• Title/Summary/Keyword: Competitive Port Model

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Efficiency Analysis for Major Ports in Korea and China using Boston Consulting Group and Data Envelopment Analysis Model

  • PHAM, Thi Quynh Mai;Choi, Kyoung-Hoon;Park, Gyei-Kark
    • Journal of Navigation and Port Research
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    • v.42 no.2
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    • pp.107-116
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    • 2018
  • Planning strategies to achieve higher competitiveness of ports are becoming increasingly important in business environment. Therefore, strategic competitive position and efficiency analysis needs to be performed to increase ports' effectiveness and competitiveness. This matches with one of targets of new concept e-Navigation to increase the agility and efficiency of ports. The purpose of this study was to apply Boston Consulting Group matrix to analyze competitive positioning of major ports in Korea and China in term of several main cargo types and then use a combination of Data Envelopment Analysis and Principal Component Analysis model to calculate efficiencies. Results show that, at the moment, Chinese ports are still on the top with high position and efficiency score for the representative-Shanghai port. However, result also points out that except container type, Korean ports have chance to compete in other cargo types. Moreover, Gwangyang port is regarded as efficient. It has better position time. It is believed that Gwangyang port together with Busan port can compete with Chinese port in the near future.

An Analysis of the Productive Efficiency and Competitive Strength of Container Ports using the DEA, Super-efficiency, and FDH Methods

  • Park, Ro-Kyung
    • Journal of Korea Port Economic Association
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    • v.18 no.1
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    • pp.3-26
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    • 2002
  • The purpose of this paper is to Investigate the productive efficiency and competitive strength of world container ports using the DEA, Super-efficiency, and FDH methods with the raw data from previous research by Jun et al.(1993). The super-efficiency measure examines the maximal radial change In input, outputs for an observation to remain efficient. Therefore, it provides a means of distinguishing between efficient observations, which would otherwise seem identical. FDH provides a good test mechanism for examining the practical implications of the choice available among alternative efficiency measures and orientations, because of the lack of convexity of its production possibility set. Both methods are complementary to DEA. This paper follows the traditional productivity analysis method overcoming the limitation of previous studies by using the DEA, FDH and Super-efficiency methods, and proposing in measure the relative competitive strength of worldwide container ports. The main empirical results of this paper are as follows: Firstly the ports of Singapore, Hongkong, Kilrung, Busan, Tokyo. and Longbeach were found to be efficient In the CCR model. The ports of Felixstowe, Bangkok, Singapore, Hongkong, Kilung, Busan, Tokyo, and Longbeach were found to be efficient in the BCC model. Secondly, super. efficiency rankings under CRS and input-oriented model are as follows: Longbeach, Keelung, Singapore, Busan, Tokyo, and Honkong. However, it was difficult In differenciate the rankings under the VRS and input-oriented model. due to major difficulties posed by the ports of Singapore, Hongkong, and Longbeach. Thirdly, the FDH method shows that the inefficient ports are Bremerhaven, Antwerp, Le Havre, Kobe, Seattle, New York The policy Implications of this study are as follows: Firstly, when port authorities want to measure the international competitive strength of container ports and enhance their productive efficiency, they should consider the traditional method as well as introducing the Super-efficiency and FDH methods. Secondly, according to the analysis results of the super-efficiency and FDH methods, poll authorities should recommend benchmarks ports and dominated ports as reference ports in order to enhance the productive efficiency of their container ports that have an efficiency rating of less than 1. Efficient ports whose efficiency ratings are over 1 in the Input-oriented Super-efficiency model should also consider the usage of input and output elements used by more efficient ports.

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A Research Program for Modeling Strategic Aspects of International Container Port Competition

  • Anderson, Christopher M.;Luo, Meifeng;Chang, Young-Tae;Lee, Tae-Woo;Grigalunas, Thomas A.
    • Proceedings of the Korea Port Economic Association Conference
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    • 2006.08a
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    • pp.1-12
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    • 2006
  • As national economies globalize, demand for intercontinental container shipping services is growing rapidly, providing a potential economic boon for the countries and communities that provide port services. On the promise of profits, many governments are investing heavily in port infrastructure, leading to a possible glut in port capacity, driving down prices for port services and eliminating profits as ports compete for business. Further, existing ports are making strategic investments to protect their market share, increasing the chance new ports will be overcapitalized and unprofitable. Governments and port researchers need a tool for understanding how local competition in their region will affect demand for port services at their location, and thus better assess the profitability of a prospective port. We propose to develop such a tool by extending our existing simulation model of global container traffic to incorporate demand-side shipper preferences and supply-side strategic responses by incumbent ports to changes in the global port network, including building new ports, scaling up existing ports, and unexpected port closures. We will estimate shipper preferences over routes, port attributes and port services based on US and international shipping data, and redesign the simulation model to maximize the shipper's revealed preference functions rather than simply minimize costs. As demand shifts, competing ports will adjust their pricing (short term) and infrastructure (long term) to remain competitive or defend market share, a reaction we will capture with a game theoretic model of local monopoly that will predict changes in port characteristics. The model's hypotheses will be tested in a controlled laboratory experiment tailored to local port competition in Asia, which will also serve to demonstrate the subtle game theoretic concepts of imperfect competition to a policy and industry audience. We will apply the simulation model to analyze changes in global container traffic in three scenarios: addition of a new large port in the US, extended closure of an existing large port in the US, and cooperative and competitive port infrastructure development among Korean partner countries in Asia.

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Quantitative Analysis for the Efficient Control of Empty Container Flow (공컨테이너의 효율적 관리를 위한 계량적 분석)

  • Oh, Y. T.;Shin, J. Y.
    • Journal of Korean Port Research
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    • v.10 no.2
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    • pp.51-59
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    • 1996
  • The management of liner shipping company is an extremely complex activities, especially if a company aims to simultaneously optimize the cost and service of the company's operations in a competitive environment. This paper investigates the control process of containers in a typical container liner shipping and proposes day by day operational model for empty container control in the maritime container transportation system. We proposed a linear programming model for empty container control in container liner shipping and the computational results show utilities of the model.

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The Estimate of Manpower Demand for International Competitive Strategies in Port and Logistics Industry (항만물류산업의 국제경쟁전략에 따른 인력수요예측 연구 - 부산지역을 중심으로 -)

  • Kim, Yeong-Geun
    • Journal of Korea Port Economic Association
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    • v.21 no.4
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    • pp.55-74
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    • 2005
  • This study focuses on affording a material basis for rearranging the manpower supply system in port and logistics industry for Busan's international competitiveness strategies. First of all, the current state and future plan of port and logistics industry, as Busan's main strategic industry, are reviewed. Then theoretical background are introduced for the estimate of demand. As a methodology of this research, Cubic model is applied to estimate the demand of manpower by using 10 year time series data from 1993 to 2002. This paper also surveyed the supply side of port and logistics industry manpower in Busan area. The amounts of mismatched equilibrium between the demand and the supply are measured in this study. The concluding remarks shows some suggestions for the problem of mismatch and the relating policy planning.

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An Evaluation of the Coupling Coordination Degree of the Yangtze River Delta Port Cluster Based on Coupling Theory

  • Lu Ke;Yong-Sik Oh
    • Journal of Navigation and Port Research
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    • v.48 no.2
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    • pp.78-87
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    • 2024
  • To quantitatively assess the correlation between subsystems within a port cluster and the overall coordinated development of the port group, the current paper evaluates the coordinated development of port clusters. First, we construct an evaluation index system for the coupling and coordination of port clusters. Next, we introduce the contribution index of port subsystems, coupling degree, and coupling coordination degree functions to formulate a coupling coordination evaluation model for the port cluster. Finally, we use the Yangtze River Delta port cluster as a case study for validation, specifically using empirical data from 2012 to 2021. The findings reveal distinct phased characteristics in the coupling and coordination of port clusters in the Yangtze River Delta, marked by a notable transition from "maladjustment" to "coordination." Further, sustained high coupling values over a decade indicate a significant level of competition and cooperation among ports within the Yangtze River Delta port cluster. Over time, this competitive and collaborative dynamic has progressively evolved toward a more positive and structured direction. Lastly, it is expected that the evaluation model proposed in this paper can be extrapolated to other port clusters to gauge the extent of coordinated development, thereby facilitating horizontal comparisons and vertical analyses.

The Challenge of the Third Generation Port and Port Competition (제 3 세대 항만의 도래와 항만경쟁)

  • 문성혁
    • Journal of the Korean Institute of Navigation
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    • v.18 no.2
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    • pp.91-109
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    • 1994
  • Technological and organisational changes in transport system have introduced new dimension into port system development and inter-port competition. The quality of service now required by the customer is costly and not easily provided by small shipping companies and small ports. It has been suggested that in the future container shipping may be concentrated by space-sharing arrangements or actual mergers into the hands of a few mega-operators with the investment potential to provide total logistics networks. In order to compete effectively, high load factors will be essential and port concentration inevitable. A fa-voured few ports will become the load centres and other ports will assume a secondary feeder role. In this study, three questions are raised and attempts are made to answer them : (a) what is the new role of ports today ; (b) why should ports be engaged in this new role ; and (c) how can ports play this new role. In short, a modern port should be a service centre and a logistic platform for international trade and transport-a third generation port. Ports, in particular, have to make every effort to be competitive in the cost and quality of services and to make the port a transport and distribution service centre. For most ports, this is not an option but a must ; an essential requirement for survival in this win or lose situation. The best way to win is to maintain a close contact with port users, listen to them, discuss with them, help them and satisfy them. That is port marketing. Starting from the findings of port marketing, it is es-sential to work out appropriate development plans and marketing targets and to improve port competitive-ness. As an alternative method, a port competitiveness model is suggested, which may help port managers to make appropriate improvements.

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Forecasting Model of Container Transshipment Traffic Volume in Northeast Asia (동북아시아 환적물동량 예측모델 연구)

  • Lee, Byoung-Chul;Kim, Yun-Bae
    • Journal of Korean Institute of Industrial Engineers
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    • v.37 no.4
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    • pp.297-303
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    • 2011
  • Major ports in Northeastern Asia engage in fierce competition to attract transshipment traffic volume. Existing time series analyses for analyzing port competition relationships examine the types of competition and relations through the signs of coefficients in cointegration equations using the transshipment traffic volume results. However, there are cases for which analyzing competing relationships is not possible based on the results of the transshipment traffic volume data differences and limitations in the forecasting of traffic volume. Accordingly, we used the Lotka-Volterra (L-V) model,also known as the ecosystem competitive relation model, to analyze port competition relations for the long-term forecast of South Korean transshipment traffic volume.

Efficiency Measurement of Major Container Terminals in Asia

  • Ryoo, Dong-Keun;Yu, Song-Jin;Sharma, M.J.
    • Journal of Navigation and Port Research
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    • v.30 no.4
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    • pp.267-275
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    • 2006
  • Due to the growth of container traffic and port competition, ports have increasingly been under pressure to improve their efficiency in port operation and port management for competitive edge. The purpose of this study is to compare the technical efficiency among major container terminals in China, Korea and Singapore using Data Envelopment Analysis (DEA). This paper analyses the returns-to-scale using the output orientation of VRS and CRS model. The benefits of this study examining the relative performance of container terminals will enable container terminal operating companies or port policy makers in those countries to identify current slacks and to set up a proper port management and operation plan to improve their productivity.

A Study on the Analysis of Container Ports' Efficiency using Uncertainty DEA model (불확실성 DEA모델을 이용한 컨테이너 항만의 효율성 분석 연구)

  • Pham, Thi-Quynh-Mai;Kim, Hwa-Young;Lee, Cheong-Hwan
    • Journal of Korea Port Economic Association
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    • v.32 no.1
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    • pp.165-178
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    • 2016
  • Container port nowadays becomes one of the most vital link of the transportation chain, plays an important role in trading with other countries. Therefore, evaluating the operational efficiency of container ports to reflect their status and to reveal their position in this competitive environment is very important for port development. Although there have been lots of methods used to measure efficiency in the past, the DEA (Data Envelopment Analysis) model is still the most commonly applied approach. However, the data used in the model sometimes is complex and uncertain to handle using the basic DEA model. In this paper, we applied an uncertainty theory to create an uncertainty DEA model (UDEA), which can solve the limitation of the traditional one. This study mainly focuses on measuring efficiency of 41 container ports by applying proposed an UDEA model. The results show that among 41 container ports, only six container ports are regarded to have efficient operation through the clustering, meanwhile others have technical and scale inefficiencies. We found out that an UDEA model is better to analysis efficiency than existing DEA model.