Introduction to Port Economics

Description

Practical information Course ID: FEB13095 Credits: 4 EC Instruction language: English Registration procedure: Via OSIRIS Secretariat: Support Office Applied Economics, T18-13, 010 4082776, office.ae@ese.eur.nl Course description Content: For economists, ports present a lot of interesting phenomena to analyze and understand. A port is a complex of functions, companies and organizations that plays an essential role in the national and global economy. A port is a part of our basic infrastructure, and a node in logistical and transport service networks. As such, ports are part of global maritime value chains. Ports are also locations for - clusters of - industrial and logistical activities. Here, ports are enablers for economic growth, innovation, and development. They enable trade, provide access to international markets for businesses located more inland and are – by themselves - clusters of economic activity generating added value and employment. In addition, ports generate substantial positive but also negative externalities. There are a number of different ways in which economists can look at ports: - What kind of economic activities are conducted in ports? - What markets can be distinguished and what structure do they have? - How is competition ensured or curtailed, either between ports, or between parties in the port? - What determines the economic performance of ports and how can this be analysed and improved? - What kind of economic subject is a ‘port authority’? - What role do transaction costs play in understanding decisions made in a port? - How do ports or industrial clusters develop and grown? - How is an economic port cluster organized? - Are there cluster advantages or disadvantages? These are questions that will be dealt with in this course. They revolve around the port as a node in transport networks, the governance of the port through a party like a port authority, and the port as an industrial cluster. For this purpose, we will rely on various relevant economic theories that can be applied to analyze and discuss these questions. In our analysis, we will primarily look at the port from an economic perspective, although some practical, technical, regulatory knowledge is also required. The course consists of a set of logically structured lectures in which - based upon real cases provided by the lecturers - students will engage in discussions on the economics of ports. Part of the lectures will be used to play a serious game about some decision-making problem in the port. This game will be part of the assessment of the course. Learning goals: - To understand a port as a complex of or location for economic activity, and as nodes in transport and logistics networks where economic principles as competition, pricing, agglomeration, transactions and market integration work in a specific way. - To analyse ports and their challenges from an economic point of view - To apply various economic theories and constructs to analyse problems and challenges in ports and develop rational economic choices and organizational solutions. Extra: None Study materials Bookchapters • Book, Ports and Networks, Strategies, Operations and Perspectives, Edited by Harry Geerlings, Bart Kuipers and Rob Zuidwijk. Compulsory reading : chapters 1, 2, 4, 16, 18 • Chapters 2,3,4,5,6, of The Performance of Seaport Clusters, PhD thesis by P.W de Langen Academic papers • Richard Goss, 1990, Are port authorities necessary? Maritime Policy and Management, Vol 17:4, pp 257-271 https://doi.org/10.1080/03088839000000032 • E. Defilippi, 2004, Intra port competition, Regulatory Challenges and the Concession of Callao, Maritime Economics and Logistics,Vol. 6, pp 279-311 004) 6, 279–311. https://link.springer.com/article/10.1057/palgrave.mel.9100114 • Kaselimi, E. N., Notteboom, T. E., Pallis, A. A., & Farrell, S., 2011. Minimum Efficient Scale (MES) and preferred scale of container terminals. Research in Transportation Economics, 32(1), 71-80. https://doi.org/10.1016/j.retrec.2011.06.006 • Richard Goss, 1990, The strategy of port authorities, Maritime Policy and Managem; Recommended reading: Relevant paper and specific book chapters will be shared with you during before the start of the course. Entrance requirements Entrance requirements course enrolment: You must meet the following requirements Enrolled for one of the following degree programmes BSc2 Econometrics ECON-DIV Econometrics and Operations Research Economics and Business Economics International Bachelor Econometrics and Operations Research International Bachelor Economics and Business Economics Premaster Economics and Business Premaster Economics and Business Economics Period Enrolment periods: Enrolment period: 1 December 2025 until 16 January 2026 23:59 Unenrolment: until 16 January 2026 23:59 Period of education: 29 december 2025 until 28 februari 2026 Assessment Assessment requirements: The examination during this course is based on three elements: the report from the game, an essay and an exam. Your grade depends for 30 % on the game report (individual), 30% on the essay (group work) and 40% on the exam (individual). Assessment materials: Book chapters of the Book: Ports & Networks, Strategies, Operations and Perspectives, Edited by Harry Geerlings, Bart Kuipers and Rob Zuidwijk. Academic papers in relation to the book chapters. Assessments (result in OSIRIS): Test weight: 40; Test weight: 30; Test weight: 30 Assessment: Resit opportunity