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Port Investments in an Uncertain Environment

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  • Meersman, Hilde M.A.

Abstract

This contribution focuses on some specific aspects of port investments related to the large amounts of capital needed for some types of port investments and the long payback time of the projects. The first part treats the problem of private and/or public involvement and the impact on the competitiveness of a port. Next, the consequences of uncertainty in combination with large sunk costs for the rules which guide the decision to invest are examined. The last part considers the problem of forecasting port traffic and its volatility because they are crucial for an accurate evaluation of the investment projects.

Suggested Citation

  • Meersman, Hilde M.A., 2005. "Port Investments in an Uncertain Environment," Research in Transportation Economics, Elsevier, vol. 13(1), pages 279-298, January.
    • Handle: RePEc:eee:retrec:v:13:y:2005:i:1:p:279-298
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    Cited by:

    1. Somorowsky, Carolyn & Haasis, Hans-Dietrich, 2020. "Financing investments in a landlord port," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Jahn, Carlos & Kersten, Wolfgang & Ringle, Christian M. (ed.), Data Science in Maritime and City Logistics: Data-driven Solutions for Logistics and Sustainability. Proceedings of the Hamburg International Conferen, volume 30, pages 409-440, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    2. Zheng, Shiyuan & Wang, Kun & Li, Zhi-Chun & Fu, Xiaowen & Chan, Felix T.S., 2021. "Subsidy or minimum requirement? Regulation of port adaptation investment under disaster ambiguity," Transportation Research Part B: Methodological, Elsevier, vol. 150(C), pages 457-481.
    3. Dongxu Chen & Zhongzhen Yang, 2019. "Investment in container ports along the Maritime Silk Road in the context of international industry transfer: the case of the port of Colombo," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 21(2), pages 241-257, June.
    4. Zheng, Shiyuan & Jiang, Changmin & Fu, Xiaowen, 2021. "Investment competition on dedicated terminals under demand ambiguity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 150(C).
    5. Zhang, Jihua, 2016. "Quasi-landlord port financing in China: Features, practice and a contract theory analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 89(C), pages 73-88.
    6. Shiyuan Zheng & Rudy R. Negenborn, 2017. "Terminal investment timing decisions in a competitive setting with uncertainty using a real option approach," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(3), pages 392-411, April.
    7. Assunta Di Vaio & Luisa Varriale, 2018. "Management Innovation for Environmental Sustainability in Seaports: Managerial Accounting Instruments and Training for Competitive Green Ports beyond the Regulations," Sustainability, MDPI, vol. 10(3), pages 1-35, March.
    8. JOSÉ I. Castillo-Manzano & Xavier Fageda, 2014. "How are Investments Allocated in a Publicly Owned Port System? Political Factors versus Economic Criteria," Regional Studies, Taylor & Francis Journals, vol. 48(7), pages 1279-1294, July.

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