The relation between port performance and economic development

Since the new Maasvlakte II in the port of Rotterdam, the port is ready for the biggest ships and the most modern industries. It is expected that the port will continue to growth for the next 20 to 25 years. The port accounts for 3.5 percent of the Dutch economy, but the growth in employment is expected to decline the coming years. Therefore the question arises which relation exists between the port performance and the economic development of the corresponding country or region. This paper will answer this question. First, a literature reviewed will be conducted, showing that the relation between port performance and economic development seems positive and have two plausible directions. Also the other determinants of port performance will be discussed. Then a quantitative analysis will be performed on data from the most important container ports in the Hamburg-Le Havre Range – Hamburg, Bremerhaven, Amsterdam, Rotterdam, Zeeland Seaport, Antwerp, Ghent, Zeebrugge, Dunkirk and Le Havre - for the period 2002-2011. A panel data analysis will be performed using a linear fixed effects model. Of the various economic factors, the import of goods and services has the largest significant effect on port performance. In general, there is a positive influence of the economic development of a country and region on the performance of a port.