Port Efficiency and International Trade: Port Efficiency as a Determinant of Maritime Transport Costs
AbstractThis paper examines the determinants of waterborne transport costs, with particular emphasis on the efficiency at port level. Its main contribution is (1) to generate statistically quantifiable measures of port efficiency from a survey of Latin American common user ports, and (2) to estimate a model of waterborne transport costs, including the previously generated port efficiency measures as explanatory variables. In order to incorporate different port efficiency measures from the survey, we use principal component analysis (PCA). Our estimations show that the specified variables in the model explain a great proportion of the change in waterborne transport costs. With regard to port efficiency, the result is especially important for one of the port efficiency measures obtained through PCA with an estimated elasticity equivalent to that of distance. Other explanatory variables which show to be statistically significant are the monthly liner service availability, distance, and the goods' value per ton. The conclusions are relevant for policy makers as they show and quantify that port efficiency is a relevant determinant of a country's competitiveness – and in this respect, there still exist big differences among Latin American countries. Unlike most other relevant variables, port efficiency can be influenced by public policies. Maritime Economics & Logistics (2003) 5, 199–218. doi:10.1057/palgrave.mel.9100073
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Palgrave Macmillan in its journal Maritime Economics & Logistics.
Volume (Year): 5 (2003)
Issue (Month): 2 (June)
Contact details of provider:
Web page: http://www.palgrave-journals.com/
Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jordan Schwartz & José Luis Guasch & Gordon Wilmsmeier, 2009. "Logistics, Transport and Food Prices in LAC: Policy Guidance for Improving Efficiency and Reducing Costs," IDB Publications 9324, Inter-American Development Bank.
- Olaf Jonkeren & Erhan Demirel & Jos van Ommeren & Piet Rietveld, 2011.
"Endogenous transport prices and trade imbalances,"
Journal of Economic Geography,
Oxford University Press, vol. 11(3), pages 509-527, May.
- repec:idb:brikps:6733 is not listed on IDEAS
- Low, Joyce M.W. & Lam, Shao Wei & Tang, Loon Ching, 2009. "Assessment of hub status among Asian ports from a network perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(6), pages 593-606, July.
- Bichou, K. & Gray, R., 2005. "A critical review of conventional terminology for classifying seaports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(1), pages 75-92, January.
- José Antonio Reyes, 2007. "El punto que le falta al CAFTA," Research Department Publications 4529, Inter-American Development Bank, Research Department.
- Laura Márquez-Ramos & Inmaculada Martínez-Zarzoso & Eva Pérez-García & Gordon Wilmsmeier, 2011. "“Special Issue on Latin-American Research” Maritime Networks, Services Structure and Maritime Trade," Networks and Spatial Economics, Springer, vol. 11(3), pages 555-576, September.
- Olaf Jonkeren & Erhan Demirel & Jos van Ommeren & Piet Rietveld, 2008. "Endogenous Transport Prices and Trade Imbalances," Tinbergen Institute Discussion Papers 08-088/3, Tinbergen Institute.
- José Antonio Reyes, 2007. "The Missing Point in CAFTA," Research Department Publications 4528, Inter-American Development Bank, Research Department.
- Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann D., 2006. "Road and Maritime Transport Costs: A Comparative Analysis of Spanish Exports to Poland and Turkey," Ibero America Institute for Econ. Research (IAI) Discussion Papers 138, Ibero-America Institute for Economic Research.
- Luisa Alamá-Sabater & Laura Márquez-Ramos & Celestino Suárez-Burguet & J. Miguel Navarro-Azorín, 2012. "Interregional Trade and Transport Connectivity. An Analysis of Spatial Dependence," Working Papers 2012/20, Economics Department, Universitat Jaume I, Castellón (Spain).
- Caldeirinha, Vitor R. & Felicio, J. Augusto, 2011.
"A influência dos factores de caracterização dos portos no desempenho, medido por indicadores operacionais, financeiros e de eficiência
[The influence of factors characterizing the performance o," MPRA Paper 30009, University Library of Munich, Germany.
- Martínez-Zarzoso, Inmaculada & Nowak-Lehmann D., Felicitas, 2006.
"Is distance a good proxy for transport costs? The case of competing transport modes,"
Center for European, Governance and Economic Development Research Discussion Papers
54, University of Goettingen, Department of Economics.
- Inmaculada Martinez-Zarzoso & Felicitas D. Nowak-Lehmann, 2007. "Is distance a good proxy for transport costs? The case of competing transport modes," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 16(3), pages 411-434.
- Inmaculada Martínez-Zarzoso & Gordon Wilmsmeier, 2010. "Freight Rates and the Margins of Intra-Latin American Maritime Trade," Ibero America Institute for Econ. Research (IAI) Discussion Papers 201, Ibero-America Institute for Economic Research.
- Yan, Jia & Sun, Xinyu & Liu, John J., 2009. "Assessing container operator efficiency with heterogeneous and time-varying production frontiers," Transportation Research Part B: Methodological, Elsevier, vol. 43(1), pages 172-185, January.
- Jasmine Lam & Wei Yap, 2006. "A measurement and Comparison of Cost Competitiveness of Container Ports in Southeast Asia," Transportation, Springer, vol. 33(6), pages 641-654, November.
- Richard Pomfret & Patricia Sourdin, 2008.
"Why Do Trade Costs Vary?,"
School of Economics Working Papers
2008-08, University of Adelaide, School of Economics.
- Richard Pomfret & Patricia Sourdin, 2010. "Why do trade costs vary?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 146(4), pages 709-730, December.
- Bruce A. Blonigen & Wesley Wilson, 2006. "New Measures of Port Efficiency Using International Trade Data," NBER Working Papers 12052, National Bureau of Economic Research, Inc.
- Sarriera, Javier Morales & Araya, Gonzalo & Serebrisky, Tomas & Briceno-Garmendía, Cecilia & Schwartz, Jordan, 2013. "Benchmarking container port technical efficiency in Latin America and the Caribbean : a stochastic frontier analysis," Policy Research Working Paper Series 6680, The World Bank.
- Loon Tang & Joyce Low & Shao Lam, 2011. "Understanding Port Choice Behavior—A Network Perspective," Networks and Spatial Economics, Springer, vol. 11(1), pages 65-82, March.
- Ng, AdolfK.Y. & Gujar, Girish C., 2009. "Government policies, efficiency and competitiveness: The case of dry ports in India," Transport Policy, Elsevier, vol. 16(5), pages 232-239, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elizabeth Gale).
If references are entirely missing, you can add them using this form.