The European Sea Port Organisation (ESPO) held the 9th edition of its annual Conference in Sopot, the Polish seaside town located in between the ports of Gdansk and Gdynia, who were hosting the event. PortEconomics co-directors Peter de Langen, Theo Notteboom and Thanos Pallis, as well as PortEconomics associate members  Michael Dooms, Patrick Verhoeven, and Larissa van der Lught were there actively contributing to discussions around the theme of port financing and investment, the most important enabling factors behind port development.

Port privitisation has again become a topical issue in Europe as the economic crisis is pushing some countries to sell off ports and other vital infrastructures. During a special roundtable discussion on port privatisation, PortEconomics co-directors Theo Notteboom and Thanos Pallis joined port authorities trade unions, terminal operators and conference delegates, and discussed whether this a trend that is here to stay and would full privatisation be in the interest of ports and the trade that they serve. 

Another higlight of the second day of ESPO 2012 was, the presentation of the results of the PPRISM (Port Performance Indicators - Selection and Measurement) project conducted by several partners of the PortEconomics initiative by Chris Wooldridge.

The conference also devoted attention to the review of European ports policy that the European Commission recently announced. Other topics which were discussed included the financial capabilities of port authorities, public private partnerships, concessions and regional investment opportunities.

Acting at his capacity as Secretary General of the ESPO, PortEconomics associate member Patrick Verhoeven presented the ESPO 'Port Manifesto' advocating a 'renaissance' of port management and policy. The manifesto addresses port authorities, governments and the European Union. It advocates first of all a change of management culture among port authorities, one that combines a dynamic business policy with good corporate governance and transparency, both within and beyond the port area. Secondly, it invites responsible governments to devise frameworks that guarantee independent port management, removing all necessary bottlenecks. Finally, it recognises the potential of the European Union to be a positive force by ensuring a level playing field and legal certainty and fostering growth and development of ports.

Commission Vice-President Siim Kallas gave the closing keynote speech of the conference. "The ports policy review will not be a one size fits all approach. After all, there must be sufficient flexibility to take local circumstances into account. It is certainly not for the Commission to tell ports how their business should be run, or to suggest particular business models", said Mr. Kallas, "The review is about having greater transparency and fewer restrictions, to remove barriers for new entrants wanting to tender fairly and openly for port services. Fair competition is a healthy – and I would say, usual – requirement for improving port performance generally and for the system's overall efficiency."

In his conclusions, ESPO Chairman Victor Schoenmakers emphasised the need to balance legal certainty with the flexibility that port authorities need to manage the dynamic nature of the industry. "This is the most important challenge to resolve", said Mr. Schoenmakers.

You might download:
Theo's presentation via PortEconomics:  The end of the landord model? Economics pressures to privitise ports 
Thanos' presentation via PortEconomcis: Privitisation of Greek ports
The ESPO Manifesto via ESPO's webpage: ESPO Manifesto for Port Authorities, Governments and the European Union
Details of the event, and all speakers presentations @ the ESPO 2012 Conference webpage.

 Read also @ PortEconomics: ESPO 2012 twitted by Patrick Verhoeven as happened

PortEconomics co-director Theo Notteboom in collaboration with Indra Vonck (from ITMMA, University of Antwerp) authored an economic study on break bulk flows and activities in Belgian ports.

The study, which was commissioned by ING Bank, was officially presented during a high-level event held in Antwerp at the start of the Masterclass Breakbulk organized by training centre Portilog.

The report, which advances the discussion on port competition and cooperation in the region, attracted a lot of attention in Dutch and Belgian press. The break bulk sector remains an important cargo segment despite increased containerisation. The break bulk cargo handling sector contributes in a substantial way to value-added creation and employment in seaports and is an indispensable partner for export-driven industries and import-oriented supply chains. The sector is characterised by an increasing level of diversity and specialisation in cargo flows and supply chain solutions, each with a specific know how of the market players involved.

The report examines current market developments in the various break bulk market segments and their impact on the functioning and positioning of the Belgian ports. The report also presents the main challenges and policies for break bulk cargo development in Belgium and its seaports.

For further information on this report contact Theo Notteboom @  This e-mail address is being protected from spambots. You need JavaScript enabled to view it

PortEconomics co-director Theo Notteboom moderated the 'Port Lunch Flanders' event in Antwerp. Some 150 participants joint the event.

The highlight of the day was a panel debate with Eddy Bruyninckx (CEO, Port of Antwerp), Joachim Coens (CEO, Port of Zeebrugge) and Peter Mortier (Adjunct Director-General, Port of Ghent) on the challenges facing the three major Flemish ports. The panel discussion particularly focused on the commercial challenges for ports, the role of port authorities, the challenges in the area of environment and sustainability and the role of government in an era of limited public budgets.

The annual conference of the European Sea Port Organisation (ESPO) will be held this year in Sopot, the elegant Polish seaside resort town which is located in between the ports of Gdansk and Gdynia. The event will take place May 10-11, 2012

PortEconomics co-directors Theo Notteboom and Thanos Pallis will join port authorities and conference delegates, participating at the round-table discussion on port privatisation on the second day of ESPO 2012. 

As the economic crisis is pushing some countries to sell of ports and other vital infrastructures the round table will discuss wether this a trend that is here to stay and would full privatisation be in the interest of ports and the trade that they serve. Based on the experience of past and ongoing cases in the United Kingdom and Greece, a panel of experts including port authorities, trade unions and terminal operators will share the podium with Theo and Thanos to discuss the costs and benefits of port privatisation.



The conference theme addresses port financing and investment, the most important enabling factors behind port development. By comparing financial trends affecting the port sector, regional investment opportunities and regulatory issues related to public private partnerships, concessions and financial capabilities of port authorities, the conference aims to gather stimulating food for thought in challenging economic times.

Acting at his capacity as Secretary General of the ESPO, PortEconomics associate member Patrick Verhoeven, will present the ESPO 'Port Manifesto', whereas Chris Wooldridge, also associate member will present the results of the PPRISM (Port Performance Indicators - Selection and Measurement) project conducted by several partners of the PortEconomics initiative,

The ESPO 2012 conference will also devote considerable attention to the future EU 'ports package' that the European Commission recently announced and Commission Vice-President Siim Kallas has kindly agreed to give the closing keynote speech.

A full programme, all practical details, and registration details are available @ the Conference webpage.

What is the the relative position of ports in the modern global liner service networks? 

PortEconomics associate member César Ducruet and co-director Theo Notteboom have recently published a port study on liner service networks in container shipping. The study, which was published in the academic journal Global Networks, presents an analysis of the global liner shipping network in 1996 and 2006 discussing the position of ports through indicators of centrality.

The results reveal a certain level of robustness in the global shipping network. While transhipment hub flows and gateway flows might slightly shift among nodes in the network, the network properties remain rather stable in terms of the main nodes polarizing the network and the overall structure of the system.

In a second study, that is part of the book Maritime Logistics: A complete guide to effective shipping and port management,  (published by Kogan Page, London; edited by Dong-Wook Song and Photis Panayides), Cesar and Theo review the current characteristics of liner shipping networks under three main themes. First, they provides an overview of the different service types of shipping lines and dynamics in liner service configuration and design. Second, a global snapshot of the worldwide liner shipping network is proposed by means of vessel movement data. The contribution concludes by elaborating on the interactions and interdependencies between seaport development and liner shipping network development notably under current economic changes.

Download the authors' version of the study:  Ducruet, C., and Notteboom, T., (2012),  Developing Liner Service Networks in Container Shipping, in: Song, D.W., Panayides, P. (eds.), Maritime Logistics: A complete guide to effective shipping and port management, Kogan Page, London, p. 77-100 @ PortEconomics:  

Download the authors' version of the study: Ducruet, C., and Notteboom, T., (2012),  The worldwide maritime network of container shipping: spatial structure and regional dynamics, published in Global Networks @ PortEconomics 

When considering terminal performance attention is mostly directed toward production factors such as labor, capital and technology within the confines of the physical terrain. Operations on seaport terminals can be further enhanced by optimizing processes and technical upgrades. The role of the general environment, however, often remains neglected.

PortEconomics member Member Dries Verbraeken and co-director Theo Notteboom address this issue, in a port study on land productivity of seaport terminals published in the latest issue of International Journal of Decision Sciences, Risk and Management (IJDSRM).

Dries and Theo reintroduce exogenous factors to the contemporary land productivity analysis. The study develops a conceptual framework for the identification of relevant exogenous factors and the potential impacts these factors have on the possibilities for the terminal operator to achieve a high land productivity. The conceptual analysis and the related typology of exogenous factors contribute to a more relevant international comparison of terminal productivity which takes into account the complex environment surrounding the terminals considered. Terminal operation experts  assess exogenous factors in relation to land productivity. The results indicate that exogenous factors are important in explaining differences in land productivity among ports or in time.

Download the authors' version of the study @ PortEconomics: Land productivity of seaport terminals

PortEconomics co-directors Theo Notteboom and Peter de Langen, members Vicky Kaselimi and Dries Verbraeken and the associate members Wouter Jacobs and Larissa Van Der Lugt particpated at the First Port Research Centre Poster Session organized by the Erasmus Smart Port Rotterdam in Rotterdam on March 6, 2012, and included the latest developments of on-going port research,

Porteconomics members and associated that conduct doctoral research had the opportunity to present port reserch related to their research to an audience including several PhD-students and a selected group of senior port researchers in the Netherlands and Belgium.

In particular, the program included a presentation by Vicky Kaselimi on her research on "A Game Theoretical Approach to the Interrelation between Terminal Scale and Port Competition", whereas Dries Verbraeken discussed his research on the "Exogenous Determinants of Land Productivity of Container Port Terminals". These studies are conducted under the supervision of Theo Notteboom, ITMMA & Faculty of Applied Economics of the University of Antwerp. PortEconomics associate member Larissa van der Lugt presented her research "Beyond the landlord: An analysis into the Strategic Scope of the Port Authority".

Other themes discussed included "Gateway and Hinterland Dynamics" by Darren Fraser,
"The Institution and Governance of Inland Waterway Transport" by Jinyu Li, "Location Analysis of Dry Ports Based on Fuzzy c-Means (FCM)" by Zheng Chang and "From the Terminal to the Metropolitan Region: Governing Logistics Development in the Greater Paris Region", Nicolas Raimbault.

The Smart Port Rotterdam initiative aims to develop new ways of cooperation, and combine high academic quality with practical relevant, to deliver research, education and project research.

In order to get an impression of the day you may visit the Youtube video of the event

PortEconomics co-director Theo Notteboom published a new port study on the competitive potential of the Cape route in the global liner service network and the prospects of a new intermediate hub region in container shipping, in the scholarly Journal of Transport Geography (vol. 22, pp. 164–178).

The Suez Canal plays a pivotal role in today's global container shipping network, in particularly in accommodating vessels sailing on the important Asia-Europe trade lane. The study analyses to what extent and for which trade lanes the Cape route could develop into a competitive alternative to the Suez route. The market potential of the Cape route is analysed using a distance analysis, a transit time analysis and a generalized cost analysis for a large set of O/D relations. Vessel interlining via the port of Algeciras is compared to interlining via the new port of Ngqura in South Africa. 

The results show that the Cape route has the potential to serve as an alternative to the Suez route on eleven trade lanes. A scenario and sensitivity analysis reveals that interlining via a hub near the Cape is expected to become more competitive due to a combination of higher Suez Canal transit fees, better vessel economics, higher bunker costs, slow steaming practices and subject to a more competitive terminal pricing strategy of southern African transhipment facilities. The expected emergence of the Cape route should be seen as the embodiment of a promising development of south-south trade volumes between Asia, Sub-Saharan Africa and South America.

The author's version of the paper can be freely downloaded @ PortEconomics.eu:   Towards a new intermediate hub region in container shipping?

The awarding of terminals in seaports are the theme of the latest issue of the Maritime Policy and Management. The issue is co-edited by PortEconomics co-directors Theo Notteboom, and Thanos Pallis, in collaboration with Dr. Sheila Farrell.

In many countries around the world, governments and public port authorities have retreated from port operations in the belief that enterprise-based port services and operations would allow for greater flexibility and efficiency in the market (through more competition) and a better response to consumers' demands. In this new environment, the awarding of port terminals to private operators has become common practice. This can takes different forms ranging from management contracts/leases to BOT arrangements, with each type having specific modalities with regard to the spread of investments and of risks. In particular, concession policy has become a powerful governance tool to port managers. Through concession policy, port authorities can retain some control on the organization and structure of the supply side of the port market. The issue of terminal awarding processes has not received a lot of attention in academic circles, while it has become a key issue in port governance.

This special issue adds value to the existing knowledged by  deepening and broadening the discussion on the award of terminals to private terminal operators. In particular it contains seven port studies address key issues in terminal awarding processes combining theoretical insights with empirical case studies:

1. The ownership and management structure of container terminal concessions, by Sheila Farrell;
2. Concession of the Piraeus container terminal: turbulent times and the quest for competitiveness, by Harilaos N. Psaraftis & PortEconomics co-director Thanos Pallis;
3. Managing port concessions: evidence from Italy, by PortEconomics associate member Francesco Parola along with Alessio Tei & Claudio Ferrari;
4. Awarding of Port PPP contracts: the added value of a competitive dialogue procedure, by Hidde Siemonsma, Wouter Van Nus & Patrick Uyttendaele;
5. A new approach to granting terminal concessions: the case of the Rotterdam World Gateway terminal, by PortEconomics co-director Peter W. De Langen, along with Roy Van Den Berg & Aernoud Willeumier
6. A new lease charging system for Busan container terminals: a historical case study, by Paul T.-W. Lee & Tsung-Chen Lee; and 
7. Current practices in European ports on the awarding of seaport terminals to private operators: towards an industry good practice guide, by PortEconomics co-director Theo Notteboom, the PortEconomics associate member Patrick Verhoeven & Martina Fontanet
8. The guest editorial Terminal concessions in seaports revisited by Theo Notteboom, Thanos Pallis & Sheila Farrell

These port studies have been completed through discussions in the working group on concessions of the Port Performance Research Network (PPRN), that has put the concession issue on the research agenda of maritime economists.

 The special Maritime Policy & Management issue (vol 39, issue 1) is now available online @ Taylor & Francis Online.
   
 Download the authors' version of the guest editorial @ PortEconomics: 
  Terminal Concessions in Seaports revisited (2012)

A new study by PortEconomics co-director Theo Notteboom on the challenges for container river services on the Yangtze River will soon in the latest issue of the scholarly journal Research in Transportation Economics.

China plays an increasingly important role on the international economic scene and in global supply chains. Initially only coastal regions participated in global supply chains, but in recent years comparative cost advantages have led to an increased participation of inland destinations in China's economic development. The growth of some inland regions has urged logistics players to revise and reconfigure their extensive logistics networks. This has been particularly the case in the Yangtze region. Upstream cities such as Chongqing are emerging as potential important production centres for the international markets.

Theo's study discusses the challenges for container barge services on the Yangtze River to Chongqing. It is argued that a further strengthening of the global market position of Chongqing and other upstream locations demands further improvements in transport-related and logistical cost control and reliability. The performance of container river services on the Yangtze River is crucial for upstream economic regions to take part in world trade. The study analyzes the costs aspects linked to transporting goods to the world markets and makes a comparison to gateway region Shanghai.

You can download the author's version of the paper @ PortEconomics:  Challenges for container river services on the Yangtze River