Critically examine the need for port efficiency in economic development programmes featuring export and import trades.
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Expert's answer
2016-02-18T00:00:52-0500
Transport costs, especially port efficiency, have increased their relative importance as a barrier to trade. Improving the efficiency of a port from the 25th to the 75th percentile reduces shipping costs by 12 percent. Inefficient ports also increase handling costs - the part of shipping costs. Port efficiency is also an important indicator of port performance: more efficient ports lower transportation costs and facilitate imports and exports of a particular country. Significant improvements in shipping at all can be made after the technical efficiency of ports is increased.
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