The regionalization of Hutchison Port Holdings in Mainland China

Hong Kong-based Hutchison Port Holdings has been successful in capturing Mainland China's container port joint venture market share. After examining a handful of push and pull factors influencing the firm's regionalization drive, this research describes the firm's regional spatial strategies. In addition to traditional economic factors, Hutchison Port Holdings' market share dominance is explained by socio-cultural and political factors within the context of Mainland China's economic articulation with the global economy, and the institutional medium of a territorially defined “time-space governance” embedded within the political economy of pre- and post-1997 Hong Kong. The firm's superior joint venture bargaining position within this governance system is illustrated by its busiest joint venture ports of Shanghai and Yantian.     

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.     

Path to a multilayered transshipment port system: How the Yangtze River bulk port system has evolved

China's steel output has maintained rapid growth over the past twenty years. Due to this, a large number of iron ore ports/terminals have been built along the Yangtze River, and the Yangtze River bulk port system has experienced a unique development in its structure. This paper aims to understand the evolution of this bulk port system.¹ along the Yangtze River. To achieve this objective, first the development phases of the Yangtze River bulk port system are reviewed, taking the theoretical (container) port evolution model as a benchmark. Then several hypotheses addressing certain features of bulk port system development are proposed, followed by using panel data analysis to test these hypotheses. Based on this discussion and analysis, the major driving forces that are reshaping bulk port development along the Yangtze River are then summarized. It is found that evolution of the Yangtze River bulk port system in general follows the port development models in previous literature. However, the trend toward regionalization and an offshore hub have not appeared. Besides this, iron ore transshipment is moving outward both for sea ports and river ports, and few iron ore transshipment gateway hubs are occurring. Furthermore, the transshipment function of a bulk port plays a significant role in port traffic changes, but this role is affecting sea ports differently to river ports. The container throughput of transshipment sea ports has a significant negative effect on bulk traffic, whereas that of transshipment river ports has a positive effect. Geographical conditions, institutional factors and national policy, industry agglomeration, changes in market supply and demand, and technology updates are major factors driving changes to the port system structure. These factors are observed to function either individually or collectively at different development stages.     

Dynamics of liner shipping network and port connectivity in supply chain systems: analysis on East Asia

The study of ports in supply chain systems is an emerging area of importance which has drawn more attention from researchers in recent years. This paper presents a new perspective in this research area by examining the calling patterns of container shipping services in order to understand the dynamics of port connectivity and inter-port relationships in the supply chains. Empirical evidence is drawn from four major ports in East Asia, namely Shanghai, Busan, Kaohsiung and Ningbo. The study identifies the shipping capacity, trade routes and geographical regions connected to the ports, shipping lines involved, and the extensity and intensity of inter-port relationships among the four container ports from liner shipping network’s perspective. The findings show that most of the shipping capacity employed on the major east–west trade routes became non-exclusive and involved calls at two or more of the four ports. Port planners, terminal operators and carriers could capitalise on opportunities through exploitation of complementary relationships that exist among the selected ports, such as offering a package for shipping lines to call at a portfolio of terminals owned by the same terminal operator. Policy and research implications as well as recommendations are discussed for various stakeholders concerned with port planning and regional development.     

Study on China-EU container shipping network in the context of Northern Sea Route

The emerging Northern Sea Route (NSR) represents change to the existing liner network for China-EU container shipping. It is necessary to re-examine the container network in this context and assist liner companies in decision-making. This paper assesses the potential of the NSR based on designing a multi-port multi-trip liner service by establishing a two-stage optimization model. Based on the estimated data of NSR shipping, ship routing schemes on both the NSR and conventional routes are proposed. It is determined that container service along the NSR is largely influenced by ice-breaking charge, seasonality, and cargo volume, which makes NSR more likely to act as a supplementary line of the liner network in the short or medium term. The results also indicate that use of NSR may drive the redeployment of shipping network and hub ports in the long term. This study's conclusions may prove useful for strategic planning by liner companies, port authorities, and governments to assess the operation of liner service via the NSR.     

Migration of container terminals as their natural process of evolution: Case study of Gdańsk and Gdynia ports

The paper proposes a theoretical model of container terminals and container port development, based on the life cycle theory, threshold theory and catastrophe theory, and in references to Kuznets' swings (interpreted as waves of infrastructural investments), and Kondratiev long economic waves.The aim of this model is to explain the development process of a container terminal and a port within one technological generation, as well as in intergenerational configuration, and relate it to the migration process of container terminals in the scale of a port-city urban area. Then, the applicability of this model was checked in the case of the container ports in Gdynia and Gdańsk (Poland). The analysed evolution process of ports of Gdynia and Gdańsk conforms with the proposed theoretical model, proving that the migration of container terminals within these ports is a part of their natural process of evolution, being a consequence of their threshold development and location splitting.Considering the physical location of development investments within the container ports of Gdańsk and Gdynia, it was noticed that there are two basic directions of migration of container terminals. One is the migration of the port's main container activity (core terminal or terminals), being a result of a generational change taking place after overcoming the maturity point. The second type of migration is connected with dispersion of port development investments in the increasingly distant port hinterland, caused by the need of the life extension of terminals within one technological generation.In an analogy to the processes of development of living organisms, we can treat the migration of terminal outsourced functions as a “vegetative” increase, being an attempt to extend the life of the terminal, while the migration of the core terminal within the port area (erecting a new generation terminal) can be treated as “generative” growth.     

Global maritime networks: The case of Maersk

Two contrasting approaches to the provision of maritime services are frequently presented: one based on direct port to port services, the other characterised by a hub and spoke network. We demonstrate there is no contradiction between these two models, that in fact they are complementary. Integrating direct services with a hub structure is necessary for assuring a wider geographical coverage. The complementarity is explained by analysing the world’s largest container shipping line, Maersk, which over the last 30 years has created a global shipping network.     

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.     

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.     

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.     

Container port efficiency in emerging and more advanced markets

The literature on container port efficiency has typically centered on ports in advanced markets or comparisons within regions. This study compares the efficiency of port operations in emerging markets (BRIC and the Next-11) with the more advanced markets (G7). We use data envelopment analysis to evaluate the container ports based on the import and export cargo volumes in 2005. Our results suggest that none of the ports in the advanced markets are role models for the field. This study provides a first step towards gaining insights into port efficiency in emerging markets.     

The impact of seaports on the regional economies in South Korea: Panel evidence from the augmented Solow model

This study reveals the economic impact of seaports on regions in Korea. Econometrics analysis employing an augmented Solow model is conducted based on the panel data covering all the regions of Korea over the period 2000–2013. The econometrics analysis shows that cargo ports without sufficient throughput obstruct regional economic growth, whilst cargo ports contribute to regional economic growth only when they have sufficient throughput. Furthermore, the result indicates that container port activities positively affect regional economic growth, whilst port investment indirectly leads to economic growth. This study contributes to the better understanding of the role of ports in Korean economies.     

Spatial,temporal and institutional characteristics of entry strategies in inland container terminals: A comparison between Yangtze River and Rhine River

Recent decades have brought a growing commitment of investors in the (co-)funding and management of inland terminals, particularly container terminals. However, the actors involved, the forms of third-party entry and the emerging partnerships in inland terminals have only been investigated on a fragmented basis in inland port research. To complement existing inland port research on governance, management and spatial development, this paper analyses entry strategies of actors in inland container terminals on the Rhine and Yangtze in terms of their spatial, temporal and institutional characteristics. The unit of analysis in this paper is the inland container terminal, not necessarily the entire inland port (which might have more than one terminal). The entry strategies and the drivers behind these strategies are examined using a conceptual framework focused on five questions, i.e. who, where, when, why and which way. The empirical application is based on a large dataset of all container terminals on the Rhine and Yangtze. Our findings suggest clear differences between the two rivers in terms of the type of operators, the sequence of inland port development and also the major actors shaping the inland terminal landscape. Despite these differences, there is also some level of similarity, including a low presence of international players, the absence of deepsea (landlord) port authorities and observed waves of single acquisition, multiple-site acquisition, and capital entry in the terminals. Government policies, institutional frameworks and the nature of shipping network development are determinants of inland port investment and the entry strategies adopted by relevant actors. The findings contribute to a better understanding of the drivers and contextual environment guiding entry strategies in inland ports and can help policy makers and port operators in inland rivers to assess and benchmark their strategy. The paper adds to existing literature by considering spatiotemporal aspects of terminal ownership and the strategic considerations of and institutional drivers and impediments to the inland terminal strategies of the corresponding actors.     

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.     

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.     

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.     

Optimising the container transhipment hub location in northern Europe

This paper applies a specific research methodology designed to evaluate and compare competing seaport locations within a given region as the optimal site for international container transhipment activity. The main focus is on container transhipment hub locations in northern Europe. Transhipment is the fastest growing segment of the containerport market, resulting in significant scope to develop new transhipment terminal capacity to cater for future expected traffic flows. Transport distances and associated shipping costs are calculated for existing hub locations and these are then compared with a new proposed transhipment location in the region, in this instance the vast natural deep-water harbour at Scapa Flow in the Orkney Islands. Findings from the research demonstrate that current container hub ports are not necessarily optimal (for serving transhipment markets), and that alternative port sites such as Scapa Flow could provide a superior and more competitive location from which to support the fast expanding transhipment markets of northern Europe.     

Evaluating impacts of institutional reforms on port efficiency changes: Ownership,corporate structure,and total factor productivity changes of world container ports

This paper evaluates how port institutional reforms influenced efficiency gains between 1991 and 2004. We constructed a panel data for port ownership, corporate structure, and port inputs and outputs for 98 major world ports, and we implemented the Malmquist Productivity Index (MPI) model. The MPI provides efficiency measures for input combinations that allow for obtaining the outputs in the presence of institutional reforms, ownership changes, main agent problems, technological progress, efficient scale growth, and many other reasons for efficiency and the lack of it. The results illustrate that ownership restructuring contributed to total factor productivity gains. The restructuring induced optimized operation of container terminals, especially for large ports, as it allowed specialized private entities to concentrate on terminal operation and cargo handling services.     

Port traffic risks – A study of accidents in Hong Kong waters

This paper investigates port traffic risk issues by discussing historic accidents in Hong Kong port. A total of 2012 marine accidents with 94 deaths were reported in Hong Kong waters in year 2001–2005, while 660,427 oceanic ships visited the port. A negative binomial regression model is used to analyze the record of dataset. It is found that port traffic risks are of certain pattern and collision accidents are the most popular incidents when port traffic is heavy. Passenger-type vessels have higher potential for injuries during accidents. The findings have identified statistically significant factors for improvements in managing port traffic risks.     

Congestion analysis of waterborne, containerized imports from Asia to the United States

A queuing model is introduced for estimating container flow times through port terminals as a function of infrastructure, staffing, and import volume. The model is statistically calibrated on industry data. Flow-time estimates of the model are aggregated with estimates from models previously developed for rail networks to develop estimates of the total container flow times from West Coast ports to inland distribution centers. Integrated with a supply-chain optimization model, the queuing formulas are used to predict import flows by port and landside channel in scenarios of total import growth, varying all-water rates, and a higher import share for nation-wide importers.