Dynamic Shipping and Port Development in the Globalized Economy
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1 Dynamic Shipping and Port Development in the Globalized Economy
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3 Dynamic Shipping and Port Development in the Globalized Economy Volume 2: Emerging Trends in Ports Edited by Paul Tae-Woo Lee Institute for Supply Chain and Logistics, College of Business Victoria University, Australia Kevin Cullinane Department of Business Administration University of Gothenburg, Sweden
4 ISBN ISBN (ebook) DOI / Selection and editorial matter Paul Tae-Woo Lee and Kevin Cullinane 2016 Individual chapters Respective authors 2016 Softcover reprint of the hardcover 1st edition All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6 10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act First published 2016 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number , of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin s Press LLC, 175 Fifth Avenue, New York, NY Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave and Macmillan are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress.
5 To the parents in the world who devoted their lives to educating their children
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7 Contents List of Figures and Tables Acknowledgments Notes on Editors and Contributors viii xi xii 1 Introduction 1 Paul Tae-Woo Lee and Kevin Cullinane 2 Container Ports in Latin America: Challenges in a Changing Global Economy 11 Gordon Wilmsmeier and Jason Monios 3 Port Development in Sub-Saharan Africa: Competitive Forces, Port Reform, and Investment Challenges 53 Darren Fraser and Theo Notteboom 4 A Hierarchical Taxonomy of Container Ports in China and the Implications for Their Development 79 Kevin Cullinane, Sharon Cullinane, and Tengfei Wang 5 Port-Focal Logistics and the Evolution of Port Regions in a Globalized World 102 Enrique Martín-Alcalde, Sergi Saurí, and Adolf K.Y. Ng 6 Port Governance as a Tool of Economic Development: Revisiting the Question 128 Mary R. Brooks 7 Economic Impact Analysis of Port Development 158 Tsung-Chen Lee and Paul Tae-Woo Lee 8 Developing the Fifth Generation Ports Model 186 Paul Tae-Woo Lee and Jasmine Siu Lee Lam Index 211 vii
8 Figures and Tables Figures 2.1 LAC ports with throughput over 100,000 TEU in Port throughput ( ) Year-on-year growth rates ( ) Critical moments in LAC port development Evolution of world population and consumption until Evolution of volume (thousand metric tons) of South American international maritime trade ( ) Share in South American international trade by region in terms of volume and value ( ) Evolution of vessel capacity on West Coast South America main trade routes ( ) Evolution of vessel capacity on South American and other main trade routes ( ) Reefer capacity of vessels deployed on WCSA main routes ( ) Private port operators in Latin America and the Caribbean (2006) Private port operators in Latin America and the Caribbean (2012) Average ship-to-shore crane productivity in selected regions ( ) Generic sources of funding and financing Port ownership versus funding options The Southern African container port system Phases in the development of container ports in China Growth rates of container throughput ( ) Importance of containerized cargoes to China s main ports ( ; percentage of total tons handled) A comparison of designed and actual container throughput The three major geographical port groupings in mainland China Dynamics of the port and shipping container industries 120 viii
9 List of Figures and Tables ix 7.1 The impact of increase in port capacity on the economy Nested production structure in the GTAP model Nested consumption structure in the GTAP model Evolution path to the fifth generation as Dynamic Customer-Centric Community Ports 190 Tables 2.1 Infrastructure expansion and berth productivity in selected LAC ports ( ) World Bank port reform toolkit ownership interest categories Funding and financing options as a function of the extent of public port ownership World Bank governance indicators (presented in percentile rank 0 to 100) Current port financing sources available for TPT and TNPA Summary of funding choices for Transnet s long-term planning framework Developments of dedicated container terminals and container throughput in the Chinese mainland ( ) Throughput of the Chinese mainland s top ten container ports (thousand TEUs) Container terminals in Shenzhen port Liner services calling at Shenzhen container port as of October Forecast changes in the hinterland of Shenzhen container port Throughput of the main southern China container ports ( ; in TEUs) Throughput of the Shanghai container terminals ( ; thousand TEUs) Container terminals in the port of Shanghai Liner services calling at Shanghai container port as of the end of December Committed and planned container port projects in Shanghai Container throughputs of the main ports on the Yangtze River ( ; in TEUs) 96
10 x List of Figures and Tables 5.1 Main port regions globally per typology Illustrative cases on port collaboration, integration, and co-opetition during the early 2000s The major drivers of port evolution and their impacts on transportation Typical responsibilities in for-profit corporations 135 6A.1 The TSE 14 principles Studies on port development in South Africa Average utilization rate, average working and waiting hours at Durban and Cape Town container terminals Regional aggregation Sectoral aggregation Reduced total voyage time and costs for container carriers by routes Simulation results for the scenarios of investment in the port-related sectors Simulation results for the scenarios of a decrease in freight rate Impacts (% change) on export patterns for the scenario of a decrease in freight rate Impacts (% change) on import patterns for the scenario of a decrease in freight rate Differentiation of the fifth generation ports Comparison of key features of the fourth and the fifth generation ports Evaluation status and comparison of the ports generation of the four ports with the modified 5GP model Key components of the second version of the 5GP 200 8A.1 Functional and spatial development of a seaport 206
11 Acknowledgments This book comprises two volumes, both containing chapters which have been personally invited by the editors. As such, the editors of this book wish to profoundly thank all the contributors for accepting the invitation and for submitting their insightful works in accordance with the publishing deadlines and as specified in the book proposal. Professor Paul Tae-Woo Lee would like to express his sincere gratitude to the MBA students in the course of Seminars on Maritime Transport and International Logistics at the Department of Business Administration, Soochow University, Taipei, who helped correct typos in citations and to format all the references in the two volumes of this book. He also expresses his thanks to his beloved wife (Jin-Hwa) and his lovely children (Hannah and Samuel Sang-Jeong) who have supported his academic life and loved him all the time. Professor Kevin Cullinane wishes to express his thanks to his many colleagues and friends in the academic world that have both supported and inspired him. He also very much appreciates the unerring support of his wife, Sharon. Without those who have been listed above, as well as the help provided by the staff at Palgrave Macmillan, this book would not have been brought to fruition. xi
12 Editors and Contributors Editors Kevin Cullinane is Professor of International Logistics and Transport Economics at the University of Gothenburg, Sweden. He has been an adviser to the World Bank and governments of Scotland, Ireland, Hong Kong, Egypt, Chile, and United Kingdom. He holds an honorary professorship at Hong Kong University and numerous visiting professorships at several universities. He is a chartered fellow of the Chartered Institute of Logistics and Transport, UK. He has published 10 books and more than 200 refereed journal papers and is an associate editor of both Transportation Research (Parts A and D) and International Journal of Applied Logistics. He was a member of the Civil and Construction Engineering sub-panel for Research Excellence Framework in 2014 (REF 2014). Paul Tae-Woo Lee is Professor of International Logistics and Maritime Transportation and Associate Director Research at the Institute for Supply Chain and Logistics, College of Business, Victoria University in Melbourne, Australia. He holds a PhD from Cardiff University, UK. He has extensive academic and field experiences in maritime transportation and logistics as academic researcher, consultant, economic adviser, and policymaker for several governments as well as public and private sectors. He has published 4 books and edited 15 special issues of international journals as guest editor and guest co-editor. He is an associate editor of the Journal of Shipping and Trade and editorial board member of Transportation Research Part E: Logistics and Transportation Review, International Journal of Logistics Management, Journal of Korea Trade, andjournal of International Logistics and Trade. Contributors Mary R. Brooks is Professor Emerita at Dalhousie University, Canada. She is the editor of Elsevier s Research in Transportation Business and Management. She was appointed to the Marine Board of the U.S. National Academy of Sciences in 2008 and now serves as its vice-chair. She is also the founder and chair of the Port Performance Research Network (PPRN), a network of more than 50 scholars interested in xii
13 Notes on Editors and Contributors xiii port governance and port performance issues. Her latest publication is Classics in Port Policy and Management (with Thanos Pallis, May 2012). Sharon Cullinane is an Associate Professor at the School of Business, Economics and Law, University of Gothenburg, Sweden. Previously, she was a senior lecturer at Heriot-Watt University in Edinburgh, UK. Prior to that she was employed at the University of Hong Kong, Oxford University, Egyptian National Institute of Transport, Ecole Supérieur de Commerce in Rennes, and the University of Plymouth in Devon. She holds a PhD in Logistics from the University of Plymouth. She has lectured, researched, and published in the field of transport policy and the environment around the world. Darren Fraser is Senior Corporate Strategy Manager at the corporate head office of a major port operator in South Africa. He holds a PhD from the University of Antwerp, Belgium, and his PhD research and publications focus on the port sector with particular emphasis on southern African port development. He holds a Bachelor of Commerce degree in Economics and Accounting from the University of South Africa in Pretoria, an Honours degree in Accounting from the University of KwaZulu-Natal in Durban, and an advanced Master s degree in Transport and Maritime Economics from the University of Antwerp. Jasmine Siu Lee Lam is an assistant professor at Nanyang Technological University, Singapore. Her research areas include maritime logistics, port economics, and sustainable development. Her various publications have appeared in leading international journals such as Industrial Marketing Management, Journal of Cleaner Production, Journal of Transport Geography, Transportation Research (parts A and E), and Transportation Science. She is an associate editor of Maritime Policy & Management and a member of the editorial review board of the Journal of Supply Chain Management. She is a recipient of many awards, including Best Paper Award and Erasmus Mundus Scholars Award from the European Commission. Tsung-Chen Lee is Professor at the Department of Economics, National Taipei University, Taiwan. She holds a PhD from the Department of Applied Economics and Management, Cornell University, USA. During , she participated in the projects on port development policies in South Africa. Her recent research interests include, among others, economic and environmental impact analysis
14 xiv Notes on Editors and Contributors of port-related activities, and the impacts of trade liberalization on the seaborne cargo volumes and maritime carbon emissions. Enrique Martín-Alcalde is a project manager of the maritime transport and port logistics area at the Center for Innovation in Transport (CENIT) in Barcelona, Spain. He holds a Master s in Shipping Business and a PhD in Civil Engineering from UPC-BarcelonaTech, Spain. His PhD has focused on the improvement of the yard performance of container terminals by introducing efficient storage strategies. In 2013, he was a visiting researcher at the Pusan National University, Republic of Korea. Jason Monios is a senior research fellow and Head of the Freight Transport and Logistics Group at the Transport Research Institute, Edinburgh Napier University, UK. His research focuses primarily on intermodal transport planning and the geography of port systems, with a specific interest in how these two subjects intersect in the port hinterland. He has more than 40 peer-reviewed academic publications in addition to numerous research and consultancy reports, covering Europe, North and South America, Asia, and Africa. He has co-authored technical reports with the United Nations Conference on Trade and Development (UNCTAD) and the United Nations Economic Commission for Latin America and the Caribbean (UN-ECLAC) and been an expert adviser to the Scottish Parliament. His book Institutional Challenges to Intermodal Transport and Logistics was published in Adolf K.Y. Ng is Professor of Transportation and Supply Chain Management at the Asper School of Business of the University of Manitoba, Canada. He holds a DPhil in Geography from the University of Oxford, UK, and excels in the research and teaching of port management, transport geography, intermodal transportation, climate change and transport infrastructure planning, port-focal logistics, and global supply chains. His productive research culminates in publication of 3 scholarly books, more than 40 journal papers, and several other forms of publications. He has received numerous accolades, such as Fulbright Scholar Program (USA), Endeavour Research Fellowship (Australia), Universités Parisiennes Fellowship (France), Rh Award for Outstanding Contributions to Scholarship and Research (Canada), and Associates Achievement Award for Outstanding Research (Canada). He is a council member of the International Association of Maritime Economists (IAME), a coeditor of the Journal of Transport Literature, an associate editor of The
15 Notes on Editors and Contributors xv Maritime Economist, and an editorial board member of several reputable transportation and logistics journals. Theo Notteboom is a foreign expert/professor at Dalian Maritime University, China; a part-time professor at the University of Antwerp and the Antwerp Maritime Academy in Belgium; and a visiting professor at World Maritime University/Shanghai Maritime University and Nanyang Technological University, Singapore. He has widely published on port and maritime economics. He is Emeritus President and a council member of IAME, co-director of PortEconomics.eu, and member of the editorial boards of several journals in the field of maritime and transport studies. Sergi Saurí is Assistant Professor of Transportation at UPC- BarcelonaTech, Spain, since He holds a PhD in Civil Engineering from UPC-BarcelonaTech, a Master s in Shipping Business from UPC- BarcelonaTech, and a Bachelor s in Economics from the University of Barcelona. Since 2013, he has been the Director of the Center for Innovation in Transportation, where he has been responsible for maritime transport and port logistics research. He has also been the coordinator of the Master in Supply Chain, Transportation and Mobility program at UPC-BarcelonaTech, since He serves as a member of the board committee of the Association of Civil Engineers of Catalonia and as a member of several scientific committees. Tengfei Wang is Economic Affairs Officer at the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), since February He has worked in the areas of trade and transport facilitation, logistics policy, freight forwarding, and multimodal transport. Prior to joining the ESCAP, he was Senior Lecturer in Port and Supply Chain Management at the University of Plymouth, UK. His articles have appeared widely in internationally renowned journals. He holds a PhD from the Hong Kong Polytechnic University and, for the period , was the winner of the Palgrave Macmillan PhD competition. Gordon Wilmsmeier works in the Infrastructure Services Unit at UN- ECLAC. He is also Professor of Maritime Geography (honorary) at the University of Applied Sciences, Germany, and a visiting lecturer at the University of Gothenburg, Sweden, and Universidad Nacional de San Martín, Argentina. His research primarily focuses on transport
16 xvi Notes on Editors and Contributors geography, port development, shipping networks, competition, and energy efficiency. He has published more than 100 book chapters, journal articles, institutional publications, and working papers. He is a council member of IAME and member of the Port Performance Research Network, the Sustainability Working Group of the European Freight and Logistics Leaders Forum, and PortEconomics.
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