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An Economic Theory of the Port

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  • Talley, Wayne K.

Abstract

This chapter presents an economic theory of the port that considers both the demand for and cost incurred for the two-cargo (bulk and container) throughput of the port. Port-generalized prices include port charges and time prices incurred by ocean carriers', inland carriers' and shippers' ships, vehicles and cargoes, respectively. The theoretical port time, resource and cost functions may be used in empirical port studies to investigate determinants of and their effects on the times in port of ships, vehicles and cargoes; port resource utilization; and port costs. The means by which a port can differentiate its service (or operating options) include ship and vehicle loading/unloading service rates, channel and berth accessibility and reliability, entrance and departure gate reliability, and damage and property losses to ships, vehicles and cargoes in port. Alternatively, these operating options may be used as performance indicators to evaluate the performance of a port with respect to a port's economic objective such as maximizing throughput subject to a minimum profit constraint.

Suggested Citation

  • Talley, Wayne K., 2006. "An Economic Theory of the Port," Research in Transportation Economics, Elsevier, vol. 16(1), pages 43-65, January.
    • Handle: RePEc:eee:retrec:v:16:y:2006:i:1:p:43-65
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    1. Sergio Jara-Díaz & Beatriz Tovar De La Fé & Lourdes Trujillo, 2005. "Multioutput analysis of cargo handling firms: An application to a Spanish port," Transportation, Springer, vol. 32(3), pages 275-291, May.
    2. Wayne K Talley, 2002. "Vessel Damage Cost Differentials: Bulk, Container and Tanker Accidents," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 4(4), pages 307-322, December.
    3. Sergio Jara-Díaz & Eduardo Martínez-Budría & Cristiín Cortés & Leonardo Basso, 2002. "A multioutput cost function for the services of Spanish ports' infrastructure," Transportation, Springer, vol. 29(4), pages 419-437, November.
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    Cited by:

    1. Engebrethsen, Erna & Dauzère-Pérès, Stéphane, 2019. "Transportation mode selection in inventory models: A literature review," European Journal of Operational Research, Elsevier, vol. 279(1), pages 1-25.
    2. Carlos Pestana Barros & Zhongfei Chen & Peter Wanke, 2016. "Efficiency in Chinese seaports: 2002–2012," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 18(3), pages 295-316, September.
    3. Ryan McWay, 2022. "Cruising Through School: General Equilibrium Effects of Cruise Ship Arrivals on Employment and Education," The American Economist, Sage Publications, vol. 67(1), pages 5-23, March.
    4. Talley, Wayne K. & Ng, ManWo, 2013. "Maritime transport chain choice by carriers, ports and shippers," International Journal of Production Economics, Elsevier, vol. 142(2), pages 311-316.
    5. Angelos M. Pantouvakis & C.I. Chlomoudis & Athanasios G. Dimas, 2010. "Marketing Strategies in Port Industry: An Exploratory Study and a Research Agenda," American Journal of Economics and Business Administration, Science Publications, vol. 2(1), pages 64-72, March.
    6. Talley, Wayne K., 2009. "Container port efficiency and output measures," 50th Annual Transportation Research Forum, Portland, Oregon, March 16-18, 2009 207601, Transportation Research Forum.
    7. Yilin Zeng & Xiang Yuan & Bing Hou, 2023. "Analysis of Carbon Emission Reduction at the Port of Integrated Logistics: The Port of Shanghai Case Study," Sustainability, MDPI, vol. 15(14), pages 1-21, July.
    8. Honghai Yu & Xianfeng Hao & Liangyu Wu & Yuqi Zhao & Yudong Wang, 2023. "Eye in outer space: satellite imageries of container ports can predict world stock returns," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-16, December.
    9. Talley, Wayne K. & Ng, ManWo & Marsillac, Erika, 2014. "Port service chains and port performance evaluation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 236-247.
    10. Fan, Lei & Wilson, William W. & Dahl, Bruce, 2012. "Congestion, port expansion and spatial competition for US container imports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1121-1136.
    11. Loon Tang & Joyce Low & Shao Lam, 2011. "Understanding Port Choice Behavior—A Network Perspective," Networks and Spatial Economics, Springer, vol. 11(1), pages 65-82, March.
    12. Jin, Jian Gang & Lee, Der-Horng & Hu, Hao, 2015. "Tactical berth and yard template design at container transshipment terminals: A column generation based approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 73(C), pages 168-184.
    13. Naima Saeed & Dong-Wook Song & Otto Andersen, 2018. "Governance mode for port congestion mitigation: A transaction cost perspective," Netnomics, Springer, vol. 19(3), pages 159-178, December.
    14. Talley, Wayne K. & Ng, ManWo, 2016. "Port economic cost functions: A service perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 88(C), pages 1-10.
    15. Low, Joyce M.W. & Lam, Shao Wei & Tang, Loon Ching, 2009. "Assessment of hub status among Asian ports from a network perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(6), pages 593-606, July.

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