Map 1.1 Container Ports in South Asia 7

Competitiveness of South Asia’s Container Ports Container of South Asia’s Competitiveness Public Disclosure Authorized Public Disclosure Authorized DIRECTIONS IN DEVELOPMENT Infrastructure Herrera Dappe and Suárez-Alemán Herrera Competitiveness of South Asia’s Public Disclosure Authorized Container Ports A Comprehensive Assessment of Performance, Drivers, and Costs Matías Herrera Dappe and Ancor Suárez-Alemán Public Disclosure Authorized Competitiveness of South Asia’s Container Ports DIRECTIONS IN DEVELOPMENT Infrastructure Competitiveness of South Asia’s Container Ports A Comprehensive Assessment of Performance, Drivers, and Costs Matías Herrera Dappe and Ancor Suárez-Alemán © 2016 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 19 18 17 16 This work is a product of the staff of The World Bank with external contributions. 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All queries on rights and licenses should be addressed to the Publishing and Knowledge Division, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights @ worldbank.org. ISBN (paper): 978-1-4648-0892-0 ISBN (electronic): 978-1-4648-0893-7 DOI: 10.1596/978-1-4648-0892-0 Cover photo: Cargo ship in the harbor at sunset. © Teradat Santivivut/Getty Images. Used with permission; further permission required for reuse. Cover design: Debra Naylor, Naylor Design, Inc. Library of Congress Cataloging-in-Publication Data has been requested. Competitiveness of South Asia’s Container Ports • http://dx.doi.org/10.1596/978-1-4648-0892-0 Contents Foreword ix Acknowledgments xi About the Authors xiii Executive Summary xv Abbreviations xix Introduction 1 A Comprehensive Assessment of South Asia’s Container Ports 1 Analytical Framework 2 Organization of the Report 3 Chapter 1 South Asia’s Container Port Sector 5 Introduction 5 Structure of the Sector 6 Policy and Institutional Framework 9 Port Investments 11 Tariffs 17 Concluding Remarks 19 Notes 19 References 20 Chapter 2 Performance of South Asian Container Ports 21 Introduction 21 Operational Performance 22 Economic Performance 27 Concluding Remarks 40 Notes 41 References 43 Chapter 3 Drivers of Container Port Performance in South Asia 47 Introduction 47 Does Private Sector Participation Improve Port Performance? 47 Competitiveness of South Asia’s Container Ports • http://dx.doi.org/10.1596/978-1-4648-0892-0 v vi Contents Do Port Governance Characteristics Affect Port Performance? 56 Does Competition Improve Port Performance? 61 Concluding Remarks 70 Notes 72 References 73 Chapter 4 Gains to Improved Port Performance in South Asia 77 Introduction 77 Drivers of Maritime Transport Cost 78 Port Efficiency and Maritime Transport Costs 80 Impact of Port Efficiency on Maritime Transport Costs and Trade 83 Concluding Remarks 86 Notes 86 References 87 Appendix A Studies of Port Efficiency and Productivity 89 Appendix B Competition Index 93 Appendix C Data Sources 95 Boxes 2.1 The Malmquist Index of Total Factor Productivity Change 31 3.1 Public Service, Tool, Landlord, and Private Models of Ports Explained 48 Figures I.1 Analytical Framework 2 1.1 Distribution of Container Throughput in South Asia, 2013 6 1.2 Annual Volume of Container Port Traffic in South Asia, by Country, 2000–13 6 1.3 Distribution of Container Throughput in India, 2013 8 1.4 Institutional Structure of India’s Port Sector 10 1.5 Private Sector Investment Commitments to Port Projects, by Region, 1990–99 and 2000–14 12 1.6 Annual Private Sector Investment Commitments to Port Projects in South Asia, 1995–2014 13 1.7 Container Port Facilities Added between 2000 and 2010, by Region 13 1.8 Annual Capacity and Volume of Throughput at All Ports and Major Ports in India, 1998–2013 15 1.9 Key Events in the Evolution of the Policy and Regulatory Framework for Ports in India 16 Competitiveness of South Asia’s Container Ports • http://dx.doi.org/10.1596/978-1-4648-0892-0 Contents vii 2.1 Schematic of Port Operations and Performance Indicators 23 2.2 Breakdown of Average Time Spent at South Asian Container Ports, 2000 and 2012 23 2.3 Average Preberthing Waiting Time at South Asian Container Ports, 2000–12 24 2.4 Average Turnaround Time at South Asian Container Ports, by Country, 2000–12 26 2.5 Constant and Variable Returns to Scale Frontiers in Data Envelopment Analysis 29 B2.1.1 Malmquist Index of Total Factor Productivity Change 31 2.6 Average Changes in and Drivers of Total Factor Productivity at Ports between 2000 and 2010, by Region 34 2.7 Importance of Scale and Pure Efficiency Effects in Changes of Port Efficiency between 2000 and 2010, by Region 35 2.8 Average Pure Efficiency Scores, by Region, 2000–10 36 2.9 Standard Deviation of Pure Efficiency Scores at Container Ports in South Asia, 2003–10 39 3.1 Risk-Sharing by Public and Private Sectors, by Type of Port Model 49 3.2 Economic and Operational Performance at Selected South Asian Ports 55 3.3 Relationship between Private Sector Participation and Port Efficiency in South Asia 56 3.4 Board Governance Index of Selected Ports 58 3.5 Components of Board Governance in South Asia 59 3.6 Components of Board Governance of Ports in India and the Rest of South Asia 60 3.7 Board Governance Index and Efficiency of South Asian Ports 60 3.8 Market Shares of Indian Ports, 2000 and 2013 63 3.9 Operators’ Shares of Container Throughput in South Asia, 2010 65 3.10 Competition Environment Index of Selected South Asian Container Ports 69 3.11 Competition Environment and Efficiency of South Asian Ports 70 4.1 Exports to the United States by Selected Countries, 2007 83 4.2 Average Cost Reduction Associated with Becoming as Efficient as the Most Efficient Country, 2000–07 85 Map 1.1 Container Ports in South Asia 7 Tables 1.1 Terminal Handling Charges at Selected Ports, May 2015 19 2.1 Annual Average Operational Performance of South Asia’s Container Ports, 2000–12 25 Competitiveness of South Asia’s Container Ports • http://dx.doi.org/10.1596/978-1-4648-0892-0 viii Contents 2.2 Container Port Turnaround Time, by Region, 1996, 2006, and 2011 27 2.3 Container Ports Included in the Analysis 33 2.4 Descriptive Port Statistics, by Region, 2000–10 34 2.5 Returns to Scale Shares of Container Ports, by Region, 2008–10 36 2.6 Pure Efficiency Scores of South Asian Container Ports, 2000–10 37 2.7 Pure Efficiency of Selected Container Ports, by Size, 2010 40 3.1 Port Models in Use in South Asia 49 3.2 Private Sector Involvement in South Asian Ports, 2014 50 3.3 Planned versus Actual Investment in India under 10th, 11th, and 12th Five-Year Plans 52 3.4 Rationale behind Components of Board Governance Index 57 3.5 Measures, Hypotheses, and Rationales for Assessment of Competition at Ports 62 3.6 Share of Cargo Volume at Ports in South Asia That Is Containerized, 2013 66 3.7

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