The cargo throughput response to factor cost differentials - an analysis for the port of Hong Kong

Previous studies on port cargo throughput have been simplified. The regression models are mainly based on the autoregressive time series, in which the port throughput is regressed against the lagged value from the preceding time period. Most factors are assumed exogenous to port throughput. This approach is based on the premise that ports are oligopoly markets and many factors (e.g. port charges) are not available for inclusion in research. The main objective of this study is to include the costs of using the port in the regression model so as to reflect real commercial decision. Due to port costs generally not being available, the real estate prices and other factors are chosen as proxy variables to indicate indirectly the costs and benefits of using the port under study.