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

        Souhir ABBES 국제이네비해양경제학회 2017 International Journal of e-Navigation and Maritime Vol.8 No.1

        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.

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