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Maritime Policy & Management
The flagship journal of international shipping and port research
Volume 38, 2011 - Issue 2
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Original Articles

The financialization of the port and terminal industry: revisiting risk and embeddedness

, &
Pages 191-213 | Received 09 Aug 2010, Accepted 23 Nov 2010, Published online: 11 Apr 2011

References and notes

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  • This is exemplified by the efforts of several governments to bail out major shipping lines (i.e. Israeli government—ZIM; French government—CMA CGM; German government—Hapag-Lloyd)
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  • The role of world cities in shipping and logistics has received quite some attention in recent literature (see e.g. Jacobs et al., 2010; Verhetsel and Sel, 2009)
  • US federal tax legislation provided favourable tax treatment for holders of these bonds allowing for lower interest rates, a sizable advantage for port financing, the bonds been repaid from port earnings, 1996 (BYRNE, M., SIPSAS, H. and THOMPSON, T., 1996, Financing port infrastructure. International Advances in Economic Research, 2(4), 471–476)
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  • Theys , C , Notteboom , TE , Pallis , AA and DE Langen , PW . 2010 . The economics behind the awarding of terminals in seaports: Towards a research agenda . Research in Transportation Economics , 27 ( 1 ) : 37 – 50 .
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  • See: PORTWORLD. 2008, Fujairah expansion wins financial backing, September 8, 2008, www.portworld.com
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  • Pallis , AA , Notteboom , T and De LANGEN , PW . 2008 . Concession agreements and market entry in the container terminal industry . Maritime Economics and Logistics , 10 ( 3 ) : 209 – 228 .
  • Notteboom , T . 2002 . “ Port rivalry and the distribution of economic rent in a logistic-restructured environment ” . In Current Issues in Port Logistics and Intermodality , Edited by: Notteboom , T . 7 – 22 . Garant : Leuven .
  • CASHON, B. E., 2010, Critical Issues Facing Ports & Marine Terminal Industry. 2010 AAPA/NAWE/MARAD Marine Terminal Management Training Program, October 25, 2010, Jacksonville, FL
  • BBI In late-2007 paid US$548 million for a 43% stake in a leading Antwerp stevedore company (Westerlund), 50% of a cargo handler in Germany (Seehafen Rostok Umschlagsgellschaft), and 50% of ICS Logistics Inc., whose main operations are in Jacksonville, Fla. It also acquired several Finnish ports from the world's biggest manufacturer of journal paper, UPM-Kymmene, purchased 50% of Italy's biggest dry bulk stevedore (Terminal Rinfuse Italia, with operations in Genoa, Savona and Venice), acquired a majority stake in a Belgian stevedore with operations in Antwerp and Ghent (Manuport), and Tarragona Port Services in Spain, and moved into the booming Baltic Sea market, paying US$140 million for Rauma Stevedoring and Botnia Shipping, which have concessions to run Rauma, Finland's third-largest port, and the smaller port of Pietarsaai
  • BARNARD, B., 2008, Euro cash, May 23, 2008. breakbulk.com
  • BARNARD, B., 2009, BBI to sell stake in Euroports at a loss, July 29, www.joc.com
  • House of Commons . 2007 . The Ports Industry in England and Wales. Second Report of Session 2006–07 , Vol. I , London : The Stationery Office Limited .
  • For details: NOTTEBOOM, T. and RODRIGUE, J.-P., 2010, The corporate geography of global terminal operators. In IAME 2010 Conference, Lisbon, July 7–9 (available online: www.porteconomics.eu)
  • Portes , See: R and REY , H . 2005 . The determinants of cross-border equity flows . Journal of International Economics , 65 : 269 – 296 .
  • ‘It started to happen as (terminal) valuations began to increase …’ Eventually, when the [Orient Overseas International Ltd.] deal was announced and the AIG-P&O Ports [DP World] deal was announced, the valuations got to levels where we said, ‘We really can't continue to ignore this.’ (Brian Maher, chairman and CEO of Maher Terminals Inc; quoted in: LEACH, P. T., The right price. Traffic World, March 26, 2007)
  • Syriopoulos , T . 2007 . “ Financing Greek shipping: Modern instruments, methods and markets ” . In Maritime Transport: The Greek Paradigm – Research in Transportation Economics , Edited by: Pallis , AA . Vol. 21 , 171 – 219 . London : Elsevier .
  • Marine Money and Citi Group. 2009
  • PETROFIN BANK RESEARCH, 2006, Greek Shipping Portfolios held by International and Greek Banks, 2008 (available online at: www.petrofin.gr/research2008)
  • Kavussanos , E and Visvikis , I . 2006 . Derivatives and Risk Management in Shipping , London : Witherbys Publishing .
  • Rocha , See: CH and Britto , PAP . 2010 . Securitisation of leases of port areas and installations in Brazil . Maritime Policy and Management , 37 ( 2 ) : 163 – 174 .
  • Altunbas , Y , Gambacorta , L and Marques-Ibanez , D . 2009 . Securitisation and the bank lending channel . European Economic Review , 53 ( 8 ) : 996 – 1009 .
  • Shin , HS . 2010 . Securitisation and financial stability . The Economic Journal , 119 ( 536 ) : 309 – 332 .
  • A consortium led by Hutchison Port Holdings withdrew its interest from a concession of Thessaloniki Port's container terminal in December 2008. The consortium had been declared as temporary winner of the tender after offering a bid of €419.5 million for the Thessaloniki port's cargo terminal, far more than €131.9 million offered by Cosco, the runner-up in the tender. Mandras in Ecuador provides a similar example of interest withdrawal, even though in that case investments by the tenant had already started
  • CMA In July 2010 CGM and APM Terminals traded stakes in container terminals in Dunkirk, France, and Mobile, Alabama. Terminal Link, CMA CGM's container terminal arm, acquired APM Terminals’ 61% holding in Nord France Terminal International, taking its stake in the terminal in the northern French port from 30% to 91%. The remaining 9% is held by the Port Authority of Dunkirk. At the same time, APM Terminals acquired Terminal Link's 20% interests in Mobile Container Terminal, taking full control of the facility
  • Cf. the interview of DP World CEO M. Sharaf in WALID, T. and IRISH, J., 2010, DP World sees problems accessing finance in future. Reuters, Monday January 25, 2010
  • For example: in China, Dalian Port plans a second IPO to fund assets acquisition and ports consolidation (Portworld.com, September 17, 2009); in Australia, DP World considers floating parts of its Australian assets in public offering through a new listed entity, DP Australia (Reuters.com, February 2, 2010); DP World, indicated in early 2010 a listing on the London Stock Exchange following disappointment with its market valuation in Dubai
  • An example is the involvement of the sovereign wealth fund Dubai World, which owns 77% of DP World, and a regional private equity firm, Abraaj Capital, in negotiations for the sale of a (reportedly) 15% stake in DP World in mid-2009
  • FROUD, J. and WILLIAMS, K., 2007, Private equity and the culture of value extraction. CRESC Working Paper Series 31. Manchester/Milton Keynes, UK: Centre for Research on Socio-Cultural Change, University of Manchester and The Open University
  • Dymski , G . 2006 . Targets of opportunity in two landscapes of financial globalization . Geoforum , 37 : 307 – 311 .
  • De Langen , PW and Chouly , A . 2004 . Hinterland access regimes in seaports . European Journal of Transport and Infrastructure Research , 4 : 361 – 380 .
  • De Langen , PW . 2004 . Governance in seaport clusters . Maritime Economics and Logistics , 6 : 141 – 156 .

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