest port in Scandinavia.Findings suggest that the majority of influencing factors are marginally in favour of siting distribution facilities inland rather than near the port, yet city planning and national sentiment continue to incentivise development near the port. There are two conclusions for the port-centric city. First, it needs to coordinate its logistics from a regional perspective, determine what activities belong near the port and not compete with inland locations for what is better located there. Second, port-centric logistics needs to be better aligned with an urban freight transport and city logistics perspective.

Port Centric Logistics: An Evaluation for Aegean Region

Port Centric Logistics: An Evaluation for Aegean Region

Co-Opetition Between the Ports in Hong Kong and Shenzhen from the Users' Perspective

This study investigates empirically the current level of competitiveness and the major areas for possible collaboration between two adjacent ports in China – Hong Kong port and Shenzhen port, both are among the top ten busiest container ports in the world – from the perspective of their users – freight forwarders and shipping lines. A self-administered questionnaire survey with measurement in Likert scale was used to collect the required data from the users for comparison. Wilcoxon signed rank tests for single and paired samples were used to analyze the data. Results of the analysis show that Hong Kong port excels in facilities, services, and management while Shenzhen port surpasses in location and costs. The respective advantages are related to the historical development of the two ports and their geographical locations with respect to the common hinterland – the Pearl River Delta region. Ways to enhance collaboration between the two ports include, among others, information sharing to improve visibility, road network and other infrastructure investment to strengthen linkage, and joint venture to develop port-centric logistics. The findings shed light on the relative significance of the factors affecting the choice of ports of freight forwarding and shipping companies and provide an objective empirical basis for comparing the competitiveness between ports. The results can help the two ports in question reposition themselves to leverage further their respective competencies as advocated in the resource-based view theory. Major areas identified for possible collaboration between the two ports to achieve mutual benefits as promoted in the network theory also help strengthen the overall competitiveness of the port network in the long run.

THE IMPACT OF PORT LOGISTICS SYSTEMS ON A COUNTRY’S COMPETITIVENESS (CASE OF SMALL COUNTRIES)

Globalization processes determine the necessity to ascertain and use effectively the competitive advantages of port logistics systems on national and international levels.The purpose of the research is to analyse the impact of port logistics systems using the concept of port-centric logistics systems in small countries with the aim to increase their competitiveness.The use of the term “a logistics system” has been determined; therefore, it is expedient to describe the comprehensive application of the term “a logistics system”, which by implication must cover all elements of 8R principle. The authors ascertained competitiveness forms of port-centric logistics systems, dictated by the levels of the competition between ports: between whole ranges of ports or coastlines, ports in different countries, individual ports in the same country, operators or providers of facilities within the same port and between different modes of transport. The activities of port logistics systems must be investigated in a complex manner taking into account the factors and levels of a country’s competitiveness. Considering the particularity of port logistics systems, its functionality and effectiveness, a country’s economic growth and competitiveness are based on logistic flexibility. However, the particularity of a country’s economy determines the forms and nature of interconnections and processes in the structure of port logistics systems. Therefore, the competitive advantage of a small country could be generated through the improvement of effectiveness rates and indexes of the activities of port logistics systems.DOI: http://dx.doi.org/10.5755/j01.em.19.1.5612

The possible influence of the shipper on carbon emissions from deep-sea container supply chains: An empirical analysis

This article examines the extent to which shippers can influence the level of carbon emissions from the deep-sea container supply chain. It uses data collected in an online questionnaire survey of 34 large UK shippers, supplemented by the results of focus group discussions and interviews with a range of key stakeholders, including shipping lines, freight forwarders, logistics companies and port operators. The online sample comprised shippers responsible for inbound and/or outbound deep-sea containers flows. The amount of leverage that they can exert on ‘carbon-sensitive’ decisions depends partly on the Incoterms that they employ and their use of freight forwarders. Many large shippers still retain significant influence over the choice of carriers used for deep-sea and port feeder services, consignment routing and scheduling and the choice of port. Shippers responsible for inbound flows reported high levels of container fill, though opportunities exist for improving the weight utilisation of outbound containers, possibly by moving to a port-centric logistics model. Around 40 per cent of the shippers consulted currently measure CO2 emissions from their deep-sea container supply chains with only 6 per cent explicitly implementing carbon reduction initiatives. The research shows the importance of adopting a broader supply chain approach to decarbonisation in the maritime sector and emphasises the need for a multi-stakeholder perspective that recognises the important role of the shipper in the process.

Port-centric logistics, dry ports and offshore logistics hubs: strategies to overcome double peripherality?

Scotland's low accessibility is reflected in the limited share of Scottish unitised freight traffic coming through Scottish ports. This paper will discuss site development strategies to overcome Scotland's double peripherality (i.e. both physically and institutionally) by restructuring transport chains of large shippers through new corridors. Three competing logistics concepts will be discussed, beginning with the existing load centre terminal that provides direct access to the distant main ports. Second, port-centric logistics based at Scottish ports, and finally, offshore port-centric logistics utilising maritime links to a port-based distribution centre in Zeebrugge. The paper has two interlinked aims. First, to provide a firm theoretical grounding for recent maritime transport geography concepts, which has been lacking in the literature. This will be achieved by examining peripherality and responses to this by states at different scales, thus exploring how the three concepts in this paper can be viewed as attempts at spatial fixes of mobile capital. The second aim develops out of the first, and will explore how the perspective of space is treated in maritime geography as compared with other areas of geography. As a result, the paper pursues a cross-disciplinary approach by utilising theory from economic geography and political geography.

Determinants of a regional port-centric logistics hub: The case of East Africa

Demand for port capacity in East Africa is rising rapidly, and possibilities for expansion in the existing ports are limited. Studies indicate that, by 2016, a new port north of Dar es Salaam (Tanzania) should be operational, serving, as a regional hub, the needs of the total (captive and non-captive) hinterland of East African ports. The objective of this article is to assess the economic potential, in terms of logistics costs of alternative hub-port locations. To that effect we first describe the flow of goods in the Nairobi – Durban port range and the landlocked countries; the available inland transport options; and the related transport costs and quality of service aspects. The inland and maritime transport costs are investigated and compared next, for the import-export routings of 18 different trade combinations between six landlocked countries (Uganda, Rwanda, Burundi, DRC Great Lakes/Copper Belt, Zambia and Malawi) and five ports (Mombasa, Dar es Salaam, Durban, Beira and Nacala). The article estimates the parameters of a multinomial logit model by comparing the differences in logistics costs of routings via Dar es Salaam and other ports. A port demand function is derived as a result. The article concludes that, in view of its distance from the arterial maritime container trade routes, the new port could only function as a regional lower-tier hub and distribution centre for the trade of Tanzania and Kenya, and of landlocked countries ranging from Uganda in the north to Zambia in the south. At present, this role is mostly played by ports in the Middle East, whereas East African ports serve merely as transit points.