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Competition, Excess Capacity, and the Pricing of Port Infrastructure

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  • H E Haralambides
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    Abstract

    The pricing of infrastructure, such as this of commercially competing ports, is one of the most controversial aspects of the global economy of the 21st century. The controversy arises from the need to reconcile the economic development impacts of infrastructure investments with the, under commercial terms, recovery of investment costs. In developed countries and regions, the role of ‘public investment’ is thus re-evaluated, while the concept of ‘competition on infrastructure’ is increasingly challenged by the need to establish a level playing field among competing ports. The paper shows how Marginal Cost Pricing of port infrastructure can be a powerful ‘pricing discipline’ towards achieving cost recovery and fair competition among ports. To succeed in this, the paper advocates for stronger policy intervention in order to ensure greater transparency of port accounting systems, better and more harmonised port statistics, a meaningful set of state aid guidelines, and stricter application of Competition Law in port infrastructure investments.International Journal of Maritime Economics (2002) 4, 323–347. doi: 10.1057/palgrave.ijme.9100053

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    Bibliographic Info

    Article provided by Palgrave Macmillan in its journal International Journal of Maritime Economics.

    Volume (Year): 4 (2002)
    Issue (Month): 4 (December)
    Pages: 323-347

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    Handle: RePEc:pal:marecl:v:4:y:2002:i:4:p:323-347

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    Web page: http://www.palgrave-journals.com/

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    Cited by:
    1. Koetse, M.J. & Rouwendal, J., 2008. "Transport and welfare consequences of infrastructure investment : a case study for the Betuweroute," Serie Research Memoranda, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics 0012, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    2. Peter W. De Langen & Athanasios A. Pallis, 2005. "Analysis Of The Benefits Of Intra-Port Competition," Industrial Organization, EconWPA 0510003, EconWPA, revised 17 Oct 2005.
    3. Koetse, Mark J. & Rouwendal, Jan, 2010. "Rail investment and port competition: a case study for the Betuweroute," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 44, pages 57-75.
    4. Haralambides, Hercules & Gujar, Girish, 2011. "The Indian dry ports sector, pricing policies and opportunities for public-private partnerships," Research in Transportation Economics, Elsevier, Elsevier, vol. 33(1), pages 51-58.

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