Download The Analysis on Imbalanced and Coordinated Development of Ports Industry

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The Analysis on Imbalanced and Coordinated Development of Ports
Industry
JIANG Xiuhui1, LI Wei2
1. Economy College, Shandong Institute of Business and Technology, P. R. China, 264005
2. China-Canada College, Shandong Institute of Business and Technology, P. R. China, 264005
[email protected]
Abstract: In this paper, we analyze the Imbalance of the ports industry from supply and demand,
investment, competition and the relations between ports industry and the related industries based on the
macroeconomic effects of ports industry, then we puts forward some corresponding countermeasures.
Keywords: Ports industry, Imbalance, Coordinated development
1 Introduction
In today's world, international trade develops increasingly along with economic globalization
acceleration and the development of regional integration. Ports are the important guarantee to achieve
the growth of international trade. Ports industry can promote regional economic growth and promote the
growth of relevant industries. There are mutual restrict and interdependent relationships between ports
and national income and other sectors. Such the balanced and coordinate development of ports industry
becomes important. So we should achieve ports industry’s coordinated development.
2 The Analysis on the Macroeconomic Effects of Ports Industry
Nowadays, international trade develops increasingly along with economic globalization acceleration and
the development of regional integration. Recently, the average annual growth of global economy is
about 4% and the average annual growth of international trade reaches 8%. We studied the relation
between GDP and international trade from 2005 to 2009 using gross value of imports and exports
representing quantum of foreign trade, such as shown in Table 1.The Chinese trade dependence of GDP
increased almost year by year, along with the development of economic globalization, the progress of
regional integration the degree of international market participant and the open degree of domestic
market. But it dropped in 2008 because of the recession caused by the U.S. Subprime Mortgage Crisis.
The development of international trade increases enormous demand for shipping industry. This brings an
important opportunity to shipping industry, ports industry and the development of port city.
Table 1: The Relations Between GDP and International trade
Year
2005
2006
2007
2008
GDP 100 million yuan
184937.4 216314.4 265810.3 314045.4
The Gross Value of Import and Export
116921.8 140971.4 166740.2 179921.5
100 million yuan
The Ratio of
0.632224 0.651697 0.62729 0.572916
the Gross Value of Import and Export to GDP
Data Sources: statistical data of Statistics Bureau and Ministry of Commerce in related years.
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2009
340506.9
150648.1
0.442423
2.1 Port is the important guarantee to achieve the growth of international trade
In recent years the capital and technology of international trade has been improved, but the international
shipping increases rapidly. We have studied the relationship between the port throughput and the gross
value of import and export based on the data of port throughput, port trade cargo throughput and the
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gross value of import and export from 2005-2009 as shown in Table 2.We can see the growth of the port
throughput and the gross value of import and export is significant and grow fast from 2005 to 2009 from
Table 2.Port throughput and the contribution of every ton port throughput to the gross value of import
and export show obvious increasing trend apart from the downward due to the influence of Subprime
Mortgage Crisis in 2009. This embodies the increased demand of foreign trade to international shipping.
Table 2: The Development Momentum of Port Throughput, Port Trade Cargo Throughput
and the Gross Value of Import and Export from 2005 to 2009
Year
2005
2006
2007
2008
2009
Port Throughput 100 thousand tons
292777
342191
388200
429599
475481
Change of Port Throughput
1
1.17
1.33
1.47
1.62
The Gross Value of Import and Export
116921.8 140971.4 166740.2 179921.5 150648.1
100 million yuan
Chang of the Gross Value of Import and Export
1
1.21
1.43
1.54
1.29
The Contribution of Port Throughput to the Gross
3993.54
4119.67
4295.21
4188.13
3168.33
Value of Import and Export Per Ton Yuan per ton
Data Sources: statistical data of Statistics Bureau and Ministry of Commerce in related years.
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2.2 Ports industry can promote regional economic growth
The port economy refers to the industrial economic mode which regards the fine port and near area as
the center, treats the port city as the carrier, regards comprehensive transportation system for artery, and
treats port related industry as support. The port economy combining land economy and marine economy
has the remarkable characteristics of the external economy and can drive the development of regional
economy in great extent. The port economy forms big economic circle easily. This can drive he
development of regional economy which regards the port as the center and treats the city circle as
hinterland. Such as east coast economic circle regards New York Harbor as the center in the United
States for center by, east coast economic circle regards Tokyo Harbor as the center in Japan, west coast
economic circle regards busan port as the center in South Korea, the Pearl River Delta economic circle
regards guangzhou, shenzhen, Hong Kong as the center, the Yangtze River Delta economic circle
regards Shanghai as the center and The Bohai economic circle regards tianjin, dalian, Qingdao as the
center.
2.3 Port industry can promote the growth of relevant industries
Industrial cluster theory is the branch or extension of industry economy. The industrial cluster refers to a
herd of enterprises which are geographically nearby and across related with each other's general and
complementary phase coupling in a specific field. And under the effect of industrial cluster advantage
enterprises of ports industry which provide port related service gather spontaneously around in the
harbor due to the geographical position, the correlation of uniqueness and business. These enterprises
have extensive mutual connection and construct a industry group which provides ship and cargo service.
At present, the phenomenon of ports industry cluster is clear. There are recognized port industrial
clusters in Rotterdam in the Netherlands and the Mississippi River region in America.
3 The Imbalance in the Development of Ports Industry
As one of the important industrial departments to the national economy ports has great contribution for
GDP and especially for foreign trade product value realization. There are mutual restrict and
interdependent relationships between ports and national income and other sectors. Such the balanced
and coordinate development of ports industry becomes important. We will analyses the status quo of
ports industry according to the coordinated development of the idea from the several aspects.
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3.1 The imbalance in supply and demand of port
The basic demand of ports industry is the need of input and output, import and export of port total direct
hinterland and some indirect hinterland. And the supply of ports industry is the biggest transportation
ability. This mainly reflects in indicators including ports length, garage count and container traffic. The
development of economy and the opening degree trade are rise boost port demand directly. By the end
of 2009, there are 31429 berths for production in China including 1554 berths of DWT and above
garages. Port cargo throughput continues grow rapidly. There is 7657 million tons’ cargo throughput in
China in 2009. There are 20 ports whose cargo throughput is more than 100 million tons. Container
throughput continues to grow rapidly. There is 122 million container throughput in China in 2009.But
there still exist problems of the lack of deep-water berths port, the worse of container transportation
ability and the low level of related service in most ports. This brings a large gap supply and demand in
the ports industry.
3.2 The imbalance in port investment
The imbalance in port investment mainly displays in transverse imbalance and longitudinal imbalance.
The Longitudinal imbalance is the imbalance in investment development level. The port investment
level maintains a low level in China before the 1980s.Then it increased but the growth remained
relatively moderate until 2003. The port investment level reaches a high-speed growth stage in China
since 2003. Higher investment growth rate of ports illustrate the enhancement of understanding level.
But this kind of high-speed imbalanced development investment is very easy to create the irrational,
malignant competition and repetitive construction, etc. Meanwhile, the huge capital needed by port
infrastructure investment and the long recovered term are easy to form a long sunk cost. This is very
easy to form the transverse imbalance including the repeat investment and unreasonable port layout.
3.3 The imbalance between ports industry and related industries
The port services have obvious cluster effect. The ports industry has strong industry outspread ability
and value added capability. This provides ports various service of third industry through the upstream,
downstream and horizontal industrial contact. The business scope of port industry is extremely extensive,
such as tugboats, tally, loading and unloading, and ship inspection, the crew service, fuel and water add,
etc. And the relevant industry mainly include ports, ships, goods, the agents, storage, transportation,
logistics, shipping, freight, freight forwarders processing, trade, customs and border, inspection, bank
clearance, consulting, finance, insurance, agency, information, port related services and other related
enterprise. At present, In China, the rigid conditions of ports industry have been basically meet, but the
related industries are obviously hysteretic. But there are serious gap in logistics, the information and
talent. This restrains the scope economy of ports industry and the play of cluster effect. This also hinders
the realization of port economic benefits.
3.4 The imbalance between shipping and other modes of transportation
The greatest characteristic of port service is the through-train of storage, transportation and marketing.
We can improve the value of the goods through the reprocessing and storage of the warehouses and
cargo destuffing centers and realize harbor cargo throughput reasonable divergence through road, rail,
air freight and other parties. And then we can bring the goods to the destination. So the equilibrium and
coordinate of three modes of transportation of road, rail and air freight become very important. At
present, most ports have not form a perfect, perfect transportation networks, multimodal transport and
transport cohesion are not harmonious. They all affect the port’s transportation capacity, limit the ability
of economic radiation ability and are unfavorable to the realization of the function of promoting
economic development.
3.5 The imbalance of competitive
The huge infrastructure investment and the long term of return as the basic characteristics of ports
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industry, decide this industry can make average cost reduced only in larger scale and realizes the scale
economy. Our current port industry is in a high-speed development period. The port construction
becomes one of the key works around the nation. But ports, especially ports between the direct and
indirect economic hinterland are lack of joint, the competition intense. Under the situation of the relax
macro government managements in China, along with the increasingly open of waterway market,
foreign enterprises with high quality and efficiency of homework services and the advanced
management concepts and patterns entered the into the market gradually. At this time, this lack of
consciousness of cooperation and resource integration and the imbalance produced by vicious
competition will lead to the slips of port economy benefit inevitably and limit the development of port
economy.
4 The Basic Ideas of Ports Industry’s Coordinated Development
4.1 Improving the port resource utilization efficiency through integration port resource
Because ports industry has an important contribution to international trade, the national income and the
national economy and international trade and the development of national economy have huge boost
role to ports industry, the coordinate development and the promoting of each other can avoid any
level-headed approach becoming another darling bottleneck. The large amounts of capital and the long
period of ports industry’s investment and construction request strengthen the rationality and feasibility
research of port investment and construction from the angle of national economy overall, layout ports
rationally, integrate port resource, and improve the port efficiency of resource utilization.
4.2 Achieving the economy of scope through improving cooperation
Ports industry can not only promote the national economy growth directly, but also drive the
development of relevant industries through the gathered effect, the economy of scope. If the relevant
industries can't coordinate with ports, they will inhibit gathered effect and the scope of economy largely.
The key of coordinated development is improving the enterprise collaboration of ports industry and
strengthening the communication of funds, information, logistics, human resources, especially
information. At the same time, developing ports industry and its relevant industries, improving the
enterprises’ cooperation in ports industry and enhancing the core competitiveness of the industrial port
can realize port economic benefits.
4.3 Realizing the modern logistics through perfect transportation network
Port is the midpoint bonding sea and land transport. The realization of its function not only lies in their
industry prosperity, but also lies in its internal and external communication ability. Because ports are
logistics hub of their economic hinterland of, perfect transportation network and the realization of
modern logistics become the key point of the economic benefits’ realization of their economic hinterland.
In order to realize modern logistics, we should enhance the transport capacity of road and sea on one
hand. This requires improving the throughput capacity, loading and unloading capacity, storage capacity,
etc, improving shipping capacity and adding new routes, etc, building high-speed, convenient highway
network, increasing rail transportation ability and strengthening the contact with economic hinterland. In
order to realize modern logistics, we should use the modern logistics idea, construct the
three-dimensional network of highway, railway, sea among the ports to complete the transformation
from simple traffic hub to the comprehensive logistics platform.
4.4 Standarding port competitiveness to avoiding vicious competition
Overall, port competitiveness can be divided into cross port competitiveness and port internal
competition. The market structure of cross port competitiveness is "monopoly" type. And port internal
competition is behaved for "competitive". And in different market structure, the competition behavior of
port enterprise is different. Generally speaking, the duopoly of cross port competitiveness is a kind of
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game countermeasures. And the alternative strategy is multiple. The port internal competition is behaved
for dual character. So in different market structure and different competitive structure, competition
behavior of port enterprise should taken some corresponding measures to avoid the malignant
competition in internal industry and internal enterprises and improve utilization efficiency of
construction funds and limited port resource.
5 Conclusion
Along with economic globalization acceleration and the development of regional integration
international trade develops increasingly. Ports are the important guarantee to achieve the growth of
international trade. The balanced and coordinate development of ports industry becomes important.
There are several imbalances in the development of ports industry. So we should achieve ports
industry’s coordinated development by the means of improving the port resource utilization efficiency
through integration port resource, achieving the economy of scope through improving cooperation,
realizing the modern logistics through perfect transportation network and standard port competitiveness
to avoiding vicious competition.
References
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University, 2004, 12: 22~26 (in Chinese)
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