Competitiveness of South Asia’s Container Ports : A Comprehensive Assessment of Performance, Drivers, and Costs

South Asia’s trade almost doubled in the past decade, but the share of trade in GDP is still smaller (47 percent) than in East Asia (55 percent), and South Asia’s economic competitiveness continues to lag that of other regions. Part of the problem is the region’s container ports. As a result of inef...

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Main Authors: Herrera Dappe, Matías, Suárez-Alemán, Ancor
Format: Book
Language:English
en_US
Published: Washington, DC: World Bank 2016
Subjects:
Online Access:http://hdl.handle.net/10986/24333
id okr-10986-24333
recordtype oai_dc
spelling okr-10986-243332021-04-23T14:04:21Z Competitiveness of South Asia’s Container Ports : A Comprehensive Assessment of Performance, Drivers, and Costs Herrera Dappe, Matías Suárez-Alemán, Ancor PORTS CONTAINER PORTS EFFICIENCY BENCHMARKING COMPETITION MARITIME COSTS LANDLORD PORT COMPETITIVENESS TOTAL FACTOR PRODUCTIVITY DATA ENVELOP ANALYSIS South Asia’s trade almost doubled in the past decade, but the share of trade in GDP is still smaller (47 percent) than in East Asia (55 percent), and South Asia’s economic competitiveness continues to lag that of other regions. Part of the problem is the region’s container ports. As a result of inefficiencies, the average cost of exporting or importing a container in the region is more than twice what it is in East Asia. Better port logistics could help increase trade, diversify exports, attract more foreign direct investment, and spur economic growth. As container traffic continues to grow and physical expansion is constrained by the limited supply of available land at most ports, the best way to improve port performance is by increasing productivity. To identify strategies for doing so, this report examines the performance of the 14 largest container ports in the region based on two sets of criteria: operational performance and economic performance. To measure operational performance, the report benchmarks total time at port, waiting time at port, and idle time as a share of total time at berth. To measure economic performance, it benchmarks productivity and efficiency using two useful techniques: Malmquist total factor productivity decomposition and data envelopment analysis. The report identifies key drivers of port performance and examines how differences in performance across ports are related to those drivers. This analysis is based on an original dataset on private sector participation, governance, and competition in South Asia’s container port sector. To highlight the potential gains from improving performance of container ports, the report uses econometric techniques to isolate the impact of efficiency improvements on maritime transport costs and trade. The results suggest that the best strategy for improving port performance in the region is a three-pronged approach that (a) encourages private sector participation through a well-developed enabling environment, including further adoption of the “landlord” port model; (b) strengthens the governance of port authorities’ boards; and (c) promotes competition between and within ports, in part through transparent and competitive concession bidding. 2016-05-24T15:50:05Z 2016-05-24T15:50:05Z 2016-10-31 Book 978-1-4648-0892-0 http://hdl.handle.net/10986/24333 English en_US Directions in Development--Infrastructure; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC: World Bank Publications & Research Publications & Research :: Publication South Asia
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 PORTS
CONTAINER PORTS
EFFICIENCY
BENCHMARKING
COMPETITION
MARITIME COSTS
LANDLORD PORT
COMPETITIVENESS
TOTAL FACTOR PRODUCTIVITY
DATA ENVELOP ANALYSIS
spellingShingle PORTS
CONTAINER PORTS
EFFICIENCY
BENCHMARKING
COMPETITION
MARITIME COSTS
LANDLORD PORT
COMPETITIVENESS
TOTAL FACTOR PRODUCTIVITY
DATA ENVELOP ANALYSIS
Herrera Dappe, Matías
Suárez-Alemán, Ancor
Competitiveness of South Asia’s Container Ports : A Comprehensive Assessment of Performance, Drivers, and Costs
geographic_facet South Asia
relation Directions in Development--Infrastructure;
description South Asia’s trade almost doubled in the past decade, but the share of trade in GDP is still smaller (47 percent) than in East Asia (55 percent), and South Asia’s economic competitiveness continues to lag that of other regions. Part of the problem is the region’s container ports. As a result of inefficiencies, the average cost of exporting or importing a container in the region is more than twice what it is in East Asia. Better port logistics could help increase trade, diversify exports, attract more foreign direct investment, and spur economic growth. As container traffic continues to grow and physical expansion is constrained by the limited supply of available land at most ports, the best way to improve port performance is by increasing productivity. To identify strategies for doing so, this report examines the performance of the 14 largest container ports in the region based on two sets of criteria: operational performance and economic performance. To measure operational performance, the report benchmarks total time at port, waiting time at port, and idle time as a share of total time at berth. To measure economic performance, it benchmarks productivity and efficiency using two useful techniques: Malmquist total factor productivity decomposition and data envelopment analysis. The report identifies key drivers of port performance and examines how differences in performance across ports are related to those drivers. This analysis is based on an original dataset on private sector participation, governance, and competition in South Asia’s container port sector. To highlight the potential gains from improving performance of container ports, the report uses econometric techniques to isolate the impact of efficiency improvements on maritime transport costs and trade. The results suggest that the best strategy for improving port performance in the region is a three-pronged approach that (a) encourages private sector participation through a well-developed enabling environment, including further adoption of the “landlord” port model; (b) strengthens the governance of port authorities’ boards; and (c) promotes competition between and within ports, in part through transparent and competitive concession bidding.
format Book
author Herrera Dappe, Matías
Suárez-Alemán, Ancor
author_facet Herrera Dappe, Matías
Suárez-Alemán, Ancor
author_sort Herrera Dappe, Matías
title Competitiveness of South Asia’s Container Ports : A Comprehensive Assessment of Performance, Drivers, and Costs
title_short Competitiveness of South Asia’s Container Ports : A Comprehensive Assessment of Performance, Drivers, and Costs
title_full Competitiveness of South Asia’s Container Ports : A Comprehensive Assessment of Performance, Drivers, and Costs
title_fullStr Competitiveness of South Asia’s Container Ports : A Comprehensive Assessment of Performance, Drivers, and Costs
title_full_unstemmed Competitiveness of South Asia’s Container Ports : A Comprehensive Assessment of Performance, Drivers, and Costs
title_sort competitiveness of south asia’s container ports : a comprehensive assessment of performance, drivers, and costs
publisher Washington, DC: World Bank
publishDate 2016
url http://hdl.handle.net/10986/24333
_version_ 1764456490727374848