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Benchmarking Container Port Technical Efficiency in Latin America and the Caribbean

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  • Morales Sarriera, Javier
  • Serebrisky, Tomás
  • Araya, Gonzalo
  • Briceño-Garmendia, Cecilia
  • Schwartz, Jordan

Abstract

We developed a technical efficiency analysis of container ports in Latin America and the Caribbean using an input-oriented stochastic frontier model. We employed a 10-year panel with data on container throughput, port terminal area, berth length, and number of available cranes in 63 ports. The model has three innovations with respect to the available literature: (i) we treated ship-to-shore gantry cranes and mobile cranes separately, in order to account for the higher productivity of the former; (ii) we introduced a binary variable for ports using ships¿ cranes, treated as an additional source of port productivity; and (iii) we introduced a binary variable for ports operating as transshipment hubs. Their associated parameters are highly significant in the production function. The results show an improvement in the average technical efficiency of ports in the Latin American and Caribbean region from 36% to 50% between 1999 and 2009; the best performing port in 2009 achieved a technical efficiency of 94%with respect to the frontier. The paper also studies possible determinants of port technical efficiency, such as ownership, corruption, transshipment, income per capita, and location. The results revealed positive and significant associations between technical efficiency and both transshipment activities and lower corruption levels.

Suggested Citation

  • Morales Sarriera, Javier & Serebrisky, Tomás & Araya, Gonzalo & Briceño-Garmendia, Cecilia & Schwartz, Jordan, 2013. "Benchmarking Container Port Technical Efficiency in Latin America and the Caribbean," IDB Publications (Working Papers) 4702, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:4702
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    References listed on IDEAS

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    Cited by:

    1. Wilmsmeier, Gordon & Monios, Jason, 2016. "Institutional structure and agency in the governance of spatial diversification of port system evolution in Latin America," Journal of Transport Geography, Elsevier, vol. 51(C), pages 294-307.
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    More about this item

    Keywords

    technical efficiency; ports; Latin America; benchmarking; stochastic frontier analysis;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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