What drives European port traffic? The role of competition

Abstract

This article examines the determinants of traffic in European ports in 2010 by estimating a generalized linear model with a gamma distribution. Controlling for various economic and geographic attributes of the regions in which the ports are located, we analyze the impact of the competition scenarios that the respective port authorities face. We include a range of explanatory factors of port traffic including the share of transshipment traffic, the competition within a terminal, the volume of traffic from neighboring ports, the level of connectivity with other transportation modes and the port's model of governance. The main findings indicate that a bureaucratic model of governance can harm traffic levels, while traffic from neighboring ports and better rail facilities can all serve to boost traffic. Finally, we do not find evidence that competition within the port can affect traffic positively.