Port Economics Flashcards

Flashcards covering key vocabulary and concepts from the port economics lecture notes.

Port

An area within which sea-going ships are loaded with and/or discharged of cargo, and which include the usual places where sea-going ships wait for their turn. Sea ports have an interface with other forms of transport and provide connecting services.

Main Distinguishing Factors of a Port

Activity scope (complete or limited), lay-out (tidal, non-tidal, basins), location(coastal, river, hinterland), and organization (land lord, operating).

Land Lord (port organization)

Port operator owns land but doesn’t do any operations themselves but give concessions to private operators.

Uses of Statistics in a Port

External communication of port activities, planning/management/control of operations, verifying operational events, planning of port infrastructures, control of financial management, and control/planning of human resources.

Commercial port statistics

How much (a measure of its volume)?

Operational port statistics

How (the services to be offered)?

Financial port statistics

For what profit (in monetary terms)?

Social port statistics

With what kind of staff?

Liner Shipping Connectivity Index (LSCI)

How well ports are connected to other ports in the world.

North Sea Port

Port of Gent, Terneuzen and Flushing; one of the only examples of cross border mergers.

Port container performance

Productivity has been measured by output/input.

Cargo dues

Linked to the amount of cargo a vessel is having.

Vessel dues

What vessels have to pay (isn’t linked to amount of cargo).

Northem range

Hamburg-le harve range.

Marine services

Services to a vessel.

Value added services

Adding labels, checking for quality, repackaging,…

Port competition

Competition between entire supply chains.

Core players (maritime chain)

Will be a contract between the shipper and the shipping company.

Forwarder

bundle cargo from a lot of shippers to get better prices.

Port product

Typical product that a port provides.

Congestion

Where a place is too blocked or crowded, causing difficulties and increasing costs.

Value Engineering

Concept focuses on optimising infrastructure, operations and costs by improving efficiency and reducing waste whilst maintaining or improving performance and safety.

Port influencing factors

Port is only as strong as his supply-chain.

Policy

Process of setting objectives, means, and a timeline in mutual coherence. Policy involves determining the direction and the resources required to achieve the set objectives

European Port Regulation 2017/352

Established rules on the provision of port services, financial transparency, and the pricing of infrastructure use.

Effectiveness

Defined objectives are achieved with the policy measures

Efficiency

The objectives are achieved with the use of as few scarce resources as possible.

Port Productivity

Analyses the amount of output that a production process generates with a given amount of input.

Quay occupation

Terminals has to be high otherwise you’re not doing anything

Storage occupation

Should always be half empty -> should attract more traffic

Throughput per running meter of quay

are we really doing operations on the vessels or are they waiting a long time (fe customs clearance)

Deetermining total port capacity

Cargo capacity. Given by the formula Q= a.n.t, where 'a' is the expected berth occupancy rate, 'n' is the number of berths, and 't' is the expected throughput capacity.

Queuing theory

Ships arrive 'at random', with the distribution of the arrivals described by a Poisson probability distribution.

Marginal waiting time

What one additional ship will have when they join the queu

Congestion costs

Increasing service time and/or higher stevedoring costs with increasing amount of cargo to be handled.

Monoproductive cost functions

They see port product as one type of product (focus only on ctr or bulk).

Multiproductive cost functions

See the port composed as many subproducts. Cannot compare bulk and ctr.

Strategic Competition

A multiannual plan of action to compete against an entity

China’s Silk Road

Also known as the Silk Route linking China with the Roman Empire with a 6400 KM route

Priorities to Accelerate ESG Transition

Craft indicators and tools to measure results 2) Set up environmental guidelines

Disney cruise lines

High ticket prices