IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v13y2006i1p2-21.html
   My bibliography  Save this article

Full cost recovery in EU ports operating as commercial undertakings

Author

Listed:
  • Gardner, Bernard
  • Marlow, Peter
  • Pettit, Stephen

Abstract

In their Green Paper on Sea Ports and Maritime Infrastructure the European Commission implies that full cost recovery pricing by ports requires current users to pay for sunk costs. Consequently, if this pricing policy were adopted by EU ports, it is argued by the EC that this would lead to strong increases in port charges. This paper compares three EU ports (two in the public sector and one privately owned) where the port authorities currently determine their charges on this basis. In doing so, it explains how full cost recovery works in practice and provides evidence which suggests the Commission is mistaken in its view that, if adopted, large increases in port charges would necessarily follow.

Suggested Citation

  • Gardner, Bernard & Marlow, Peter & Pettit, Stephen, 2006. "Full cost recovery in EU ports operating as commercial undertakings," Transport Policy, Elsevier, vol. 13(1), pages 2-21, January.
    • Handle: RePEc:eee:trapol:v:13:y:2006:i:1:p:2-21
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967-070X(05)00088-0
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Baird, A., 1999. "Analysis of private seaport development: the port of Felixstowe," Transport Policy, Elsevier, vol. 6(2), pages 109-122, April.
    2. Jeffrey Martin & Brian J. Thomas, 2001. "The container terminal community," Maritime Policy & Management, Taylor & Francis Journals, vol. 28(3), pages 279-292, July.
    3. Baumol, William J & Bradford, David F, 1970. "Optimal Departures from Marginal Cost Pricing," American Economic Review, American Economic Association, vol. 60(3), pages 265-283, June.
    4. Ramón Companys, 1999. "Note on an improved branch-and-bound algorithm to solve n/m/P/F max problems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 7(1), pages 25-31, June.
    5. H E Haralambides & A Verbeke & E Musso & M Benacchio, 2001. "Port Financing and Pricing in the European Union: Theory, Politics and Reality," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 3(4), pages 368-386, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Seo, Young-Joon & Park, Jin Suk, 2016. "The estimation of minimum efficient scale of the port industry," Transport Policy, Elsevier, vol. 49(C), pages 168-175.
    2. Castillo-Manzano, José I. & López-Valpuesta, Lourdes & Pérez, Javier J., 2008. "Economic analysis of the Spanish port sector reform during the 1990s," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(8), pages 1056-1063, October.
    3. Bandara, Yapa Mahinda & Nguyen, Hong-Oanh, 2016. "Influential factors in port infrastructure tariff formulation, implementation and revision," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 220-232.

    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. Musso, Enrico & Ferrari, Claudio & Benacchio, Marco, 2006. "Port Investment: Profitability, Economic Impact and Financing," Research in Transportation Economics, Elsevier, vol. 16(1), pages 171-218, January.
    2. Alessandro Avenali & Tiziana D’Alfonso & Pierfrancesco Reverberi, 2022. "Optimal pricing and investment for resources with alternative uses and capacity limits," Journal of Regulatory Economics, Springer, vol. 61(3), pages 222-229, June.
    3. Chandra Prakash Garg & Vishal Kashav & Xuemuge Wang, 2023. "Evaluating sustainability factors of green ports in China under fuzzy environment," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 7795-7821, August.
    4. Thijs ten Raa, 2009. "Monopoly, Pareto and Ramsey Mark-ups," Journal of Industry, Competition and Trade, Springer, vol. 9(1), pages 57-63, March.
    5. Kopsakangas-Savolainen, Maria, 2004. "The welfare effects of different pricing schemes for electricity distribution in Finland," Energy Policy, Elsevier, vol. 32(12), pages 1429-1435, August.
    6. Santiago Herrera & Gaobo Pang, 2008. "Eficiency of Infrastructure: The Case of Container Ports," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 9(1), pages 165-194.
    7. Richard E. Schuler, 1992. "Transportation and Telecommunications Networks: Planning Urban Infrastructure for the 21st Century," Urban Studies, Urban Studies Journal Limited, vol. 29(2), pages 297-310, April.
    8. Stefan Felder, 2004. "Drug price regulation under consumer moral hazard," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 5(4), pages 324-329, November.
    9. Stiglitz, Joseph E., 2018. "Pareto efficient taxation and expenditures: Pre- and re-distribution," Journal of Public Economics, Elsevier, vol. 162(C), pages 101-119.
    10. Brennan, Timothy J., 2000. "The Economics of Competition Policy: Recent Developments and Cautionary Notes in Antitrust and Regulation," Discussion Papers 10716, Resources for the Future.
    11. Ming Chang, 1996. "Ramsey pricing in a hierarchical structure with an application to network-access pricing," Journal of Economics, Springer, vol. 64(3), pages 281-314, October.
    12. Sajal Lahiri & Anjum Nasim, 2005. "Commercial Policy Reform in Pakistan: Opening up the Economy under Revenue Constraints," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(6), pages 723-739, November.
    13. Beria, Paolo & Grimaldi, Raffaele, 2010. "Unconventional factors of efficiency in public transport. A case study and theory," MPRA Paper 29234, University Library of Munich, Germany.
    14. Schröder Guido, 2006. "Preise auf Grenzkostenniveau – optimal, aber unmöglich? / Prices at Marginal Cost Level – Optimal, but Impossible?: Angebotsseitige Subadditivität und nachfrageseitige Nicht-Rivalität als die zwei Sei," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 57(1), pages 209-240, January.
    15. Patricia M. Danzon & Eric L. Keuffel, 2014. "Regulation of the Pharmaceutical-Biotechnology Industry," NBER Chapters, in: Economic Regulation and Its Reform: What Have We Learned?, pages 407-484, National Bureau of Economic Research, Inc.
    16. Sergi Saurí & Francesc Robusté, 2012. "Promoting Incentives: Performance Improvement in Container Port Terminals," Transportation Science, INFORMS, vol. 46(2), pages 233-246, May.
    17. Kenneth D. Boyer, 2016. "Three Principles for Optimal Pricing of Trackage Rights," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 49(2), pages 347-369, September.
    18. Olsen, Ole Jess & Munksgaard, Jesper, 1998. "Cogeneration and taxation in a liberalized Nordic power market," Utilities Policy, Elsevier, vol. 7(1), pages 23-33, March.
    19. Weihua Liu & Xinran Shen & Di Wang, 2020. "The impacts of dual overconfidence behavior and demand updating on the decisions of port service supply chain: a real case study from China," Annals of Operations Research, Springer, vol. 291(1), pages 565-604, August.
    20. Su-Han Woo & Stephen Pettit & Anthony Beresford & Dong-Wook Kwak, 2012. "Seaport Research: A Decadal Analysis of Trends and Themes Since the 1980s," Transport Reviews, Taylor & Francis Journals, vol. 32(3), pages 351-377, January.

    More about this item

    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:eee:trapol:v:13:y:2006:i:1:p:2-21. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30473/description#description .

    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.