Vitalizing logistics strategies for Tiksi Port using the interpretive structural modelling method

Krivoshapkina, Margarita; Choi, Young-Seo; Listan Bernal, Maria; Yeo, Gi-Tae Article Vitalizing logistics strategies for Tiksi Port using the interpretive structural modelling method Asian Journal of Shipping and Logistics (AJSL) Provided in Cooperation with: Korean Association of Shipping and Logistics, Seoul Suggested Citation: Krivoshapkina, Margarita; Choi, Young-Seo; Listan Bernal, Maria; Yeo, Gi-Tae (2024) : Vitalizing logistics strategies for Tiksi Port using the interpretive structural modelling method, Asian Journal of Shipping and Logistics (AJSL), ISSN 2352-4871, Elsevier, Amsterdam, Vol. 40, Iss. 1, pp. 36-41, https://doi.org/10.1016/j.ajsl.2023.12.004 This Version is available at: https://hdl.handle.net/10419/329732 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by-nc-nd/4.0/ The Asian Journal of Shipping and Logistics 40 (2024) 36–41 Available online 24 January 2024 2092-5212/Production and hosting by Elsevier B.V. on behalf of The Korean Association of Shipping and Logistics, Inc. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Vitalizing logistics strategies for Tiksi Port using the interpretive structural modelling method Margarita Krivoshapkina a , Young-Seo Choi a , Maria Listan Bernal a , Gi-Tae Yeo a , * a Graduate School of Logistics, Incheon National University, Incheon 22012, South Korea ARTICLE INFO Keywords: Tiksi Port Northern Sea Route Vitalizing logistics strategies ISM MICMAC ABSTRACT Tiksi Port is a Russian seaport located on the Laptev Sea shore in the Central Arctic region and holds potential as a crucial and versatile hub for the improvement of the Eastern Arctic sector. It is one of the main ports on the Northern Sea Route and can potentially become the primary point for transporting various types of cargo. Currently, Tiksi Port is shallow and incapable of receiving large sea vessels and although it was initially equipped with handling equipment, signs of decline are visible. This study aims to identify the critical logistics elements of Tiksi Port and classify them according to their level of significance in vitalizing the logistics activities of the port for further practical use. Interpretive Structural Modelling and the Matrix of Cross Impacts Multiplication Applied to a Classification (MICMAC) method was used in this study. The study findings revealed ten factors that appeared at three levels of importance. According to the analysis results, “combating oil spills” was present at Level 3, which is the first and most fundamental level to be improved. Tiksi Port officials and government ministries can use these results as a reference for development and to support the establishment of a costeffective and agile logistics system for related companies. 1. Introduction Tiksi was established in 1932 as a port on the Northern Sea Route (NSR) during the expansion of the Soviet Union into the Arctic. By 1936, Tiksi was acknowledged as an official port on the NSR and went through a significant period of growth between 1930–1950 s when the local population was entirely sustained by maritime activities (Schweitzer & Povoroznyuk, 2022). Tiksi Port is located between the NSR and the Russian hinterland, and it is naturally positioned to have had a significant impact on the socio-economic development of the expansive region (Baklanov et al., 2021). Nevertheless, Tiksi Port is shallow and incapable of receiving large sea vessels (Poleshkina, 2021). Roadstead depths range between 9–10 m, while the inner harbor typically measures approximately 5 m in depth (Ragner, 2000). Despite the fact that the port was initially equipped with handling equipment, signs of decline are visible (Schweitzer & Povoroznyuk, 2022). Therefore, the port requires procedures such as dredging, and infrastructure must be renewed and undergo modernization (Schweitzer & Povoroznyuk, 2022). Many NSR ports to the east of Dikson, including Tiksi, can no longer accommodate the expected cargo traffic volumes. Specifically, infrastructure limitations prevent large-tonnage vessels, such as modern oil tankers and container ships, from accessing these ports, posing a safety risk to navigation (Kuzmin et al., 2019). Hence, Tiksi Port holds potential as a crucial and versatile hub for the improvement of the Eastern Arctic sector. Besides its transport, energy, and security roles, it can also play a significant role in economic growth and social well-being in the sparsely populated northeastern area of the country (Baklanov et al., 2021). Hill et al. (2015) stated that Tiksi Port was the most commercially important among Russia’s Arctic ports. However, despite its importance on the NSR, researchers more often target issues concerning the entire NSR. Ivanovich (2011) and Wan et al. (2021) highlighted that the Laptev Sea was dangerous due to its shallow depths. Ivanova and Potravnaya (2020); Mordvinova (2021), Poleshkina (2021); Schweitzer and Povoroznyuk (2022) concluded that dredging was a prerequisite for the future use of NSR ports. Dalaklis et al. (2018); Pastusiak (2016); Vylegzhanin et al. (2020); Heinemann et al. (2021) have noted the importance of using icebreakers. Ivanova and Potravnaya (2020), Milakovic et al. (2018), and Makarova et al. (2022) have documented the problematic nature of the environmental component of the Arctic; in particular, they highlighted * Corresponding author. E-mail address: [email protected] (G.-T. Yeo). Contents lists available at ScienceDirect The Asian Journal of Shipping and Logistics journal homepage: www.elsevier.com/locate/ajsl https://doi.org/10.1016/j.ajsl.2023.12.004 Received 19 November 2023; Accepted 20 December 2023 The Asian Journal of Shipping and Logistics 40 (2024) 36–41 37 the problems of scrap metal on the shores and oil spills. Mordvinova (2021) spoke about the digitalization of the NSR, which is not sufficient for the efficiency of northern ports. Navigation technologies in this regard are also outdated, as emphasized by Hill et al. (2015); Pugachev et al. (2022) argued about the economic side of the modernization of Arctic ports, calling northern ports of the NSR a weak link because of the lack of a proper budget for future development. Hence, there is a considerable body of research concerning the NSR, with recent studies uncovering a multitude of issues; however, there is a noticeable scarcity of research focused on the logistics of Tiksi Port. Therefore, this study can lay the groundwork for Tiksi’s future development by identifying crucial logistics components of its seaport and categorizing them based on their significance in enhancing port logistics for practical implementation. Using the Interpretive Structural Modelling (ISM) method and Matrix of Cross Impacts Multiplication Applied to a Classification (MICMAC) analysis, these components can be considered and classified in a hierarchical order, which could potentially become an example of an activation plan for the logistics activities of Tiksi Port. 2. Literature review Tiksi Port is called the “Arctic sea-gate of Yakutia” (Schweitzer & Povoroznyuk, 2022), as it is the only port of the Republic of Sakha (Yakutia), which historically contributed to the survival of Artic populations. Although the port is not fully functioning at present, as it was during the Soviet Union, it is still of strategic relevance among ports on the NSR and has the potential to become the primary point for transporting various cargo. Among the Arctic ports in the Russian Federation, Tiksi Port holds the utmost significance (Hill et al., 2015). Various studies, both Russian and foreign, consider diverse factors of activation of the logistics activity of Tiksi Port, highlighting its socioeconomic importance. Schweitzer and Povoroznyuk (2022) highlighted that in both Russia and Yakutia there are strategies for Arctic zone development that anticipate the growing importance of the NSR, which target residents and international cargo transit. Several municipal decrees and documents, as well as public speeches refer to Tiksi Port as an essential mark on the NSR. For these reasons, Ivanovich (2011); Hill et al. (2015); Wan et al. (2021) noted that the Laptev Sea is shallow which compromises safety. Hence, Ivanova and Potravnaya (2020); Mordvinova (2021); Poleshkina (2021), and Schweitzer and Povoroznyuk (2022) conclude that dredging is a requirement for the future utilization of Tiksi Port and others along the NSR. Currently, there are many obstacles to reviving the NSR. For instance, Dalaklis et al. (2018) highlighted that icebreakers are increasingly required to break through sea ice, establish passages, or aid stranded vessels. Russia’s has a significant advantage with its substantial number of icebreakers and their autonomy which is highlighted. The importance of icebreaker support was revealed by Pastusiak (2016); Vylegzhanin et al. (2020); Heinemann et al. (2021). Further problems that require solutions to achieve port activation have been targeted by different studies. Ivanova and Potravnaya (2020) stated that many environmentally damaged areas are concentrated in the Arctic region, with accumulations of scrap metal from military and industrial activities, such as the remains of ships and barrels. According to Ragner (2000), Tiksi Port provided service facilities, including harbor pilotage, berthing, ice-conditioning towage, fresh water, waste disposal (except for sewerage water), minor repairs, and diving services. However, Wan et al. (2021) highlighted that facilities on the NSR are too old. The designation of infrastructure and services, such as communication, navigation, ice-breaking, and others remain inadequate along the NSR (Wan et al., 2021). The importance of further development of those factors was highlighted in the research by Pastusiak (2016); Vylegzhanin et al. (2020); Baklanov et al. (2021); Mordvinova (2021); Wan et al. (2021). Ivanova and Potravnaya (2020) discussed the enhancement of the port infrastructure, suggesting the construction of a marine repair plant in Tiksi, providing for the complete reconstruction of berthing facilities, and development of shipbuilding and construction of new types of transport based on the production facilities of the Lena United River Shipping Company. Absence of repairing facilities was highlighted by Pastusiak (2016); Dalaklis et al. (2018); Wan et al. (2021); Schweitzer and Povoroznyuk (2022). Mordvinova (2021) highlighted that the directorate of the NSR is developing a single digital platform for the NSR, which began in August 2020. However, the issue of port digitalization is significant. There is still a need to introduce modern information and communication technology tools into the Arctic zone because this factor is defined as a key condition for the successful development of Arctic territories. Hill et al. (2015) highlighted that navigation technology is insufficient in the region. The effectiveness of global positioning systems (GPS) is constrained by the lack of satellite coverage at these latitudes. Therefore, safe navigation using these instruments is challenging. Milakovic et al. (2018) and Makarova et al. (2022) stated that due to the fragile polar ecosystem, oil spill preparedness (OSP) constitutes a crucial element of the NSR logistics system. The presence of sea ice has an impact on the behavior of oil spills. Russian laws stipulate that operators are responsible for covering the expenses related to cleanup operations and ecological harm in the event of an oil spill. Calculations for the environmental damage caused by oil spills along the NSR are conducted according to methods endorsed by the Federal Agency of Fisheries and the Ministry of Nature Resources and Ecology of Russia. Furthermore, OSP equipment is strategically positioned at ports such as Dikson, Tiksi, Provideniya, and Pevek. Hence, the modernization of Tiksi Port is highly recommended by various researchers. Mordvinova (2021) commented that the reconstruction of the port will ensure a safe entry of sea vessels with a draft of up to 10 m and will improve the cargo handling volume, including the cargo of civil vessels. Pugachev et al. (2022) stated that the initial challenges and threats endangering the improvement of the Arctic stem from weak infrastructure development of the NSR. The weakest aspect of the NSR lies in the Arctic ports, primarily because there has been minimal funding directed towards upgrading the technical equipment. Previous studies are summarized in the table below. 3. Research methodology This study employed ISM-MICMAC, first described by Warfield (1974), to select the factors that vitalize logistics strategies in Tiksi Port. ISM is a decision-making tool that involves organizing a variety of interconnected elements into a comprehensive systemic model. Additionally, it allows for classification and orientation of the relationships between elements in a complex system. ISM has been utilized in areas that have not yet been studied or activated. It is advantageous to understand the influence of the complex relationships among several factors. The procedure for ISM analysis is as follows: 1. To select factors related to the research purpose, factors were extracted from previous studies and expert interviews. 2. Compare the factors selected in Step 1 and establish contextual realizations. 3. A Structural Self-Interaction Matrix (SSIM) representing a comparison between the pairs of factors is created. The variables consisted of symbols V, A, X, and O. To establish the directions of the relationship between factors i and j, the following questionnaire was used: 4. The initial reachability matrix (IRM) was created according to the SSIM, and the transitivity matrix was reviewed. The basic assumption of the conceptual relationship is that if Factor 1 is correlated with Factor 2 and Factor 2 is correlated with Factor 3, then Factor 1 is M. Krivoshapkina et al. The Asian Journal of Shipping and Logistics 40 (2024) 36–41 38 correlated with Factor 3. In the IRM, the four steps V, A, X, and O were replaced with 1 or 0, as listed in Table 3. 5. When the IRM was created, several steps were performed according to the results of the previous step. The Final Reachability Matrix (FRM) was then reviewed according to the fundamental assumptions of the ISM to identify the driving and dependence power. 6. The final ISM model was completed by classifying the factors at each stage based on the FRM. A MICMAC analysis allows analysis of the variables according to their driving power and dependence, and classifies them into four regions. The fourth quadrant is sorted into four groups: autonomous activation, dependent activation, connection activation, and independent activation, as shown in Fig. 1. These factors are displayed in each quadrant. 7. The next step uses the FRM to perform the MICMAC analysis. 4. Empirical analysis The study objective was to ascertain the critical logistics elements of Tiksi Port and classify them according to their level of significance in vitalizing the logistics activities of the port for further practical use. To achieve the initial goal, the ISM methodology was implemented owing to its primary function of identifying eminent issues and defining the relationships between them. The study continued with a MICMAC analysis to complement the ISM approach. The software used for the ISM-MICMAC methodology was EXsimpro ISM. To define the influence of each factor on the others and create a structure with a hierarchy to show the priority level of each factor, a survey of 21 experts with an average work experience of 22 years was conducted (see Table 4). To implement the ISM methodology in this Table 1 Logistics factors extracted. Factors selected Related research 1 Increasing water depths Ivanovich (2011) Hill et al. (2015) Ivanova and Potravnaya (2020) Mordvinova (2021) Wan et al. (2021) Poleshkina (2021) Schweitzer and Povoroznyuk (2022) 2 Icebreaker support Pastusiak (2016) Vylegzhanin et al. (2020) Heinemann et al. (2021) Wan et al. (2021) 3 Cleaning of scrap metal and disposal of abandoned half-submerged ships Ivanova and Potravnaya (2020) 4 Pilotage and Tug support Vylegzhanin et al. (2020) Wan et al. (2021) 5 Stevedoring services Pastusiak (2016) Ivanova and Potravnaya (2020) Baklanov et al. (2021) Mordvinova (2021) 6 Ship chandling services Pastusiak (2016) Wan et al. (2021) 7 Repairing facilities Pastusiak (2016) Dalaklis et al. (2018) Ivanova and Potravnaya (2020) Wan et al. (2021) Schweitzer and Povoroznyuk (2022) 8 Digitalization Hill et al. (2015) Ivanova and Potravnaya (2020) Vylegzhanin et al. (2020) Mordvinova (2021) Wan et al. (2021) 9 Combating oil spills Milakovic et al. (2018) Vylegzhanin et al. (2020) Makarova et al. (2022) 10 Modernization of port Mordvinova (2021) Pulyaevskaya and Vinokurova (2021) Pugachev et al. (2022) Table 2 A Structural Self-Interaction Matrix (SSIM) Symbology. Definition Symbol Factor i influences factor j. Factor i is not influenced by factor j. V Factor j influences factor i. Factor j is not influenced factor i. A Factors i and j influence each other. X Factors i and j do not influence each other. O Table 3 IRM from SSIM. SSIM item (i, j) Reachability Matrix Definition V item (i, j) becomes 1 item (j, i) becomes 0 A item (i, j) becomes 0 item (j, i) becomes 1 X item (i, j) becomes 1 item (j, i) becomes 1 O item (i, j) becomes 0 item (j, i) becomes 0 Note: SSIM, Structural Self-Interaction Matrix; IRM, Initial reachability matrix Fig. 1. Driving Power and Dependence Power Diagram. Fig. 2. Structural Self-Interaction Matrix (SSIM). M. Krivoshapkina et al. The Asian Journal of Shipping and Logistics 40 (2024) 36–41 39 study, ten factors were extracted from the literature. The extracted factors in the literature review are the following: “A1: Increasing water depths,” “A2: Icebreaker support,” “A3: Cleaning of scrap metal and disposal of abandoned half-submerged ships,” “A4: Pilotage and tug support,” “A5: Stevedoring services,” “A6: Ship chandling services,” “A7: Repairing facilities,” “A8: Digitalization,” “A9: Combating oil spills,” and “A10: Modernization of port.” Using ISM methodology, the factors vitalizing the logistics activities of Tiksi Port were systematized. The initial step of ISM analysis is the formation of a SSIM for the extracted factors. An IRM was designed according to the SSIM (Fig. 3). The data received from the SSIM were transmuted into binary values of 0 and 1. The next step was to divide the factors into levels. In conjunction with all the factors within the FRM, reachability and predecessor sets were established. The variable itself and the possibly affected variable constitute the reachability set, while the predecessor set includes the variable and its possibly affected counterparts. All variables were examined for intersections. When a complete match occurs, the related indicators are allocated to the maximal level of the ISM hierarchy structure and left out from subsequent calculations. This process is repeated iteratively until every variable finds its place, ultimately leading to the construction of a graph and its resulting final ISM model. Based on the results of the implemented analysis, the final ISM hierarchy structure digraph disclosed the following: the factor “A9: Combating oil spills” was located at the bottom of the structure meaning that it has more influence in vitalizing the logistics activities of Tiksi Port. Therefore, this factor could initiate the activation of logistics in the port. To use the remaining factors in action, Tiksi Port must first resolve this issue. As stated in the literature review, OSP is one of the major elements of the NSR logistics system, and OSP equipment is present at four Arctic ports, including Tiksi Port. The second level of the hierarchy system corresponds to the factors “A1: Increasing water depths,” “A2: Icebreaker support,” “A3: Cleaning of scrap metal and disposal of abandoned half-submerged ships,” and “A7: Repairing facilities.” The development of Tiksi Port regarding dredging and cleaning the waters will help larger vessels navigate the port area, which can also increase the level of processed cargo crucial for the population of the Arctic region. Similarly, icebreaker support will play a significant role in extending the navigation period of the port. Repairing facilities as a port service may help manage ships coming through. The factors of the second level are interrelated and have a direct effect on the first level factors, which are “A4: Pilotage and tug support,” “A5: Stevedoring services,” “A6: Ship chandling services,” “A8: Digitalization,” and “A10: Modernization of port.” Therefore, to solve the logistics issues of Tiksi Port, it is important to use a hierarchical structure as a guide to implement the vitalization of logistics activities. The MICMAC analysis complements the ISM approach through an analysis of both driving power and dependence power among the established factors, and the aim is to ascertain the key elements that significantly influence the entire system. This graph contains four sections: 1. Autonomous factors refer to the weak dependent variables with low driver power 2. Dependent factors refer to the strong dependent variables with low driver power 3. Linkage factors refer to the strong dependent variables with high driver power 4. Independent factors refer to the weak dependent variables with strong driver power. As shown in the graph, factors A1, A2, A3, A7, A4, A5, A6, A8, and A10 are located in the linkage area with driver power at 9 and dependence levels at 9 and 10. These factors appear to hold the highest priority and significance because the elements of the linkage sector affect other elements. The analysis also showed that there were no factors in the Autonomous and Dependent clusters. Thus, all identified factors play a significant role in vitalizing port logistics. Autonomous factors present weak dependence and low driving power, meaning that they do not affect the system. The Dependent factors also have low driver power, although their dependence is strong, indicating that they have no effect on the other factors. However, the only factor listed in the Independent Table 4 Summary of the expert’s questionnaire. Type Content Interview Date December 2022 to February 2023 Interview Purpose Vitalizing logistics strategies for Tiksi Port using the ISM method Experts Experience Academic Governmental Logistics-related Forwarder Less than 10 years 1 3 1 0 10–15 years 0 4 0 0 16–20 years 0 2 1 0 21–25 years 1 1 0 0 More than 25 years 2 3 1 1 Total experts 21 Note: ISM, Interpretive Structural Modelling Fig. 3. Initial Reachability Matrix (IRM). Fig. 4. Final Reachability Matrix (FRM). M. Krivoshapkina et al. The Asian Journal of Shipping and Logistics 40 (2024) 36–41 40 area of the graph is “A9: Combating oil spills,” which is the factor placed at the lowest of the ISM hierarchy system signifying a weak level of dependence at 2, but simultaneously a strong driving power at 6. This factor is also called a “key enabler” indicating its importance. Consequently, the final ISM hierarchy structure defines the relationships between the extracted factors. The established structure ensures a better view of the activation of logistics strategies for Tiksi Port. As it was discovered during the analysis, the “Combating oil spills” factor is declared the most substantial, meaning that it is independent of the other factors and has the ability to influence the vitalizing of logistics activities. Additionally, the final model demonstrated that Level 2 and 1 factors were highly interconnected, implying that any action affects each of the factors listed in the structure. 5. Conclusion This study used the ISM-MICMAC methodology to suggest revitalization strategies for Tiksi Port. Ten factors were selected, and questionnaire responses were collected from 21 experts in four groups: academics, government ministries, logistics officials, and forwarders. The study findings revealed a total of ten factors that appeared at three levels. According to the analysis results, “combating oil spills” was present at Level 3, which is the first and most fundamental level to be improved. This factor is a key enabler, being the most important among the ten factors that must be improved to revitalize logistics at Tiksi Port. The second level of the hierarchy system corresponds to the factors “Increasing water depths,” “Icebreaker support,” “Cleaning of scrap metal and disposal of abandoned half-submerged ships,” and “Repairing facilities.” The factors at Level 2 are interrelated and directly affect those in Level 1. Finally, Level 1 comprises “Pilotage and tug support,” “Stevedoring services,” “Ship changing services,” “Digitalization,” and “Modernization of port” which were deemed the lowest-level factors. MICMAC analyzed dependence power and driving power by classifying factors into four quarters. The analysis results showed that the factors were not located in autonomous or dependent areas. Nine factors were located in the linkage area, all of which comprised Levels 1 and 2 in the hierarchical analysis. The factor located in the independent area was the “combating oil spills” found at Level 3. This study has academic implications for using the ISM-MICMAC methodology to distinguish causes and influencing factors for strengthening the competitiveness of Tiksi Port, which has not been conducted previously, and evaluate priorities between factors. Furthermore, Tiksi Port officials and government ministries can use the study results as a reference for the development of Tiksi Port and to support the establishment of a costeffective and agile logistics system for related companies. Acknowledgments This research was supported by the 4th Educational Training Program for the Shipping, Port and Logistics from the Ministry of Oceans and Fisheries. References Baklanov, P. Y., Moshkov, A. V., Romanov, M. T., & Tkachenko, G. G. (2021). 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