Abstract
This paper examines the spatial and institutional characteristics of inland port development in Latin America, through an analysis of a detailed case study of the port of Veracruz in Mexico. It explores the spatial distribution of seaports and inland ports as well as the issues of customs clearance, rail regulation, cargo security and land acquisition, before discussing conflicting models of development depending on the priorities of inland and port actors. A supplementary aim of the paper is thus to develop a conceptual model of directional development in a geographical context of an emerging economy which traditionally has suffered from the absence of integrated policy frameworks for transport and logistics, leading to a lack of infrastructure investment and several constraints on hinterland accessibility.Findings reveal that port actors (both port authorities and terminal operators) are being proactive in response to a changing transport and logistics environment, in a setting where railway regulation and cargo security play critical roles in establishing hinterland integration. Reform to customs clearance processes is ongoing to allow more effective container flow management between the port and the hinterland, but the major obstacle to implementing an efficient loop is the fragmentation of the rail sector in Mexico.
Highlights
Port geography is increasingly influenced by activities in the hinterland, which comprises the geographical distribution of the port’s customer base
While the directional model highlights the difficulties of port actors extending their influence beyond the port perimeter, some ports have clearly managed to do so, but limited information is available concerning the major influences and constraints on such strategies
Even in Outside-In developments, inland actors are required and the port actor is constrained by institutional issues beyond their control, whether these are related to government regulation or industry structures
Summary
Port geography is increasingly influenced by activities in the hinterland, which comprises the geographical distribution of the port’s customer base. Consolidation of flows to provide economies of scale, decreased transport costs through access to main routes and reduced transaction costs through inland access to services such as customs and containerisation are all desirable for inland shippers, while the port benefits from increased traffic flows along this corridor as well as decreased congestion and increased administrative efficiency at the port gate While such facilities have in the past mostly been planned and built by inland actors (whether cities and regions or private freight operators), ports may pursue such developments themselves. While the drivers of port-hinterland integration vary across geographical and economic contexts, these relationships can be conceptualized by contrasting port-driven (Outside-In) and inland-driven (Inside-Out) inland ports (Wilmsmeier et al, 2011 – see section 2) This model highlights the difficulties of port actors extending their influence beyond the port perimeter, as well as enabling the identification of success factors when some ports manage to overcome these challenges. A supplementary aim of the paper is to develop the conceptual model of directional development in a new geographical context
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