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Public regulation and passengers importance in port infrastructure costs

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  • Núñez-Sánchez, Ramón
  • Jara-Díaz, Sergio
  • Coto-Millán, Pablo

Abstract

Because ports are conceived and designed mainly to be the transfer point of various types of freight, passengers tend to be forgotten in the analysis of port costs. In this paper first we investigate the importance of passengers in port infrastructure costs by means of a multi-output cost function estimated from 20 annual observations (1986-2005) for 26 Spanish Port Authorities. Results show that, although a passenger weights on average less than one tenth of a ton, he or she represents as much as two tons of solid bulk and about three tons of containerized general cargo in terms of marginal costs. Secondly, we compare the marginal costs of different cargoes with their price caps established by law. Results suggest that some type of second best pricing is induced by present regulation.

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Bibliographic Info

Article provided by Elsevier in its journal Transportation Research Part A: Policy and Practice.

Volume (Year): 45 (2011)
Issue (Month): 7 (August)
Pages: 653-666

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Handle: RePEc:eee:transa:v:45:y:2011:i:7:p:653-666

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Keywords: Spanish ports Regulation Marginal costs Cost function;

References

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  1. Kim, Moshe & Sachish, Arie, 1986. "The Structure of Production, Technical Change and Productivity in a Port," Journal of Industrial Economics, Wiley Blackwell, vol. 35(2), pages 209-23, December.
  2. Coto-millán, Pablo, 1996. "Maritime transport policy in Spain (1974-1995)," Transport Policy, Elsevier, vol. 3(1-2), pages 37-41.
  3. Sergio Jara-Díaz & Beatriz Tovar De La Fé & Lourdes Trujillo, 2005. "Multioutput analysis of cargo handling firms: An application to a Spanish port," Transportation, Springer, vol. 32(3), pages 275-291, 05.
  4. Sergio Jara-Díaz & Eduardo Martínez-Budría & Cristiín Cortés & Leonardo Basso, 2002. "A multioutput cost function for the services of Spanish ports' infrastructure," Transportation, Springer, vol. 29(4), pages 419-437, November.
  5. Angelos Pantouvakis, 2006. "Port-Service Quality Dimensions and Passenger Profiles: An Exploratory Examination and Analysis," Maritime Economics and Logistics, Palgrave Macmillan, vol. 8(4), pages 402-418, December.
  6. Mark Armstrong & Simon Cowan & John Vickers, 1994. "Regulatory Reform: Economic Analysis and British Experience," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262510790, December.
  7. James Odeck, 2008. "Efficiency Measurement of Ferries Serving Road Networks in Norway: A Stochastic Frontier Approach," Maritime Economics and Logistics, Palgrave Macmillan, vol. 10(4), pages 409-428, December.
  8. González, MarI´a Manuela & Trujillo, Lourdes, 2008. "Reforms and infrastructure efficiency in Spain's container ports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(1), pages 243-257, January.
  9. Gonzalez, Maria Manuela & Trujillo, Lourdes, 2005. "Reforms and infrastructure efficiency in Spain's container ports," Policy Research Working Paper Series 3515, The World Bank.
  10. Christensen, Laurits R & Greene, William H, 1976. "Economies of Scale in U.S. Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 655-76, August.
  11. Castillo-Manzano, José I. & López-Valpuesta, Lourdes & Pérez, Javier J., 2008. "Economic analysis of the Spanish port sector reform during the 1990s," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(8), pages 1056-1063, October.
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