Understanding hinterland service integration by shipping lines and terminal operators: a theoretical and empirical analysis

In the present competitive environment of ports, the key determinant in port competition is the ability of a port to be integrated into the local maritime and hinterland transportation chain. Creating effective integrated hinterland chains requires the coordination of several actors both in port and the hinterland. By making use of insights from Transaction Cost Economics and Resource-based View, the paper helps to understand why and how shipping lines and terminal operating companies enlarge their scope in intermodal transport and in inland terminals. The paper discusses a number of cases from the Hamburg–Le Havre range, where shipping lines and terminal operating companies have changed their scope of activities in ports and hinterland networks. After the theoretical and empirical analysis the papers draws conclusions on the explanatory power of the theories in understanding hinterland service integration by shipping lines and terminal operators.     

盘锦港及后方铁路通道运能优势分析

盘锦港是辽宁沿海“十二五”规划扩建的贸易港口,以散杂货、石油、集装箱等运输为主,是东北腹地距离最近的下海口。结合沈阳铁路局路网规划和相邻港口铁路运能情况,阐述了盘锦港后方铁路在运输能力和运输径路灵活、发达的特点,盘锦港及后方铁路通道能力富余,发展空间广阔：分析盘锦港的吸引范围,并对盘锦港主要承担的大宗货物品类的运量进行预测,认为盘锦港及后方铁路通道在运输距离和运输费用上优于相邻其他港口,具有潜在优势。     

Political issues in inland waterways port development: prospects for regionalization

In the vast scientific literature on maritime transport, one theme appears neglected: the juridico-political framework in port development. We first examine how the jurisdictional control influences the allocation of resources and financial responsibilities. Second, we carefully evaluate conventional theoretical explanations of the process of port development as it generates important consequences on port policy formulation. We suggest that the concept of the port transition needs to be positioned within a new paradigm of the regional economy. Third, by focusing on three case studies namely France, China and Canada, we provide an understanding of institutional structure and how they reflect tendencies in port development. We then investigate regional flows, particularly the role of offshore, inshore and coastal traffic. Fourth, we present policy options for regionalization of ports. Fifth, we explore the regional elements of the port transition and provide an appreciation of the new role of the State in port development policies. The paper concludes on the adoption of new paradigm in port development strategies.     

A strategic network choice model for global container flows: specification, estimation and application

Container flows have been booming for decades. Expectations for the 21st century are less certain due to changes in climate and energy policy, increasing congestion and increased mobility of production factors. This paper presents a strategic model for the movement of containers on a global scale in order to analyse possible shifts in future container transport demand and the impacts of transport policies thereon. The model predicts yearly container flows over the world’s shipping routes and passing through 437 container ports around the world, based on trade information to and from all countries, taking into account more than 800 maritime container liner services. The model includes import, export and transhipment flows of containers at ports, as well as hinterland flows. The model was calibrated against observed data and is able to reproduce port throughput statistics rather accurately. The paper also introduces a scenario analysis to understand the impact of future, uncertain developments in container flows on port throughput. The scenarios include the effects of slow steaming, an increase in land based shipping costs and an increased use of large scale infrastructures such as the Trans-Siberian rail line and the opening of Arctic shipping routes. These scenarios provide an indication of the uncertainty on the expected port throughputs, with a particular focus on the port of Rotterdam in the Netherlands.     

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.     

Hinterland transportation in Europe: Combined transport versus road transport

The dominance of road for hinterland services could be challenged by using rail-road or waterway-road transport because of costs, congestion and growing environmental constraints. A common dynamic that is very favorable to the development of combined transport is shared among the actors of the transport chain but with different starting positions considering the ports of the Northern Range.But combined transport must still demonstrate that it can compete with road transport. Road transport and combined transport are not directly comparable because they do not offer the same physical transport service. The organizational patterns of road and combined transport are investigated. The example of hinterland services to and from the port of Le Havre to the Paris region is a particularly interesting case because of the very short distance. It is shown that the competitiveness of combined transport in terms of price varies greatly according to the way road transport it competes with is organized and that the commercial policy of combined transport operators plays a key role for explaining this competitiveness. Additional services such as additional dwelling times and specific custom advantages are paramount of importance to encourage the shift from road transport to combined transport.     

On determining the hinterlands of China's foreign trade container ports

The boundary lines of the hinterlands of container ports, for as long as these exist, serve as reference points for future port development and infrastructure planning. In earlier efforts to delineate the hinterlands of Chinese ports, either the number of ports considered was limited, or the demarcation of hinterlands was based on aggregate port throughput only. As a result, none of these studies has allowed a clear understanding of the characteristics of shared hinterlands. To address such shortcomings, the membership degree method and the Huff model have been used here to delineate, if at all possible, the hinterlands of China's 20 major foreign trade container ports. The results reveal the existence of fierce port competition for China's hinterlands, with the hinterland characteristics of different types of ports varying in scope and spatial continuity. Our research has important policy implications for central- and local governments, as well as port authorities. In short, ways to strengthen inter-provincial port cooperation should be a top priority to policymakers going forward. Due to the unavoidable onslaught of diseconomies of scale in cargohandling, international hub ports should focus on the development of strong, port-centric maritime clusters and international shipping centres. Regional hub ports should coordinate better their relationship with international hubs and feeder ports. Finally, the latter ports need to plan their development cautiously in order to avoid unfettered and wasteful expansion.     

Modeling port competition from a transport chain perspective

This paper considers the competition between two ports involving both hinterland shipments and transhipments. Taking a transport chain perspective including deep-sea, port, feeder and inland transportation, we present a static cost model to examine ports’ relative competitiveness and justify the development of game models. A non-cooperative game model is then formulated for a two-ports-one-ocean carrier system. The optimal ports’ pricing and the carrier’s port-of-call decisions are derived. A centralized supply chain model is then discussed. The game model is further extended to uncertain demand situations. A case study of Southampton and Liverpool ports is provided to illustrate the results.     

A strategic model of port-hinterland freight distribution networks

This paper presents a strategic model for port-hinterland freight distribution networks. The approach utilizes a combination of a multi-objective optimization model to estimate locations and networks of distribution centers and an assignment model that recognizes distributed service level preferences. Our example application concerns the European continent and is transferable to other regions. The model calibration is able to explain the European port-hinterland distribution structures satisfactorily. We compute novel performance measures that take into account port-hinterland distribution structures. The measures include port-hinterland transport cost, port-hinterland transport time, and distribution center-hinterland transport time. These measures can provide inputs for port-connectivity studies.     

A strategic appraisal of the attractiveness of seaport-based transport corridors: the Southern African case

The past decade has brought significant growth at, and competition between regional gateway ports and intermediate hub container ports in Southern Africa. Corridors are the essential link between these ports and continental hinterlands. Capacity expansions of seaport and corridor networks (resources), in conjunction with efficient transport services/operations (capabilities) are important to guarantee the attractiveness of a port–corridor combination. This paper focuses on the attractiveness of three Southern African container gateway port corridors (Southcor, Natcor, and Trans-Kalahari Corridors), all contesting the same continental hinterland, namely, Gauteng. By means of a corridor stakeholder survey, this study merges the corporate strategy concept of resource and capability appraisal, with various theoretical principles of corridor attractiveness. The resultant adapted resource and capability corridor appraisal model is then applied to the three corridor cases in question. Consequently, this study presents an empirical framework which identifies each corridor’s key strengths, key weaknesses and the extent to which each corridor is deemed ‘attractive’ by its stakeholders. Furthermore, this study reconciles theoretical assumptions of corridor attractiveness against actual perceptions of corridor attractiveness from surveyed stakeholders.     

Port connectivity in a logistic network: The case of Bohai Bay,China

While traditional port literature uses origin and destination pairs in global shipping networks, recent developments of dry ports in the hinterland, feeder service networks, and heavy foreign trade traffic make the ports in Bohai Bay a unique case in the analysis of inter-port connectivity and competitiveness. Using an integrated port connectivity index to define the above features, the advantages and challenges of individual ports can be assessed in a dynamic interconnected environment. The model can provide unbiased port development strategies for each port to ensure long-term sustainability.     

Measuring the quality of port hinterland accessibility: The Ligurian case

Traditionally, distance was considered the parameter that could better reflect the economic influence of a seaport on land. Containerisation and intermodality progressively eroded such a paradigm and currently distance became only one of the factors across the overall “equation”. In this respect, a fundamental role is played by the effectiveness of inland connections. The better the connection of a port to the various inland markets, the bigger the potential to enlarge its overall captive area. Furthermore, the higher the “frictions” (bottlenecks, delays, etc.) for reaching the hinterland, the lower the inland traffic flows.The major purpose of the paper is to measure container traffic diversion from Ligurian ports (Genoa, La Spezia and Savona) to the main Italian and European competitors.The application of a gravity model will reveal the current role of distance in drawing hinterland market share among the selected ports. Moreover, for evaluating the unexploited potentialities of Ligurian ports, we compared real traffic flows with the outcomes of a spatial interaction model, reassigning inland container flows to the different sampled ports. The calculation of the traffic delta through a gap analysis, allowed measuring the “frictions” thwarting the connectivity between the Ligurian ports and the sampled hinterland regions. Finally, the paper discusses the nature and the reasons for the above traffic diversion.     

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.     

Comparing maritime containers and semi-trailers in the context of hinterland transport by rail

The purpose of this article is to investigate why rail is used to move semi-trailers to and from seaports to lesser extent than it is used to move maritime containers, and which actions can foster an increase of semi-trailer transport by rail. The two types of load units are obviously used in quite different logistics settings. The two transport segments are compared in terms of the transport markets they serve, the competition they face and the operational and technological principles upon which they operate.The empirical setting is the transport of general cargo in load units between Scandinavia, Continental Europe and the UK, although the container segment is analysed as an element of deep-sea liner shipping. Empirical findings are drawn from the case of the Port of Gothenburg and its Scandinavian hinterland. Sustained double-digit annual growth has led to a situation where most of the potential market for the hinterland transport of maritime containers has already been realised. The challenge for further growth is now to capture the semi-trailer segment.Not surprisingly, this analysis shows that rail is more competitive for the hinterland transport of containers than of semi-trailers, but there are still significant opportunities for reaping the benefits of rail transport of semi-trailer transport in the hinterlands of European ports. An increased integration of rail transport and Roll-on/Roll-off shipping will not only require, but also encourage, changes in the overall system design as well as its competitiveness compared to all-road and all-rail services.     

Network analysis of container barge transport in the port of Antwerp by means of simulation

Inland navigation plays an important role in the hinterland access of the port of Antwerp. In this paper alternative bundling strategies for container barge transport in the port of Antwerp are analyzed. Four alternative hub scenarios are simulated and compared with the current situation with respect to the operational characteristics of the network. Discrete event simulation is used to analyze the impact on waiting times and capacity utilization at potential hubs and at sea terminals. The hub scenarios under investigation are the organization of an intermodal barge hub on the right river bank, an intermodal hub on the left river bank, a first multihub scenario with a local collection/distribution network and a potentially improved multihub scenario taking into account the specific structure of the port of Antwerp. The second multihub scenario offers most opportunities for reducing the turnaround time of all inland terminals. All hub scenarios lead to important efficiency improvements in the handling of barges at sea terminals.     

Urban gravity in the global container shipping network

While the spatial and functional relationships between ports and cities have been put in question in the last decades, the continued importance of urbanization and maritime transport in global socio-economic development motivates deeper research on their interaction. The global trade network is often studied at the country level and all transport modes included, concluding that distance remains a strong counterforce to exchange. This article wishes to detect whether the global container shipping network obeys similar properties at the city level. More than 2 million inter-port vessel movements between 1977 and 2016 are assigned to about 9000 ports and 4600 cities to run a gravity model on two different network topologies. Gravitational properties are found, as larger cities connect more with each other but less at distance. The degree of distance effects negatively expanded in 40 years, confirming the “puzzling” or reinforcing effect of distance, yet it varies greatly depending on node aggregation and network topology. We conclude that ports and cities continue to share important interdependencies, but these often rest on a detrimental physical transformation. A discussion is proposed about the underlying operational and theoretical mechanisms at stake. Keywords container shipping; gravity model; maritime trade; port cities; spatial interaction; world city networks.     

Port system evolution – the case of Latin America and the Caribbean

The explosion of global container trade in the last two decades has significantly influenced the port geography of Latin America & the Caribbean (LAC), leading to a concentration of container traffic at selected ports. Theory suggests that, as port systems become mature, they tend to deconcentration, partly due to the emergence of secondary ports. Previous research has examined the region’s dominant ports, but an unanswered research question is how the evolution of this port system is influencing and being influenced by the actions of those ports currently occupying a secondary rank in the LAC port hierarchy.The methodology is based primarily on analysis of time series data on container movements between 1997 and 2012, revealing patterns of cargo flows and transhipment location choices. The institutional context of devolution processes and new investments in the region provides additional insight into the performance of selected ports. From a theoretical perspective, this analysis is situated within the context of recent institutional approaches that examine the port’s ability to act through critical moments and junctures, in order to deepen understanding of which of the various factors influencing port system deconcentration are the most sensitive to successful institutional adaptations.Results show that the manufacturing of strategic locations can be successful and may have driven the emergence of secondary ports in the LAC system. This finding demonstrates how path dependence can be challenged by new developments, the identification and success of which are nevertheless contingent on factors such as the first mover advantage, port planning regimes and diversification of port roles. The paper identifies some of the key factors influencing the transition of a port system from concentration at a few dominant ports to a deconcentrated system of primary and secondary ports, which can be applied to other port systems in future research.     

Governing inland ports: a multi-dimensional approach to addressing inland port–city challenges in European transport corridors

Inland ports have been put forward as crucial linkages for efficient global freight transport and corridor development. However, the present understanding of inland ports appears to be limited to network-based views with a maritime port focus (Outside-In), in which inland ports play second fiddle. We argue that inland ports as independent structures (Inside-Out) deserve equal consideration and that in addition to the transport dimension, the spatial, economic and institutional dimensions of inland ports are vital and should not be neglected. The goal of this paper is to apply the concept of port–city challenges to inland ports. The results of an institutional analysis of Dutch case study evidence show that challenges facing inland ports and cities take many forms but that all share a commonality in the trade-offs between positive and negative externalities. We observe different governance strategies in coping with these trade-offs and find that a proactive stance towards zoning contributes to efficiently accommodating mutually exclusive dimensions of inland port development.     

A critical review on the evolution and development of inland port research

Over the past twenty-five years a considerable amount of literature has emerged that addresses inland port development in a variety of ways and in different institutional contexts. A recurring issue throughout most papers focusing on inland ports is the wide diversity of definitions, actors, functions, levels and geographies that are of relevance. Therefore, a literature review on inland port development contributes to defining the most important streams in inland port research. Recent studies show that the concept of inland ports is clearly much richer and more diversified than merely an extension of deep-sea ports or port logistics. However, as much of the literature is still largely based on individual case studies and anecdotal evidences, the conceptualization of inland ports has proven to be particularly difficult. Therefore, this review paper presents a systematic and integrated review of inland port studies, covering 80 international peer-reviewed academic journal papers on inland port development between 1992 and 2017. The results show that much attention is paid on inland ports as components of the ‘transport/logistics/supply chain’ systems (follower), while their roles as components of the ‘regional’ systems (leader) are largely overlooked. Such a tweaked focus is likely to pose significant impacts on planning, management, and governance of inland ports.     

Port system evolution in Ecuador – Migration,location splitting or specialisation?

Port facilities expand or are relocated from their original locations according to several factors, such as outgrowing a limited space or avoiding clashes of use with expanding cities. Previous spatial models such as the famous Anyport model imply a natural evolution in port systems which can in reality be complicated by issues of port governance and competition. The goal of this paper is to enrich the Anyport model with insights from port governance and the port life cycle model, focusing on strategies of port actors to avert a potential decline when the port reaches geographical or economic constraints.The empirical application explores the evolution over five decades of the port of Guayaquil, Ecuador's primary port and the second-busiest container port on the west coast of South America. In the 1990s and 2000s, port governance reform introduced devolution from the national level to local port authorities, the signing of terminal concessions to private operators and competition from other ports in the vicinity. In 2006 a new deep-water port, 85 km downriver and in a different governance jurisdiction, was proposed. Continuous legal and operational challenges stalled the construction of the new port, until it finally entered into operation in 2019. Despite this development, the existing Guayaquil port decided to go ahead with more channel dredging and to extend the existing container terminal concession for an additional 20 years in order to maintain its operations.Thus, rather than a simple port migration to deeper water based on specialisation of tasks between deep sea and feeder activities, what has emerged is a competitive situation for the same hinterland between old and new ports. The port life cycle model provides a more dynamic view than purely spatial models, highlighting governance conflicts between local and national levels, power dynamics between global carriers and port terminal operators, changes in intra- and inter-port competition and horizontal complexities arising from municipal and regional boundaries between existing and available port locations.