IDEAS home Printed from https://ideas.repec.org/p/lpe/wpaper/201816.html
   My bibliography  Save this paper

Estimating the Benefit of Document-Handling Process Improvement for Seaport Reliability: The Case of Indonesia

Author

Listed:
  • Yusuf Sofiyandi

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia)

  • Muhammad Halley Yudhistira

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia)

Abstract

Low level of seaport reliability is one of the crucial problems amidst the increasing trend of seaborne trade in Indonesia. Main seaports in Indonesia are suffering because of longer dwelling time relative to other international seaports in South East Asian countries partly due to poor administrative process. This paper examines the Indonesian sea transport market focusing on measuring the benefit of seaport service reliability improvement in terms of handling the seaborne trade documents. Using open-ended question of contingent valuation method, our estimates show a moderate benefit, a cost reduction of the administrative process ranging from US$10.8–90.3 per TEU for each day. The cost reduction is even higher for the subsample of importing firms, indicating that the improvement of document-handling plays a more crucial role in accelerating the import activities in Indonesia.

Suggested Citation

  • Yusuf Sofiyandi & Muhammad Halley Yudhistira, 2018. "Estimating the Benefit of Document-Handling Process Improvement for Seaport Reliability: The Case of Indonesia," LPEM FEBUI Working Papers 201816, LPEM, Faculty of Economics and Business, University of Indonesia, revised Jan 2018.
    • Handle: RePEc:lpe:wpaper:201816
    as

    Download full text from publisher

    File URL: http://www.lpem.org/repec/lpe/papers/WP201816.pdf
    File Function: First version, 2018
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kouwenhoven, Marco & de Jong, Gerard C. & Koster, Paul & van den Berg, Vincent A.C. & Verhoef, Erik T. & Bates, John & Warffemius, Pim M.J., 2014. "New values of time and reliability in passenger transport in The Netherlands," Research in Transportation Economics, Elsevier, vol. 47(C), pages 37-49.
    2. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    3. Mary R Brooks & Sean M Puckett & David A Hensher & Adrian Sammons, 2012. "Understanding mode choice decisions: A study of Australian freight shippers," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 14(3), pages 274-299, September.
    4. Robert B. Noland & John W. Polak, 2002. "Travel time variability: A review of theoretical and empirical issues," Transport Reviews, Taylor & Francis Journals, vol. 22(1), pages 39-54, January.
    5. Li, Zheng & Hensher, David A. & Rose, John M., 2010. "Willingness to pay for travel time reliability in passenger transport: A review and some new empirical evidence," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(3), pages 384-403, May.
    6. Kato, Hironori & Kaneko, Yuichiro & Soyama, Yoshihiko, 2014. "Economic benefits of urban rail projects that improve travel-time reliability: Evidence from Tokyo, Japan," Transport Policy, Elsevier, vol. 35(C), pages 202-210.
    7. Small, Kenneth A, 1982. "The Scheduling of Consumer Activities: Work Trips," American Economic Review, American Economic Association, vol. 72(3), pages 467-479, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Beaud, Mickael & Blayac, Thierry & Stéphan, Maïté, 2016. "The impact of travel time variability and travelers’ risk attitudes on the values of time and reliability," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 207-224.
    2. Carrion, Carlos & Levinson, David, 2012. "Value of travel time reliability: A review of current evidence," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(4), pages 720-741.
    3. Gao, Kun & Sun, Lijun & Yang, Ying & Meng, Fanyu & Qu, Xiaobo, 2021. "Cumulative prospect theory coupled with multi-attribute decision making for modeling travel behavior," Transportation Research Part A: Policy and Practice, Elsevier, vol. 148(C), pages 1-21.
    4. Mickaël Beaud & Thierry Blayac & Maïté Stéphan, 2014. "Measurements and properties of the values of time and reliability," Working Papers 14-06, LAMETA, Universtiy of Montpellier, revised Jul 2014.
    5. Yu, Xiaojuan & van den Berg, Vincent A.C. & Li, Zhi-Chun, 2023. "Congestion pricing and information provision under uncertainty: Responsive versus habitual pricing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    6. Shams, Kollol & Asgari, Hamidreza & Jin, Xia, 2017. "Valuation of travel time reliability in freight transportation: A review and meta-analysis of stated preference studies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 102(C), pages 228-243.
    7. de Jong, Gerard C. & Bliemer, Michiel C.J., 2015. "On including travel time reliability of road traffic in appraisal," Transportation Research Part A: Policy and Practice, Elsevier, vol. 73(C), pages 80-95.
    8. Zhaoqi Zang & Xiangdong Xu & Kai Qu & Ruiya Chen & Anthony Chen, 2022. "Travel time reliability in transportation networks: A review of methodological developments," Papers 2206.12696, arXiv.org, revised Jul 2022.
    9. Paul Koster & Eric Pels & Erik Verhoef, 2016. "The User Costs of Air Travel Delay Variability," Transportation Science, INFORMS, vol. 50(1), pages 120-131, February.
    10. Li, Hao & Tu, Huizhao & Hensher, David A., 2016. "Integrating the mean–variance and scheduling approaches to allow for schedule delay and trip time variability under uncertainty," Transportation Research Part A: Policy and Practice, Elsevier, vol. 89(C), pages 151-163.
    11. Small, Kenneth A., 2012. "Valuation of travel time," Economics of Transportation, Elsevier, vol. 1(1), pages 2-14.
    12. Li, Baibing, 2019. "Measuring travel time reliability and risk: A nonparametric approach," Transportation Research Part B: Methodological, Elsevier, vol. 130(C), pages 152-171.
    13. Vincent A.C. van den Berg & Erik T. Verhoef, 2015. "Robot Cars and Dynamic Bottleneck Congestion: The Effects on Capacity, Value of Time and Preference Heterogeneity," Tinbergen Institute Discussion Papers 15-062/VIII, Tinbergen Institute, revised 11 Jul 2016.
    14. Xiao, Yu & Fukuda, Daisuke, 2015. "On the cost of misperceived travel time variability," Transportation Research Part A: Policy and Practice, Elsevier, vol. 75(C), pages 96-112.
    15. Kenneth Small, 2015. "The Bottleneck Model: An Assessment and Interpretation," Working Papers 141506, University of California-Irvine, Department of Economics.
    16. Soriguera, Francesc, 2014. "On the value of highway travel time information systems," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 294-310.
    17. Zhaoqi Zang & Richard Batley & Xiangdong Xu & David Z. W. Wang, 2022. "On the value of distribution tail in the valuation of travel time variability," Papers 2207.06293, arXiv.org, revised Dec 2023.
    18. Stefanie Peer & Erik Verhoef & Jasper Knockaert & Paul Koster & Yin‐Yen Tseng, 2015. "Long‐Run Versus Short‐Run Perspectives On Consumer Scheduling: Evidence From A Revealed‐Preference Experiment Among Peak‐Hour Road Commuters," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56(1), pages 303-323, February.
    19. Carlos Carrion & David Levinson, 2012. "Route choice dynamics after a link restoration," Working Papers 000105, University of Minnesota: Nexus Research Group.
    20. Xiao, Yu & Coulombel, Nicolas & Palma, André de, 2017. "The valuation of travel time reliability: does congestion matter?," Transportation Research Part B: Methodological, Elsevier, vol. 97(C), pages 113-141.

    More about this item

    Keywords

    Seaborne Trade — Seaport Reliability — Document-Handling Process — Cost Saving — Indonesia;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lpe:wpaper:201816. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Arianto Patunru (email available below). General contact details of provider: https://edirc.repec.org/data/feuinid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.