Port Users Research Articles

Maritime Security Regimes and Impacts on Nigerian Seaports

Nigeria is a signatory to International Maritime Organization’s (IMO) conventions and codes relating to ports and other maritime facilities. The Federal Government through its relevant agencies has taken some steps to domesticate and implement the provisions therein. In spite of the measures implemented so far, maritime security related problems still beset the national ports which have impacted on their performance. The purpose of this paper was to assess the impacts of port security regimes on security incidents and performance of Nigerian ports. Copies of structured Likert scaled copies of questionnaire were designed for this study. These were randomly administered to port operators and port users operating in Tincan Island port and Apapa ports complex. Their opinion on observed security incidents at the ports was elicited using the instrument. The primary data so obtained were augmented with secondary data on cargo and vessel throughputs handled at the ports. These were used as measures of port performance. To test the hypotheses governing the study, we applied the Partial Least Squares model to examine the relationship between port security regimes (proxied by port security measures) and port security incidents and port performance. The result showed that application of appropriate security measures can engender significant reductions in port security incidents and improved port performance. The policy implications of study findings were discussed.

Utilization of Cargo Handling Facilities in Nigerian Seaports

Cargo handling operations are critical to port efficiency. Optimal utilization of cargo handling capacity is a challenge facing most ports in Nigeria and this has had an adverse effect on port operation (i.e. ship and cargo operation). This paper assessed the extent of utilization of cargo handling facilities and infrastructure performance in Nigerian ports. It applied indicators of port facility service and utilization to examine usage of facilities & infrastructure as well as significant constraining factors in six ports namely: Apapa, Tincan, Rivers, Onne, Delta and Calabar ports. The secondary data for the study comprised cargo and vessel throughputs handled in the ports, number of facilities & infrastructure and berth performance measures for the period between years 2006 and 2017. These were augmented with primary data on factors affecting port facility utilization obtained through copies questionnaires administered to a random sample of port users. Our Empirical findings using statistical models showed that on the average, vessels that called for service in the ports spent one and half day before being allocated to berths; spent four days (4) at berth and a total of six (6) days at the port before sailing outwards. In terms of berth utilization for all ports, we found that ship berths were on average, fourty-eight percent (48%) occupied during the study period. When disaggregated by respective ports, berth vacancy rates were higher in Delta ports and Calabar ports in comparison to others; while Apapa, Rivers and Tincan ports had comparatively higher berth occupancy rates. According to the respondents, significant impeding factors to facility utilization and performance were: obsolete plant & equipment, inadequate number of cargo handling equipment, delays in cargo handling procedures and low investments in cargo handling facilities by the terminal operators. Policy implications of the findings were discussed.

Інвестиційні потреби та фінансування портової інфраструктури

The article emphasizes that very often the main benefits from port projects come from the wider community and the economy, rather than the port industry itself. This is especially true when ports invest in basic infrastructure to provide opportunities for future growth. In addition, a number of investment requirements have joined the ports' requirements to invest in basic infrastructure, as a result of broader societal imperatives, especially in the areas of environmental and energy policy. Ports, in addition to nodes of transport networks, are also sites for a number of activities that may require certain facilities. Based on this broad definition, it is possible to name different types of port infrastructure. There are twelve types of investment in infrastructure. Investments can relate to the construction of new infrastructure, as well as the modernization or reconstruction of existing infrastructure. In general, investments in maritime access benefit all port users, rather than specific segments and specific terminals in the port. Infrastructure investments are needed by seaports to increase their efficiency, address the growing and changing needs of production and supply chains, and adapt to the requirements of sustainable transport in terms of air quality, climate change and biodiversity. Increasing the size and complexity of the fleet. Growth of processing volumes in ports. Long-term transition to decarbonisation of the economy by reducing greenhouse gas emissions, increasing energy efficiency and absorbing low-emission energy sources. Stricter requirements for environmental performance and absorption of alternative fuels. Pressure to increase the modal distribution of more sustainable modes of transport. Pressure towards urbanization of coastal areas, especially in densely populated areas. Strong digitization of almost all parts of the economy, including manufacturing, logistics and transport. Port management models and responsibility for infrastructure investments. Generalized trends lead to investment needs in port infrastructure. Decisions on these investments are made by various entities. This depends on the current model of port management, which differs significantly from one Member State to another. Investments in viable port infrastructure are those that are expected to be of great value (to the benefit of both consumers and society as a whole) in terms of their costs. However, not all viable investments bring the necessary financial return on investment to make them commercially attractive based on the commercial situation. Ports are strategic assets and are defined as "critical infrastructure"). The geopolitical dimension of port development reinforces the argument for public funding mechanisms, as the lack of such mechanisms will accelerate the participation of foreigners in the development of critical port infrastructure. It is necessary to form a platform with mechanisms for providing final support for port development and certain investments.

The Port Community System as an example of integration of port users

The paper addresses the use of integrated IT systems in integrated transport management, and in particular the use of the Port Community System in communication between an integrated transport operator and individual carriers or loaders in the organisation and execution of specific transport functions where a large part of cargo operations are performed in seaports. Its objective is to present the opportunities offered by the PCS for the integration of actors in integrated cargo transport in the context of ensuring safe and efficient transport services. The paper presents the key aspects of the ongoing transport integration process, and most importantly, the role of a port as an integrator of organisation and execution of processes necessary for cargo handling. The capabilities and functionality of the PCS system are analysed, and the relational networks offered by the system are presented. Additionally, emphasis is placed on the urgent need to fully implement a single harmonised IT system across Polish seaports.

Port Cooperation and Bundling: A Way to Reduce the External Costs of Hinterland Transport

The present paper studies the bundling of road cargo flows of neighbouring seaports to a common hinterland. In specific cases, some hinterland flows can be too small to make bundling in a sufficient frequency possible. By combining the road freight flows of neighbouring ports, this problem can be solved. However, the additional cost of bundling and the loss of time need to be compensated for by a lower transport cost. The paper presents an empirical model for the 104 core Trans-European Transport Network (TEN-T) ports of the European Union (EU) and their 271 NUTS2 (Nomenclature of Territorial Units for Statistics) hinterland regions that allows identifying opportunities for bundling as well as the direct and external cost effects. By including the value of time (VOT) of each transport mode, the generalised cost is also calculated. The result is a business model that helps port authorities, and other port actors, to identify bundling projects that will lower the direct, generalised and external costs of the hinterland connectivity, thus increasing the port attractiveness for port users as well as lowering potential aversion by the surrounding community to port operations that create hinterland nuisance.

The strategic design of port services based on a total landed cost approach

PurposeThis paper explores the effect of port's service time, particularly the mean and variability, on shippers' total landed costs to determine the competitive position of the port and derive recommendations for the strategic design of port services.Design/methodology/approachThe competitive position of a port is estimated considering the service level offered to the end-users of the port such as port service time, its variability and its effect on the total landed costs observed by the port users. The proposed methodology is meant to help ports to determine the required service time levels to maintain or gain a competitive advantage against other ports, in terms of attracting common hinterland's customers.FindingsResults show the advantages of considering service levels factors to determine the competitive position of a port, and what are the minimum characteristics required to capture more traffic volumes, that can help port managers to take strategic design decisions to better position the port in the current fierce market.Research limitations/implicationsThe proposed methodology is illustrated by considering a case study, which is the Port of Guaymas in Mexico. Data was not directly collected by the port, but based on interviews with shippers and public information, a representative case is presented. Due to a confidentiality agreement with the Port, specific references for most of the data used to estimate the model's parameters are not provided. The analysis is intended to show the potential value of this mechanism and can be used for evaluating the competitive position, from a high-level perspective, of any port to determine potential hinterland by improving the service level of the port.Originality/valueThe existing literature on port choice and port competition has not previously considered the effect of port service levels under the perspective of total landed costs of the users, being this paper a contribution to fulfill this gap.

Time to build: A real options analysis of port capacity expansion investments under uncertainty

Port capacity investments are large, expensive and uncertain. They also involve long construction lead times. Therefore, choosing the timing and size of port investments appropriately to serve trade growth is important. This paper presents a real options model to value the option of single-phase (service) port expansions with flexible investment timing and size under uncertainty. The model moreover takes the construction lead time into account. This model allows comparing investment in the expansion of a port already operating and generating revenues with an investment in a greenfield project. An existing port has incentives to protect users from congestion resulting in delays and to protect their port revenues. Therefore, the higher the port users’ aversion to waiting, the earlier the port is expanded and the smaller the expansion. Oppositely, in a greenfield project, increased waiting-time aversion leads to projects being undertaken later and being larger. The impact of increased time to build on both the investment timing and size is ambiguous, since this construction lead time increases uncertainty, but at the same time also reduces the present value of cash flows. Increased public ownership leads to earlier investment, but not necessarily more capacity.

Industry 4.0 in the port and maritime industry: A literature review

Ports and terminals have evolved and from the 2010s have entered into a fifth stage of evolution characterized by their digital transformation and alignment with Industry 4.0 practices. Co-operation among agents is a key element and integration not only involves Port Authorities, Terminals and Port users and related Port Services Providers but the city, port's hinterland and well beyond the Global Supply Chain. Internet of Things and sensing solutions, cybersecurity, horizontal and vertical system integration, cloud computing, 3D printing and additive manufacturing, big data and business analytics, augmented reality and simulation and modeling are the pillars of Industry 4.0. Some of those are mature enough in the port and maritime industry. However, others remain in their earliest stages in this business and thus, poorly covered by the scientific literature. The article reviews the state of the art on these new emerging technologies, summarizing how ports and terminals are deploying specific projects in the new era of smart ports and Ports 4.0.

스마트항만 도입에 대한 항만 운영자와 이용자 간의 인식차이에 관한 실증연구 - 광양항을 중심으로 -

스마트항만 도입에 대한 항만 운영자와 이용자 간의 인식차이에 관한 실증연구 - 광양항을 중심으로 -

Impacts of the choice habits of port users on the effects and efficiencies of port investment

To optimize the investment scheme of a port in a multiport region, it is necessary to analyze users' port choice habits and the feedback relationship between users' use experience and their port choice behaviors. This paper proposes a method to analyze the process of dynamic change in users' port choices after a specific port invests to enhance its competitiveness; the paper then establishes an analytical model to measure the evolution of port market share. The case study shows that users cannot fully perceive a utility increment at a port when their loyalties are at a lower level, but their loyalty may increase as they experience satisfaction with the port's services, and ultimately, they will fully perceive the objective utility of the port. This means that users' perceived subjective utility lags behind the port's objective utility; thus, a small and undeveloped port should not invest to its maximum capacity when users' loyalties are low but should reduce the port tariff so that users experience the improved service and then invest step by step to effectively give full play to the investment.

Case study on the Competitiveness Comparisons of Karachi Port with the Neighbouring Emerging Ports in Persian Gulf and Indian Ocean.

Purpose: This study evaluates competitiveness of emerging ports located in the Indian Ocean and the Persian Gulf. Traditionally, ports operational efficacy is evaluated only on basis of throughput, a case in point being the Lloyds International Port ranking. However, we do not concur with this approach and adopt a multicriteria methodology. Methodology: Three criteria - throughput, physical infrastructure, and performance are used to assess the operational efficacy of the ports. TOPSIS augmented with the “entropy weight” is used to devise weights for the chosen criteria and overall operational efficacy for each port is calculated. Results: The study revealed that infrastructure plays a critical role in the overall operational efficacy of the port. Karachi port is behind the contemporary ports in the Indian Ocean and the Persian Gulf because of its inadequate infrastructure. The results also highlighted that Jawaharlal Nehru Port ranked highest in considered ports while Port of Mundra ranked the worst. Practical Implications: The study can provide an insight to the port users about the competitive advantage amongst ports. Moreover, it also identifies the areas that can be improved for better efficiency. Originality: The research article is novel because no similar study has been conducted specifically on the ports in the Indian Ocean and the Persian Gulf.

Value Creation through Corporate Sustainability in the Port Sector: A Structured Literature Analysis

Corporate Sustainability (CS) in the port sector has emerged as an important driver behind strategy definition for port authorities globally. It has been argued that CS practices have the potential of delivering value for port users and, as such, grant port operators and port managing entities competitive advantages. There is, however, limited evidence behind this claim. The difficulty with collecting such evidence is that we lack measures of port value creation, and CS metrics have rarely been developed and applied in ports. This paper provides a framework for collecting empirical evidence aimed at assessing in what way CS can benefit port competitiveness. The framework is built on a systematic literature analysis of the past years. The literature analysis exceeds previous comparable contributions by its analytical detail and provides valuable new insights on sustainability in the maritime domain. The research indicates that the accurate measurement of CS initiatives in the port sector is urgent and meaningful. When appropriately measured, the value that CS can deliver to port users becomes apparent. This is, however, often created indirectly via branding, risk mitigation, etc. The paper contributes to academic knowledge as it is the first to develop a rigorous CS measurement framework usable for ports in terms of value.

An Examination of Port Choice Indicators and Critical Transportation Parameters as a Basis for Port Selection

In view of the growing international trade in Sub Saharan Africa, and very few studies done on the determinants of port choice from the Sub Saharan African port users perspective, this paper proves that efficiency is one of the critical determinants of port selection. Efficiency is a critical transportation parameter. The kernel of the paper is to examine port choice indicators and critical transportation parameters as a basis for port selection. Fifty-one business representative from Sub Saharan African countries responded to the questionnaire to indicate what they consider as critical in their importation and exportation of shipment via ports in Sub Saharan Africa. The paper established that critical transportation parameters and key port indicators are determinants in the choice of ports.

An examination of the determinants of inter-port competition for U.S. imports

Decreasing transportation costs due to technological innovations and increasing trade volumes over the last two decades highlighted the importance of seaports in handling merchandise trade moving to and from other ports around the world. Therefore, we investigate the determinants affecting the attractiveness of a port in the United States for the period 2011–2013. To this purpose, we propose a two-stage methodological framework that has the benefit of dealing with the major data requirements and the computationally intensive nature of port choice models. We find evidence that port charges and port congestion are key factors in the decision making process of port users. Evaluating the responsiveness of demand from varying port charges, we find that non-container ports are more negatively affected in the event of an increase of the own port charges. The possibility of substituting one port for another is higher for container ports reflecting that container ship operators often have interests in multiple container terminals along the coastline of the United States.

Port capacity investment size and timing under uncertainty and congestion

ABSTRACTWell-planned port capacity investments are required to accommodate growing maritime trade, especially in developing countries. Such investments prove to be expensive, irreversible and subject to uncertainty. Under these conditions, the application of real options is better suited than the traditionally used NPV approach, given that specific port and market characteristics are taken into account. In this paper, we consider the investment in a new container port. The port is operated by one single actor who also owns the port and absence of competing ports in the neighbourhood is assumed. Two decisions have to be made: the size of the port and when to build it. Our real options model evaluating the option of flexible size and timing of the investment is based on a geometric Brownian motion. This approach has the advantage of analysing the impact of economic growth and uncertainty independently. Additionally, port users differ in aversion to congestion. Our model allows examining this impact on the optimal port investment. This paper shows that ports with more waiting-time averse customers are better off when investment is delayed to install a larger port. This result holds in both privately owned, profit-maximising ports and government-owned, social welfare-maximising ports.

TÜRKİYE’DEKİ KONTEYNER LİMANLARININ ÇIKTISINA ÖNCÜ BİR GÖSTERGE OLARAK ENDÜSTRİYEL ÜRETİM

The purpose of this study is to determine the causal relationship between container traffic in Turkish ports and industrial production of Turkey considering the possible nonlinear structures and lagged impacts in order to generate results which are likely to be useful for the future planning of the ports. In accordance with this purpose, the non-linear test proposed by Diks and Panchenko (2006) has been used. The dataset consists of 172 monthly observations and covers the period between January 2005 and April 2019. According to the results obtained by considering the nonlinear structures, there is a significant unidirectional causality relationship from industrial production index to port throughputs and the impact continues during 3 periods (months). This situation can be thought to be caused by the intensive use of imported intermediate goods by Turkish producers. According to the demand level, it may take several periods for the changes in the future production planning to be reflected in the ports. These results are hoped to provide significant contributions both to ports, port users and policy makers in terms of strategy development and planning.

Strategy to Build a Transshipment Port as a Catalyst to Achieving Critical Mass for Sabah’s Economic Growth

Digital transformation has led to a new era of port development at an unprecedented pace. China represents a large percentage of total global trades, navigating the maritime silk-road to various global and regional ports. In Malaysia, the lack of concrete justifications for the issue of transhipment port strategy leads to a debatable framework. Hence, the aim of the paper is to critically discuss the strategy to build a transhipment port as a catalyst to achieving critical mass for economic growth in Sabah. The study draws heavily on existing literature on the theoretical evidence and the possible factors that shape strategy to build transshipment port in Sabah. Based on reviewed literature, various resultant strategies adopted to stand for their interest are discussed. In this way, this paper provides not only theoretical insights, but also strategically guides managers of organisations in Sabah, government, and businesses values towards building a transshipment port in Sabah to effectively retire cabotage policy to reduce cost, enhance port throughput, develop hinterland for critical mass, enhance ports-economic clusters connectivity, eliminate capacity bottleneck, unlock natural resources export potential, align port service towards regional port users’ needs and to give regional port powers a run for their money.

Measurement of port performance from users’ perspective

Purpose Going beyond the usual approach of measuring port performance – focusing on the efficiency of port operations – this paper aims to look into shipping lines and other port users’ perceptions on port performance. Design/methodology/approach The paper develops a framework measuring the perceptions of port users (i.e. shipping companies, shippers, etc.) on port performance. A typology of elements that shape port users’ perceptions has been developed with an eye on capturing the peculiarities of different port markets. Based on this typology, a tool to assess users’ perspectives, and subsequently evaluate, any given port has been developed. The tool provides port authorities the flexibility they need for customized approaches. The developed evaluation mechanism has been tested on a group of European seaports, and the results are presented by this study. Findings The framework and its pilot application unveil the key parameters that port users take into consideration when evaluating the effectiveness component of port performance. Moreover, the importance and evaluation ratings of specific performance parameters allow for a GAP analysis of the collected data. Research limitations/implications The paper advances scholarly and practical discussion on how of port users’ perceptions can be a valuable tool for port performance measurement. Practical implications The proposed tool can be a valuable add-on for port authorities to evaluate their performance from the port users’ point of view and take the necessary actions to improve it. Also, the tool can be used for the evaluation of a new process, infrastructure. The evaluation of port users’ perception of port performance can and must be part of a European ports observatory, as it is a set of indicators that clearly reflects the satisfaction of port users by engaging their view on port performance issues, instead of relying almost exclusively on port-generated data. Originality/value The paper develops a framework for measuring port user’s perception on port performance, which is flexible and can be applied in any port.

Sustainability initiatives in Canadian ports

Canadian ports contribute to the Canadian economy and social development. Society increasingly expects Canadian ports to balance economic growth with social and environmental impacts. In response, some Canadian ports have implemented strategic initiatives to integrate sustainability into their operations. Through participation in the Green Marine (GM) program, these ports can measure and improve their environmental performance. This study evaluated sustainability and environmental performance at 18 Canadian major ports. Twenty-five pre-defined indicators were used to identify operational trends linked to port sustainability. Annual performance reports (eight years) published by GM were analyzed to assess trends in environmental performance. All Canadian major ports participated in the GM program, but only seven proactively integrated sustainability into their operations. Sustainability initiatives included environmental policy development, environmental monitoring, proactive energy management, stakeholder engagement, incentivizing sustainability for port users, enhanced environmental reporting, and on-going research and development. All Canadian ports need to integrate sustainability and participate in GM to improve environmental performance and remain competitive in the global maritime supply chain.

Divergent effects of container port choice incentives on users' behavior

Port choice decisions are often considered to be based on unambiguous choice criteria. The authors examine how port users' evaluation of these criteria can differ and how this may affect actors' incentive structure and decision making, and ultimately port performance. Apart from ports' physical characteristics, the paper considers port policy and freight market conditions as components of actors' incentive structures. As port users interact, each actor's decision making has consequences for the incentives offered to others – with an important role for strategic behavior. The aggregate of port users' decisions affects a port's throughput, cargo composition, and value added, and has implications for handling efficiency. This paper combines these insights within an overarching framework linking port characteristics, policy, and freight market conditions to port user choice behavior and the consequences for ports.The paper explores various facets of this framework using the case of how the Port of Rotterdam competes along the Hamburg–Le Havre range, drawing on port throughput data on various levels of detail and in-depth interviews with a representative selection of port stakeholders. It shows that there is a downside to ports being particularly attractive to carriers, in that the port that offers the most incentives to carriers disproportionately attracts relatively low-value activities: inefficient calls and a large share of empty containers, along with a strong import/export imbalance. Interview findings contextualize the findings from the data and elaborate further on the mechanisms underpinning these observations. Most importantly, the attractiveness of a port for carriers does not always translate into attractiveness for shippers. The challenge for port policy is to balance the port's positioning toward its different categories of users and achieve a congruent value proposition for all port users.