The Link between Economic Growth and Port Development

The paper investigates the link that economic development has on port development in Southeast Asia in the period from 2000 - 2006. In order to analyze the link that ports have on national economies, a categorization of ports is needed, the study classifies into four main types, Global Pivot, Load Centers, Regional Ports and Minor Ports. From this classification we study the impact that these different port types have with their national economies. A quantitative analysis comparing the growth of national economies and their ports show that each port type has different relationships with their national economies. Our study shows that Global Pivots tend to grow at a faster rate than their national economies. Load Centers and Regional Ports tend to grow just as fast as their national economies just a difference in size and importance to global economy. Minor Ports tend to lag behind in their development compared to the growth of the national economy. A qualitative study of the port of Singapore, Tanjung Pelepas, Port Klang and Tanjung Priok, show these characteristics are aligned with their type. However, the case studies also unravel the causes of outliers and differences in the results. Some interesting findings show that Tanjung Pelepas is an upcoming Global Pivot but at its current throughput is too small to be considered one now. Tanjung Priok is also a phenomenon; we find the explanation as to why the largest port in the largest economy in Southeast Asia is only a Regional Port. It is because the cargo that flows in and out of Tanjung Priok are not all containerized and the port is a multipurpose port.