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The Effect of Demand Uncertainty on Port Terminal Costs

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  • Ana Rodríguez-Álvarez
  • Beatriz Tovar
  • Alan Wall

Abstract

A recent survey found that 40 per cent of vessels arrive later than planned, so demand uncertainty is a salient feature of port terminal activity. Terminals facing greater demand uncertainty and that wish to cater for this will incur extra costs to avoid the risk that shipping companies replace them. We estimate a short-run cost function using data on three Spanish port terminals which includes demand uncertainty as a regressor. We find that demand uncertainty has a significant effect on costs and we quantify this. Not taking demand uncertainty into account may lead to port terminals' efficiency being underestimated. © 2011 LSE and the University of Bath

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Bibliographic Info

Article provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy (JTEP).

Volume (Year): 45 (2011)
Issue (Month): 2 (May)
Pages: 303-328

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Handle: RePEc:tpe:jtecpo:v:45:y:2011:i:2:p:303-328

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Web page: http://www.bath.ac.uk/e-journals/jtep

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Cited by:
  1. Fan, Lei & Wilson, William W. & Dahl, Bruce, 2012. "Congestion, port expansion and spatial competition for US container imports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1121-1136.
  2. repec:hal:journl:halshs-00741127 is not listed on IDEAS
  3. Hidalgo, Soraya & Núñez-Sánchez, Ramón, 2012. "Estimating allocative efficiency in port authorities with demand uncertainty," MPRA Paper 38136, University Library of Munich, Germany.
  4. Marianne Fischman & Emeric Lendjel, 2012. "Maritime Ports And Inland Interconnections: A Transactional Analysis Of Container Barge Transport In France," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00741127, HAL.
  5. Tovar, Beatriz & Wall, Alan, 2014. "The impact of demand uncertainty on port infrastructure costs: Useful information for regulators?," Transport Policy, Elsevier, vol. 33(C), pages 176-183.

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