How Useful are Queue Models in Port Investment Decisions for Container Berths?

Abstract

The operational characteristics of U.K. container terminals and shipping services are reviewed in relation to their effect on the use of queue models in decisions on investment in berth construction and cargo handling equipment. Some simple queue models for a new container service are evaluated, showing the importance of interpreting the choice of parameters and results of these models in relation to the particular costs and requirements of container operations and how this ranks investment options differently to the traditional application of queue models to port investment. This ranking is compared with the actual decision made and the effects of some other factors not included in the models noted.