١^ World Scientific Advances in Maritime Logistics and Supply Chain Systems editors Ek Peng Chew Loo Hay Lee Loon Ching Tang National University of Singapore, Singapore ١^ NEW olEFSEY ٠ L N N World Scientific ٠ SING APO RE ٠ B E IJ IN G ٠ S H A N G H A I ٠ HONG KONG ٠ TAIPEI ٠ C H E N N A I Published by World Scientific Publishing Co Pte Ltd Toh Tuck Link, Singapore 596224 USA office: 27 Warren Street, Suite 401-402, Hackensack, NJ 07601 UK office: 57 Shelton Street, Covent Garden, London WC2H 9HE British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library ADVANCES IN MARITIME LOGISTICS AND SUPPLY CHAIN SYSTEMS Copyright © 2011 by World Scientific Publishing Co Pte Ltd All rights reserved This book, or parts thereof may not be reproduced 7‫؛‬، anyform or by any means, electronic or mechanical, including photocopying, recording or any information storage and retrieval system now knosvn or tt) be, invented, without written permission from tlie Publisher For photocopying of material in this volume, please pay a copying fee through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA In this ca.se permission to photocopy is not required from the publisher lSBN-13 978-981-4329-85-9 ISBN-10 981-4329-85-1 Typeset by Stallion Press Email: enquiries@stallionpress.com Printed in Singapore by World Scientific Printers CONTENTS xiii Preface P art 1: R egion al D evelop m en ts and P erform ance A n a ly sis ]\[aritiriie TYade Evolutions and Port City Developments In Asia In tro d u ctio n Evolution of Asia’s MaritimeT r a d e 2.1 Ancient maritime trade between India and China, 1200-1450 2.2 Maritime networks in colony times, 1500-1950 2.3 Asia’s maritime trade under globalization Asia Port Developmentsin the1990s and Beyond 3.1 Northeast A sia 3.2 Southeast A sia 3.3 South Asia p o rts Factors of Port Competitivenessand Development 4.1 Port location 4.2 Port eftici(incy 4.3 Multimodal network 4.4 Maritime trade strategy and institutional settin g s Lessons to be L e a r n t Conclusions Refer enc.es 3 12 14 15 23 30 32 32 35 37 39 41 44 45 Contents VI Recent Development of Maritime Logistics 49 49 Development Trends on Global Container Shipping 1.1 Global economic condition and industry perspective 1.2 Recent trends in container shipping industry Liner Shipping 2.1 Container lin e r s 2 Freight r a t e s Ports 3.1 Global container terminal operators 3.2 Leading terminal operators 3.3 Development in transshipment activities 3.4 Improvement in port performance 3.5 UNCTAD liner shipping connectivity index 2009 Conclusions References 49 53 54 54 57 58 58 60 64 65 65 66 67 Scenario Analysis for Hong Kong Port Development Under Changing Business Environment 69 69 72 74 Introduction Literature R eview Changing Business Environment for H K P 3.1 Changing business environment in the PRD region 3.2 Potential processing trade relocation trends A MIP M o d e l Experimental D e s ig n 5.1 Experimental scen ario s 5.2 Experimental d a ta Results, Analysis and Findings 6.1 Modeling results at base scenario 6.2 Sensitivity analysis 6.3 Scenario analysis and fin d in g s Conclusions and Future W o r k R eferences 74 75 78 81 81 81 82 82 83 85 87 88 Contents Models for Port Competitive Analysis in Asia-Pacific Region In tro d u ctio n Literature R eview Port Benchmarking Models 3.1 Port efficiency 3.2 Port connectivity 3.3 Impact of factors on individual p o r t s Conclusion and D iscussion R eferences vii 91 92 93 95 96 100 105 Ill 112 Is Port Throughput a Port Output? 117 117 118 120 120 121 G In tro d u ctio n Port Production Function Port Operating Options Port Resource Function Container Port O u u t 5.1 TEU Throughput and the port production function 5.2 TEU Throughput and port cost functions Port Interchange Service Measures 6.1 Port revenue 6.2 Port throughput r a tio Conclusion R eferences A Framework for Modelling and Benchmarking Maritime Clusters: An Application to the Maritime Cluster, of Piraeus In tro d u ctio n Conceptual Definition: Cluster Theory and Maritime Clusters The Concept of Maritime Clusters Spatial Paradigm: The Greater Area of P i r a e u s 4.1 The structure of the Piraeus maritime cluster 4.2 The economic footprint of the maritime industry in the re g io n 4.3 SWOT a n a ly s is 121 122 126 126 127 127 128 131 132 132 133 137 138 140 141 viii Contents Methods for Evaluating and Benchmarking Maritime Clusters 143 5.1 General cluster sizing in d icato rs .145 5.2 Intra-cluster performance indicators 147 5.3 On the use of data and analysis for measuring performance of maritime clusters 149 Computational Methods for Simulation and Life-Cycle Management of Maritime C lusters 151 6.1 Agent-based modeling and sim ulation .151 6.2 Modeling case study: the maritime cluster of Piraeus 152 6.3 Agent-based modeling toolkit 154 Conclusions 154 R eferences 156 A Performance Evaluation Strategy Towards Dealers in the Automotive Supply Chain Introduction Problems of Dealer Evaluation Indicators Definition for Dealers’ Performance Evaluation 3.1 Balanced scorecard m ethod 3.2 Evaluation indicators d e fin itio n Dealers’ Performance Evaluation via A N P 4.1 Analytic network process (A N P) 4.2 Enabling factors of dealers’ performance 4.3 Procedure of dealers’ performance evaluation 4.4 Method for dealers’ performance evaluation Case S tu d y Conclusions R eferences P a rt 2: P o rts and liners op eration s 157 157 158 160 L60 L60 162 162 162 163 167 168 169 169 171 A Yard Allocation Strategy for Export Containers Via Simulation and Optimization 173 173 174 Introduction Related Work Contents 2.1 Yani allocatioii for import contaiii(١rs 2.2 Yard allocation for export containers 2.3 Conibined yard allocation Yard Allocation Modeling for Export Containers 3.1 Problem description 3.2 Yard allocation m odeling Yard Allocation Algorithm for Export Containers 4.1 Heuristic algorithm for feasible solution 4.2 Procedure of genetic algorithm Simulation M o d e l 5.1 Simulation framework 5.2 Input p a m e te rs 5.3 Simulation process 5.4 Statistical simulation indices Case S tu d y Conclusions R eferences IX 174 175 175 176 176 176 181 182 183 185 185 186 186 187 188 190 191 Integration of AGVS in Intermodal Rail Operations at, Deep Sea Tenninals 193 193 195 In tro d u ctio n Earlier Attempts to Address the Problem 2.1 Fixed rail mounted gantry cranes linking ship to shore crane with stacking area and hinterland modes rail and r o a d 2.2 NOELL an approach by K.-P FRANKE The AGV-soliition to Integrate Railway Operations in Deep Sea Terminals Conclusion R eferences 10 On the Ongoing Increase of Containership Size In tro d u ctio n Economies of Ship S iz e 2.1 Modeling ship size economies 2.2 Capital related costs 2.3 Labour related costs 195 195 198 200 200 201 201 203 203 203 207 Couteuts 6 11 A Linearized Approach for Liner Ship Fleet Planning with Demand Uncertainty 12 Shipping Costs of Post, Panarnax Coi)taineis!iij)s 209 3.1 Fixed annual costs 210 3.2 Fuel costs 210 3.3 Shipping costs per ro u n d trip 211 The Ongoing Increase of ContainershipSize 216 4.1 Development of ship size and trarle 216 4.2 Factors limiting economies of shij) size 218 4.3 A balance between usei and producei costs 221 4.4 Factors affecting development of user costs 223 Conclusions 225 R eferences 227 Introduction 229 1.1 Background .229 1.2 Literature review 230 1.3 Random ness 232 1.4 C o n trib u tio n s 233 Problem Description, Assumptions and Notations 234 2.1 Itin e ry 234 2.2 Charter strateg ies 235 2.3 Chance c o n s tra in ts 236 2.4 Notations 238 A Mixed Integer Nonlinear Programming Model with Chance C o n strain ts 239 A Linearized A pproach 243 Numerical E x am p le .247 Summary and Conclusion 254 R eferences 254 Ship Emissions, Costs and Their Tradeoffs 229 257 Introduction 257 B ack g ro u n d 260 Some Basics: Algebra of Emissions and Fuel Cost 267 A Simple Logistical Scenario: Factors and Tradeoffs 268 The Cost to Avert One Tonne of c ٥ ٠ ٠ 281 The Port Time F actor 283 Speed Reduction at SECAs 287 Contents 10 SECAs Continued: Effecton Modal S p l i t Conclusions R eferences 13 Exploring Tanker Market Elasticity with Respect to Oil Production Using Eoresim In tro d u ctio n Methodology Simulation Results Conclusions R eferences xi 290 292 293 297 297 300 308 311 313 Exploring Tanker M arket E lasticity 301 and used as an advanced [pattern recognition technique with application in tiui series forecasting According to the literature, ANNs are suitable for analysis of non-statiouary nonlinear time series Focusing in tanker freight forecasting, in comparison to othei methods such as linearly based autoregressive models, artificial neui’al networks are proven to be at least as accurate while, in many cases, yielding impressive results (Lyridis 20(J4a i(iT٠ i,()iida.kis aud 1) V Liiridis ‫ل‬ ‫د‬ The imi)ortarice of investigating these sets of variables is ver ' liigh sinee tliey determine the freight rates as the res llt of the ( quilil)riurii l)et veen supply and demand A few fi'orn tlie variai^les nsed in modeling tin) ma.rket are tire following: ١ ١ ‫ا‬ ١ ١ • Freight rates Active fleet • Demand for trairsport irr tire speciftc rrrarket Orderbook • Demolitiorrs • Laid-up vessels etc ٠ By rrsing exper't jrrdgrrrerrt arrd statistical tools t.o rrreasure correl‫؛‬rtiorr and to avoid colirrearity, tire input, vector' is constrrrcted Table slrows the irrput vector for tire three months al'read sirrrulatiorr of VIj CC WS freight rates (Ras Tanura - Rotterdam) arrd t.lre corr esporrdirrg Var'iance Irrflation Factor (VIF) The input vector corrsists of varialrles: By applying tire sairre process the corresporrding irrjrrrt vector for t.lre twelve morrtlrs alread is slrown in Table ١ Table In p u t vector for th re e m onths ahead m odel In d ep en d en t variable Oil price V LC C supply O B O supply V LC C dem olition prices V LCC W S te O P E C p ro d u ctio n O P E C D IF_3 (percentage difference after three m onths) A R B IT R A G E of oil prices Table V IF 2.858 4.213 6.260 1.946 3.727 4.148 1.104 4.941 In p u t vector for twelve inonth.s ahead m odel Independent variable V IF V LC C supply O BO supply V LC C dem olition prices V LCC orderbook WS O P E C prod u ctio n O PE C D IF_12 (p ercentage difference after twelv[...]... global landsc ape of the martime industy is changing rapidly and this has generated many issues which are worthy of more in- depth research In particular, topics related to maritime logistics and supply chains have been drawing immense attention of both academia and industry The objective of this book is to reflect the recent developments in maritime logistics and supply chains, and to examine some... avoiding too high cost for users, the increase in size has to be in balance with the combined increase in trade volumes and the number of port })airs between coast lines to be connected The study draws a conclusion that the ongoing increase in ship size will continue In the paper by Qiang Meng, Tingsong Wang and Shahin Gelareh, a linearized approach is proposed for liner shi}) fleet planning under demand... and decision sup])ort for maritime logistics and supply chain systems Twelve papers hav(١ ^b)een selected for publication after a thorough peer review The papers are cattegorized into two main areas: regional devcdopments and performance analysis; and, ports and liners operations Begiomal D ev elo p m e n ts and P erfo rm a n ce A n a lysis The fiTst paper by Xue-Jing Yang, Joyce M.W Low and Loon Ching. .. reviewers and editors We would like to express our sincere thanks to them E.P Chew L.H Lee L.C Tang December 2010, Singapore PA R T I REGIONAL DEVELOPMENTS AND PERFORMANCE ANALYSIS CHAPTER 1 MARITIME TRADE EVOLUTIONS AND PORT CITY DEVELOPMENTS IN ASIA X J ١Yang, Joyce M W Low and Loon C hing Tang D epartm ent of Industrial & System s Engineering National University of Singapore 1 Engineering Drive 2, Singapore... offering shorter time and lower cost of transport (including handling charges) between Hong Kong and the rest of China, the port of Slienzhen port has now become the 2nd largest port on the Chinese mainland in terms of handling international transshipment goods Other Chinese ports with impressive traffic performances are Ningbo (f 1,22(),()00 TEUs), Guangzhou (ff,001,000) Qingdao (10,320,000) and Tianjin... between In d ia and China, 1200-1450 Folk traders had established China and India maritime links from the first century BC More notably, 1200-1450 marked a distinct milestone in tlie history of China and southern Asia maritime relations with the forming of the government maritime network From the end of Song Dynasty to Ming Dynasty, Chinese government organized many fieets to southern India and even... Hong Kong to inevitably parallel that of Singapore In contrast to Singapore and Hong Kong, Calcutta’s early success as an international hub port city was owed to its ability to transform its immediate hinterland in northern India into an international market ajid not relying mainly on transshipment This hinterland, which spanned from the Gangetic plains to the west and the Brahmaputra valley in the north(١ast... regarding the space problems: first, the lack of stacking space within the port; second, the lack of stacking, parking, and repairing space outside the port Furthermore, [Loo, 2002] observed that the abundance of labor in China has led to a large-scale relocation of labor-intensive and exj:)ortoriented industries into China, which spurred the growth of ports in South China As operations in the Chinese... be divided into Northeast China ports, east China ports and soutli China ports As a new active economic driver in Asia and tlie world’s largest container generator since its trade liberalizations, China has dramatically increase its financial investment to improve the infrastructure and superstructure in many of the Chinese container ports 18 A" J Yang et al In 2007, Chinese ports alone accounted... mainland ports Abraham Zhang and George Q Huang perform some scenario analysis for Hong Kong port development under changing business environment, so as to understand the relationships between business environment factors and potential relocation trends by using a mixed integer programming model A study on port benchmarking in Asia-Pacific region is performed by Ek Peng Chew, Loo Hay Lee, Jianlin Jiang