Document Type
Article Restricted
Publication Date
2016
Journal Title
Transportation Research Part E
Issue Number
88
First Page
1
Last Page
10
Abstract
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.