Supply Chain Coordination for Port Sustainability Lessons for New Institutional Designs

The rapid expansion of trade and the intense pace of the economic activities of ports pose numerous social and environmental challenges, and thus put port hinterland regions at risk and challenge traditional port business models. Few studies have examined the conceptual and empirical issues involved in improving port sustainability, although port sustainability issues have recently been discussed with some urgency in the goods movement sector. This paper sets out a conceptual model of port sustainability, presents and examines multiple concepts of supply chains surrounding port activity, and identifies both institutional barriers and supply chain bottlenecks. Three different supply chain concepts for seaports are discussed: physical infrastructure chain, economic value chain, and institutional chain. Rather than a narrow focus on an individual port's operational aspects, broader, more systematic supply chain perspectives on cargo movement systems are essential to introduce port sustainability effectively to current U.S. port business practices. Actions are needed, not just from port authorities, but also from other stakeholders, including government, industries, and community groups. Coordinated activities and collaboration would significantly facilitate the implementation of sustainable models of seaport businesses and cargo movement services.