Economies of Scale in Seaborne Coal Transportation: A Case Study of İSDEMİR Port

Economies of scale has a vital role in keeping transport costs low in shipping. It makes possible to merchandise with far destinations. Economies of scale reduces the transportation costs per unit. Importing a commodity from a far country may cost less than importing it from neighboring country. The...

Full description

Saved in:
Bibliographic Details
Main Authors: Abdullah Açık, Sadık Özlen Başer
Format: Article
Language:English
Published: Istanbul University Press 2017-11-01
Series:Journal of Transportation and Logistics
Subjects:
Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/40F25BCC38C24BB6B07AC485B1A037F4
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849701946092421120
author Abdullah Açık
Sadık Özlen Başer
author_facet Abdullah Açık
Sadık Özlen Başer
author_sort Abdullah Açık
collection DOAJ
description Economies of scale has a vital role in keeping transport costs low in shipping. It makes possible to merchandise with far destinations. Economies of scale reduces the transportation costs per unit. Importing a commodity from a far country may cost less than importing it from neighboring country. The purpose of this study is to determine the extent to which this cost advantage is used in practice by industrial firms and to test the operative field validity of the theory. In this study, it is assumed theoretically that the larger vessels would have lower transport costs and the model is simplified by eliminating transport costs and coal prices. . In other words, as the distance increases, the size of the ship will also increase according to our basic hypothesis. ISDEMIR Port is selected as a sample for this study because of its geographical proper position and its high volume of coal import for its power plant that is placed to close position to the port. The data covers the years between 2008 and 2011. In these years totally 14.032.392 tons of coal imported by 313 bulk cargo ships. Correlation and regression analysis are implemented to determine the degree of the relationship. Volume is selected as a dependent variable and distance is selected as an independent variable. Results shows that there is a strong significant positive correlation between these variables. Also regression results show that change in distance explains big proportion of change in volume.
format Article
id doaj-art-1ed6bcc339074c02abde62d6d135dce3
institution DOAJ
issn 2459-1718
language English
publishDate 2017-11-01
publisher Istanbul University Press
record_format Article
series Journal of Transportation and Logistics
spelling doaj-art-1ed6bcc339074c02abde62d6d135dce32025-08-20T03:17:47ZengIstanbul University PressJournal of Transportation and Logistics2459-17182017-11-0122112010.22532/jtl.349766123456Economies of Scale in Seaborne Coal Transportation: A Case Study of İSDEMİR PortAbdullah Açık0https://orcid.org/0000-0003-4542-9831Sadık Özlen Başer1https://orcid.org/0000-0001-6632-2617Dokuz Eylül Üniversitesi, Izmir, TurkiyeDokuz Eylül Üniversitesi, Izmir, TurkiyeEconomies of scale has a vital role in keeping transport costs low in shipping. It makes possible to merchandise with far destinations. Economies of scale reduces the transportation costs per unit. Importing a commodity from a far country may cost less than importing it from neighboring country. The purpose of this study is to determine the extent to which this cost advantage is used in practice by industrial firms and to test the operative field validity of the theory. In this study, it is assumed theoretically that the larger vessels would have lower transport costs and the model is simplified by eliminating transport costs and coal prices. . In other words, as the distance increases, the size of the ship will also increase according to our basic hypothesis. ISDEMIR Port is selected as a sample for this study because of its geographical proper position and its high volume of coal import for its power plant that is placed to close position to the port. The data covers the years between 2008 and 2011. In these years totally 14.032.392 tons of coal imported by 313 bulk cargo ships. Correlation and regression analysis are implemented to determine the degree of the relationship. Volume is selected as a dependent variable and distance is selected as an independent variable. Results shows that there is a strong significant positive correlation between these variables. Also regression results show that change in distance explains big proportion of change in volume.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/40F25BCC38C24BB6B07AC485B1A037F4economies of scalebulk transportationcoal trade
spellingShingle Abdullah Açık
Sadık Özlen Başer
Economies of Scale in Seaborne Coal Transportation: A Case Study of İSDEMİR Port
Journal of Transportation and Logistics
economies of scale
bulk transportation
coal trade
title Economies of Scale in Seaborne Coal Transportation: A Case Study of İSDEMİR Port
title_full Economies of Scale in Seaborne Coal Transportation: A Case Study of İSDEMİR Port
title_fullStr Economies of Scale in Seaborne Coal Transportation: A Case Study of İSDEMİR Port
title_full_unstemmed Economies of Scale in Seaborne Coal Transportation: A Case Study of İSDEMİR Port
title_short Economies of Scale in Seaborne Coal Transportation: A Case Study of İSDEMİR Port
title_sort economies of scale in seaborne coal transportation a case study of isdemir port
topic economies of scale
bulk transportation
coal trade
url https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/40F25BCC38C24BB6B07AC485B1A037F4
work_keys_str_mv AT abdullahacık economiesofscaleinseabornecoaltransportationacasestudyofisdemirport
AT sadıkozlenbaser economiesofscaleinseabornecoaltransportationacasestudyofisdemirport