Shu-Ling Chen

Port Administrative Structure Change Worldwide: Its Implication for Restructuring Port Authorities in Taiwan

Abstract This paper aims to review the evolution of the port authority’s role and recent changes in port administrative structure worldwide, and to discuss its implication for restructuring Taiwanese port authorities. It is found that the port authority is expected to play a proactive role in strategically managing overall port operations, and aggressively market its ports to port customers with a view to increasing cargo throughput and economic growth in its region. The change in the port authority’s role has driven a change in port administrative management structure worldwide. The proposed restructuring of port authorities in Taiwan is accompanied by some potential pitfalls. These include that the legislative framework of the programme is driven by political rather than professional concerns, and the port authority’s dual role as a regulator and as an operator at ports is against the principles of ‘separation of port administration (regulatory functions) and business management’ recently adopted worldwide. These pitfalls can impede the achievement of the objectives, including directing port authorities towards becoming independent commercially oriented entities. Therefore, this paper recommends that port corporatization approach will be a good alternative for restructuring Taiwanese port authorities.

The dynamics of port reform: different contexts, similar strategies

Research into port reform in Taiwan and Australia indicates that reform was undertaken in different contexts while committed and adopting similar strategies. Reform in both countries has been consistent with paradigmatic shifts towards market orientation, and within this context, privatisation was considered the preferred option. In both Taiwan and Australia, however, governments, reluctant to relinquish control over their ports, opted for corporatisation models. This article discusses the dynamics and drivers of reform and examines the outcome of these strategies. Both countries commenced port reform with deregulation of dock labour employment and introduced enterprise-based employment replacing the labour pool system. Privatisation of stevedoring operations was introduced at the same time in Taiwan. In the second reform phase, Taiwan amalgamated the four major commercial ports under a single state-owned port company in March 2012, with the objective of reducing inter-port competition and creating a central port planning mechanism. Australian ports, on the other hand, have undergone restructuring with the implementation of corporatisation, privatisation and commercialisation strategies since 1990s. Reform strategies in both countries display some similarities, e.g. rationalisation strategies in both Taiwan and Tasmanian ports, but also display some distinct dissimilarities with the increasing move to privatisation in Australia, e.g. the sale of South Australian ports and in 2010 the sale of the port of Brisbane.

Influential factors in the design of port infrastructure tariffs

ABSTRACT The main aim of this article is to examine the factors influential to the practical process of port infrastructure tariff design. The analysis is based on the survey data of 67 seaports representing the Australasian, East Asian, European, North American and South American regions. Exploratory factor analysis (EFA) was first carried out to identify the factors influential to the selection of the infrastructure tariff design model. Subsequently, confirmatory factor analysis (CFA) was used to confirm the relationship between the variables. The findings showed that demand, knowledge about pricing theories, the dynamics of port and shipping sectors (including competition and ship size), pricing objectives and port cost consideration are influential factors in infrastructure tariff design. Most ports use a mix of pricing approaches including price discrimination, cost-based pricing and market-based pricing. Ports are aware of the basic pricing approaches but have limited knowledge of their application. Based on the results of analysis, policy implications for port management in designing port infrastructure tariffs, limitations and recommendations for future research are discussed.

A Quality Management Framework for Seaports in their Supply Chains in the 21st Century

Abstract For seaports to be competitive and sustainable in the long-term in a turbulent and hyper-competitive market, a re-examination of success factors, organizational structures, and management practices is required. As seaports have continued to evolve and become further integrated and embedded in their supply chains, the issue of ensuring quality management practices becomes of greater interest. This paper argues that the seaport should implement relevant and appropriate internal and external quality management practices. The former emphasizes more internal-focused quality management practices relating directly to the seaport, while external quality management practices aim to facilitate the efficiency of supply chains in which the seaport is embedded as well as harmonizing the relationships with stakeholders. This paper takes a conceptual approach to these issues by comprehensively reviewing the extant literature and proposes a quality management framework for empirical validation containing eight internal and four external quality management practices for seaports in the twenty-first century.

The impact of dry port operations on container seaports competitiveness

ABSTRACT The concepts of intermodal logistics and distribution networks have made integration of the inland freight distribution system essential for an efficient container seaport system. Inland components, such as dry ports, which exist within the seaport system, have become important in shaping the performance and competitive strategies of container seaports. Owing to the importance of interdependence between dry ports and container seaports, this paper aims to investigate the impact of dry port operations on container seaport competitiveness. It conducted an empirical study in Malaysia through 120 online surveys to key stakeholders of dry ports, including freight forwarders, shippers, seaports, rail operator, shipping lines, and haulers. The data collected were analysed using exploratory factor analysis (EFA). The results from EFA show that Malaysian dry port operations have impacts on seaport competitiveness. These include enhancing seaport performance, increasing service variations for seaports, improving seaport-hinterland proximity, increasing seaport trade volume, and enhancing seaport capacity.

Dynamics and interdependencies among different shipping freight markets

ABSTRACT An appropriate description of freight rate behaviors is important to maritime forecasting and portfolio diversification in shipping freight markets. We employ general autoregressive conditional heteroscedasticity-copula models to capture the dynamics and interdependencies among shipping freight rates. Using weekly data from 5 January 2002 to 24 March 2018, our main findings are first, Granger causality tests confirm the presence of one-way causality running from the dry bulk and the clean tanker freight rate returns to the container and the dirty tanker freight rate returns, respectively. Second, volatility persistence exists in individual shipping freight market and, in particular, it is much less persistent in the clean tanker freight market. Third, nonlinear dynamic interdependencies among freight rate returns are captured by performing time-varying copulas. The results not only deepen our understanding of freight rate behaviors but also offer new insights into portfolio diversification and risk management in the shipping freight markets.

DECONSTRUCTING LAWSON AND SAMSON’S CONCEPT OF INNOVATION CAPABILITY: A CRITICAL ASSESSMENT AND A REFINEMENT

For almost 20 years, research on firm level innovation have relied upon [Lawson and Samson (2001). Developing innovation capability in organisations: A dynamic capabilities approach. International Journal of Innovation Management, 5(3), 377–400] concept of innovation capability (IC). Of note, these authors stated that this concept needs to be ‘refined, validated and tested using other research methods’ [Lawson and Samson (2001). Developing innovation capability in organisations: A dynamic capabilities approach. International Journal of Innovation Management, 5(3), 377–400], p. 396. To date, empirical studies heeding this call have been challenging to find. By researchers relying on this untested concept, they risk not attaining comprehensive insights into the firm level mechanisms underpinning the transformation idea and knowledge into innovations. This paper proposes a rethinking of the IC concept. The analysis is based on survey data of 69 firms involved in the Australian maritime industry using exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). The results suggest that the IC concept might be refined from seven dimensions, initially conceptualised, to three dimensions. The three dimensions are renamed as institutionalising innovation, implementing innovation and stimulating innovation.

Port Decision Maker Perceptions on the Effectiveness of Climate Adaptation Actions

ABSTRACT Effective adaptation to climate change impacts is rapidly becoming an important research topic. Hitherto, the perceptions and attitudes of stakeholders on climate adaptation actions are under researched, partly due to the emphasis on physical and engineering aspects during the adaptation planning process. Building on such considerations, the paper explores the perceptions of port decision makers on the effectiveness of climate adaptation actions. The findings suggest that while port decision makers are aware of potential climate change impacts and feel that more adaptation actions should be undertaken, they are skeptical about their effectiveness and value. This is complemented by a regional analysis on the results, suggesting that more tailor-made adaptation measures suited to local circumstances should be developed. The study illustrates the complexity of climate adaptation planning and of involving port decision makers under the current planning paradigm.