Analysis of dynamic effects on seaports adopting port security policy

Policy variables, such as security levels at seaports, affect port efficiency in a non-linear way while other factors affecting efficiency at ports such as a number of berths, the area of port yard, and the number of port labors have linear structural relation. Ensuring a certain level of regulations can increase port efficiency, while an excess of the level may result in the reverse of these gains. Addressing seaport-related issues is not a simple undertaking because a seaport is regarded as a system-of-system, which is both difficult to understand and to model. Therefore, studies that adequately analyze the overall dynamic of a port complex in terms of security concerns have been seen insufficient, leaving a significant research gap to fill in. To analyze the relationship between seaport security levels and container volumes, this study adopts the method of System Dynamics (SD). Use of the SD can demonstrate the benefits of simulations, such as suggesting the visual causal loops among evaluation factors, representing the several sub-models, and enabling various forms of analysis, such as the base model, optimistic scenario model, and pessimistic scenario model. As a result of simulation, the impacts on handling container cargo volumes in Korea due to the increasing level of security is estimated at 2,770,000TEUs by the year 2015 and 3,050,000TEUs by 2020. Appropriate tailor of the proposed SD based methodology can stimulate security–economic quantitative analysis in a wider range of port context, thus promoting effective implementation of security measures.

[1]  Tung Bui,et al.  Supporting cognitive feedback using system dynamics: A demand model of the global system of mobile telecommunication , 1996, Decis. Support Syst..

[2]  Konstantinos G. Zografos,et al.  A generic system dynamics based tool for airport terminal performance analysis , 2009 .

[3]  Gi-Tae Yeo,et al.  Evaluating the competitiveness of container ports in Korea and China , 2008 .

[4]  Anthony T.H. Chin,et al.  Port performance in Asia: Does production efficiency imply environmental efficiency? , 2010 .

[5]  Ralph Levine,et al.  Using system dynamics modeling to understand the impact of social change initiatives , 2007, American journal of community psychology.

[6]  Michael R. Greenberg,et al.  Risk analysis and port security: some contextual observations and considerations , 2011, Ann. Oper. Res..

[7]  S. Dekker,et al.  Maritime security in the European Union—empirical findings on financial implications for port facilities , 2007 .

[8]  Adolfo Crespo Marquez,et al.  A Decision Support System for evaluating operations investments in high-technology business , 2006, Decis. Support Syst..

[9]  Noah Gans,et al.  Securing the Containerized Supply Chain: Analysis of Government Incentives for Private Investment , 2010, Manag. Sci..

[10]  Dong-Wook Song,et al.  An Application of the Hierarchical Fuzzy Process to Container Port Competition: Policy and Strategic Implications , 2006 .

[11]  Young-Tae Chang,et al.  A game theoretical analysis of port competition , 2013 .

[12]  John D. Sterman,et al.  System Dynamics: Systems Thinking and Modeling for a Complex World , 2002 .

[13]  Mark Goh,et al.  Container port efficiency in emerging and more advanced markets , 2010 .

[14]  Kevin Cullinane,et al.  The relationship between privatization and DEA estimates of efficiency in the container port industry , 2005 .

[15]  Yi-Chih Yang Risk management of Taiwan’s maritime supply chain security , 2011 .

[16]  David A. Menachof,et al.  The efficient trade-off between security and cost for sea ports: a conceptual model , 2009 .

[17]  James Odeck,et al.  A meta-analysis of DEA and SFA studies of the technical efficiency of seaports: A comparison of fixed and random-effects regression models , 2012 .

[18]  Hiroshi Hoshino,et al.  Competition and collaboration among container ports , 2010 .

[19]  Khalid Bichou,et al.  The ISPS Code and The Cost of Port Compliance: An Initial Logistics and Supply Chain Framework for Port Security Assessment and Management , 2004 .

[20]  John N. Warfield,et al.  World dynamics , 1973 .

[21]  Fred Crickard Canada's ocean and maritime security a strategic forecast: A strategic forecast , 1995 .

[22]  Serkant Köseler Intermodal Logistics System Simulation Model and the Empty Container Flows , 2008 .

[23]  Petros A. Ioannou,et al.  PortSec: A port security risk analysis and resource allocation system , 2010, 2010 IEEE International Conference on Technologies for Homeland Security (HST).

[24]  Jay Wright Forrester,et al.  Urban Dynamics , 1969 .

[25]  Steven D Emerson,et al.  A coastal perspective on security. , 2003, Journal of hazardous materials.

[26]  Alejandro Micco,et al.  Port Efficiency, Maritime Transport Costs and Bilateral Trade , 2004 .

[27]  Richard Jimenez,et al.  Simulation Analysis of a System to Defeat Maritime Improvised Explosive Devices (MIED) in a US Port , 2010 .

[28]  Nam-Kyu Park,et al.  Port Choice Model of Transhipment Cargo Using System Dynamics , 2012 .

[29]  W. Yap,et al.  Competition dynamics between container ports in East Asia , 2006 .

[30]  Ann van Ackere,et al.  The growth of service and the service of growth: Using system dynamics to understand service quality and capital allocation , 1997, Decis. Support Syst..

[31]  J. Ashley Roach,et al.  Initiatives to enhance maritime security at sea , 2004 .

[32]  Wen-Min Lu,et al.  Benchmarking the operating efficiency of Asia container ports , 2010, Eur. J. Oper. Res..

[33]  Wilbert E. Wilhelm,et al.  Branch-and-Price Decomposition to Design a Surveillance System for Port and Waterway Security , 2010, IEEE Transactions on Automation Science and Engineering.

[34]  Javier Aracil,et al.  Knowledge and reality: some conceptual issues in system dynamics modeling , 1996 .

[35]  John King,et al.  The security of merchant shipping , 2005 .

[36]  F. Andritsos,et al.  A Port waterside security systemic analysis , 2010, 2010 International WaterSide Security Conference.

[37]  S Bonsall,et al.  Use of Fuzzy Evidential Reasoning in Maritime Security Assessment , 2009, Risk analysis : an official publication of the Society for Risk Analysis.

[38]  Shih-Liang Chao,et al.  Critical factors affecting the adoption of container security service: The shippers' perspective , 2009 .

[39]  Khalid Bichou,et al.  Assessing the impact of procedural security on container port efficiency , 2011 .

[40]  Shuo-Yan Chou,et al.  Air passenger demand forecasting and passenger terminal capacity expansion: A system dynamics framework , 2010, Expert Syst. Appl..

[41]  Rogelio Oliva,et al.  Model calibration as a testing strategy for system dynamics models , 2003, Eur. J. Oper. Res..

[42]  Stephen F. King,et al.  Beyond critical success factors: A dynamic model of enterprise system innovation , 2006, Int. J. Inf. Manag..

[43]  Richard Oloruntoba,et al.  Assurance of Security in Maritime Supply Chains: Conceptual Issues of Vulnerability and Crisis Management , 2005 .