Do specialisation and port size affect port efficiency?: evidence from cargo handling service in Spanish ports

Abstract

Specialisation is a common strategy followed by ports to face the challenges of globalisation, changes in the naval industry and maritime operations. The main objective of this research is to determine if specialisation and size of ports have an impact on port efficiency. We estimate the efficiency of 27 Spanish ports during the 2001–2011 period using a parametric distance function approach. Our results show that larger and more specialised ports are more highly efficient. From an economics policy perspective, the recommendation would be to encourage the specialisation of ports where possible, and collaboration between ports with different specialisations, as well as those of smaller sizes. This would allow the development of strategic planning that favours coordination between ports, the joint development of infrastructure, and the avoidance of service duplication. This study is a pioneer in estimating the efficiency of the cargo handling service of the Spanish port system including port dockers to measure the labour input, as well as specialisation and size indicators to assess their relevance as drivers of port efficiency.