TY - JOUR
T1 - Intra-Port competition, regulatory challenges and the concession of Callao Port
AU - Defilippi, E.
PY - 2004/1/1
Y1 - 2004/1/1
N2 - The goal of this paper is to analyse which concession alternative for Callao port, mono- or multi-operator, is more beneficial for the Peruvian society. The author uses the regulation theory, publicly available data, Monte Carlo simulation and real-option theory to analyse the viability of the concession under both alternatives. Its main findings are the following: (a) Although it seems preferable to concession Callao under a multi-operator scheme, superiority of one option over the other will depend on the nature of the port’;s cost function. If the latter is sub-additive for the forecasted demand, a mono-operator option would be more desirable. (b) If the concession of Callao port was to be carried out under a mono-operator scheme, the Peruvian Government could obtain proceeds in excess of US$ 60 million, or port users could expect to pay 22% lower tariffs for the use of the infrastructure. (c) Without a subsidy, the mono-operator alternative is the only viable one. (d) The real cost of the required subsidy, imposed on the Peruvian society, could amount up to US$ 12 million, while the benefits of the multi-operator alternative would amount up to US$ 60 million. Therefore, its benefits being higher than its costs, it is preferable to concession Callao port under a multi-operator scheme, even if a subsidy is required.
AB - The goal of this paper is to analyse which concession alternative for Callao port, mono- or multi-operator, is more beneficial for the Peruvian society. The author uses the regulation theory, publicly available data, Monte Carlo simulation and real-option theory to analyse the viability of the concession under both alternatives. Its main findings are the following: (a) Although it seems preferable to concession Callao under a multi-operator scheme, superiority of one option over the other will depend on the nature of the port’;s cost function. If the latter is sub-additive for the forecasted demand, a mono-operator option would be more desirable. (b) If the concession of Callao port was to be carried out under a mono-operator scheme, the Peruvian Government could obtain proceeds in excess of US$ 60 million, or port users could expect to pay 22% lower tariffs for the use of the infrastructure. (c) Without a subsidy, the mono-operator alternative is the only viable one. (d) The real cost of the required subsidy, imposed on the Peruvian society, could amount up to US$ 12 million, while the benefits of the multi-operator alternative would amount up to US$ 60 million. Therefore, its benefits being higher than its costs, it is preferable to concession Callao port under a multi-operator scheme, even if a subsidy is required.
KW - Competition
KW - Concession
KW - Monopoly
KW - Multi-Operator scheme
KW - Pro-Competitive policy
KW - Regulation
KW - Competition
KW - Concession
KW - Monopoly
KW - Multi-Operator scheme
KW - Pro-Competitive policy
KW - Regulation
UR - https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=11044234159&origin=inward
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U2 - 10.1057/palgrave.mel.9100114
DO - 10.1057/palgrave.mel.9100114
M3 - Article in a journal
SN - 1479-2931
VL - 6
SP - 279
EP - 311
JO - Maritime Economics and Logistics
JF - Maritime Economics and Logistics
IS - 4
ER -