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Impact of Port Investment on Efficiency and Capacity to Attract Traffic in Spain: Bilbao versus Valencia

Author

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  • Lorena Garcia-Alonso

    (Department of Applied Economics, University of Oviedo.Av. del Cristo, s/n. 33007 Oviedo, Spain.)

  • Monica Martin-Bofarull

    (Department of Economics, University of Rovira i Virgili.Av. Universitat 1, Reus 43204, Spain.)

Abstract

The growth in intermodal transport has led to an increase in competition between ports. Other factors, such as the globalisation of the economy, European Union interest in integrating the port system into the Transeuropean Transport Network and the reform of the Spanish port system, have encouraged the Spanish Port Authorities to develop competitive strategies to extend their hinterlands. These strategies have often focused on improving port infrastructure in order to improve the efficiency of their services. In this paper, we analyse the extent to which investment expenditure has led to improvements in efficiency and how far this improved efficiency has increased the port's ability to attract traffic. To do so, we use DEA and study inter-port traffic redistribution from the land side. The analysis focused on the Ports of Bilbao and Valencia not only because they are very important in the Spanish port system but also because they both stand out for their investment expenditure, which has led to quite different results. We conclude by discussing the consequences of investment and port location for efficiency and the capacity to attract traffic, respectively. Maritime Economics & Logistics (2007) 9, 254–267. doi:10.1057/palgrave.mel.9100183

Suggested Citation

  • Lorena Garcia-Alonso & Monica Martin-Bofarull, 2007. "Impact of Port Investment on Efficiency and Capacity to Attract Traffic in Spain: Bilbao versus Valencia," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 9(3), pages 254-267, September.
    • Handle: RePEc:pal:marecl:v:9:y:2007:i:3:p:254-267
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    Citations

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    Cited by:

    1. Hidalgo-Gallego, Soraya & Núñez-Sánchez, Ramón & Coto-Millán, Pablo, 2017. "Spatial non-price competition in port infrastructure services," MPRA Paper 80417, University Library of Munich, Germany.
    2. Vitor R. Caldeirinha & J. Augusto Felício, 2014. "The relationship between 'position-port', 'hard-port' and 'soft-port' characteristics and port performance: conceptual models," Maritime Policy & Management, Taylor & Francis Journals, vol. 41(6), pages 528-559, November.
    3. Caldeirinha, Vitor R. & Felicio, J. Augusto, 2011. "A influência dos factores de caracterização dos portos no desempenho, medido por indicadores operacionais, financeiros e de eficiência [The influence of factors characterizing the performance of po," MPRA Paper 30009, University Library of Munich, Germany.
    4. Julián Martínez Moya & María Feo Valero, 2017. "Port choice in container market: a literature review," Transport Reviews, Taylor & Francis Journals, vol. 37(3), pages 300-321, May.
    5. Shu-Man Chang & Jaw-Shen Wang & Ming-Miin Yu & Kuo-Chung Shang & Shih-Hao Lin & Bo Hsiao, 2015. "An application of centralized data envelopment analysis in resource allocation in container terminal operations," Maritime Policy & Management, Taylor & Francis Journals, vol. 42(8), pages 776-788, November.
    6. Hidalgo-Gallego, Soraya & Núñez-Sánchez, Ramón & Coto-Millán, Pablo, 2021. "Strategic interdependence in capacity expansion: A spatial analysis for port infrastructure services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 143(C), pages 14-29.

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