Cost structures in container handling: how about economies of scale

1
Cost structures in container handling how about
economies of scale?

• Dr. Thierry Vanelslander
• University of Antwerp
• Department of Transport and Regional Economics

2
Rationale

• Efficiencies are important
• Maritime transport shipping costs port
  efficiency
• cargo handling charges
• Financial implications
• Pricing
• Lack of literature Aggregate port level port
  users qualitative handling products -
  simulation

3
Hypotheses and methodology

• H1 There are economies of scale
• H2 A number of cargo-handling conditions impact
  on economies of scale
• H1 Engineering simulation
• H2 matrix of 89 factors
• Literature review
• Meetings with various stakeholders

4
Definitions and limitations

• Sea ports
• Handling outbound, inbound and transhipment
• Variations in time
• Containers
• Terminal
• Short run (costs, conditions)

5
Economies of scale
Allocative - Technical
- Scale
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Economies of scale (ctd)

• 210,000 TEU and 600,000 TEU
• Total operating costs
• Labour management administration operations
  - maintenance
• Maintenance container-handling equipment ICT
  buildings other equipment
• Other operating
• No building maintenance costs
• Power fixed and variable
• Royalties
• No lease payment
• New or used equipment, first-generation cranes

7
Economies of scale (ctd)
Fixed labour
8
Economies of scale (ctd)
9
Economies of scale (ctd)
10
Economies of scale (ctd)
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Economies of scale (ctd)
Flexible labour
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Terminal conditions
Policy
Scope
Terminal-specific
Chain
13
Terminal conditions (ctd)

• Comparison
• first-generation
• vs.
• post-panamax

14
Capital costs

• New vs. used equipment
• Lease vs. no lease, low vs. high
• Confined vs. unconstrained dredging

15
Capital costs (ctd)
16
Conclusions

• H1 Economies of scale do exist
• H2 Economies vary with conditions
• Economies increase in terminal capacity
• Economies increase in quay crane size
• Economies decrease with labour flexibility
• Economies are more or less equal with used quay
  cranes as with new quay cranes
• Further research on more conditions

17
Current settings

• Comparison of current settings

18
Current settings