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Incentive Regulation and Efficiency of Portuguese Port Authorities

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  • Carlos Pestana Barros

    () (Instituto Superior de Economia e Gestão, Technical University of Lisbon, Rua Miguel Lupi, 20, 1249–078 Lisbon, Portugal.)

Abstract

In all European seaports, organisational efficiency forms a vital component of the activities to improve competitiveness in the market. As public enterprise entities, Portuguese seaports rely on government subsidies to meet their deficits. The policy of subsidisation is part of the regulatory procedures that are intended to provide incentives for increasing productive efficiency, thereby allowing seaports to share in the social gains from efficiency in the form of greater, or at least stable, employment and local development. In addition, the drive for greater efficiency is meant to assist the ports' preparation for some kind of privatisation. In this paper, we analyse the technical and allocative efficiencies of Portuguese seaport authorities in order to investigate if the state's policy is achieving its aims. We find that the results are, at best, mixed, leading us to conclude that the incentive regulation carried out by the government's regulatory body, the Maritime Port Agency, is not achieving its aims. Therefore, we propose a policy revision to enforce efficiency, based on a governance environment framework. Maritime Economics & Logistics (2003) 5, 55–69. doi:10.1057/palgrave.mel.9100060

Suggested Citation

  • Carlos Pestana Barros, 2003. "Incentive Regulation and Efficiency of Portuguese Port Authorities," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 5(1), pages 55-69, March.
  • Handle: RePEc:pal:marecl:v:5:y:2003:i:1:p:55-69
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    References listed on IDEAS

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    Cited by:

    1. González, MarI´a Manuela & Trujillo, Lourdes, 2008. "Reforms and infrastructure efficiency in Spain's container ports," Transportation Research Part A: Policy and Practice, Elsevier, pages 243-257.
    2. Bichou, Khalid, 2006. "Chapter 24 Review of Port Performance Approaches and a Supply Chain Framework to Port Performance Benchmarking," Research in Transportation Economics, Elsevier, vol. 17(1), pages 567-598, January.
    3. Cullinane, Kevin & Song, Dong-Wook, 2006. "Estimating the Relative Efficiency of European Container Ports: A Stochastic Frontier Analysis," Research in Transportation Economics, Elsevier, vol. 16(1), pages 85-115, January.
    4. Rodriguez-Alvarez, Ana & Tovar, Beatriz & Trujillo, Lourdes, 2007. "Firm and time varying technical and allocative efficiency: An application to port cargo handling firms," International Journal of Production Economics, Elsevier, vol. 109(1-2), pages 149-161, September.
    5. George E. Halkos & Nickolaos G. Tzeremes, 2015. "Measuring Seaports' Productivity: A Malmquist Productivity Index Decomposition Approach," Journal of Transport Economics and Policy, University of Bath, vol. 49(2), pages 355-376, April.
    6. Lourdes Trujillo & Beatriz Tovar, 2007. "The European Port Industry: An Analysis of its Economic Efficiency," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 9(2), pages 148-171, June.
    7. Bichou, Khalid, 2013. "An empirical study of the impacts of operating and market conditions on container-port efficiency and benchmarking," Research in Transportation Economics, Elsevier, vol. 42(1), pages 28-37.
    8. Suárez-Alemán, Ancor & Morales Sarriera, Javier & Serebrisky, Tomás & Trujillo, Lourdes, 2016. "When it comes to container port efficiency, are all developing regions equal?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 86(C), pages 56-77.
    9. Woo, Su-Han & Pettit, Stephen J. & Kwak, Dong-Wook & Beresford, Anthony K.C., 2011. "Seaport research: A structured literature review on methodological issues since the 1980s," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(7), pages 667-685, August.
    10. 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.
    11. Matías Herrera Dappe & Ancor Suárez-Alemán, 2016. "Competitiveness of South Asia’s Container Ports," World Bank Publications, The World Bank, number 24333.
    12. Cullinane, Kevin & Wang, Teng-Fei, 2006. "Chapter 23 Data Envelopment Analysis (DEA) and Improving Container Port Efficiency," Research in Transportation Economics, Elsevier, vol. 17(1), pages 517-566, January.
    13. Brooks, Mary R., 2006. "Chapter 25 Issues in Measuring Port Devolution Program Performance: A Managerial Perspective," Research in Transportation Economics, Elsevier, vol. 17(1), pages 599-629, January.
    14. Gonzalez, M. & Trujillo, L., 2007. "Efficiency measurement in the port industry: a survey of the empirical evidence," Working Papers 07/08, Department of Economics, City University London.
    15. Coto-Millán, Pablo & Fernández, Xose Luis & Hidalgo, Soraya & Pesquera, Miguel Ángel, 2016. "Public regulation and technical efficiency in the Spanish Port Authorities: 1986–2012," Transport Policy, Elsevier, pages 139-148.
    16. 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.
    17. Suárez-Alemán, Ancor & Morales Sarriera, Javier & Serebrisky, Tomás & Trujillo, Lourdes, 2016. "When it comes to container port efficiency, are all developing regions equal?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 86(C), pages 56-77.
    18. María Manuela González & Lourdes Trujillo, 2009. "Efficiency Measurement in the Port Industry: A Survey of the Empirical Evidence," Journal of Transport Economics and Policy, University of Bath, vol. 43(2), pages 157-192, May.
    19. Núñez-Sánchez, Ramón & Coto-Millán, Pablo, 2012. "The impact of public reforms on the productivity of Spanish ports: A parametric distance function approach," Transport Policy, Elsevier, pages 99-108.
    20. Baran Joanna & Górecka Aleksandra, 2015. "Seaport efficiency and productivity based on Data Envelopment Analysis and Malmquist Productivity Index," Logistics & Sustainable Transport, De Gruyter Open, vol. 6(1), pages 25-33, November.

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