The aim of this report is to carry out a methodological review of port impact studies and their possible definitions. The aims and targets of impact studies, and the different methodologies used to deal with this issue, are classified and analyzed.
The first studies on the economic impact of port activity emerged in the United States in the second half of the 1960s. The ports of New York and New Jersey were the first to be taken into consideration. In the 1970s, the first methodological discussions took place, based on the development of the input–output model and its application to the measurement of the impact of ports. The main stances opposing this kind of study were ...view middle of the document...
The primary impact typically includes all activity necessary for operation of the port facilities as well as those activities which rely directly on the use of the port facilities for shipping and receiving commodities. The specific economic activities included in the primary impact vary from study to study. In large part this variation is due, of course, to the fact that export and import activities differ markedly between geographic regions. However, it is also partially attributable to the lack of a commonly accepted definition of activities necessary for port operation.
According to Davis (1983); some weaknesses in terms of defining the impact of a port in existing port studies, which are associated with the designation of economic activities to be included in the primary impact of a port. He argues that the primary impact typically includes all the activities necessary for the operation of port facilities, as well as those activities that directly rely on the use of the port facilities for shipping and receiving commodities.
Because there exists no standard set of economic activities that comprise the primary impact of the port, some studies attempt to estimate the primary impact by surveying the “factors of community income directly generated by services to vessels and by port operations.” For this purpose, Brockel (1972) lists sixty-four factors directly generated by port operations and aggregates these factors into five categories, namely; vessel disbursement while in port (dockage, stevedoring, repairs, foodstuffs, hardware, etc.); port and terminal income (demurrage, handling, storage, etc.); inland transport (barge, rail, truck, local cartage, local switching); vessel crew expenditures (gift shopping, haberdashery, and clothing, transportation, etc.);and port services (banking, communications, commodity, brokerage, marine insurance, etc.)
Similarly, Kaufmann (1979) sets out five broad categories of economic activities necessary for port operations: direct port operation (the loading and unloading of goods, their storage and similar activities); service provided for the shipping agencies (ship building and repairs as well as sales of such necessities as fuel and foodstuffs for the ship operation); crew expenditures (hotel services, restaurant services, and other consumer expenditure categories); transportation services (to and from the port); and government expenditures for port-related services (services for the shipping industry such as navigation aids, and customs services).
On the other hand, Youchum and Agarwal (1988) provide further discuss the definition of the primary port impact. They divide port related industries into three groups namely, port-required, port-attracted, and port-induced industries. Port-required industries provide transportation and port services. Port-required industries provide transportation and port services.
2.2. Definition of the Secondary Impact
The secondary impact of port...