P E , ORT CONOMICS M ANAGEMENT AND P OLICY Port Economics, Management and Policy provides a comprehensive analysis of the contemporary port industry, showing how ports are organized to serve the global economy and support regional and local development. Structured in eight sections plus an introduction and epilog, this text- book examines a wide range of seaport topics, covering maritime shipping and international trade, port terminals, port governance, port competition, port policy and much more. Key features of the book include: • Multidisciplinary perspective, drawing on economics, geography, man- agement science and engineering • Multisector analysis including containers, bulk, break-bulk and the cruise industry • Focus on the latest industry trends, such as supply chain management, automation, digitalization and sustainability Beneftting from the authors’ extensive involvement in shaping the port sector across fve continents, this text provides students and scholars with a valuable resource on ports and maritime transport systems. Practitioners and policy- makers can also use this as an essential guide towards better port management and governance. Theo Notteboom is Chair Professor at the Maritime Institute of Ghent Univer- sity, a part-time Professor at Antwerp Maritime Academy and the University of Antwerp, and Visiting Research Professor at Shanghai Maritime University. Athanasios Pallis is Professor in Management of Ports and Shipping at the Department of Port Management and Shipping, National and Kapodistrian University of Athens and is President of the International Association of Mari- time Economists (IAME). Jean-Paul Rodrigue is Professor of Geography in the Department of Global Studies and Geography, Hofstra University, New York. P E , ORT CONOMICS M ANAGEMENT AND P OLICY Theo Notteboom, Athanasios Pallis and Jean-Paul Rodrigue Cover image: Long Beach Container Terminal (LBCT), Port of Long Beach, Los Angeles, California. Photograph © Jean-Paul Rodrigue First published 2022 by Routledge 4 Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 605 Third Avenue, New York, NY 10158 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2022 Theo Notteboom, Athanasios Pallis and Jean-Paul Rodrigue The right of Theo Notteboom, Athanasios Pallis and Jean-Paul Rodrigue to be identifed as authors of this work has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identifcation and explanation without intent to infringe. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record has been requested for this book ISBN: 978-0-367-33156-6 (hbk) ISBN: 978-0-367-33155-9 (pbk) ISBN: 978-0-429-31818-4 (ebk) DOI: 10.4324/9780429318184 Typeset in Palatino by codeMantra Visit the companion website: https://porteconomicsmanagement.org/ CONTENTS Preface xxiii Introduction: a multifaceted approach to seaports xxvii Part I Ports and maritime shipping 1 Part II Contemporary ports 105 Part III Port terminals 183 Part IV Port governance 281 Part V Port competition 365 Part VI Port performance 415 Part VII Port policies and development 461 Part VIII Port markets 545 Epilog 603 References and suggested readings 609 Index 625 DETAILED TABLE OF CONTENTS Part I Ports and maritime shipping 1 Chapter 1.1 Maritime shipping and international trade 1 1 Maritime shipping as a driver of globalization 1 2 Ongoing growth of international trade 2 3 The containerization of trade 6 3.1 The emergence of the container 6 3.2 Containerized trade networks 7 3.3 Containerized growth dynamics 8 4 The shift in global trade patterns 10 5 International trade and maritime shipping services 15 5.1 Maritime services in dry bulk shipping 15 5.2 Maritime services in the roll-on/roll-off (RoRo) market 16 5.3 Maritime services in the general cargo market 17 5.4 Maritime services in container shipping 17 Chapter 1.2 Ports and maritime supply chains 18 1 Growing complexity in supply chain management 18 1.1 Customer expectations 19 1.2 Globalization 19 1.3 Technological innovation 20 1.4 Regulation and competition 20 1.5 Sustainability 21 2 Improving competitiveness 22 2.1 Operating margins and cost control 22 2.2 Cost leadership and differentiation strategies 23 3 The role of third-party logistics services 25 4 Functional integration in the logistics industry 27 4.1 Vertical integration 27 4.2 Horizontal integration 28 4.3 E-fulflment and e-commerce 30 5 Information technologies and digital transformation 30 Chapter 1.3 Ports and container shipping 32 1 An asset-based industry 32 2 Freight rates and surcharges 35 3 Scale enlargement in vessel size 38 viii Detailed table of contents 4 Horizontal integration: operational agreements and M&A 42 5 Vertical integration: extending the scope of operations 45 6 Container services and networks 47 6.1 Container service network patterns 47 6.2 The design of container liner services 51 7 The connectivity of container ports in maritime networks 54 Chapter 1.4 Ports and distribution networks 57 1 Ports as locations for distribution centers 57 2 Warehousing activities in supply chains 59 2.1 Warehouses and fulfllment centers 59 2.2 Main trends in the warehousing sector 61 3 Regional distribution networks 63 3.1 Choice of distribution system 64 3.2 Location selection for distribution centers 65 3.3 Value-added logistics services 66 Chapter 1.5 Ports and cruise shipping 70 1 Evolution of cruise shipping 70 2 Growth drivers 74 3 Upgraded vessels and onboard amenities 75 4 Scale and market 78 5 Globalization of deployment patterns 82 6 Internationalization of source markets 85 7 Market concentration and multi-brand strategies 87 Chapter 1.6 Interoceanic passages 89 1 Global maritime routes and chokepoints 89 2 The Suez Canal 93 3 The Panama Canal 95 4 The Strait of Malacca 99 5 The Strait of Hormuz 101 6 Other important passages 102 Part II Contemporary ports 105 Chapter 2.1 The changing geography of seaports 105 1 The geography of ports 105 1.1 Geographical considerations 105 1.2 Historical considerations 106 Detailed table of contents ix 2 The evolution of contemporary ports 108 2.1 Conventional port sites 111 2.2 Containerization 111 2.3 Mega port facilities 112 2.4 Ports on the periphery 113 2.5 Automation 114 3 Port migration 114 4 Maritime regions 116 Chapter 2.2 Port hinterlands, regionalization and corridors 117 1 The hinterland concept 117 2 The Hinterland as part of the maritime/land interface 121 3 The hinterland focus of market players 122 4 Port regionalization 125 5 Hinterland accessibility 128 5.1 Defnition in a port context 128 5.2 Stakeholders in hinterland accessibility 129 5.3 Centrality and hinterland accessibility 129 6 Transport corridors 130 6.1 Defnition and performance 130 6.2 Rail corridors 133 6.3 Inland waterways as hinterland corridors 135 7 Cargo bundling in hinterland transport 137 7.1 Cargo bundling options 137 7.2 Cargo bundling in seaport areas 138 7.3 Specifc considerations related to cargo bundling 139 Chapter 2.3 Dry ports 140 1 A new role for inland terminals 140 2 Driving forces 143 3 Functions within transport chains 145 4 The regional impacts of inland ports 150 4.1 Europe 150 4.2 North America 152 4.3 East and Southeast Asia 154 5 Future prospects 154 Chapter 2.4 Digital transformation 155 1 The digital transformation of ports 155 2 Disruptive ICT innovations for ports 158