International Journal of e-Navigation and Maritime Economy Volume 8 (p.31-38)

|Original article|
An Estimation of Cargo Handling Service Costs: Case of the Port of Saint-Brieuc, France

키워드 :
Cargo handling service,Cost functions,Economies of scale,marginal cost


1. Introduction
2. Literature Review
3. Cargo handling service Short-run cost function
   3.1. The objective function
   3.2. Data and specification of variables
4. Econometric model and estimation results
   4.1. The econometric model
   4.2. Estimation results
5. Conclusions


The estimation of key indicators in a firm’s cost structure, such as marginal costs, economies of scale and elasticity of substitution are essential to defining the optimal pricing policy, investment and the regulation of ports. However, only a few studies have focused on the estimation of such indicators due to the unavailability of cost data on seaports. In addition, other port cost studies focused on all port activities. The output is measured as a physical product rather than as a service product. The main purpose of this paper is then to concentrate on one service, cargo handling in the port of Saint-Brieuc, and to examine the real composition of its costs. The estimation of a translog cost function suggested that the port may have an over employment of administrative staff in the handling service and a limited capacity when it comes to efficiency in the long run. The results also indicated increasing returns to scale that may suggest that the application of pricing at a marginal cost might not aid the total recovery of the outlay. These results are useful from an operational as well as an investment policy perspective.