IDEAS home Printed from https://ideas.repec.org/a/pal/marecl/v21y2019i1d10.1057_s41278-017-0073-9.html
   My bibliography  Save this article

Dynamics in terminal concessions: the role of performances

Author

Listed:
  • Claudio Ferrari

    (University of Genova)

  • Pier Paolo Puliafito

    (University of Genova)

  • Alessio Tei

    (Newcastle University)

Abstract

A terminal concession agreement represents the final outcome of a negotiation (that may take different legal forms) among a port authority and one or more terminal operators. In most cases, it defines the duties and responsibilities of the two parties for a very long period of time. Once the concession is awarded, its legal obligations remain (or ought to remain) fixed irrespective of changes that may happen in the port industry. In this sense, authors have often raised the question whether modifications to the current concession fee structure are possible in order to align public and private goals, and increase terminal performance. The importance of this issue lies in the fact that, in several port governance models, concessions are static agreements in which fees and other conditions in general do not change over time. The current paper addresses this issue, discussing the possibility—and the advantages—of introducing a dynamic approach, able to guarantee benefits to both the terminal operator and the Port Authority. To achieve this goal, the paper develops a methodology based on dynamic incentives, based on the relative performance of a port terminal operator in respect of its competitors.

Suggested Citation

  • Claudio Ferrari & Pier Paolo Puliafito & Alessio Tei, 2019. "Dynamics in terminal concessions: the role of performances," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 21(1), pages 99-110, March.
  • Handle: RePEc:pal:marecl:v:21:y:2019:i:1:d:10.1057_s41278-017-0073-9
    DOI: 10.1057/s41278-017-0073-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41278-017-0073-9
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/s41278-017-0073-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
    2. Evangelia N. Kaselimi & Theo E. Notteboom & Bruno De Borger, 2011. "A game theoretical approach to competition between multi-user terminals: the impact of dedicated terminals," Maritime Policy & Management, Taylor & Francis Journals, vol. 38(4), pages 395-414, January.
    3. Henriëtte C Van Niekerk, 2005. "Port Reform and Concessioning in Developing Countries," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 7(2), pages 141-155, June.
    4. J Augusto Felício & Vítor Caldeirinha & Andreia Dionísio, 2015. "The effect of port and container terminal characteristics on terminal performance," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 17(4), pages 493-514, December.
    5. Peter W. de Langen & Christiaan Heij, 2014. "Corporatisation and Performance: A Literature Review and an Analysis of the Performance Effects of the Corporatisation of Port of Rotterdam Authority," Transport Reviews, Taylor & Francis Journals, vol. 34(3), pages 396-414, May.
    6. Theys, Christophe & Notteboom, Theo E. & Pallis, Athanasios A. & De Langen, Peter W., 2010. "The economics behind the awarding of terminals in seaports: Towards a research agenda," Research in Transportation Economics, Elsevier, vol. 27(1), pages 37-50.
    7. Patrick Verhoeven, 2010. "A review of port authority functions: towards a renaissance?," Maritime Policy & Management, Taylor & Francis Journals, vol. 37(3), pages 247-270, May.
    8. Francesco Parola & Alessio Tei & Claudio Ferrari, 2011. "Managing port concessions: evidence from Italy," Maritime Policy & Management, Taylor & Francis Journals, vol. 39(1), pages 45-61, October.
    9. Wang, Grace W.Y. & Pallis, Athanasios A., 2014. "Incentive approaches to overcome moral hazard in port concession agreements," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 162-174.
    10. Alfred J Baird, 2000. "Port Privatisation: Objectives, Extent, Process, and the UK Experience," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 2(3), pages 177-194, September.
    11. E Defilippi, 2004. "Intra-Port Competition, Regulatory Challenges and the Concession of Callao Port," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 6(4), pages 279-311, December.
    12. F. Suykens & E. Van De Voorde, 1998. "A quarter a century of port management in Europe: objectives and tools," Maritime Policy & Management, Taylor & Francis Journals, vol. 25(3), pages 251-261, January.
    13. Claudio Ferrari & Manuela Basta, 2009. "Port concession fees based on the price-cap regulation: A DEA approach," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 11(1), pages 121-135, March.
    14. Naima Saeed & Odd I Larsen, 2010. "Container terminal concessions: A game theory application to the case of the ports of Pakistan," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 12(3), pages 237-262, September.
    15. Bandara, Yapa Mahinda & Nguyen, Hong-Oanh, 2016. "Influential factors in port infrastructure tariff formulation, implementation and revision," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 220-232.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alejandro Vega-Muñoz & Guido Salazar-Sepúlveda & Nicolás Contreras-Barraza & Lorena Araya-Silva, 2021. "Port Governance and Cruise Tourism," Sustainability, MDPI, vol. 13(9), pages 1-16, April.
    2. Chao, Shih-Liang & Yu, Ming-Miin, 2022. "Applying data envelopment analysis to allocate incentive bonuses for container terminal operators," Transport Policy, Elsevier, vol. 125(C), pages 231-240.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ferrari, Claudio & Parola, Francesco & Tei, Alessio, 2015. "Governance models and port concessions in Europe: Commonalities, critical issues and policy perspectives," Transport Policy, Elsevier, vol. 41(C), pages 60-67.
    2. Zhang, Jihua, 2016. "Quasi-landlord port financing in China: Features, practice and a contract theory analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 89(C), pages 73-88.
    3. Debrie, Jean & Lavaud-Letilleul, Valérie & Parola, Francesco, 2013. "Shaping port governance: the territorial trajectories of reform," Journal of Transport Geography, Elsevier, vol. 27(C), pages 56-65.
    4. Zheng, Shiyuan & Ge, Ying-En & Fu, Xiaowen & (Marco) Nie, Yu & Xie, Chi, 2020. "Demand information sharing in port concession arrangements," Transportation Research Part B: Methodological, Elsevier, vol. 138(C), pages 118-143.
    5. Su-Han Woo & Stephen Pettit & Anthony Beresford & Dong-Wook Kwak, 2012. "Seaport Research: A Decadal Analysis of Trends and Themes Since the 1980s," Transport Reviews, Taylor & Francis Journals, vol. 32(3), pages 351-377, January.
    6. Theo Notteboom & Jasmine Siu Lee Lam, 2018. "The Greening of Terminal Concessions in Seaports," Sustainability, MDPI, vol. 10(9), pages 1-17, September.
    7. VAN DE VOORDE, Eddy & VERHOEVEN, Patrick, 2014. "The economics of port authority reform. A framework for ex-post evaluation," Working Papers 2014017, University of Antwerp, Faculty of Business and Economics.
    8. Han, Wenqing & Liu, Shi-Miin & Chen, Hsiao-Chi, 2020. "Optimal concession contracts for landlord port authorities under incomplete information," Transport Policy, Elsevier, vol. 96(C), pages 113-127.
    9. Wang, Grace W.Y. & Pallis, Athanasios A., 2014. "Incentive approaches to overcome moral hazard in port concession agreements," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 162-174.
    10. Yip, Tsz Leung & Liu, John Jianhua & Fu, Xiaowen & Feng, Jiejian, 2014. "Modeling the effects of competition on seaport terminal awarding," Transport Policy, Elsevier, vol. 35(C), pages 341-349.
    11. Zhang, Qiang & Geerlings, Harry & El Makhloufi, Abdel & Chen, Shun, 2018. "Who governs and what is governed in port governance: A review study," Transport Policy, Elsevier, vol. 64(C), pages 51-60.
    12. Liu, Shi-Miin & Chen, Hsiao-Chi & Han, Wenqing & Lin, Yen-Hung, 2018. "Optimal concession contracts for landlord port authorities to maximize fee revenues with minimal throughput requirements," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 239-260.
    13. Monios, Jason, 2019. "Polycentric port governance," Transport Policy, Elsevier, vol. 83(C), pages 26-36.
    14. Rui Cunha Marques & Álvaro Fonseca, 2010. "Market structure, privatisation and regulation of Portuguese seaports," Maritime Policy & Management, Taylor & Francis Journals, vol. 37(2), pages 145-161, March.
    15. Theo Notteboom & Jean-Paul Rodrigue, 2023. "Maritime container terminal infrastructure, network corporatization, and global terminal operators: Implications for international business policy," Journal of International Business Policy, Palgrave Macmillan, vol. 6(1), pages 67-83, March.
    16. Jūratė Liebuvienė & Kristina Čižiūnienė, 2021. "Comparative Analysis of Ports on the Eastern Baltic Sea Coast," Logistics, MDPI, vol. 6(1), pages 1-29, December.
    17. Zheng, Shiyuan & Luo, Meifeng, 2021. "Competition or cooperation? Ports’ strategies and welfare analysis facing shipping alliances," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 153(C).
    18. Álvarez-SanJaime, Óscar & Cantos-Sánchez, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, José J., 2013. "Vertical integration and exclusivities in maritime freight transport," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 51(C), pages 50-61.
    19. Shiyuan Zheng & Rudy R Negenborn, 2018. "Design of port regulation mechanisms for multilayer governance: A shanghai case study," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(1), pages 89-111, March.
    20. Notteboom, Theo & De Langen, Peter & Jacobs, Wouter, 2013. "Institutional plasticity and path dependence in seaports: interactions between institutions, port governance reforms and port authority routines," Journal of Transport Geography, Elsevier, vol. 27(C), pages 26-35.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:marecl:v:21:y:2019:i:1:d:10.1057_s41278-017-0073-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.