A Spatial-Economic Multimodal Transportation Simulation Model For US Coastal Container Ports

Assessing the potential demand for container ports and related multimodal transportation is critical for several purposes, including financial feasibility analysis and the evaluation of net economic benefits and their distribution. When developed in conjunction with a geographical information system, port-related demand analysis also provides needed input for assessment of selected environmental issues, such as truck traffic on local roads and related potential external costs, such as air pollution and noise. However, container port demand analysis is very difficult due to the complexities of international trade in containerised goods, inter-port competition, and potential strategic behaviour by several parties. Difficulties also arise from the many factors to be considered, major data requirements, and the computationally intensive nature of the problem. This paper summarises the development and application of a spatial-economic, multimodal container transportation demand simulation model for major US container ports. The underlying economic framework assumes shippers minimise the total general cost of moving containers from sources to markets. The model is validated and then used to estimate (1) annual container transportation service demand for major container ports, (2) the market areas served by selected ports, and (3) the impact on port demand and interport competition due to hypothetical changes in port use fees at selected ports. This paper first describes the model and the underlying economic reasoning, followed by the assumptions, computational algorithms, and the software architecture. Then, the trade data, transportation networks, and economic variables are described. After that, model simulation results are presented with qualifications, needed refinements, and future directions. Maritime Economics & Logistics (2003) 5, 158–178. doi:10.1057/palgrave.mel.9100067

Incentive Regulation and Efficiency of Portuguese Port Authorities

In all European seaports, organisational efficiency forms a vital component of the activities to improve competitiveness in the market. As public enterprise entities, Portuguese seaports rely on government subsidies to meet their deficits. The policy of subsidisation is part of the regulatory procedures that are intended to provide incentives for increasing productive efficiency, thereby allowing seaports to share in the social gains from efficiency in the form of greater, or at least stable, employment and local development. In addition, the drive for greater efficiency is meant to assist the ports' preparation for some kind of privatisation. In this paper, we analyse the technical and allocative efficiencies of Portuguese seaport authorities in order to investigate if the state's policy is achieving its aims. We find that the results are, at best, mixed, leading us to conclude that the incentive regulation carried out by the government's regulatory body, the Maritime Port Agency, is not achieving its aims. Therefore, we propose a policy revision to enforce efficiency, based on a governance environment framework. Maritime Economics & Logistics (2003) 5, 55–69. doi:10.1057/palgrave.mel.9100060