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Competition, Excess Capacity, and the Pricing of Port Infrastructure

Authors
  • Haralambides, H E1
  • 1 Center for Maritime Economics and Logistics (MEL), Erasmus University Rotterdam, Burg. Oudlaan 50, Rotterdam, 3062 PA , Rotterdam
Type
Published Article
Journal
International journal of maritime economics
Publisher
Palgrave Macmillan UK
Publication Date
Dec 10, 2002
Volume
4
Issue
4
Pages
323–347
Identifiers
DOI: 10.1057/palgrave.ijme.9100053
Source
Springer Nature
Keywords
License
Yellow

Abstract

The pricing of infrastructure, such as this of commercially competing ports, is one of the most controversial aspects of the global economy of the 21st century. The controversy arises from the need to reconcile the economic development impacts of infrastructure investments with the, under commercial terms, recovery of investment costs. In developed countries and regions, the role of ‘public investment’ is thus re-evaluated, while the concept of ‘competition on infrastructure’ is increasingly challenged by the need to establish a level playing field among competing ports. The paper shows how Marginal Cost Pricing of port infrastructure can be a powerful ‘pricing discipline’ towards achieving cost recovery and fair competition among ports. To succeed in this, the paper advocates for stronger policy intervention in order to ensure greater transparency of port accounting systems, better and more harmonised port statistics, a meaningful set of state aid guidelines, and stricter application of Competition Law in port infrastructure investments.

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