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.     

Patterns of maritime supply chains: slot capacity analysis

This paper offers a tool for analysing patterns of maritime supply chains. The study uses empirical data on slot capacity deployed by container shipping lines for analysing ports (as nodes) and routes and shipping lines (as links) that are embedded within the maritime supply chain. The ports of Singapore and Hong Kong are chosen to illustrate the respective transhipment and gateway perspectives. Findings reveal that geographical location and changes in the constitution of players can have reverberations on the maritime supply chain dynamics that traverse the port. Furthermore, evidence from trade route data also shows that maritime supply chain dynamics associated with transhipment and gateway ports could be governed by different levels of scope economies, demand complementarity and market power. The paper illustrates the abundant potential of slot capacity analysis for academic and industry/market research. Thus, future research can be pursued in various contexts and for different applications.     

Measuring connectivity in the air freight industry

In this paper, we present an air transport connectivity model for air freight. For the purposes of this paper, connectivity is defined as all possible direct and indirect connections to or from an airport operated by wide-body aircraft, weighted for the quality of the connection in terms of transhipment and in-flight times. Using this model, we analyse the networks of seven European airports. Europe’s largest hub airports carry most air freight thanks to their extensive intercontinental passenger networks, while smaller airports with a strong focus on air freight carry large amounts of cargo on dedicated freighter aircraft. For air freight operations, the catchment area of an airport is much larger than it is for passenger services, as shipments are being trucked to their departure airport throughout all of mainland Europe. Since there are many airports sharing the same catchment area, potential competition for air freight is fierce. We found that well located regions between the four large European airports have access to large air freight networks, whilst regional air freight connectivity in northern and southern parts of Europe is substantially lower.     

How air transport connects the world – A new metric of air connectivity and its evolution between 1990 and 2012

To understand as to how scheduled air services link a region to other markets, we develop connectivity and hub centrality metrics. These metrics measure the quality of all scheduled air services in terms of frequency, detours, layover time and destination quality using a valuation scale being derived from observed passenger behavior. By computing yearly scores for 1990 to 2012, we analyze the geography of and trends in worldwide connectivity and hub centrality. While we observe significant growth of aggregate connectivity, the trends are heterogeneous with regard to the type of connectivity as well as time and location.     

An economic–geographic assessment of the potential for a new air transport hub in post-Gaddafi Libya

Post-war Libya is faced with the challenge of adopting an air transport strategy for the future. One issue is how to address projects inaugurated under the Gaddafi government, such as the terminal extension at Tripoli International Airport. Additionally, the state-owned Afriqiyah Airlines had been establishing a niche hub in Tripoli before the 2011 war, but this development has subsequently been stalled.Against this background, we analyse the prospects of an air transport hub operation in Libya, focusing on traffic between Africa and Europe, from a bird’s-eye economic–geographic view. First, a literature review is undertaken to identify general success factors for air transport hubs. Second, a weighted average distance penalty (WADP) indicator is developed and applied to Tripoli as a potential hub location. This indicator considers all 4755 O&Ds between Europe and Africa with more than 100 passengers in 2012. For sensitivity reasons, alternative WADPs are estimated for the 3209 traffic flows not including North Africa and for (forecasted) future air traffic demand in 2020. The results for Tripoli International Airport are benchmarked against competing hub locations, such as Algiers, Cairo, and the major European airports. We conclude by discussing the implications of the current and anticipated future security and economic situation in the country.     

Hub competition and travel times in the world-wide airport network

The aim of this work is to measure the competition between airport hubs based on an analysis of travel times in the world-wide airport network. By considering the minimum travel time required to connect each pair of airports, it is possible to create new measures of hub competition, separating the effects of hub position and temporal coordination. This analysis was carried out at the global level, considering all 232 airports with more than 3 million seats yearly offered in departure flights in 2008, and also in relevant geographic markets. The results show a high level of competition among the most important world airports, but the major airports of Europe have a geographical advantage in relation to world markets over the major American and Asian airports. We also show that airports located in different continents often compete for the same origin–destination markets. Geographical position appears to be the most important variable explaining hub performance. Secondary hubs show a higher degree of specialization towards specific markets.     

大理动车运用所选址方案研究

随着多条铁路引入大理枢纽及周边路网的完善,枢纽内急需增加动车组运用检修存放设施,以满足旅客出行需求及实现大理地区路网通达的需要。在阐述大理枢纽规划和动车组检修工作量的基础上,确定大理动车运用所规模,分析横列式和纵列式2个布置方案,结合动车运用所选址原则提出蛇山方案、苍甸山方案、凤仪方案3个动车运用所选址方案,从运营长度、工程条件、后期发展等方面对3个方案进行综合比选,最终确定经济合理、适应城市规划及铁路科学发展的蛇山方案。动车运用所的建设研究有利于完善大理枢纽功能,提升铁路区域运输能力。     

Optimal rail-road container terminal locations on the European network

The European transport policy has focused on sustainable transport solutions, among which intermodal transport is a key player. However, its efficiency is strongly dependent on the location of the container terminals. In this paper, a set of estimated potential locations is used as input for an iterative procedure based on the p-hub median problem that takes the variation in trans-shipment costs according to the number of trans-shipped containers into account. The final results are the optimal locations for European transfer terminals embedded in a hub-and-spoke network.     

New potential hubs in the South-Atlantic market. A problem of location

Hub-and-spoke networks have become very popular in the airline industry. In this paper we study the potential hub candidates in the South-Atlantic market if a future process of liberalization creates a common air market area between South America and Europe. The analysis is based on the principal operating strategies that airlines consider when they choose their network configuration: central location in the market, local traffic at the hub cities and airport facilities. Traffic levels, great circle distances between the airports and other variables are used to analyze possible differences among airports. Other implications concerning the agents involved like gains in frequencies, time penalties and burden of capacity are also explored. Results of the analysis are used to extract some policy considerations and to stimulate discussion by government officials, air industry analysts and academics, about the necessity of the introduction of more liberalized measures in emergent markets.     

Hierarchical multimodal hub location problem with time-definite deliveries

Hierarchical multimodal hub location problem is a cost-minimizing hub covering problem where two types of hubs and hub links, accounting for ground and air transportation, are to be established, while ensuring time-definite deliveries. We propose a mixed-integer programming formulation and perform a comprehensive sensitivity analysis on the Turkish network. We show that the locations of airport hubs are less sensitive to the cost parameters compared to the locations of ground hubs and it is possible to improve the service quality at not much additional cost in the resulting multimodal networks. Our methodology provides the means for a detailed trade-off analysis.     

Hierarchical multimodal hub location problem with time-definite deliveries

Hierarchical multimodal hub location problem is a cost-minimizing hub covering problem where two types of hubs and hub links, accounting for ground and air transportation, are to be established, while ensuring time-definite deliveries. We propose a mixed-integer programming formulation and perform a comprehensive sensitivity analysis on the Turkish network. We show that the locations of airport hubs are less sensitive to the cost parameters compared to the locations of ground hubs and it is possible to improve the service quality at not much additional cost in the resulting multimodal networks. Our methodology provides the means for a detailed trade-off analysis.     

Development and application of a dynamic model for road port access and its impacts on port-city relationship indicators

Seaports are major intermodal structures in the global supply chain, where multiple stakeholders search for profitable and resilient maritime lines. Shipowners reduce the distance between the northern and southern hemispheres by connecting hub ports. Hosting a global hub port implies competitive advantages to the municipality. However, operational bottlenecks loosen the port-city relationship. One of the main conflicts in this relation is the land port access, a hard-to-be-mapped, random operation. The traffic flow rise noticed in developed countries' ports and, more recently, in emerging markets, causes congestion and air pollutant emissions in terminal surroundings. Current models for road port access are static, single-window non-synchronized truck appointment systems. As a contribution, this case study develops a dynamic model of road port access. Also, it verifies the effectiveness of its application in the port-city relationship indicators in an emerging market global hub port, the Port of Santos, faced with ports of developed countries, prospecting optimal conditions to its implementation in an environment with significant institutional obstacles.     

The impact of container terminal relocation on hinterland geography

This paper presents a mathematical model for calculating the generalized costs resulting from the transportation of containers from multiple locations in a geographical region to different container terminals serving this region. The generalized costs are calculated using a road and rail transport network model, enabling potential hinterlands of terminals in close competition to be delimited, rather than port hinterlands as is more common in the literature. The mathematical model is used in a case study on the consequences of building a new terminal in the port of Lisbon and closing down an existing terminal, implying a terminal relocation between river banks. The model shows that this relocation has significant implications in the delimitation of container terminal potential hinterlands across southern Portugal. Conclusions and policy recommendations regarding the consequences of such relocation are given in terms of relative competitiveness of the different terminals and suitability of the relocation.     

Network competition in the open aviation area

In 2008 the ‘joint open aviation area’ between the US and EU will become reality. It is expected that competition will increase. The reaction of the airlines depends on the possibility to make profits in ‘new’ markets (markets that can now be entered). This, in turn, depends on network characteristics. In this paper we find that full liberalization of international markets by means of a bilateral agreement results in higher welfare than the formation of an alliance. Carriers, however, will also in fully deregulated aviation markets most likely opt for an alliance. This is a result of a built-in competitive effect of hub–spoke networks. Only in markets where the reservation price is very high (e.g. to London Heathrow), hub–spoke airlines may enter a competitive game. Low-cost airlines, which do not operate extensive hub–spoke networks, may find it profitable to enter new markets.     

Multi-criteria decision-making for complex bundling configurations in surface transportation of air freight

Airlines typically carry out freight transportation in a hub and spoke structure, where the movements between the outstations and the hub are served by trucks. To transport freight efficiently, air carriers must consider bundling options for shipments that are delivered at outstations and have to be moved to the hub. There are three options when it comes to bundling freight: on ‘through unit load devices’ (T-ULD) (all freight for the same flight at the hub), on ‘mixed unit load devices’ (M-ULD) (freight for different flights at the hub) and loose freight in trucks. The optimal freight bundling configuration for carriers, taking into account their main KPIs (key performance indicators), is unknown. This research formulates the problem as a multi-criteria decision-making (MCDM) problem, allowing carriers to decide which configuration is optimal for a given outstation. The selected KPIs (cost, (un)loading time, and quality) are formulated as mathematical functions. A new MCDM, called best worst method (BWM), is then used to identify the best configuration with respect to the three KPIs. The proposed methodology is applied to KLM Cargo to identify the best configuration for the selected outstations that supply freight to the KLM hub at Schiphol Airport. This case study shows that there are different optimal freight bundling configurations for different outstations and that trucking costs and freight handling tariffs are among the key factors in deciding which configuration is optimal.     

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.     

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.     

Using GIS tools to estimate CO2 emissions related to the accessibility of large retail stores in the Oulu region, Finland

Everyday traffic accounts for a significant share of overall greenhouse gas emissions, in particular carbon dioxide (CO₂). While several solutions have been proposed for decreasing the emissions, a new kind of land use planning is required in order to achieve long-term effects. This study focuses on the effect of large retail store locations in the urban structure on overall CO₂ emissions, by using the Oulu region, Finland, as a case study. The aim was to utilize GIS tools to assess store locations in terms of CO₂ emissions from private cars used for consumer traffic. In this case, not only are the locations of the existing and planned retail units investigated with respect to population distribution and car ownership, but the analysis is also carried out by regarding any location within the study area as a hypothetical site for a large retail unit. According to the applied method, CO₂ values are lowest near the centre of the studied region, the region with the highest population density, although the city centre itself did not turn out to be the most optimal location for a retail store in terms of CO₂ emissions. Nevertheless, by generally reducing trip length, a compact urban structure is an important way of achieving long-term cuts in CO₂ emissions.     

Disasters and transport systems: loss,recovery and competition at the Port of Kobe after the 1995 earthquake

In the 1995 Great Hanshin earthquake, the Port of Kobe (Japan) suffered severe damage that essentially shut it down and required over two years to fully repair. This paper explores the impact of the disaster on the Port, focusing on international container traffic. Prior to the disaster, Kobe had ranked sixth among container ports worldwide; in 1997, it ranked 17th. Analysis reveals that foreign transhipment cargo was especially vulnerable to loss. This loss must be seen in the context of Asian port competition; indeed, the earthquake served to highlight and accelerate pre-disaster economic trends. Implications for seismically vulnerable ports in the US and Canada are discussed.     

Intermodal logistics: The interplay of financial,operational and service issues

This research addresses strategic planning for an interregional, hub based, intermodal logistics network operated by a logistics service provider. A tabu search meta-heuristic is used to solve a mathematical optimization model that extends the p-hub median model for interacting hub location-allocation problems to the domain of intermodal logistics. An empirical study based on a subset of US freight flows shows that intermodal logistics networks differ significantly from traditional over-the-road logistics networks in their hub locations, network structure, and their use of direct and inter-hub shipments. Furthermore, intermodal logistics networks are more sensitive to changes in service requirements and costs.