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Port capacity extension. A trade-off between public investment and shipping companies' time losses

Hilde Meersman and Eddy van de Voorde

Working Papers from University of Antwerp, Faculty of Business and Economics

Abstract: Port capacity and especially free port capacity plays a crucial role in the competition struggle between ports. During the last decades port authorities decisions have been made to enlarge and renovate existing port infrastructure or to build new infrastructure, in several ways: deepening rivers and maritime channels; building new locks, new terminals and berths; facilitating new and better hinterland connections. Most infrastructure capacity expansion has been financed by public money. This paper investigates whether and in what way port capacity investments can be considered a trade-off between new free (over)capacity paid for by public money, and potential time losses by private shipping companies due to a lack of capacity and corresponding waiting lines or congestion.

Pages: 17 pages
Date: 2014-05
New Economics Papers: this item is included in nep-tre
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