Page 32 - Management 16.2
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lipp Asen, Vito Bobek, and Tatjana Horvat | The Efficiency of Ports and Airports
tional Trade: Need, Benefits, and Disadvantages’ frastructure has always been an essential tool for
n.d.). Especially in the emerging economy, trans- a country’s wealth and growth, enabling Euro-
portation costs can represent a significant bar- peans to import goods from Asia faster or explore
rier to trade, as the necessary infrastructure is other parts of the world like the American conti-
non-existent, which means that the expansion of nent (Beckmann 2019).
infrastructure could facilitate trade by increas-
ing regional and international trade through re- In the past, many countries defined them-
ducing costs. In emerging countries, a significant selves by their ports, in particular those with a
reason for the low quality of infrastructure is vast port quickly becoming the linchpin for busi-
poor maintenance because of limited financial re- ness worldwide. Connectivity attracts business
sources (Soobramanien and Zhuawu 2014). How- investments and human capital, which means
ever, efforts are made to improve transport in- that ports and airports are significant drivers
frastructure and its quality, as it is essential to a of a country’s economic and social development.
country’s development and has a significant im- These ports give access to foreign markets, fa-
pact on the economy. cilitate the movement of products and goods
and make people mobile (Bjorndal 2017). How-
During the 19th century and first half of the ever, the ports of Hamburg or Rotterdam are big-
20th century, ports tended to be instruments ger and more successful than those of emerging
of state powers, and port access was regarded countries. The same can be said about the airports
as a means to control markets. Competition be- in Atlanta or Frankfurt, which are well known,
tween ports was minimal. However, times have and every major airline heads for those airports
changed, and most ports today are competing (Roddey 2020; White 2018). Therefore, the paper
with each other on a global scale and, with the highlights what the main drivers are for success-
tremendous gains in productivity in ocean trans- ful ports and airports and how they influence the
port achieved over the past several decades, ports development of a country.
are now perceived to be the remaining control-
lable component in improving the efficiency of Economically developing countries usually do
ocean transport logistics (Rodrigue 2020). So the not have a well-developed infrastructure as re-
three main determinants for competitive ports, gards ports and airports. However, they are often
identified here, are extensive maritime forelands located on essential trade corridors or are rich
(on the sea/water), effective port operations, and in natural resources. The establishment of these
strong hinterland connections (road/rail) (Zhang structures could enormously support such coun-
and Roe 2019). The same can be said about air- tries in their development and make them part
ports. They have traditionally been considered as of the global market (Kakissis 2018). At the end
public utility providers, with little potential to of this paper, we present a case study about two
develop significant market opportunities. Liber- cities on these critical trade corridors, Hong Kong
alization of the air transport market around the and Durban in South Africa.
globe has introduced new dynamics into the air-
port industry. The emergence of competition and The authors have provided good practice, i.e.
the transition in ownership (towards privatiza- comparing ports and airports of two emerging
tion or commercialization) demands a different countries. There is not much literature about ei-
perspective (Jimenez, Claro, and Pinho de Sousa ther in emerging countries, and especially no
2014) comparisons. There is much more in the literature
about that issue in developed countries, so this
The maritime and air transport industry is paper’s importance is that it collects data from
cost-driven, e.g. if a vessel spends more time wait- emerging countries’ ports and airports and com-
ing outside the port for the next available berth pares them. Therefore, the professional relevance
or due to congestion, the cost of transportation of the paper is that it determines the reasons for
of the cargo increases (unctad 2014). Container the different development in these countries and
ports and airports are compelled to regularly re- recent numbers in the industry.
view their capacity and other Key Performance
Indicators (kpis) to ensure that they can provide The two goals and the assumptions that will
satisfactory service to users and maintain their help to provide good practice are the following:
competitive edge.
• What is the importance of ports and airports
This paper is about the efficiency of ports and in the development of emerging countries?
airports and their role in emerging markets. In- Here the authors assumed that trade is es-
sential for development, and infrastructure
76 management 16 (2021) številka 2
tional Trade: Need, Benefits, and Disadvantages’ frastructure has always been an essential tool for
n.d.). Especially in the emerging economy, trans- a country’s wealth and growth, enabling Euro-
portation costs can represent a significant bar- peans to import goods from Asia faster or explore
rier to trade, as the necessary infrastructure is other parts of the world like the American conti-
non-existent, which means that the expansion of nent (Beckmann 2019).
infrastructure could facilitate trade by increas-
ing regional and international trade through re- In the past, many countries defined them-
ducing costs. In emerging countries, a significant selves by their ports, in particular those with a
reason for the low quality of infrastructure is vast port quickly becoming the linchpin for busi-
poor maintenance because of limited financial re- ness worldwide. Connectivity attracts business
sources (Soobramanien and Zhuawu 2014). How- investments and human capital, which means
ever, efforts are made to improve transport in- that ports and airports are significant drivers
frastructure and its quality, as it is essential to a of a country’s economic and social development.
country’s development and has a significant im- These ports give access to foreign markets, fa-
pact on the economy. cilitate the movement of products and goods
and make people mobile (Bjorndal 2017). How-
During the 19th century and first half of the ever, the ports of Hamburg or Rotterdam are big-
20th century, ports tended to be instruments ger and more successful than those of emerging
of state powers, and port access was regarded countries. The same can be said about the airports
as a means to control markets. Competition be- in Atlanta or Frankfurt, which are well known,
tween ports was minimal. However, times have and every major airline heads for those airports
changed, and most ports today are competing (Roddey 2020; White 2018). Therefore, the paper
with each other on a global scale and, with the highlights what the main drivers are for success-
tremendous gains in productivity in ocean trans- ful ports and airports and how they influence the
port achieved over the past several decades, ports development of a country.
are now perceived to be the remaining control-
lable component in improving the efficiency of Economically developing countries usually do
ocean transport logistics (Rodrigue 2020). So the not have a well-developed infrastructure as re-
three main determinants for competitive ports, gards ports and airports. However, they are often
identified here, are extensive maritime forelands located on essential trade corridors or are rich
(on the sea/water), effective port operations, and in natural resources. The establishment of these
strong hinterland connections (road/rail) (Zhang structures could enormously support such coun-
and Roe 2019). The same can be said about air- tries in their development and make them part
ports. They have traditionally been considered as of the global market (Kakissis 2018). At the end
public utility providers, with little potential to of this paper, we present a case study about two
develop significant market opportunities. Liber- cities on these critical trade corridors, Hong Kong
alization of the air transport market around the and Durban in South Africa.
globe has introduced new dynamics into the air-
port industry. The emergence of competition and The authors have provided good practice, i.e.
the transition in ownership (towards privatiza- comparing ports and airports of two emerging
tion or commercialization) demands a different countries. There is not much literature about ei-
perspective (Jimenez, Claro, and Pinho de Sousa ther in emerging countries, and especially no
2014) comparisons. There is much more in the literature
about that issue in developed countries, so this
The maritime and air transport industry is paper’s importance is that it collects data from
cost-driven, e.g. if a vessel spends more time wait- emerging countries’ ports and airports and com-
ing outside the port for the next available berth pares them. Therefore, the professional relevance
or due to congestion, the cost of transportation of the paper is that it determines the reasons for
of the cargo increases (unctad 2014). Container the different development in these countries and
ports and airports are compelled to regularly re- recent numbers in the industry.
view their capacity and other Key Performance
Indicators (kpis) to ensure that they can provide The two goals and the assumptions that will
satisfactory service to users and maintain their help to provide good practice are the following:
competitive edge.
• What is the importance of ports and airports
This paper is about the efficiency of ports and in the development of emerging countries?
airports and their role in emerging markets. In- Here the authors assumed that trade is es-
sential for development, and infrastructure
76 management 16 (2021) številka 2
