Public authorities are expected to provide a salient infrastructure network, with only limited financial resources. However, many of these infrastructure projects go over budget and, therefore, research about these cost overruns is necessary to better understand the dynamics at work and provide solutions. We conclude that in Belgium, and broader, solutions need to be found for relational issues internal and external to the project core. Before a lot of attention was given to technical and legal project aspects, while our insights show that we should focus more on the relational aspects.
Purpose This research aims to provide a new perspective on the evolving linkages between LAs and FSAs in the context of the technology-based manufacturing industry. Firm-level competitive strengths in an international context build upon the combination of (largely) exogenous location advantages (LAs) and endogenous firm-specific advantages (FSAs). The authors focus especially on the decay of LAs over time, which has been observed in many highly developed countries during the past decades. The authors show how the strengthening of FSAs can substitute for decaying LAs, thereby safeguarding against the demise of entire industrial regions. Design/methodology/approach The authors examine the technology-based manufacturing industry in Belgium, building upon an analysis of survey responses by 66 firms including a subgroup of 26 multinational enterprise (MNE) subsidiaries. The professional association representing this industry in Belgium (Agoria) viewed the firms included in the survey as representative for Belgian technology-based manufacturing in terms of the LAs they presently build upon (or location disadvantages they face) and the internal strengths they command relative to (foreign) rivals. The investigation uncovered the decay of critical LAs in Belgium and in parallel, the rise of ‘compensating’ FSAs of Belgian operations relative to foreign firms, including, especially, MNE sister subsidiaries in other countries. The authors also conducted 23 in-depth interviews with senior level managers (CEOs and senior vice presidents) of technology-based firms, including 10 subsidiaries of foreign-owned MNEs, which validated our analysis of the interplay between LAs and FSAs. Findings The findings reveal that since inception, Belgian manufacturing operations experienced an overall decay in their critical LAs by 23% on average. Despite this, several Belgian subsidiaries of foreign MNEs consider themselves as commanding a resource-base superior to that of the next-best-in-class subsidiaries. Furthermore, when assessing the dynamic interplay between LAs and FSAs, there is some evidence that the decay of LAs fueled the quest for – and firm-level journey toward – stronger FSAs. Originality/value The originality of this study is the alternative perspective to the conventionally assumed “positive-positive” relationship between LAs and FSAs. Prior management research has not examined the impact of decaying LAs on new FSA-creation in the realm of technology-based manufacturing.
Port clusters are expected to play a significant role in the transition towards a circular economy, both at the level of facilitating regional and global transport within circular production chains, as well as hosting circular activities in port areas. There is strong evidence that significant investments in the circular economy (CE) are being made in port areas, albeit without much knowledge on their impacts. To ensure an efficient use of port resources in view of this transition, these impacts should be adequately monitored. Research on circular economy indicators for ports is still in an exploratory stage, characterized by an absence of in-depth research on the development of port-related circular economy indicators. This paper focuses on the development of a comprehensive set of relevant and feasible CE indicators, which aim to support port managing bodies (PMBs) as well as port stakeholders to monitor the CE transition taking place. Through multimethod qualitative research, including content analysis, focus groups, a gap analysis and a qualitative survey, an actionable list of CE 12 indicators for ports was developed. Seven of which are highly feasible and five of which have medium feasibility in terms of stakeholder relevance and ease of implementation. Findings related to (1) the overall limited CE ambition levels of PMBs and (2) the difference in the values of some indicators for different port typologies are also discussed. The value of this study for practitioners lies in providing them with an actionable set of KPIs which can support their efforts and communication related to their CE transition.
Transport infrastructure agencies are increasingly coping with strong budget constraints, while being highly under pressure to manage and upgrade an infrastructure network that meets the increasing service level expectations of all its stakeholders. Sound infrastructure management therefore includes tight cost control, a long-term vision and budget planning. Belgium has long been structurally underinvesting in infrastructure, but is in recent years trying to clear the backlog. However, it seems that cost overruns for transport investment projects – paid by the same budget as structural maintenance projects – may seriously reduce the number of critical projects to be carried out in the next years, delaying the necessary catching up process as compared to neighboring countries' state of infrastructure (in the Netherlands, the UK, and Germany). This study analyzes quantitatively the cost developments, from the first publicly released estimates to the final execution costs, of 36 Belgian railway, road and inland waterway projects, representing a total final value of € 1,059,754,416.37 in 2020 prices, or approximately almost 10% of all transport infrastructure investments (in % of CAPEX) in Belgium during the last two decades is captured in our sample. We obtain results on the cost variation itself, and on the phase of the project in which the deviation is higher. We also investigate the transport mode as the independent variable. We find that overruns are higher in the project stage before contract awarding, and that cost overruns for road projects exceed those of rail or inland navigation projects. This case-based quantitative analysis, together with the variables researched in the case analysis, will enable Belgian governing bodies and transport agencies, separately responsible for one mode per region, to learn from these deviations, and to prioritize the need to further explore causes and develop solutions.
The transition towards a circular economy (CE) has grown in importance during the last decade, and ports are now being viewed as potentially important contributors to this move towards a more sustainable economy. However, several research questions about adopting CE projects in ports remain unanswered. The importance of clustering and secondary resources for circular loops indicates the importance of proximity to either industrial clusters or urban zones. However, gateway ports (GWP), contrary to industrial ports, metropolitan (or urban) ports and diversified port hubs (which combine an industrial function with the proximity to a large urban area), do not benefit from the vicinity of these secondary resources. Nevertheless, even without access to such secondary resources, any port and port managing body (PMB) needs to prepare for the changing competitive landscape, with new cargo flows, material streams and related businesses linked to the circular economy transition of value chains. Here, GWPs, thanks to their nodal position, still have potential to function as platforms for circular transition initiatives arising in other industries. In the present study, we conceptualize a CE transition process, consisting of six steps, especially relevant to GWPs. We then explore the case of the Port of Zeebrugge (Belgium), shortly before its merger with the Port of Antwerp. We propose that GWPs should rely mainly on their potential to attract 'new value streams' as the main driver of their CE strategy. Here, top-down initiatives emanating from internal stakeholders, and likely even external ones, appear to provide pathways to CE success.
. In today’s society, infrastructure asset management is a priority for multiple policymakers as it is key to guarantee high-quality transport infrastructure. While the relative quality of transport infrastructure in a number of Western European countries is deteriorating, the volumes of freight and passengers, as well as the expected service levels of all modes of transport for citizens and businesses, are increasing sharply. In response, infrastructure asset managers have developed and integrated technical and management system innovations. While short-term cost and damage control is taken better care of, a long-term asset vision and strategic principles supporting a strong future transport infrastructure network are still largely missing in many EU countries. In this paper, we analyze the strategic infrastructure asset management (SIAM) for Belgian road transport, rail and inland waterways through a cross-case analysis. Our literature study identifies strategic asset management principles, potential barriers and solutions for transport infrastructure assets in general, as well as for the different transport modes in particular. Through in-depth interviews with Belgian top administrators, the principles and SIAM frameworks for different types of mainland infrastructure are analyzed. We find, based on the studied Belgian cases, that ‘one SIAM-model does not fit all’, and that a variety of models, adapted to transport modes and the regional context, could better suit the strategic goals of different policies.
Inland ports are considered as essential levers for the global economic and ecological transition within supply chains, both in their role as multimodal platforms and as integrated clusters of urban economic activity. Yet, their activities and the resulting negative local externalities continue to pose burdens on the adjacent, and often densely populated, urban areas in which they operate. At present, it has been observed that changes in global economic tendencies affect the traffic configuration of inland ports, leading to substantial spatial and societal repercussions on the inland port–city interface. Therefore, this paper investigates the impacts of five identified global economic tendencies on the traffic patterns of inland ports: containerization, energy transition, sustainable construction, urban logistics, and circular economy. The consequences of related traffic evolutions on inland port infrastructures, as well as relationships with local community stakeholders, are evaluated. As such, our research has been designed in two well-defined ways. First, a quantitative, backward-looking in-depth analysis of past traffic development (1998–2017) of seven Western European inland ports, located within major urban regions, has been carried out, describing general trends in traffic structure evolution in light of the five identified global economic tendencies. The selected inland ports were Basel, Brussels, Charleroi, Frankfurt, Liège, Paris, and Strasbourg. The ports were selected as part of the northwestern Rhine–Seine–Scheldt inland waterways network, connected to the Hamburg–Le Havre range. By means of this sample, all major inland navigation corridors, linking the Hamburg–Le Havre range to the hinterland, are represented. Second, a qualitative, forward-looking analysis of the impact of the five identified global economic tendencies on the inland port–city interface has been performed by means of a World Café, held during a recent masterplanning process of the Port of Brussels. Based on both approaches, our findings confirm that the economic and environmental transition in inland ports is rapidly accelerating. At the same time, these transitions have the potential to significantly complicate the collaboration between urban stakeholders, in terms of optimal inland port development, urban land and infrastructure use, and the management of local negative externalities.
In today's society, infrastructure asset management is a priority for multiple policymakers as it is key to guarantee high-quality transport infrastructure. While the relative quality of transport infrastructure in a number of Western European countries is deteriorating, the volumes of freight and passengers, as well as the expected service levels of all modes of transport for citizens and businesses, are increasing sharply. In response, infrastructure asset managers have developed and integrated technical and management system innovations. While short-term cost and damage control is taken better care of, a long-term asset vision and strategic principles supporting a strong future transport infrastructure network are still largely missing in many EU countries. In this paper, we analyze the strategic infrastructure asset management (SIAM) for Belgian road transport, rail and inland waterways through a cross-case analysis. Our literature study identifies strategic asset management principles, potential barriers and solutions for transport infrastructure assets in general, as well as for the different transport modes in particular. Through in-depth interviews with Belgian top administrators, the principles and SIAM frameworks for different types of mainland infrastructure are analyzed. We find, based on the studied Belgian cases, that 'one SIAM-model does not fit all', and that a variety of models, adapted to transport modes and the regional context, could better suit the strategic goals of different policies.
Port managing bodies (PMBs) need to respond to increased societal pressures for improving environmental performance. For many PMBs, a modal shift (MS) from road to rail and barge transport (where available) represents a strategic priority. Yet, in practice, few PMBs have set clear MS targets or have been able to achieve their MS objectives at the level of the port cluster. In this context, the extant port management literature has not yet provided actionable and generally applicable conceptual guidance for PMBs towards achieving ambitious MS goals. In this paper, we develop such guidance by following a contract theory approach to the effectiveness of MS strategies implemented by PMBs. We argue that a PMB, in its role of port cluster manager, can facilitate a MS through strategically deploying governance mechanisms based on sound economic theory. Here, an arsenal of incentives and penalties can be used to push port users (PUs) towards achieving MS targets. Building upon insight from contract theory, we also assess the importance of information management as a prerequisite for a successful MS strategy. We formulate strategic directions for PMBs and identify a future research agenda that should allow improved understanding of how MS goals can be achieved in real world settings.
Industrial plant closures create a largely unexplored challenge for corporate social responsibility (CSR) strategy. Such plant closures lead to brownfield sites: economic assets and large pieces of land that often cannot be redeployed for alternative purposes, except by incurring significant costs. The direct effects of plant closures typically include a rise in unemployment and value chain disturbance (or dismantling), but brownfields are usually also associated with additional social effects and environmental pollution. Here, a proactive CSR strategy means reducing or mitigating the joint, negative social and environmental footprint of industrial plant closures beyond what is mandated by law (which has tended primarily to address direct effects). We assess the various strategies firms can pursue to mitigate negative, post-closure footprints and we distinguish between two alternative strategic options beyond the ‘legal obligations’ approach, namely the ‘core business related’ (core) CSR approach, and the ‘peripheral CSR’ approach. We explore the case of a plant closure by Bekaert S.A., a large, Belgian industrial firm, which adopted a peripheral CSR approach to manage and redevelop a brownfield site. In this context, we identify four enabling conditions for peripheral CSR to be implemented effectively.
This research benefits the strategic governance of inland ports located within urban areas by analysing the logistical dedicatedness and the geographic reach of economic activities that take place within a specific inland port. We find that the port under consideration faces challenges of retaining relatively new traffic categories (e.g. pallets) characterised by a high potential for transport mode substitution, whilst the more traditional traffic categories (e.g. construction materials) show higher levels of logistical dedicatedness to the port. The latter do so while generating negative local externalities. As a result, this assessment and application of the Port Hinterland Impact matrix (PHI) serves the creation of crucial strategic insights that allow policy makers to improve their urban freight policy and the role of inland ports therein. Furthermore, these insights allow for the identification of key stakeholders with whom strategic objectives can or cannot be easily aligned in the context of urban logistics.
Large seaport hubs in Northwestern Europe are aiming to develop as circular hotspots and are striving to become first movers in the circular economy (CE) transition. In order to facilitate their transition, it is therefore relevant to unravel potential patterns of the circular transition that ports are currently undertaking. In this paper, we explore the CE patterns of five Belgian seaports. Based on recent (strategy) documents from port authorities and on in-depth interviews with local port executives, the circular initiatives of these ports are mapped, based on their spatial characteristics and transition focus. The set of initiatives per port indicates its maturity level in terms of transition towards a circular approach. For most studied seaports, an energy recovery focus based on industrial symbiosis initiatives seems to dominate the first stages in the transition process. Most initiatives are not (yet) financially sustainable, and there is a lack of information on potential new business models that ports can adopt in view of a sustainable transition. The analysis of CE patterns in this paper contributes to how ports lift themselves out of the linear lock-in, as it demonstrates that ports may walk a different path and at a diverging speed in their CE transition, but also that the Belgian ports so far have focused too little on their cargo orchestrating role in that change process. Moreover, it offers a first insight into how integrated and sustainable the ports’ CE initiatives currently are.
Today, most large port hubs embrace the circular economy (CE) transformation challenge, and include this together with smart digitalization and the Internet of Things (IoT) in their strategic priorities [...]
In the context of increased scale of carriers and vessel sizes, stakeholder opposition to port expansion, and heavy regulation, ports prepare their strategic response. A port's competitive strength strongly depends on its capability of developing or retaining competitive advantages. Ports consider options such as strategic partnerships, or any form of collaboration, which could help them to create more or alternative combinations of unique resources as sources of competitive advantage. Taking an extended resource base perspective, the competitive advantages of the Antwerp port cluster are analyzed, using both linear regression and factor analysis, for its integrated hinterland network area, on data of 59 port experts. The results of our analysis show that the port's hinterland extension did not (yet) result in new sources of competitive advantages. This leads us to the reflection that we cannot assume integrated port clusters always lead to projected positive strategic outcomes.