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Eficiency of Infrastructure: The Case of Container Ports

Author

Listed:
  • Santiago Herrera

    (The World Bank)

  • Gaobo Pang

    (Research Associate at Watson Wyatt)

Abstract

This paper gauges efficiency in container ports. Using non-parametric methods, we estimate efficiency frontiers based on information from 86 ports across the world. Three attractive features of the method are: 1) it is based on an aggregated measure of efficiency despite the existence of multiple inputs; 2) it does not assume particular input-output functional relationships; and 3) it does not rely on a-priori peer selection to construct the benchmark. Results show that the most ine_cient ports use inputs in excess of 20 to 40 percent. Since infrastructure costs represent about 40 percent of total maritime transport costs, these could be reduced by 12 percent by moving from the inefficient extreme of the distribution to the efficiency one.

Suggested Citation

  • Santiago Herrera & Gaobo Pang, 2008. "Eficiency of Infrastructure: The Case of Container Ports," Economia, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 9(1), pages 165-194.
  • Handle: RePEc:anp:econom:v:9:y:2008:i:1:165-194
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. -, 2009. "Revista CEPAL no.99," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    2. Pérez, Ivone & Trujillo, Lourdes & González, María Manuela, 2016. "Efficiency determinants of container terminals in Latin American and the Caribbean," Utilities Policy, Elsevier, vol. 41(C), pages 1-14.
    3. Guerrero C., Alejandro & Rivera T., César, 2009. "México: cambio en la productividad total de los principales puertos de contenedores," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    4. Guerrero C., Alejandro & Rivera T., César, 2009. "Mexico: total productivity changes at the principal container ports," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    5. 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 of po
      ," MPRA Paper 30009, University Library of Munich, Germany.
    6. Angela Stefania Bergantino & Enrico Musso, 2011. "A Multi-step Approach to Model the Relative Efficiency of European Ports: The Role of Regulation and Other Non-discretionary Factors," Chapters,in: International Handbook of Maritime Economics, chapter 18 Edward Elgar Publishing.
    7. S. Athanasatos & S. Michaelides & M. Papadakis, 2014. "Identification of weather trends for use as a component of risk management for port operations," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 72(1), pages 41-61, May.

    More about this item

    Keywords

    Container Ports; Efficiency Frontiers; Non-Parametric Methods;

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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