THE DISTRIBUTION OF BENEFITS FROM PORT INVESTMENT

The problem of who gains from port investments has long been a difficult one, particularly to those concerned with developing countries, such as the IRRD, UNCTAD, and national aid organizations. Large sums of money are spent on port investment while the suspicion remains that the gains to the country responsible may be limited. The problem, moreover, is often glossed over by spurious comparisons: for example, it is suggested that as port costs are only a small fraction of transport costs, which in turn represent only, "say, 10%" of total product costs, their impact is relatively unimportant. However, a similar point could be made about Maplin Airport, with a proposed investment of hundreds of millions of pounds, but which could be made to seem small relative to total airline costs, and the costs of travellers' time. Furthermore, even when economic analysis of the distribution of port investment benefits is started it usually peters out half-way, with statements such as "the effects of costs on demand are likely to be small", or sidetracks into a discussion of port pricing. This discussion attempts to follow the problem further. It first describes current approaches: second, it considers what proportion of port investment benefits accruing initially to ships, i.e. the majority, are passed on in lower freight rates; and third, it concentrates on the main problem of who gains from these lower freight rates.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/2899960
• Corporate Authors:

  Taylor & Francis

  4 Park Square, Milton Park
  Abingdon,   United Kingdom  OX14 4RN
• Authors:
  • LAING, E T
• Publication Date: 1977

Media Info

• Pagination: p. 141-154
• Serial:
  • Maritime Policy & Management
  • Volume: 4
  • Publisher: Taylor & Francis
  • ISSN: 0308-8839
  • EISSN: 1464-5254
  • Serial URL: http://www.tandfonline.com/loi/tmpm20

Subject/Index Terms

• TRT Terms: Capital investments; Costs; Economic analysis; Freight traffic; Port operations; Ports; Rates
• Uncontrolled Terms: Freight rates; Port finance
• Old TRIS Terms: Economic analysis (Ports)
• Subject Areas: Economics; Finance; Freight Transportation; Marine Transportation; Terminals and Facilities;

Filing Info

• Accession Number: 00157311
• Record Type: Publication
• Source Agency: Maritime Policy and Management
• Files: TRIS
• Created Date: Aug 4 1977 12:00AM