Abstract
This paper present a cost–benefit analysis approach applied to measure benefits involving the expansion of container capacity in a seaport context. The paper starts by setting out the theoretical background for identifying and measuring the project benefits. There have been identified and calculated three different benefits: benefits from existing traffic, benefits from avoided diversion costs and benefits from generated traffic. A practical application of this methodology has been included. The results for this application show that this project is viable, either if this infrastructure has congestion problems in the present or may have them in the short term.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
In the Cost–Benefit Analysis, we will follow the methodology used by Dodgson and Gonzalez-Savignat (1998) in such a way that the national costs and benefits are taken into account. Accordingly, the costs and benefits generated by the investment project which can be located in geographic areas other than the area where the investment project is developed, are taken into account. Then, a global evaluation of the project is carried out in this way. More details about methodological aspects, Harberger (1974); Layard and Glaister (1994).
- 2.
When the marginal utility of the income is not constant, changes in consumer surplus are imperfect monetary measures of changes in utility.
- 3.
Real resources can be both outputs (quantities of production, commodities, time) and inputs (labour, capital).
- 4.
This analysis could be repeated assuming logarithmic demand or semi-logarithmic demand.
- 5.
For simplicity in the notation, we don’t consider the sub-index for temporal period.
- 6.
The opportunity costs of the input express the loss in benefit produced in the best use possible of that input.
- 7.
The estimation of containerized goods traffic can be viewed on tables A1 and A2.
- 8.
Value of time (in euros of 2002) per hour of containerized goods is about 0.36 €.
- 9.
This cost of transport depends on the cost of fuel that is very volatile.
References
Autoridad Portuaria de Santander (2003) Evaluación económico financiera del proyecto Nuevos muelles en el espigón central de Raos del Puerto de Santander. Santander: Unpublished Internal Document
Boardman AE, Greenberg DH, Vining AR, Weimer DL (2001) Cost-benefit análisis. concepts and practice. Prentice Hall, New Jersey
Coto-Millan P, Baños-Pino J (1996) Derived demands for general cargo shipping in Spain 1975–1993: an economic approach. Appl Econ Lett 3(3):175–178
Coto-Millan P, Baños-Pino J, Villaverde J (2005) Determinants of maritime import and export functions. Transp Res E 44(4):357–372
Coto-Millan P, Baños-Pino J, Rodriguez-Alvarez A (2000) Economic efficiency in Spain: some empirical evidence. Marit Policy Manage 27(2):1169–1174
Coto-Millan P, Villaverde J (1997) Economic impact analysis of Santander port on its hinterland. Int J Transp Econ XXIV(2):259–277
Coto-Millan P, Villaverde J (1998) Port economic impact: methodologies and application to the Port of Santander. Int J Transp Econ XXV(2):159–179
Desalvo J (1994) Measuring the direct impacts of a port. Transp J 33(4):33–42
Dodgson J, Gonzalez-Savignat M (1998) Efficiency in public resource allocation: the social appraisal of projects. Int J Transp Econ XXV(2):221–242
Gripaios P, Gripaios R (1995) The impact of a port on its local economy: the case of Plymouth. Marit Policy Manage 22(1):13–23
Harberger AC (1974) Cost-benefit analysis. Cambridge University Press, Cambridge
Jorge J-D, de Rus G (2004) Cost-benefit analysis of investment in airport infrastructure: a practical approach. J Air Transp Manage 10:311–326
Layard R, Glaister S (1994) Cost-benefit analysis. Cambridge University Press, Cambridge
Puertos del Estado (2003) Método de Evaluación de Inversiones Portuarias. Madrid: Unpublished document
Rus de G, González M, Roman C, Romero M, Tovar B, Trujillo L (1995) Análisis Coste-Beneficio del Puerto de Arinaga. Working Paper. University of Las Palmas de Gran Canaria
Sharkey WW (1982) The theory of natural monopoly. Cambridge University Press, Cambridge
Verbeke A, Debbischop K (1996) A note on the use of port economic impact studies for the evaluation of large scale port projects. Int J Transp Econ XXIII(3):247–266
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2010 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Coto-Millán, P., Núñez-Sánchez, R., Pesquera, M.Á., Inglada, V., Castanedo, J. (2010). A Cost–Benefit Analysis of a New Container Terminal. In: Coto-Millán, P., Pesquera, M., Castanedo, J. (eds) Essays on Port Economics. Contributions to Economics. Physica, Heidelberg. https://doi.org/10.1007/978-3-7908-2425-4_19
Download citation
DOI: https://doi.org/10.1007/978-3-7908-2425-4_19
Published:
Publisher Name: Physica, Heidelberg
Print ISBN: 978-3-7908-2424-7
Online ISBN: 978-3-7908-2425-4
eBook Packages: Business and EconomicsEconomics and Finance (R0)