Evaluation Framework of Seaports' Competitiveness Increasing Projects (original) (raw)
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Engineering Economics
Ports are a significant part of the global and regional cargo supply chain and transport network. Since the performance of ports has a significant impact on the economic growth of their countries, it is necessary to constantly analyse and plan port performance, to anticipate market trends and to improve the ability of a port to withstand the increasing overall competitive pressure. In port performance, not only physical ability to handle the flow of cargo, but also the potential competition for cargo is important. The methods presented in the scientific literature provide with an opportunity to evaluate only the technical efficiency of ports, completely excluding the aspect of financial performance of ports or the prospects for developing competitive advantages. Whereas, financial analyses are not suitable to study port performance. Therefore, the purpose of this paper is to develop the evaluation model of seaports' performance that would enable assessing the financial situation of the organisation and determining its position in the market in relation to its competitors. The article analyses the factors of business competitiveness and the methods for their evaluation as well as the theoretical aspects of applying financial analysis. After different methodologies and evaluation models proposed by different authors are analysed, the economic evaluation model of port performance developed by the authors of the present article is presented. By applying this model, the evaluation of the performance of the Baltic seaports is carried out.
Economic Evaluation of Port Investments
Pomorski Zbornik, 2002
The master plan sets the long-term development strategy for the port, which will influence the future levels of traffic that uses it. These developments may be either improving existing facilities or building new ones. Any other kind of activities that are performed to increase the intensity of port use can also be considered as port development. These can be in the field of law or reorganization too. In any way, an economic evaluation of port development investment should be considered before any action is taken. This is a decision making process where profitability of the new investment is questioned. The evaluation for such a port development project require a succession of costs and benefits over the whole useful life of the project. The main costs in a port development project are construction costs and maintenance costs, the benefits are mainly transport cost savings and reduced turn-round time. A fundamental characteristics of these costs and benefits are that they are transmitted to other participants in the trade rather than to the port authority. The matter of getting costs and revenues on a basis where they may be equitably and conveniently compared can be done by several investment appraisal methods. In this paper, evaluation of a port deepening project will be discussed by using benefit-cost methods. The costs and benefits of such a project will be identified by showing how the port depth affects the unit price of transportation cost.
The Strategic View of Port Investment Decisions
The European Proceedings of Social & Behavioural Sciences EpSBS, 2019
Maritime transport is most preferred transportation mode in global trade and ports are strategy model points along global supply chains due to their integral part role in maritime transportation. Efficiency and effectiveness in the port industry can create a competitive advantage to port operators and supply chains they are in part as well. In order to ensure the sustainability of ports, environmental, economic and social components of port investments must be taken into account. Thus, investment decisions have strategic importance to gain and sustain a competitive advantage, which requires an analysis of port performance indicators. Investment decisions also necessary to respond to the requirements of the industry at a level above the average, while the wrong prediction can be caused idle capacity, loosed capital and missed opportunity costs. This study aimed to create an effective decision-making process. According to this aim, SWOT, AHP and Stepwise Regression analyses are combined. Firstly, investment decision criteria were determined by SWOT analysis, and AHP technique is used for weighting the criteria. Findings of these two steps used as the inputs of investment decision. Finally, a statistical model developed to help decision makers to decide which type of investment must be made by stepwise regression analysis.
International Journal for Innovation Education and Research, 2021
This article appropriates a new methodology for evaluating port projects involving not only economic analysis, but also strategic factors, technological and market, wich provide greater security and assertiveness on the search for the development of a Hub Port model as an option to optimize the logistics of port operations. To achieve the objectives of the proposal, a technical and economic analysis model was developed to demonstrate the feasibility of the project with the inclusion of technological features (deep of ships, modes of transport linking the port to its region of land influence, expansion area) and market components (cargo demands, free trade zone, distance from the main centers of world trade) that decisively interfere in the attractiveness of the project. Linked to this proposal, a risk analysis was carried out, including uncertainties involving economic and strategic aspects, with market and technological variables. To achieve the objectives of the study, the Monte C...
An integrated project evaluation tool for PFI seaport projects
2010
The evaluation of the financial viability for seaport projects is a critical activity for bidders and governments under traditional procurement or through private finance initiative (PFI). The aim of this research is to assist government agencies in evaluating bids and making decision efficiently for seaport development projects through the use of an integrated project evaluation tool. The proposed tool is expected to integrate the results of the financial model and the risk sharing strategy. The integrated project evaluation tool can be mutually used by the government agency and the sponsor(s). This paper discusses the proposed tool to be tested in future study. The research strategy uses literature review, questionnaire surveys, interviews, and document analyses in order to develop the proposed tool. The tool will be tested through case studies and experts' opinion to validate its applicability and effectiveness. The main conclusion of this paper is that the knowledge gap between the sponsor(s) and the government agency can be improved if the government agency is provided with efficient tools that consider both the financial and the risk factors affecting a new project.
The Competitive Position of Seaports: Introduction of the Value Added Concept
International journal of maritime economics, 2000
The performance of a seaport mn be assessed in strategic terms by means of portfolio analyses based on traffic volumes expressed in nominal tons. This article suggests that differences in the creation of value added among traffic mtegories mn great1y contribute to such strategic assessment. A weighted analysis of traffic data allows the identifimtion of market niches with potential for future development. However, the actual weighing of traffic volumes usually lacks transparency and is based on weighing rules which have only limited validity. Therefore, these rules mnnot be viewed as appropriate for a generalised use in the context of seaport comparisons. In this paper, an 'Antwerp rule' and a 'range rule' are developed, based on relevant maritime traffic information. The former rule mn be usefully applied to data on the Antwerp port, whereas the latter allows the introduction of the value added concept in comparative traffic studies that include all ports in the Hamburg-Le Havre range. The introduction of intrinsic mrgo handling tons in port comparisons enables ports with important volumes of general mrgo, such as Antwerp, Zeebrugge and Hamburg, to improve their competitive position.
All companies and other systems, including shipping companies that have set a quality vision, mission, strategic goals and strategy believe in themselves and in their future. They believe that they will be able to meet the needs of their internal and external surroundings for which they were initially founded. In order to gain quality in achieving strategic goals they set i.e. in order to quickly implement their strategy which is a prerequisite for survival on the global market, they must be acquainted with project issues. For this reason the authors of this paper elaborate the project issues in a systematic and concise manner, with particular emphasis to: project, project types, investment projects and their lifetime, shipping investment projects from investor's – shipping company – point of view, investment decision. Special attention is paid to shipping investment projects with direct effects sin-ce these projects generate income or gains during the exploitation phase which g...
Strategic Analysis of Seaports using Multiple-Criteria Decision-Making Methods and TOWS
2013
Aim of This research is a Strategic analysis of seaports using multiple-criteria decision-making methods. At first, the strengths, weaknesses, opportunities and threats of Iranian seaports has been extracted from literature. Then, with respect to the importance concluded from LIKRET questionnaire distributed between experts (taking the views of the experts and specialist), five high importance factors of each strategic groups have been chosen and used in ANP analysis. When, all pricewise comparison have been done, the global weights of each factor calculated and then, four strategy alternatives have been determined with respect to the importance of each TOWS factors. Finally, after final calculation, the highest priority is assigned the SO strategy (Development of port and maritime transport facilities, utilizing modern technologies to develop transit trade in Iranian ports.), The ST strategy (Development of the trade, marketing, promotion and advertisement of transit corridors (Nor...
Port investment: profitability, economic impact and financing
Research in Transportation Economics, 2006
Port investment is a key issue in modern port economics with respect to planning port development, financing and assessing the return on investment. This chapter addresses some of the features related to port investment, starting from the evaluation of the main paradigms that characterize the port industry from a global point of view, and focusing on the relations, synergies and conflicts between the numerous stakeholders actually involved. Profitability, economic impact and financing are seen as the most critical nodes in the complex chain of port investment decisions.The chapter builds up a comprehensive scenario where single aspects and variables related to port investments can fit into a general scheme of interrelations that identifies feasible outcomes. The foreseeable outputs in terms of demand and supply provide insights for possible incentives to efficiency to be improved upon by decision-makers at different levels, promoting the reduction of conflicts and a synergy of interests.
Redesign of Seaports Management Model for Their Transformation Into Profitable Centers
2017
Seaports and port systems have become the center of modern transport systems nowadays. For each country, including the Republic of Croatia, the development of ports and port areas is determined by the growth of economic activities with multiplier effects on the whole economy. The port authority is a public institution that is responsible for port management. The question is how to transform the seaport model management into a profitable entity and maximize its benefits for all stakeholders in a particular port area. Thereby, the financial capacity of the port authority is one of the major keys of the management factors that determine how the port authority can achieve its own goals and optimally perform their function. It follows that the profitable operation of the port authority is one of the fundamental elements for the optimal functioning of the whole port system.