Theo Notteboom

Port regionalization: towards a new phase in port development

Logistics integration and network orientation in the port and maritime industry have redefined the functional role of ports in value chains and have generated new patterns of freight distribution and new approaches to port hierarchy. Existing models on the spatial and functional evolution of ports and port systems only partially fit into the new freight distribution paradigm. This paper aims to add to existing literature by introducing a port regionalization phase in port and port system development. It is demonstrated that the regionalization phase and associated hinterland concepts demand new approaches to port governance and a functional focus that goes beyond the traditional port perimeter.

Structural changes in logistics: how will port authorities face the challenge?

The market environment in which ports operate has changed dramatically, and this continuous process of change raises questions on the role of port authorities. This paper discusses the impact of some structural changes in international trade, transport and shipping on strategic and operational issues in the framework of port management. The central hypothesis put forward is that a successful port (authority), like a successful actor, must be prepared to constantly adopt new roles in order to cope with the changing market environment. The content and strategic scope of these new roles are highlighted, especially with regard to the European container port system.

Container Shipping And Ports: An Overview

Globalisation, deregulation, logistics integration and containerisation have reshaped the port and shipping industry. Port and maritime companies are challenged to redefine their functional role in the value chain for the sake of creating customer value and of ensuring the survival and growth of the company. Companies are busily trying to disrupt the status quo rather than preserve it. Based on empirical evidence, this paper demonstrates that because of the rapidly changing environment the port and liner shipping markets are not stable any longer. Individual terminal operators and shipping lines tend to walk different paths on a quest for higher margins and increased customer satisfaction. And more than once they (have to) change paths.

CONCENTRATION AND LOAD CENTRE DEVELOPMENT IN THE EUROPEAN CONTAINER PORT SYSTEM

Abstract Only a few theories exist on the development of a container port system in relation to forelands, hinterlands and the technological environment. Moreover, very few were ever applied to the European container port system. This study examines recent dynamics — in particular, concentration and deconcentration tendencies and load centre development — in the European continental container port system for the period 1980–1994. It is demonstrated that the prevailing assumption that containerization leads to further port concentration is no longer confirmed. The results of the concentration analysis are fitted into some models on the development of port systems. Furthermore, the factors affecting the future concentration pattern in the European container port system are discussed.

Consolidation and contestability in the European container handling industry

The first part of this paper brings into discussion some recent changes in the dynamics of the European container handling business, in particular as a result of vertical and horizontal integration strategies of container terminal operators. The industry structure has become sufficiently consolidated to raise a fundamental question about whether market forces are sufficient to prevent the abuse of market power. In this context, reference is made to the theory of contestable markets. The second part of the paper looks more closely to the issue of contestability by means of an exploratory and qualitative study of elements that could prevent other players entering or exiting the European container handling market. As such, a first indication is given of the degree of contestability in the container handling industry.

Port and terminal selection by deep-sea container operators

This paper deals with the importance of port choice and container terminal selection for deep-sea container carriers. The paper focuses on the research question: on what basis do deep-sea container operators select container ports (strategy) and container terminals (financial reasons) in the Hamburg–Le Havre range over others? In answering this research question, three dimensions are addressed in detail: the buying decision characteristics; port choice strategy; and terminal selection. The results show that strategic considerations at company level are important. For port choice the most important criteria from a carriers perspective are: availability of hinterland connections; reasonable tariffs; and immediacy of consumers (large hinterland). In addition to these criteria, shipping lines attach great value to often neglected factors, such as feeder connectivity, environmental issues and the total portfolio of the port. The study reveals that port selection and terminal selection are not the same with terminal selection criteria mainly depending on: handling speed; handling costs; reliability; and hinterland connections. The analysis also brought forward that the decision making is different per container carrier, per trade and per port type, implying that a one size fits all approach is not relevant.

Complementarity and substitutability among adjacent gateway ports

The author considers complementarity and substitutability among container ports located in a single gateway region. The level of substitutability from a shipping lines perspective is assessed by means of an analysis of revealed preferences in the port-calling pattern of vessels deployed on different trade routes. The author also identifies and analyzes the factors contributing to levels of port substitutability as perceived by shipping lines. The methodology is applied to the Rhine–Scheldt Delta, a major European multiport gateway region. It is demonstrated that the large load centres in the Delta are increasingly acting as substitutes, while each of the smaller container ports functions more as a complement to one of the large load centres.

The Greening of Ports: A Comparison of Port Management Tools Used by Leading Ports in Asia and Europe

Abstract From the policy and management perspective, this study aims to investigate the port management tools that port/public authorities have at their disposal and then to analyse to what extent the tools are used to enforce or encourage green port development at functional activities of port operations and development. We conduct an exploratory and comparative review based on two axes: on the one hand, the range of tools available to port authorities (pricing, monitoring and measuring, market access control and environmental standard regulation) and on the other hand, the functional activities in ports (shipping traffic, cargo handling and storage operations, intermodal connection, industrial activities, and port expansion). The situations in the leading ports in Asia and Europe, namely Singapore, Shanghai, Antwerp and Rotterdam are studied and compared, whereby the policies effectiveness is discussed accordingly. Findings show that the ports are particularly mature in exercising environmental standard regulations which reveals that the enforcement approach is more prevalent. The most focused functional activity is shipping traffic which reflects that the ports are driven by the International Maritime Organisation. The respective port authorities in Antwerp and Rotterdam have a higher level of influence on devising green port policy in comparison to the two Asian ports.

The corporate geography of global container terminal operators

The terminal and stevedoring industry has expanded substantially in recent years with the emergence of global container terminal operators controlling large multinational portfolios of terminal assets. This paper deals with the emerging corporate geography in the container terminal industry with issues related to the similarities or differences among terminal locations, the processes leading to the expansion of these holdings and the interactions they maintain as nodes within the global freight distribution system. It will be demonstrated that terminal operators show varying degrees of involvement in the main cargo handling markets around the world and that business cycles and a changing world economic geography can alter the geographical orientation of operators’ investment strategies. We unravel the corporate geography of leading firms such as Hutchison Port Holdings, Port of Singapore Authority, DP World, and APM Terminals, but also operators that are more regionally focused, such as Ports America, Eurogate, SSA Marine, and ICTSI.

An Evolutionary Perspective on Regional Port Systems: The Role of Windows of Opportunity in Shaping Seaport Competition

How do seaports evolve in relation to each other? Recent studies in port economics and transport geography have been focused on how supply-chain integration has structurally changed the competitive landscape in which individual ports and port actors operate. Port regionalization has been addressed as the corresponding new phase in the spatial and functional evolution of port systems. However, these studies lack theoretical foundations that allow us to assess empirically the role either of the institutional context or of strategic agency in the competitive (spatial and functional) evolution of regional (integrated) port systems. The authors present an evolutionary framework to analyze the development of seaports in a regional context by making use of the concept of ‘windows of opportunity’. The role of seaport-based evolution in the processes aimed at positioning market players and ports on the container scene in the Rhine–Scheldt Delta is examined.