Technical Efficiency Gains from Port Reform : The Potential for Yardstick Competition in Mexico
The authors show how relatively standard methodologies can help to measure the efficiency gains from reforming the organization of port infrastructure, how those measures can be used to promote competition between ports, and how competition can be...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2001/07/1551999/technical-efficiency-gains-port-reform-potential-yardstick-competition-mexico http://hdl.handle.net/10986/19578 |
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okr-10986-195782021-04-23T14:03:43Z Technical Efficiency Gains from Port Reform : The Potential for Yardstick Competition in Mexico Estache, Antonio Gonzalez, Marianela Trujillo, Lourdes ALLOCATIVE EFFICIENCY BARRIERS TO ENTRY BERTH BERTHS CARGO CARGOES COMPETITIVENESS CONSTANT RETURNS TO SCALE CONTAINER BERTHS CONTAINER TERMINALS CONTAINER TRAFFIC CONTAINERIZATION COST FUNCTIONS COST MINIMIZATION DECENTRALIZATION DOCKS ECONOMIC EFFICIENCY ECONOMIES OF SCALE EMPLOYMENT ENERGY CONSUMPTION EXPENDITURES FISHING FREIGHT FUNCTIONAL FORMS HANDLING INEFFICIENCY INTERMEDIATE INPUTS INTERNATIONAL STANDARDS INTERNATIONAL TRADE LABOR INPUTS LABOR PRODUCTIVITY LOADING LOGISTICS CHAIN The authors show how relatively standard methodologies can help to measure the efficiency gains from reforming the organization of port infrastructure, how those measures can be used to promote competition between ports, and how competition can be built into an incentive-driven regulatory regime. As illustration, they use a case study of port reform in mexico in 1993, the first efficiency analysis of port restructuring in a developing country. Their analysis, which covers 1996-99 and relies on a stochastic production frontier, shows that overall, Mexico has achieved annual efficiency gains of 6-8 percent in the use of port infrastructure since assigning its management to independent, decentralized operators. Changes in relative performance ratings are revealing. They identify consistent sets of leaders and laggards, including some that would not have been identified by partial productivity indicators commonly used in the sector. The authors' main conclusions: 1) Reforms have significantly improved average port performance. 2) The analytically sound performance rankings allowed by the port-specific efficiency measures can help to promote yardstick competition in the sector. These rankings are superior to those that would emerge from use of partial productivity indicators. They account for the joint effects of all inputs on outputs--which is crucial, because it avoids the risk of inconsistent rankings based on different partial indicators, arbitrarily chosen. Developing the database method to measure efficiency in countries with no strong tradition of database development is an enormous task--especially in transport sectors, where the tradition of generating databases useful to policymakers is in its infancy. The most immediate effect of this exercise was to reveal the poverty of the database in the Mexican port sector and the need for regulators to invest in its development. 2014-08-21T18:48:06Z 2014-08-21T18:48:06Z 2001-07 http://documents.worldbank.org/curated/en/2001/07/1551999/technical-efficiency-gains-port-reform-potential-yardstick-competition-mexico http://hdl.handle.net/10986/19578 English en_US Policy Research Working Paper;No. 2637 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Mexico |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ALLOCATIVE EFFICIENCY BARRIERS TO ENTRY BERTH BERTHS CARGO CARGOES COMPETITIVENESS CONSTANT RETURNS TO SCALE CONTAINER BERTHS CONTAINER TERMINALS CONTAINER TRAFFIC CONTAINERIZATION COST FUNCTIONS COST MINIMIZATION DECENTRALIZATION DOCKS ECONOMIC EFFICIENCY ECONOMIES OF SCALE EMPLOYMENT ENERGY CONSUMPTION EXPENDITURES FISHING FREIGHT FUNCTIONAL FORMS HANDLING INEFFICIENCY INTERMEDIATE INPUTS INTERNATIONAL STANDARDS INTERNATIONAL TRADE LABOR INPUTS LABOR PRODUCTIVITY LOADING LOGISTICS CHAIN |
| spellingShingle |
ALLOCATIVE EFFICIENCY BARRIERS TO ENTRY BERTH BERTHS CARGO CARGOES COMPETITIVENESS CONSTANT RETURNS TO SCALE CONTAINER BERTHS CONTAINER TERMINALS CONTAINER TRAFFIC CONTAINERIZATION COST FUNCTIONS COST MINIMIZATION DECENTRALIZATION DOCKS ECONOMIC EFFICIENCY ECONOMIES OF SCALE EMPLOYMENT ENERGY CONSUMPTION EXPENDITURES FISHING FREIGHT FUNCTIONAL FORMS HANDLING INEFFICIENCY INTERMEDIATE INPUTS INTERNATIONAL STANDARDS INTERNATIONAL TRADE LABOR INPUTS LABOR PRODUCTIVITY LOADING LOGISTICS CHAIN Estache, Antonio Gonzalez, Marianela Trujillo, Lourdes Technical Efficiency Gains from Port Reform : The Potential for Yardstick Competition in Mexico |
| geographic_facet |
Latin America & Caribbean Mexico |
| relation |
Policy Research Working Paper;No. 2637 |
| description |
The authors show how relatively standard
methodologies can help to measure the efficiency gains from
reforming the organization of port infrastructure, how those
measures can be used to promote competition between ports,
and how competition can be built into an incentive-driven
regulatory regime. As illustration, they use a case study of
port reform in mexico in 1993, the first efficiency analysis
of port restructuring in a developing country. Their
analysis, which covers 1996-99 and relies on a stochastic
production frontier, shows that overall, Mexico has achieved
annual efficiency gains of 6-8 percent in the use of port
infrastructure since assigning its management to
independent, decentralized operators. Changes in relative
performance ratings are revealing. They identify consistent
sets of leaders and laggards, including some that would not
have been identified by partial productivity indicators
commonly used in the sector. The authors' main
conclusions: 1) Reforms have significantly improved average
port performance. 2) The analytically sound performance
rankings allowed by the port-specific efficiency measures
can help to promote yardstick competition in the sector.
These rankings are superior to those that would emerge from
use of partial productivity indicators. They account for the
joint effects of all inputs on outputs--which is crucial,
because it avoids the risk of inconsistent rankings based on
different partial indicators, arbitrarily chosen. Developing
the database method to measure efficiency in countries with
no strong tradition of database development is an enormous
task--especially in transport sectors, where the tradition
of generating databases useful to policymakers is in its
infancy. The most immediate effect of this exercise was to
reveal the poverty of the database in the Mexican port
sector and the need for regulators to invest in its development. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Estache, Antonio Gonzalez, Marianela Trujillo, Lourdes |
| author_facet |
Estache, Antonio Gonzalez, Marianela Trujillo, Lourdes |
| author_sort |
Estache, Antonio |
| title |
Technical Efficiency Gains from Port Reform : The Potential for Yardstick Competition in Mexico |
| title_short |
Technical Efficiency Gains from Port Reform : The Potential for Yardstick Competition in Mexico |
| title_full |
Technical Efficiency Gains from Port Reform : The Potential for Yardstick Competition in Mexico |
| title_fullStr |
Technical Efficiency Gains from Port Reform : The Potential for Yardstick Competition in Mexico |
| title_full_unstemmed |
Technical Efficiency Gains from Port Reform : The Potential for Yardstick Competition in Mexico |
| title_sort |
technical efficiency gains from port reform : the potential for yardstick competition in mexico |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2001/07/1551999/technical-efficiency-gains-port-reform-potential-yardstick-competition-mexico http://hdl.handle.net/10986/19578 |
| _version_ |
1764440063776653312 |