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Evaluating seaport policy alternatives: a simulation study of terminal leasing policy and system performance

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  • Hugh S. Turner

Abstract

The competitive characteristics of the North American seaport industry have, in theory, been causally linked to excess investment and low terminal throughput productivity. This paper empirically examines the link between seaport authority container terminal leasing policy and throughput productivity. Recent advances in inventory theory applied to service industries suggest the pooling of demand uncertainty can yield lower costs without sacrificing customer service. This concept is applied to a container seaport using simulation. The effort compares key output measures from a realistic base case model of the seaport to those generated by an alternative terminal leasing policy. It is shown that the pooling of demand in a common-user seaport reduces total vessel time in port by 17.1% with no reduction in TEU throughput. Throughput productivity is improved for the highest capacity terminals, while lower capacity terminals are made available for additional users or alternative uses.

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  • Hugh S. Turner, 2000. "Evaluating seaport policy alternatives: a simulation study of terminal leasing policy and system performance," Maritime Policy & Management, Taylor & Francis Journals, vol. 27(3), pages 283-301.
    • Handle: RePEc:taf:marpmg:v:27:y:2000:i:3:p:283-301
    DOI: 10.1080/030888300411112
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    Cited by:

    1. Branislav Dragović & Ernestos Tzannatos & Nam Kuy Park, 2017. "Simulation modelling in ports and container terminals: literature overview and analysis by research field, application area and tool," Flexible Services and Manufacturing Journal, Springer, vol. 29(1), pages 4-34, March.
    2. Theys, Christophe & Notteboom, Theo E. & Pallis, Athanasios A. & De Langen, Peter W., 2010. "The economics behind the awarding of terminals in seaports: Towards a research agenda," Research in Transportation Economics, Elsevier, vol. 27(1), pages 37-50.
    3. Heaver, Trevor, 2006. "The Evolution and Challenges of Port Economics," Research in Transportation Economics, Elsevier, vol. 16(1), pages 11-41, January.
    4. Zhu, Shengda & Fu, Xiaowen & Bell, Michael G.H., 2021. "Container shipping line port choice patterns in East Asia the effects of port affiliation and spatial dependence," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
    5. Notteboom, Theo, 2006. "Chapter 19 Concession Agreements as Port Governance Tools," Research in Transportation Economics, Elsevier, vol. 17(1), pages 437-455, January.
    6. Ng, Adolf K.Y. & Ducruet, César & Jacobs, Wouter & Monios, Jason & Notteboom, Theo & Rodrigue, Jean-Paul & Slack, Brian & Tam, Ka-chai & Wilmsmeier, Gordon, 2014. "Port geography at the crossroads with human geography: between flows and spaces," Journal of Transport Geography, Elsevier, vol. 41(C), pages 84-96.
    7. Brooks, Mary R., 2006. "Chapter 25 Issues in Measuring Port Devolution Program Performance: A Managerial Perspective," Research in Transportation Economics, Elsevier, vol. 17(1), pages 599-629, January.
    8. Peter W. De Langen & Athanasios A. Pallis, 2005. "Analysis Of The Benefits Of Intra-Port Competition," Industrial Organization 0510003, University Library of Munich, Germany, revised 17 Oct 2005.

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