Off-campus WMU users: To download campus access articles, please use the following link to log in with your WMU ID and password: log in to proxy server

Document Type

Article Restricted

Publication Date


Journal Title

Transportation Research Part E

Issue Number


First Page


Last Page



Ports provide services rather than producing physical products. However, port cost functions specify port cost as functions of physical products, e.g., port cargo throughput long-run cost is a function of port resource prices and cargo throughput (a physical product). In comparison, port cargo service long-run cost is a function of port resource prices, cargo service and shipper cargo received. The shipper provides cargo that is serviced by the port. A service cannot be touched and its user is involved in its provision. This paper derives port cost functions for which port outputs are ‘‘service outputs”, e.g., cargo, vessel and vehicle services.