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Benchmarking container port technical efficiency in Latin America and the Caribbean : a stochastic frontier analysis

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  • Sarriera, Javier Morales
  • Araya, Gonzalo
  • Serebrisky, Tomas
  • Briceno-Garmendia, Cecilia
  • Schwartz, Jordan

Abstract

This paper presents a technical efficiency analysis of container ports in Latin America and the Caribbean using an input-oriented stochastic frontier model. A 10-year panel is employed with data on container throughput, port terminal area, length of berths, and number of cranes available in 67 ports. The model has three innovations with respect to the available literature: (i) it treats ship-to-shore gantry cranes and mobile cranes separately, in order to account for the higher productivity of the former; (ii) a binary variable is introduced for ports using ships'cranes, treated as an additional source of port productivity; and (iii) a binary variable is used for ports operating as transshipment hubs. The associated parameters are highly significant in the production function. The results show an improvement in the average technical efficiency of ports in the Latin America and the Caribbean region from 36 percent to 50 percent between 1999 and 2009; the best-performing port in 2009 achieved a technical efficiency of 94 percent with respect to the frontier. The paper also studies possible determinants of port technical efficiency, such as ownership, corruption, terminal purpose, income per capita, and location. The results reveal positive, but weak, associations between technical efficiency with landlord ports and with lower corruption levels; stronger results are observed between technical efficiency with specialized container terminals and with average income.

Suggested Citation

  • Sarriera, Javier Morales & Araya, Gonzalo & Serebrisky, Tomas & Briceno-Garmendia, Cecilia & Schwartz, Jordan, 2013. "Benchmarking container port technical efficiency in Latin America and the Caribbean : a stochastic frontier analysis," Policy Research Working Paper Series 6680, The World Bank.
    • Handle: RePEc:wbk:wbrwps:6680
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    References listed on IDEAS

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    Cited by:

    1. López-Bermúdez, Beatriz & Freire-Seoane, María Jesús & Nieves-Martínez, Diego José, 2019. "Port efficiency in Argentina from 2012 to 2017: An ally for sustained economic growth," Utilities Policy, Elsevier, vol. 61(C).
    2. Clara Inés Pardo Martínez & Alexander Cotte Poveda, 2022. "The effects of environmental performance on competitiveness and innovation: a stochastic frontier approach for Colombia," Environment Systems and Decisions, Springer, vol. 42(1), pages 51-62, March.
    3. Efecan, Volkan & Temiz, İzzettin, 2023. "Assessing the technical efficiency of container ports based on a non-monotonic inefficiency effects model," Utilities Policy, Elsevier, vol. 81(C).
    4. Wilmsmeier, Gordon & Monios, Jason, 2016. "Institutional structure and agency in the governance of spatial diversification of port system evolution in Latin America," Journal of Transport Geography, Elsevier, vol. 51(C), pages 294-307.
    5. Suárez-Alemán, Ancor & Morales Sarriera, Javier & Serebrisky, Tomás & Trujillo, Lourdes, 2016. "When it comes to container port efficiency, are all developing regions equal?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 86(C), pages 56-77.
    6. repec:wbk:wboper:22034 is not listed on IDEAS
    7. Pérez, Ivone & Trujillo, Lourdes & González, María Manuela, 2016. "Efficiency determinants of container terminals in Latin American and the Caribbean," Utilities Policy, Elsevier, vol. 41(C), pages 1-14.
    8. Suárez-Alemán, Ancor & Morales Sarriera, Javier & Serebrisky, Tomás & Trujillo, Lourdes, 2016. "When it comes to container port efficiency, are all developing regions equal?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 86(C), pages 56-77.

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    Keywords

    Ports&Waterways; Transport Economics Policy&Planning; Transport and Trade Logistics; Common Carriers Industry; Economic Theory&Research;
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