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Determinants of container port choice in Spain

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  • Simme Veldman
  • Lorena Garcia-Alonso
  • José Ángel Vallejo-Pinto

Abstract

For the economic and financial evaluation of port investment projects, it is important to know the demand function of a port's services. The objective of this study is to establish such a demand choice function for the Spanish container port services. The function is derived from the coefficients of a port choice model, for which a multinomial logit model is used and of which the coefficients are estimated with regression analysis. The variables tested concern inland transport cost, ocean transport costs and broad proxy variables for quality of service. Information on container import and export flows for 2007 is obtained from the Spanish Treasury Department. The linear regression analysis is based on differences of utilities of alternative routings of containerised cargoes compared to those routed via the port of Valencia. The obtained results are satisfactory in terms of model fit. The estimated coefficients can be used to assess the impact of changes in costs of container flows routed via a port on a port's market share. A demand choice function for the port can be derived by systematically doing so. An example is presented for the port of Valencia.

Suggested Citation

  • Simme Veldman & Lorena Garcia-Alonso & José Ángel Vallejo-Pinto, 2011. "Determinants of container port choice in Spain," Maritime Policy & Management, Taylor & Francis Journals, vol. 38(5), pages 509-522, January.
    • Handle: RePEc:taf:marpmg:v:38:y:2011:i:5:p:509-522
    DOI: 10.1080/03088839.2011.597450
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    References listed on IDEAS

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    1. Anming Zhang, 2008. "The Impact of Hinterland Access Conditions on Rivalry between Ports," OECD/ITF Joint Transport Research Centre Discussion Papers 2008/8, OECD Publishing.
    2. Matthew Malchow & Adib Kanafani, 2001. "A disaggregate analysis of factors influencing port selection," Maritime Policy & Management, Taylor & Francis Journals, vol. 28(3), pages 265-277, July.
    3. Bruce A. Blonigen & Wesley Wilson, 2006. "New Measures of Port Efficiency Using International Trade Data," NBER Working Papers 12052, National Bureau of Economic Research, Inc.
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