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Maritime logistics and port connectivity in the globalised economy
Transportation Research Part E xxx (2016) xxx–xxx
Contents lists available at ScienceDirect
Transportation Research Part E journal homepage: www.elsevier.com/locate/tre
Editorial
Maritime logistics and port connectivity in the globalised economy In the 1960s, the Association of Southeast Asian Nations (ASEAN) was established upon the signing of the ASEAN Declaration by Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Subsequently, Brunei Darussalam joined in 1984, Vietnam in 1995, Lao PDR and Myanmar in 1997, and Cambodia in 1999, making up the ten member states of ASEAN. ASEAN members and the countries of Australia and New Zealand signed an agreement in 2007 to establish the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA). ASEAN members together with six other major trading partners (i.e., Australia, China, India, Japan, New Zealand, and South Korea) began the first round of negotiations in 2013 to establish the Regional Comprehensive Economic Partnership (RCEP). In the meantime, the USA has been driving the establishment of the Trans-Pacific Partnership (TPP) in collaboration with most ASEAN members and Asia-Pacific Economic Cooperation (APEC) members. In addition, with ever closer and deeper collaboration among the member states of BRICS (Brazil, Russia, India, China, and South Africa) and IBSA (India, Brazil, and South Africa), together with the vibrant free trade agreement (FTA) discussions among them, the maritime routes of China-Africa-South America (CASA) have been rapidly developing. The above regional economic blocks have boosted aggregate GDP through elimination of trade barriers and influenced the relocation of production lines through FTAs among the countries and territories concerned. In essence, ASEAN aims to enhance regional cooperation under ‘‘three pillars”, i.e., security, socio-cultural integration, and economic integration. In the past decade, the logistics market in ASEAN has expanded significantly, alongside various FTAs that are being implemented within ASEAN and with ASEAN dialogue partners (Lun and Hoffmann, 2016). ASEAN economic ministers have identified ‘‘Logistics” as one of the priority sectors for accelerated economic integration with the corresponding formulation of the ‘‘Roadmap for the Integration of Logistics Services”. In addition, China’s growing engagements with Africa and South America have accelerated international trade movement between ASEAN and the two continents (Lee, 2015). As a result, economic integration in the area of logistics services, and competitiveness of production bases and relocation of production lines through the creation of an integrated logistics environment in the globalised economy have captured the attention of manufacturers, maritime logistics providers, academics, and policy makers. In view of the significantly large volume of maritime cargo and important differences in the geographical characteristics among Asia, Africa, and the Americas, we see that both ‘‘maritime logistics and port connectivity” play an important role to promote regional economic development. Shipping and port operations facilitate scale economy in production and global shipping. The world’s economic development is closely associated with the efficiency and quality of shipping and port activities. A transport system consists of ports as nodes and shipping serves to link up the nodes through various transport modes. To enhance sustainability in shipping and port operations, it is highly desirable to adopt green transport operations with the aim to reduce negative externalities and improve operating efficiency (Lee et al., 2016). At the heart of a transport system, ports play a significant role as an interface among various transport modes to enhance connectivity to their hinterlands. Shipping and port connectivity involve the optimisation of the interface and links between ports and their hinterlands. Core areas of shipping and port connectivity include coordination of transport operators, communication among key players in the transport chain, sharing of best practices in the transport sector, linking with hinterlands, continuous process improvement, and development of innovative business models for shipping and port operations. This special issue of Transportation Research Part E: Logistics and Transportation Review (TRE) included selected papers which were presented at the two international conferences below and submitted to the TRE journal website.
– Asian Logistics Round Table (ALRT) 2015 Conference on ‘‘Maritime Logistics and Business Connectivity in Trans-Pacific Economic Region” organised by the Department of Business Administration of Soochow University, Taipei.
http://dx.doi.org/10.1016/j.tre.2016.09.006 1366-5545/Ó 2016 Published by Elsevier Ltd.
2
Editorial / Transportation Research Part E xxx (2016) xxx–xxx
– Global Port Research Alliance (GPRA) 2015 Conference on ‘‘Port and Logistics Connectivity” organised by the Shipping Research Centre of The Hong Kong Polytechnic University, Hong Kong SAR. A rigorous review process has resulted in selecting only 5 out of 24 submitted papers. As a result, this special issue cannot sufficiently cover the main theme as the guest editors had intended. The following excerpts are a brief introduction of the five accepted papers for this special issue. The first paper is ‘‘Determinants of port centrality in maritime container transportation” written by Yuhong Wang and Kevin Cullinane. Arguing that existing port centrality studies have little or no comprehensive quantitative benchmarking available for empirical assessments, Wang and Cullinane developed a framework for the measurement of port centrality, with the help of the reformulation of Freeman’s measures of degree, closeness, and betweenness centrality in Opsahl et al. (2010). The authors then apply them to assess the port centrality of 39 major container ports on the East–West trade route. Their empirical test results highlight applicability of centrality measures to indicate the relative importance of ports at both the regional and global levels. Therefore, this paper has contributed to improving the applicability of centrality measurement within the context of the maritime container shipping industry. This port centrality assessment will help liner operators make decisions on port selection or route choice, in considering the network with the running costs between pairs of ports together with the ideal hub port that offers minimised total costs in operations. The second paper is ‘‘Port connectivity in a logistic network: The case of Bohai Bay, China” written by Grace W.Y. Wang, Qingcheng Zeng, Kevin Li and Jinglei Yang. The comprehensive survey on port studies in this paper draws a clear-cut observation that the current development of the role of a port in logistics and supply chains is critical in terms of overall efficiency, competitiveness, and value-added productivity to the port city. Having recognised the importance of competitiveness of ports in logistics networks and the global supply chain in the Bohai Bay Rim by examining three hub ports, i.e., Dalian, Tianjin and Qingdao, the authors developed an overall assessment index of port connectivity that comprises international connectivity (liner shipping network), inner bay connectivity (feeder services network), and hinterland connectivity (rail, road and dry ports network). Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) is applied to rate the three ports together with semi-structured on-site and in-person interviews. The ranking of the overall port connectivity with the TOPSIS-based index is Tianjin, Qingdao, and Dalian in order. This overall assessment index is a quantitative measurement of port connectivity to understand the competitiveness and the role of ports, although subjective judgement is raised in the domain of multi-criteria decision making (Lee et al., 2014). It is advised to carefully interpret the index because from the three aspects of port connectivity, i.e., international, inner bay, and hinterland connectivities, comparative advantages of the three ports greatly vary across different indicators (see Table 8 in the paper). For example, international and hinterland connectivities in Dalian are at a disadvantage compared to those in Qingdao and Tianjin, while Dalian improves its competitiveness with inner bay connectivity and hinterland accessibility. This paper contributes to enriching the port literature by providing a more comprehensive overview of port connectivity from the foreland markets to regional feeder services and to the extended port hinterland system with three major ports at Bohai Bay in China. The third paper is ‘‘Analyzing the spatial–temporal evolution of a gateway’s hinterland: A case study of Shanghai, China” written by Jinglei Yang, Meifeng Luo, and Abing Ji. The authors analyse the spatial–temporal evolution of the Shanghai gateway–hinterland relationship with 31 provinces or municipalities, by using time series data from 1994 to 2012. Having recognised that the attractiveness of a gateway can change over time and Shanghai is in an excellent geographical location as a gateway for international trade in China, they explore such an evolution relative to major geographical conditions and transportation facilities. The authors described the evolution of the port-hinterland relationship of the Shanghai gateway and enumerated a list of possible factors to explain for the attractiveness of the Shanghai gateway. To analyse the key factors and test their influence in the evolution of the Shanghai gateway-hinterland relationship, they developed two statistics models: a linear regression model and a logistic regression model. This paper explains the test results with six variables: rail, road, inland waterway, coastal ports, airport, and time trend. The most significant factor that explains for the attractiveness of the Shanghai gateway is its advantageous location. The test results of the two models showed that out of the six variables, road, sea port, airport, and inland waterway, the so-called transportation facilities, have positive correlations with Shanghai’s gateway function, thus highlighting the importance of geographical conditions and transportation facilities in the Shanghai gateway–hinterland relationship. This paper contributes by investigating the port–hinterland relationship with respect to the spatial–temporal evolution of such a relationship, and analysing the important factors involved in such changes, by using the Shanghai gateway as an example with a rather comprehensive panel data analysis from 1994 to 2012. The fourth paper is ‘‘A strategic model of port-hinterland freight distribution networks” written by Ronald A. Halim, Jan H. Kwakkel, and Lóránt A. Tavasszy. Arguing that most work in the port-hinterland literature builds on the taxonomy and conceptualisation of port-hinterland distribution systems and that some studies deal with the structures of port-hinterland logistics systems without covering the aggregate port-hinterland distribution systems, the authors proposed a strategic model for port-hinterland freight distribution networks. They applied a network design problem as the basis for simultaneously modelling the logistics networks of multiple companies. Then, they used a two-objective model: the minimisation of overall transportation costs and the maximisation of the coverage of the client regions by the whole distribution network. The above models were applied to European port-hinterland distribution networks. One of their interesting results is that Antwerp and Rotterdam perform best for containerised goods, have the largest potential hinterland market, and are preferred for hinterland access both from the perspective of overall costs and lead time, as well as the replenishment lead time
Editorial / Transportation Research Part E xxx (2016) xxx–xxx
3
from distribution centers. Policy implications can be drawn from their test results by considering the effect of trade scenarios, policy measures on the routing of container flows between the seaports, distribution center locations, and hinterland regions. This paper is to some extent interrelated to the second paper by Wang et al. in this special issue in the sense that cost and time variables can be used as inputs for further enhanced port-hinterland connectivity studies. The fifth paper is ‘‘Estimation of Interregional Input–Output Table using Hybrid Algorithm of the RAS Method and Real-Coded Genetic Algorithm” written by Tomoru Hiramatsu, Hiroki Inoue, and Yasuhiko Kato. While a regional inputoutput (I-O) table can show the trading relationship between industries in a region or a country, it cannot be used to analyse the repercussions on other regions or the rebounding demands generated. Considering that interregional transactions have become frequent in the modern era with developments in the transportation infrastructure, there is a need to analyse interregional effects which was not possible with regional I-O tables. Using a combination of the RAS method and real-coded genetic algorithms (GAs), this paper proposes an estimation method for interregional I-O tables with high accuracy. By comparing the performance evaluation results obtained by using the proposed RAS method, and simulated annealing, the authors verified that combining the RAS method with GAs can enhance the estimation accuracy of an interregional I-O table. They also found that the performance can be further enhanced by adjusting the GA parameters. The guest editors would like to take this opportunity to thank Prof. Jiuh-Biing Sheu, the Editor-in-Chief, for his support in organising this special issue. We are also grateful to the contributors for their submissions as well as the time and efforts of the anonymous reviewers in the review process to ensure the quality of this special issue. References Lee, P.T.-W., 2015. China’s growing engagement in emerging maritime logistics market in Africa. In: Lee, Paul Tae-Woo, Cullinane, Kevin (Eds.), Dynamic Shipping and Port Developments in the Globalized Economy, Applying Theory to Practice in Maritime Logistics, vol. 1. Palgrave MacMillan, England, pp. 39–68. Lee, T.-C., Lam, J.S.L., Lee, P.T.-W., 2016. Asian economic integration and maritime CO2 emissions. Transport. Res. Part D: Transp. Environ. 43, 226–237. Lee, P.T.-W., Lin, C.-W., Chung, Y.-S., 2014. Comparison analysis for subjective and objective weights of financial positions of container shipping companies. Marit. Pol. Manage. 41 (3), 241–250. Lun, Y.H.V., Hoffmann, J., 2016. Connectivity and trade relativity: the case of ASEAN. Journal of Shipping and Trade. http://dx.doi.org/10.1186/s41072-0160015-1. Opsahl, T., Agneessens, F., Skvoretz, J., 2010. Node centrality in weighted networks: generalizing degree and shortest paths. Soc. Netw. 32, 245–251.
Paul Tae-Woo Lee School of Business IT and Logistics, RMIT University, Melbourne, Australia E-mail address: [email protected] Y.H. Venus Lun Kee-hung Lai T.C.E. Cheng Shipping Research Centre, The Hong Kong Polytechnic University, Hong Kong Available online xxxx
Contents lists available at ScienceDirect
Transportation Research Part E journal homepage: www.elsevier.com/locate/tre
Editorial
Maritime logistics and port connectivity in the globalised economy In the 1960s, the Association of Southeast Asian Nations (ASEAN) was established upon the signing of the ASEAN Declaration by Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Subsequently, Brunei Darussalam joined in 1984, Vietnam in 1995, Lao PDR and Myanmar in 1997, and Cambodia in 1999, making up the ten member states of ASEAN. ASEAN members and the countries of Australia and New Zealand signed an agreement in 2007 to establish the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA). ASEAN members together with six other major trading partners (i.e., Australia, China, India, Japan, New Zealand, and South Korea) began the first round of negotiations in 2013 to establish the Regional Comprehensive Economic Partnership (RCEP). In the meantime, the USA has been driving the establishment of the Trans-Pacific Partnership (TPP) in collaboration with most ASEAN members and Asia-Pacific Economic Cooperation (APEC) members. In addition, with ever closer and deeper collaboration among the member states of BRICS (Brazil, Russia, India, China, and South Africa) and IBSA (India, Brazil, and South Africa), together with the vibrant free trade agreement (FTA) discussions among them, the maritime routes of China-Africa-South America (CASA) have been rapidly developing. The above regional economic blocks have boosted aggregate GDP through elimination of trade barriers and influenced the relocation of production lines through FTAs among the countries and territories concerned. In essence, ASEAN aims to enhance regional cooperation under ‘‘three pillars”, i.e., security, socio-cultural integration, and economic integration. In the past decade, the logistics market in ASEAN has expanded significantly, alongside various FTAs that are being implemented within ASEAN and with ASEAN dialogue partners (Lun and Hoffmann, 2016). ASEAN economic ministers have identified ‘‘Logistics” as one of the priority sectors for accelerated economic integration with the corresponding formulation of the ‘‘Roadmap for the Integration of Logistics Services”. In addition, China’s growing engagements with Africa and South America have accelerated international trade movement between ASEAN and the two continents (Lee, 2015). As a result, economic integration in the area of logistics services, and competitiveness of production bases and relocation of production lines through the creation of an integrated logistics environment in the globalised economy have captured the attention of manufacturers, maritime logistics providers, academics, and policy makers. In view of the significantly large volume of maritime cargo and important differences in the geographical characteristics among Asia, Africa, and the Americas, we see that both ‘‘maritime logistics and port connectivity” play an important role to promote regional economic development. Shipping and port operations facilitate scale economy in production and global shipping. The world’s economic development is closely associated with the efficiency and quality of shipping and port activities. A transport system consists of ports as nodes and shipping serves to link up the nodes through various transport modes. To enhance sustainability in shipping and port operations, it is highly desirable to adopt green transport operations with the aim to reduce negative externalities and improve operating efficiency (Lee et al., 2016). At the heart of a transport system, ports play a significant role as an interface among various transport modes to enhance connectivity to their hinterlands. Shipping and port connectivity involve the optimisation of the interface and links between ports and their hinterlands. Core areas of shipping and port connectivity include coordination of transport operators, communication among key players in the transport chain, sharing of best practices in the transport sector, linking with hinterlands, continuous process improvement, and development of innovative business models for shipping and port operations. This special issue of Transportation Research Part E: Logistics and Transportation Review (TRE) included selected papers which were presented at the two international conferences below and submitted to the TRE journal website.
– Asian Logistics Round Table (ALRT) 2015 Conference on ‘‘Maritime Logistics and Business Connectivity in Trans-Pacific Economic Region” organised by the Department of Business Administration of Soochow University, Taipei.
http://dx.doi.org/10.1016/j.tre.2016.09.006 1366-5545/Ó 2016 Published by Elsevier Ltd.
2
Editorial / Transportation Research Part E xxx (2016) xxx–xxx
– Global Port Research Alliance (GPRA) 2015 Conference on ‘‘Port and Logistics Connectivity” organised by the Shipping Research Centre of The Hong Kong Polytechnic University, Hong Kong SAR. A rigorous review process has resulted in selecting only 5 out of 24 submitted papers. As a result, this special issue cannot sufficiently cover the main theme as the guest editors had intended. The following excerpts are a brief introduction of the five accepted papers for this special issue. The first paper is ‘‘Determinants of port centrality in maritime container transportation” written by Yuhong Wang and Kevin Cullinane. Arguing that existing port centrality studies have little or no comprehensive quantitative benchmarking available for empirical assessments, Wang and Cullinane developed a framework for the measurement of port centrality, with the help of the reformulation of Freeman’s measures of degree, closeness, and betweenness centrality in Opsahl et al. (2010). The authors then apply them to assess the port centrality of 39 major container ports on the East–West trade route. Their empirical test results highlight applicability of centrality measures to indicate the relative importance of ports at both the regional and global levels. Therefore, this paper has contributed to improving the applicability of centrality measurement within the context of the maritime container shipping industry. This port centrality assessment will help liner operators make decisions on port selection or route choice, in considering the network with the running costs between pairs of ports together with the ideal hub port that offers minimised total costs in operations. The second paper is ‘‘Port connectivity in a logistic network: The case of Bohai Bay, China” written by Grace W.Y. Wang, Qingcheng Zeng, Kevin Li and Jinglei Yang. The comprehensive survey on port studies in this paper draws a clear-cut observation that the current development of the role of a port in logistics and supply chains is critical in terms of overall efficiency, competitiveness, and value-added productivity to the port city. Having recognised the importance of competitiveness of ports in logistics networks and the global supply chain in the Bohai Bay Rim by examining three hub ports, i.e., Dalian, Tianjin and Qingdao, the authors developed an overall assessment index of port connectivity that comprises international connectivity (liner shipping network), inner bay connectivity (feeder services network), and hinterland connectivity (rail, road and dry ports network). Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) is applied to rate the three ports together with semi-structured on-site and in-person interviews. The ranking of the overall port connectivity with the TOPSIS-based index is Tianjin, Qingdao, and Dalian in order. This overall assessment index is a quantitative measurement of port connectivity to understand the competitiveness and the role of ports, although subjective judgement is raised in the domain of multi-criteria decision making (Lee et al., 2014). It is advised to carefully interpret the index because from the three aspects of port connectivity, i.e., international, inner bay, and hinterland connectivities, comparative advantages of the three ports greatly vary across different indicators (see Table 8 in the paper). For example, international and hinterland connectivities in Dalian are at a disadvantage compared to those in Qingdao and Tianjin, while Dalian improves its competitiveness with inner bay connectivity and hinterland accessibility. This paper contributes to enriching the port literature by providing a more comprehensive overview of port connectivity from the foreland markets to regional feeder services and to the extended port hinterland system with three major ports at Bohai Bay in China. The third paper is ‘‘Analyzing the spatial–temporal evolution of a gateway’s hinterland: A case study of Shanghai, China” written by Jinglei Yang, Meifeng Luo, and Abing Ji. The authors analyse the spatial–temporal evolution of the Shanghai gateway–hinterland relationship with 31 provinces or municipalities, by using time series data from 1994 to 2012. Having recognised that the attractiveness of a gateway can change over time and Shanghai is in an excellent geographical location as a gateway for international trade in China, they explore such an evolution relative to major geographical conditions and transportation facilities. The authors described the evolution of the port-hinterland relationship of the Shanghai gateway and enumerated a list of possible factors to explain for the attractiveness of the Shanghai gateway. To analyse the key factors and test their influence in the evolution of the Shanghai gateway-hinterland relationship, they developed two statistics models: a linear regression model and a logistic regression model. This paper explains the test results with six variables: rail, road, inland waterway, coastal ports, airport, and time trend. The most significant factor that explains for the attractiveness of the Shanghai gateway is its advantageous location. The test results of the two models showed that out of the six variables, road, sea port, airport, and inland waterway, the so-called transportation facilities, have positive correlations with Shanghai’s gateway function, thus highlighting the importance of geographical conditions and transportation facilities in the Shanghai gateway–hinterland relationship. This paper contributes by investigating the port–hinterland relationship with respect to the spatial–temporal evolution of such a relationship, and analysing the important factors involved in such changes, by using the Shanghai gateway as an example with a rather comprehensive panel data analysis from 1994 to 2012. The fourth paper is ‘‘A strategic model of port-hinterland freight distribution networks” written by Ronald A. Halim, Jan H. Kwakkel, and Lóránt A. Tavasszy. Arguing that most work in the port-hinterland literature builds on the taxonomy and conceptualisation of port-hinterland distribution systems and that some studies deal with the structures of port-hinterland logistics systems without covering the aggregate port-hinterland distribution systems, the authors proposed a strategic model for port-hinterland freight distribution networks. They applied a network design problem as the basis for simultaneously modelling the logistics networks of multiple companies. Then, they used a two-objective model: the minimisation of overall transportation costs and the maximisation of the coverage of the client regions by the whole distribution network. The above models were applied to European port-hinterland distribution networks. One of their interesting results is that Antwerp and Rotterdam perform best for containerised goods, have the largest potential hinterland market, and are preferred for hinterland access both from the perspective of overall costs and lead time, as well as the replenishment lead time
Editorial / Transportation Research Part E xxx (2016) xxx–xxx
3
from distribution centers. Policy implications can be drawn from their test results by considering the effect of trade scenarios, policy measures on the routing of container flows between the seaports, distribution center locations, and hinterland regions. This paper is to some extent interrelated to the second paper by Wang et al. in this special issue in the sense that cost and time variables can be used as inputs for further enhanced port-hinterland connectivity studies. The fifth paper is ‘‘Estimation of Interregional Input–Output Table using Hybrid Algorithm of the RAS Method and Real-Coded Genetic Algorithm” written by Tomoru Hiramatsu, Hiroki Inoue, and Yasuhiko Kato. While a regional inputoutput (I-O) table can show the trading relationship between industries in a region or a country, it cannot be used to analyse the repercussions on other regions or the rebounding demands generated. Considering that interregional transactions have become frequent in the modern era with developments in the transportation infrastructure, there is a need to analyse interregional effects which was not possible with regional I-O tables. Using a combination of the RAS method and real-coded genetic algorithms (GAs), this paper proposes an estimation method for interregional I-O tables with high accuracy. By comparing the performance evaluation results obtained by using the proposed RAS method, and simulated annealing, the authors verified that combining the RAS method with GAs can enhance the estimation accuracy of an interregional I-O table. They also found that the performance can be further enhanced by adjusting the GA parameters. The guest editors would like to take this opportunity to thank Prof. Jiuh-Biing Sheu, the Editor-in-Chief, for his support in organising this special issue. We are also grateful to the contributors for their submissions as well as the time and efforts of the anonymous reviewers in the review process to ensure the quality of this special issue. References Lee, P.T.-W., 2015. China’s growing engagement in emerging maritime logistics market in Africa. In: Lee, Paul Tae-Woo, Cullinane, Kevin (Eds.), Dynamic Shipping and Port Developments in the Globalized Economy, Applying Theory to Practice in Maritime Logistics, vol. 1. Palgrave MacMillan, England, pp. 39–68. Lee, T.-C., Lam, J.S.L., Lee, P.T.-W., 2016. Asian economic integration and maritime CO2 emissions. Transport. Res. Part D: Transp. Environ. 43, 226–237. Lee, P.T.-W., Lin, C.-W., Chung, Y.-S., 2014. Comparison analysis for subjective and objective weights of financial positions of container shipping companies. Marit. Pol. Manage. 41 (3), 241–250. Lun, Y.H.V., Hoffmann, J., 2016. Connectivity and trade relativity: the case of ASEAN. Journal of Shipping and Trade. http://dx.doi.org/10.1186/s41072-0160015-1. Opsahl, T., Agneessens, F., Skvoretz, J., 2010. Node centrality in weighted networks: generalizing degree and shortest paths. Soc. Netw. 32, 245–251.
Paul Tae-Woo Lee School of Business IT and Logistics, RMIT University, Melbourne, Australia E-mail address: [email protected] Y.H. Venus Lun Kee-hung Lai T.C.E. Cheng Shipping Research Centre, The Hong Kong Polytechnic University, Hong Kong Available online xxxx