Abstract
Free ports are a form of territorial exceptionalism that has existed for centuries and become an important paradigm of globalization. In the contemporary setting, they act as transportation, logistics and trade platforms, using their territorial exceptionalism as a competitive advantage. Free ports such as Hong Kong, Singapore and Dubai are among the world’s leading commercial gateways, offering a form of leverage to transactions, transportation and the transformation of material goods. The historical evolution of free ports underlines a growing complexification and specialization that has led to a multitude of models, each fitting a specific regulatory and operational framework.This paper aims rationalizing the complexity of free ports. It is based on a wide array of empirical observations and an analysis of structure, function and evolution of free ports. Collected free ports data enabled the identification of three constitutive factors of evolution: an external factor (the jurisdiction), an internal factor (the services provided) and a linking factor (the orientation of flows). Based on these three factors a model of free ports was designed with a typology of thirteen types of free ports, an explanation of their evolution, and their future prospects.
Highlights
Free ports are a formally defined area, often encompassing a whole city, with enabling custom regulations and usually permitting foreign investment and ownership
Free ports have existed for centuries, they have seen during the last few decades a growing importance as transportation, logistics and trade platforms with their number and locations expanding (Bost, 2011)
Free ports are based on a form of exceptionalism which has existed since Antiquity
Summary
Free ports are a formally defined area, often encompassing a whole city, with enabling custom regulations and usually permitting foreign investment and ownership. Free ports have existed for centuries, they have seen during the last few decades a growing importance as transportation, logistics and trade platforms with their number and locations expanding (Bost, 2011). They are not limited to specific geographical areas or levels of development, but are widespread forms of transnationalism. The free port represents a relevant unit of analysis where trade facilitation is shaping the structure of flows and how the supporting elements, including port terminals, intermodal yards and logistics zones are established and integrated
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