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The Role of Port Infrastructure for Economic Development with an Application to Belgium and the Port of Antwerp

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The Role of Port Infrastructure for Economic Development with an Application to Belgium and the Port of Antwerp The role of port infrastructure for economic development with an application to Belgium and the Port of Antwerp 1 Table of Contents 1. CHAPTER ONE: INTRODUCTION........................................................................................................ 8 1.1 Setting and Outline of the Research .................................................................................................. 8 1.2 Background: Economic geographic shift / business relocation ......................................................... 8 1.3 Modern Industrial Dynamics (MID) ................................................................................................. 11 1.4 Global Container Transport System (GCTS) ..................................................................................... 12 1.5 Evolution of port to commercial location and commercial cluster formation ................................ 13 1.6 Rationale for study ................................................................................................................................ 15 1.7 Methodologies ....................................................................................................................................... 16 1.8 Structure of the Thesis .......................................................................................................................... 17 2. CHAPTER TWO: LITERATURE REVIEW ...................................................................................................... 20 2.1 Scope of the chapter .............................................................................................................................. 20 2.2 Industrial clusters and the New Economic Geography .......................................................................... 21 2.2.1 Motivation of outsourcing .................................................................................................................. 22 2.2.2 The New Economic Geography and cluster formation ...................................................................... 23 2.2.3 Industrial clusters and inward foreign investment ............................................................................. 24 2.3 Global supply chain design and formation ............................................................................................ 25 2.3.1 Ongoing and emerging issues in global supply chain design .............................................................. 26 2.3.2 Transport infrastructure and supply chain performance ................................................................... 27 2.4 Transport infrastructure and economic development .......................................................................... 29 2.4.1 Impact of transport infrastructure and costs on relocation of economic activities and the New Economic Geography ................................................................................................................................. 33 2.5 Port Selection ......................................................................................................................................... 36 2.6 Conclusion.............................................................................................................................................. 38 3. CHAPTER THREE: TRANSPORT CONTRIBUTION TO ECONOMIC DEVELOPMENT .................................... 41 3.1 Introduction ........................................................................................................................................... 41 3.2 The role of transport infrastructure for the economy .......................................................................... 43 3.2.1 Short run benefits of transport infrastructure investment ................................................................ 43 3.2.2 Long run and sustainability effects of transport infrastructure investment ...................................... 44 3.3 Methodology and data collection ......................................................................................................... 55 3.3.1 Methodology and modelling .............................................................................................................. 57 3.3.2 Data .................................................................................................................................................... 61 3.4 Empirical results..................................................................................................................................... 62 3.4.1 Diagnostic tests ................................................................................................................................... 62 3.4.2 Model’s result ..................................................................................................................................... 63 2 3.5 Conclusion.............................................................................................................................................. 67 4. CHAPTER FOUR: THE ROLE OF PORTS IN MODERN GLOBAL PRODUCTION PROCESS ................. 70 4.1 Introduction ........................................................................................................................................... 70 4.2 Firm strategy in MID – global supply chains .......................................................................................... 72 4.3 Global container transport system ........................................................................................................ 75 4.3.1 The functional element of GCTS (value adding process) ................................................................... 76 4.3.2 Operational element of GCTS ............................................................................................................. 77 4.4 Aligning transport mode capabilities with supply chain strategies ....................................................... 83 4.5 Nodal component of GCTS – Container port evolution to commercial cluster..................................... 85 4.5.1 Commercial location technical and operational characteristics ........................................................ 86 4.5.2 Commercial location and accessibility ................................................................................................ 87 4.5.3 Commercial location and extra value adding functions ..................................................................... 88 4.5.4 Commercial locations and cluster formation ..................................................................................... 91 4.5.5 Commercial cluster effects and port competition .............................................................................. 94 4.6 Conclusion ............................................................................................................................................. 98 5. CHAPTER FIVE: PORT SELECTION DETERMINANTS AND REGIONAL ECONOMIC DEVELOPMENTS ....... 100 5.1 Introduction ......................................................................................................................................... 100 5.2 Alternative port choices: Antwerp, Hamburg, and Rotterdam as the main competitors ................... 102 5.2.1 Container throughput ....................................................................................................................... 102 5.2.2 Hinterland connectivity and accessibility ......................................................................................... 103 5.2.3 Port location and global shipping networks ..................................................................................... 105 5.3 Previous studies on methodologies .................................................................................................... 106 5.4 Implemented Methodology ................................................................................................................ 106 5.5 Application of the AHP and ANP methodologies to the selected ports .............................................. 109 5.6 Empirical results .................................................................................................................................. 113 5.6.1 Shippers’ priorities ............................................................................................................................ 114 5.6.2 Ship operators’ priorities .................................................................................................................. 117 5.6.3 Freight forwarders’ group priorities ................................................................................................. 120 5.6.4 Overall view and summary ............................................................................................................... 123 5.7 Conclusion ........................................................................................................................................... 125 6. CHAPTER SIX: CONCLUSION................................................................................................................... 128 Appendix 1- Summary of port choice criteria and applied methodology in the literature review .......... 138 Appendix 2- Johanson cointegration test results ....................................................................................... 142 Appendix 3- Reference to Fuzzy ANP applications according to their themes ........................................
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