Transportation Summit 2011: Best Practices Shaping Global Logistics, Vancouver, BC, March 2-3 2011 Benchmarking the Canadian Gateways and Corridors Governance Model Jean-Paul Rodrigue 1 & Stephen Blank 2 1 Associate Professor, Dept. of Global Studies & Geography, Hofstra University, New York, USA; Van Horne Researcher in Transportation and Logistics, University of Calgary, Canada 2 Adjunct Research Scholar, Center for Energy, Marine Transport and Public
20
Embed
Benchmarking the Canadian Gateways and Corridors Governance Model
Benchmarking the Canadian Gateways and Corridors Governance Model. Jean-Paul Rodrigue 1 & Stephen Blank 2 1 Associate Professor, Dept. of Global Studies & Geography, Hofstra University, New York, USA; Van Horne Researcher in Transportation and Logistics, University of Calgary, Canada - PowerPoint PPT Presentation
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Transportation Summit 2011: Best Practices Shaping Global Logistics, Vancouver, BC, March 2-3 2011
Benchmarking the Canadian Gateways and Corridors Governance Model
Jean-Paul Rodrigue1 & Stephen Blank2
1 Associate Professor, Dept. of Global Studies & Geography, Hofstra University, New York, USA; Van Horne Researcher in Transportation and Logistics, University of Calgary, Canada
2 Adjunct Research Scholar, Center for Energy, Marine Transport and Public Policy, Columbia University; Senior Research Analyst, Arizona State University’s North American Center for Transborder Studies
Benchmarking the Canadian Gateways and Corridors Governance Model
1• How does governance applies to
intermodal transportation?
2• Which governance criteria can be used
for benchmarking?
3• To what extent gateways and corridors
are an effective governance strategy?
Intermodal Transportation: Emerging Paradoxes
Geographical and functional diffusion of containerization.Massive investments.
Rationalisation (corridors and sites).
New standards, practices and technologies.Increasing returns.
Revolution
Growth Maturity
Incremental changes.Decreasing returns.
Evolution
Consolidation (maritime, rail and trucking). Emergence of large operators.
On-dock rail (Port Authority and terminal operators).
Near-dock rail (Rail companies).Trucking and barging (Private).Roads and highways (Public).
Rail lines (Rail companies; ownership or right-of-way).
Transport Actors
Security Trumping Trade? Maritime Security Initiatives Implemented by The United States
Initiative Type Year Description
Automated Targeting System (ATS)
Cargo screening 1999 Weighted model applied to inbound cargo manifests to assign risk factors.
Customs-Trade Partnership Against Terrorism (C-TPAT)
Certification 2001 Transferring some of the Customs responsibilities to importers and exporters to reinforce overall security levels. Benefits include reduced likelihood that containers of participating firms will be examined.
Container Security Initiative (CSI)
Cargo tracking and screening
2002 Increasing security related to ocean going containersthrough the targeting and screening of high risk containers bound for the US before they are loaded.
Megaports initiative Cargo tracking and screening
2003 Installation of radiation detection equipment in key foreign ports. Reducing the illicit trafficking of nuclear and other radiological materials.
24 hour rule Advance cargo information
2003 Implementing the cargo-related information at least 24 hours before a container is loaded aboard the vessel at the last foreign port.
Standards to Secure and Facilitate Global Trade (SAFE)
Certification 2005 Implementing C-TPAT and CSI security practices with foreign trade partners.
Importer Security Filling and Additional Carrier Requirements (ISF, 10+2)
Advance cargo information
2009 Implementing the collection of cargo-related information by requiring information from both the importer (10 information elements) and the carrier (2 information elements) to be transmitted at least 24 hours before the goods are loaded.
100% scanning Cargo screening 2012? Non-intrusive inspection of 100% of all inbound cargo containers.
Pressures for Governance: Vertical and Horizontal Integration in Port Development
Commodity Chain
Port Holding
HorizontalIntegration
Intermediate hub
InlandPortPort
PortRail / BargeDistribution Center
Inland Modes and Terminals
Distribution Centers
Maritime Shipping
Port Terminal Operations
Terminal
Maritime Services
Inland Services
Port Services
VerticalIntegration
Governance Changes in Port Authorities: Competing over the Hinterland
Landlord
Regulator
Operator
• Planning and management of port area.
• Provision of infrastructures.
• Planning framework.
• Enforcement of rules and regulations.
• Cargo handling.• Nautical services
(pilotage, towage, dredging).
Landlord
Regulator
Operator
Terminal Operator(s)
Cluster Governance
• Service Efficiency• Logistical Integration
• Infrastructure and Growth
Management• Terminal-City
Integration
Conventional Port Authority Expanded Port Authority
Value Propositions behind the Interest of Equity Firms in Transport Terminals
Diversification(Risk mitigation value)
Source of income(Operational value)
Asset (Intrinsic value)
Terminals occupy premium locations (waterfront).Globalization made terminal assets more valuable.Traffic growth linked with valuation.Same amount of land generates a higher income.Terminals as fairly liquid assets.
Income (rent) linked with the traffic volume.Constant revenue stream with limited, or predictable, seasonality.Traffic growth expectations result in income growth expectations.
Sectoral and geographical asset diversification.Mitigate risks linked with a specific regional or national market.
Risk Transfer and Private Sector Involvement in Public-Private Partnerships
Design - Build
Degree of Private Sector Involvement
Degr
ee o
f Priv
ate
Sect
or R
isk
Operation & Maintenance
Build-Finance
Design-Build-Finance-Maintain
D-B-F-M-Operate
Concession
PrivatizationPP
P M
odels
Privatization and Financing Models
Sale or concession agreement
Divesture part of a political agenda (budget relief).Public sector is forced to sell or lease some of its infrastructures.Infrastructure is transferred on a freehold basis.Requirement; used for its initial purpose.Long term lease (50 – 75 years).Requirement that the concessionaire maintains, upgrade and build infrastructure and equipment.
Concession for new project
Tap new sources of capital outside conventional public funding.Fiscal restraints.Experiment with privatization.Getting the latest technical and managerial expertise for the infrastructure project.
Management contract
Ownership remains public.Management given to a private operator.Through a bidding process.Popular in the terminal operation business (maritime and rail).Efficiency improvements.