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Production Function of Container Terminals

To study the function of production of container terminals, we collected data


from a sample port of a study by Drewry Shipping Consultants.
The sample that included 23 container terminals, which provided values for four
variables: output of the handling of containers in TEU and inputs: number of
linear meters of berths, number of square feet of slope and number of quay
cranes, taking into account we have a population with mean and variance
unknown.
Further subdivided the sample into small terminals with a movement of
containers less than 300 thousand TEU per year, a total of 12 of the sample, and
higher to 300 thousand containers in a total of 11 observations. This subdivision
was intended to compare the results of each sample and to analyze the influence
of the size of the terminal in the other variables.
The issues arising were as follows:

a) What is the confidence interval 95% to the productivity of quay cranes?

b) You could say that each gantry Pier has a maximum of 150 meters of quay
allocated?
c) Where there is a greater productivity per gantry Pier at the terminals, small or
large?
d) The variance of the productivity of the Walk-Pier at the terminals is greater
than in large small?

e) What is the function of production of container terminals?

a) What is the confidence interval 95% to the productivity of quay cranes?

Using the student t distribution and knowing that the average sample size is
52,333 TEU per crane berth and standard deviation of the corrected sample of
34,536 TEU, we have a confidence interval 95% from 37,398 TEUs to 67,269
and the average productivity gateways.

b) You could say that each gantry Pier has a maximum of 150 meters of quay
allocated?
We made a test with the sample H0: the population mean μ = 150 meters of
quay, portal, with unknown variance, against H1: μ> 150, or, if the average
should be equal to or greater than 150 meters.

Thus, for a sample mean of the number of meters of quay by 167 meters porch,
using a student t with 5% significance level, we find that we can not accept that
on average each gate is 150 meters of quay, or less .

c) Where there is a greater productivity per gantry Pier at the terminals, small or
large?
You can resolve this issue with the use of a confidence interval of 95% for the

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difference between the yields of large samples of terminals and smaller
terminals.
Thus resorted to a t-student to analyze the difference of means of samples with
12 observations for small terminals and 11 for large, and the annual average of
44,500 TEUs per crane in small terminals and 87,857 TEUs in the terminal
large.
It was found that the confidence interval of differences of means is always
negative, ie, one can say with 95% confidence that the average annual
productivity per crane outweigh the terminals with a movement of more than
300,000 TEU.

d) The variance of the productivity of the Walk-Pier at the terminals is greater


than in large small?

This is important to realize that the bigger the terminal, we can be sure of
achieving higher yields, close to the average population, or the degree of
uncertainty is greater than the uncertainty of the terminals with smaller
dimensions.
Thus, the test was performed on the productivity of quay gantry, with H0:
variance of great Terminal = variance of the small terminals, against H1:
variance of great Terminal> variance of the small terminals.

By resorting to the F-Snedecor distribution, we found that the variance of the


productivity of container terminals by the porch is over the terminals above 300
thousand TEU per year for a 5% significance, which results in an increased risk
of productivity large terminals.

e) What is the function of production of container terminals?

Is usually accepted in academic studies on the ports, that the production of a port
terminal is a function of their factors of production:

i) the number of quay cranes is a variable often used as instrumental to the input
work, to be proportional to the number of longshoremen;

ii) The number of linear meters of wharf is an instrumental variable used for the
production factor capital, being the major consumer of investment in ports;

iii) The number of square meters of the slope of the terminal is used as an
instrumental variable used for the production factor land.

It was then test this hypothesis explaining the performance of terminals based on
the inputs and using these instrumental variables, with this sample, in order to
determine the parameters and variables most appropriate regression of the
production function of the movement of terminals containers, using an
adaptation of the Cobb-Douglas simple, and adding the factor of production
land.

Q = a1 ^ a2 * K * L * T ^ a3 ^ a4

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With inputs

Q = annual movement of the terminal in TEU

Factor K = Capital

L = labor

T = factor Earth

Linearizing we have:

ln (Q) = b1 + b2 * ln (K) + b3 * ln (L) + b4 * ln (T)

Performed regression, we obtained a p-value of 61% to the quay, which shows


that there is an explanatory variable with a significance and a p-value of 6.4%
for the variable area of the slope although with a coefficient of opposite sign to
what would be natural, so it eliminated these two variables in the model.
Held new regression was utilized to obtain reasonable levels of significance, and
coefficients and ^ 9.83 for the term independent, or technology factor, and 1.72
for the elasticity of labor, represented by the instrumental variable number of
quay cranes . That is, when increasing the number of gantry cranes in 10%, you
get an increase in TEU movement in 17.2%, the result of greater productivity
with the scale.

Was determined as the production function of the port terminals based on the
sample of 23 observations:

Annual Movement in TEU = 18,565 * (number of gantry cranes) ^ 1.72

This function can be used for planning and operating container terminals in
order to assess the amount of minimum inputs required to serve certain traffic
expected.

Model is explanatory of the real movement, as can be seen from the following
graph:

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Função deProdução dos Terminais deContentores Real
Estimado
2500000

2000000

1500000
TEU

1000000

500000

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Terminais