The investment model of safety management in port enterprises and its analysis under uncertainties
- PDF / 299,343 Bytes
- 7 Pages / 595.276 x 790.866 pts Page_size
- 5 Downloads / 156 Views
ORIGINAL ARTICLE
The investment model of safety management in port enterprises and its analysis under uncertainties Wenchao Wang1
Received: 30 November 2017 / Revised: 30 August 2018 / Accepted: 20 October 2018 Ó The Society for Reliability Engineering, Quality and Operations Management (SREQOM), India and The Division of Operation and Maintenance, Lulea University of Technology, Sweden 2020
Abstract Regulating the expenditures and capital investment in safety management is one of the effective ways to improve the level of safety in port enterprises. Such spending’s aims to reduce accident losses and improve productivity but capital investment is subject to uncertainties. This paper develops a safety management model taking into account investment uncertainties in operation and management conditions. A numerical simulations analysis based on this model shows that (1) the stability of operational safety delays the investment in safety management, and the amount of investment in safety management is reduced if the stability lasts for a long time, and (2) the stability of safety management conditions also delays the investment, but policy mandatory requirements and government subsidies offset these delays. Keywords Safety management Real options Investment timing Investment trigger Capacity of investment
1 Introduction Maritime infrastructure such as container terminals enable economic activities through the transfer of goods and services between national and international destinations. Given their significance in ensuring prosperity of the world economy, container terminals face a variety of operational and environmental uncertainties that make them vulnerable
& Wenchao Wang [email protected] 1
Research Institute of Civil Aviation Safety, Civil Aviation University of China, Tianjin 300300, China
to hazards (Grenadier et al. 2007; Alyami et al. 2016). Although China has achieved impressive improvement in safety management during last three decades, industrial injuries, accidents, and general hazards involved in port enterprises have not been significantly reduced (Yan et al. 2008). For example, a series of explosions occurred at a container storage station at the Port of Tianjin on August 12th 2015, which killed over one hundred people and injured hundreds of others. These injuries and accidents have caused huge losses in enterprise and had adverse impacts on society. One of the main reasons for the port operational safety situation in China is the lack of scientific basis for decision-making with high level of uncertainty (Vonnegut 2000; Hale 2003). Operational safety is the safety of operations under specific conditions, and the safety level is positively related to the investment. Such decision-making works against the increased demand for investment in safety management. Due to the lack of scientific safety investment design and data analysis, it is difficult to control the uncertainty during the production process. According to incomplete statistics, several casualties had occurred in Tianjin Por
Data Loading...
