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Port Infrastructure: An Access Model for the Essential Facility

Author

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  • Lincoln Flor

    (Organismo Supervisor de la Inversión en Infraestructura de Transporte de Uso Público (OSITRAN), Torre del Centro Cívico, Av. Bolivia 144, Piso 19, Lima 1, Perú.)

  • Enzo Defilippi

    (Organismo Supervisor de la Inversión en Infraestructura de Transporte de Uso Público (OSITRAN), Torre del Centro Cívico, Av. Bolivia 144, Piso 19, Lima 1, Perú.)

Abstract

This paper analyses the main consequences for the seaport efficiency of an access regime recently introduced by the Peruvian regulator for the public transportation infrastructure (OSITRAN). Its objective is to make competition viable for services that use, as input, transport infrastructure controlled by a monopolist. It is based on two theoretical contributions, the ‘Coase theorem’ and the ‘Demsetz approach’, and minimises the government intervention risk. Both port operators and providers of port services now have incentives to negotiate conditions of access, which permit competition, or to compete for an exclusivity right when this is desirable. If the parties do not reach an agreement within a reasonable time, the Regulator can enact an access mandate that may punish any of the parties, creating incentives for them to reach a Nash Equilibrium. The model seems to be generating productive and allocative efficiencies in port services, thus contributing to a potential reduction in Peru's maritime transport costs. Maritime Economics & Logistics (2003) 5, 116–132. doi:10.1057/palgrave.mel.9100075

Suggested Citation

  • Lincoln Flor & Enzo Defilippi, 2003. "Port Infrastructure: An Access Model for the Essential Facility," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 5(2), pages 116-132, June.
    • Handle: RePEc:pal:marecl:v:5:y:2003:i:2:p:116-132
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    Citations

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    Cited by:

    1. Kaselimi, Evangelia N. & Notteboom, Theo E. & Pallis, Athanasios A. & Farrell, Sheila, 2011. "Minimum Efficient Scale (MES) and preferred scale of container terminals," Research in Transportation Economics, Elsevier, vol. 32(1), pages 71-80.
    2. Lam, Jasmine Siu Lee & Yap, Wei Yim, 2011. "Dynamics of liner shipping network and port connectivity in supply chain systems: analysis on East Asia," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1272-1281.
    3. Theys, Christophe & Notteboom, Theo E. & Pallis, Athanasios A. & De Langen, Peter W., 2010. "The economics behind the awarding of terminals in seaports: Towards a research agenda," Research in Transportation Economics, Elsevier, vol. 27(1), pages 37-50.
    4. Defilippi, Enzo & Flor, Lincoln, 2008. "Regulation in a context of limited competition: A port case," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(5), pages 762-773, June.
    5. Enzo Defilippi, 2013. "X-factor estimation and controversies : the case of Lima´s airport," Working Papers 13-09, Centro de Investigación, Universidad del Pacífico.
    6. Heaver, Trevor, 2006. "The Evolution and Challenges of Port Economics," Research in Transportation Economics, Elsevier, vol. 16(1), pages 11-41, January.
    7. Jasmine Lam & Wei Yap, 2006. "A measurement and Comparison of Cost Competitiveness of Container Ports in Southeast Asia," Transportation, Springer, vol. 33(6), pages 641-654, November.
    8. Banerjee, Aparna & Gupta, Sudakshina, 2013. "Overseas trade vis-a-vis overseas shipping: Growth and performance in India (1999–2009)," Research in Transportation Economics, Elsevier, vol. 38(1), pages 101-109.
    9. Pallis, Athanasios A., 2007. "Chapter 11 Whither Port Strategy Theory and Practice in Conflict," Research in Transportation Economics, Elsevier, vol. 21(1), pages 343-382, January.
    10. Wei Yim Yap *† & Jasmine S. L. Lam, 2004. "An interpretation of inter-container port relationships from the demand perspective," Maritime Policy & Management, Taylor & Francis Journals, vol. 31(4), pages 337-355, October.
    11. 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.
    12. Defilippi, Enzo, 2015. "X-factor regulation in a developing country: The case of Lima's airport," Transport Policy, Elsevier, vol. 41(C), pages 16-22.
    13. Peter W. De Langen & Athanasios A. Pallis, 2005. "Analysis Of The Benefits Of Intra-Port Competition," Industrial Organization 0510003, University Library of Munich, Germany, revised 17 Oct 2005.
    14. Enzo Defilippi, 2012. "Good regulations, bad regulation: a Peruvian port case," Maritime Policy & Management, Taylor & Francis Journals, vol. 39(6), pages 641-651, November.

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