Determinants of Port Infrastructure Pricing

Abstract

Despite many theories on port pricing have been discussed in literature, empirical research on this topic remains very limited. This paper seeks to empirically analyse port infrastructure charges using the simultaneous equation regression method and data of 159 seaports. The analysis result indicates that seaport infrastructure pricing is primarily cost-based but other factors are also relevant. These include demand, the governance model, legal structure and geographical region. Given the exploratory nature of its research, the paper also discusses the limitations and implications for port authorities, policy makers and future research.