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The European port industry: an analysis of its economic efficiency

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  • Trujillo, L.
  • Tovar, B.

Abstract

Because of their critical strategic role, ports have all traditionally been subject to some form of government control even if the legal form and the intensity of this control have varied across countries. The member countries of the European Union have not been different from the rest of the world in this respect. A significant difference however is the recurrent effort to integrate, in a coordinated way, the port sector in a trans-European transport network (TEN-T) through the adoption of a common legal framework. In this context, if the objective of the reforms is to ensure that port networks, integrated in combined transport networks, become competitors of the road network, the concept of port efficiency becomes central. This paper provides an overview of the evolution of the European Port Legislation and shows how comparative economic measures can be used to highlight the scope for port efficiency improvements, essential to allow short sea shipping transport to compete with road transport in Europe. To our knowledge, this paper is also the first effort of estimating technical efficiency of European Port Authorities. The average port efficiency in 2002 was estimated to be around 60%, denoting that ports could have handled 40% more traffic with the same resources. Maritime Economics & Logistics (2007) 9, 148–171. doi:10.1057/palgrave.mel.9100177
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Suggested Citation

  • Trujillo, L. & Tovar, B., 2007. "The European port industry: an analysis of its economic efficiency," Working Papers 07/05, Department of Economics, City University London.
  • Handle: RePEc:cty:dpaper:07/05
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    References listed on IDEAS

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    Cited by:

    1. Francesca Medda & Qianwen Liu, 2013. "Determinants and strategies for the development of container terminals," Journal of Productivity Analysis, Springer, vol. 40(1), pages 83-98, August.
    2. Vítor Caldeirinha & J. Augusto Felício & Andreia Dionísio, 2013. "The container terminal characteristics and customer’s satisfaction," CEFAGE-UE Working Papers 2013_14, University of Evora, CEFAGE-UE (Portugal).
    3. Jason Angelopoulos & Constantine Chlomoudis & Eustratia Dalvadani, 2014. "International Dock Work Conventions in the era of post-globalization," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 64(1), pages 5-15, january-m.
    4. Chang, Víctor & Tovar, Beatriz, 2014. "Efficiency and productivity changes for Peruvian and Chilean ports terminals: A parametric distance functions approach," Transport Policy, Elsevier, vol. 31(C), pages 83-94.
    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. repec:eee:transa:v:103:y:2017:i:c:p:118-134 is not listed on IDEAS
    8. Chang, Víctor & Tovar, Beatriz, 2014. "Drivers explaining the inefficiency of Peruvian and Chilean ports terminals," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 190-203.
    9. Tovar, Beatriz & Wall, Alan, 2015. "Can ports increase traffic while reducing inputs? Technical efficiency of Spanish Port Authorities using a directional distance function approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 71(C), pages 128-140.
    10. Angela Stefania Bergantino & Enrico Musso, 2011. "The role of external factors versus managerial ability in determining seaports’ relative efficiency: An input-by-input analysis through a multi-step approach on a panel of Southern European ports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 13(2), pages 121-141, June.
    11. Caldeirinha, V. M., 2011. "Size and specialization as determinant of iberian port performance: new methodology to group different ports," MPRA Paper 31957, University Library of Munich, Germany.
    12. Odeck, James & Bråthen, Svein, 2012. "A meta-analysis of DEA and SFA studies of the technical efficiency of seaports: A comparison of fixed and random-effects regression models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(10), pages 1574-1585.

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