Abigail Frazier

Professor Daria Panina

MGMT 450
August 11, 2021

Barcelona Port and its Economic Impact

Ports, located in the coastal areas of cities, play a vital economic role in integrating firms,

industries, and manufacturers into the global economy, by providing an effective and efficient

connection between sea and land transport. Technically defined, “a port is a location on a coast

or shore containing one or more harbors where ships can dock and transfer people or cargo to or

from land.” (Review on the Role of Ports in the Development of a Nation). Services provided by

ports typically include “transportation of goods and passengers, [various] port services, such as...

towing and tug assistance and emergency repairs..., and auxiliary or support services, such as

storage and warehousing…” (Review on the Role of Ports in the Development of a Nation).

Furthermore, ports provide a range of economic benefits and downsides to domestic and foreign

companies.

The economic benefits of ports are measured at the aggregate level and are determined by

factors such as, “value-added, employment, taxation revenue, and return on investment”

(Chapter 7.2- Ports and Economic Development). One of the primary benefits offered by coastal

ports is a vast market of opportunity for domestic and foreign firms to do business and exchange.

Ports help significantly increase competition, which gives international firms easier accessibility

to domestic markets and reduces prices, resulting in cheaper goods for domestic consumers.

Ports also boost the economy by acting as a powerful job generator. Ports provide jobs directly to

employees of the seaport and indirectly through purchases that the port-related companies make
locally. Moreover, they provide other types of jobs when employees of the port spend their

wages to make local purchases or when manufacturing firms use ports and benefit directly from

efficient exporting services. Additionally, Ports provide a cheap and effective way of exporting

finished goods and importing raw materials. Transportation costs are lower compared to other

means of transportation because “Ocean freight rates are more affordable” (Advantages &

Disadvantages of Ocean Freight Transportation Services?) This makes utilizing ocean shipping

for bulkier and heavier shipments, such as “...machinery, industrial parts, etc.” (Advantages &

Disadvantages of Ocean Freight Transportation Services?) the most cost efficient.

While there are many advantages to ports, there are also some disadvantages as well.

Transportation through ports can often be significantly slower than other means of

transportation, such as airplanes, which can be a negative for firms that need products urgently.

There are also risks associated with ports, such as weather complications that can cause delays or

damage to goods that are transported. Furthermore, a significant amount of capital expenditure is

needed for port investment, which can be a downside for a country that lacks infrastructure to

support the port. Also, as previously mentioned, ports widen the accessibility international firms

have to domestic markets, which can cause domestic businesses to plummet and fail if foreign

firms dominate, however, the benefits of this accessibility usually outweigh the disadvantages.

The Barcelona Port is located between Europe and the Mediterranean, in Catalonia,

which is the largest center of activity in Spain (Port de Barcelona-Corporate Video). It acts as a

driving force of economic activity due to its ability to handle “large volumes in every segment

and area of activity”. The Port in Barcelona also has the “longest berthing lines, best terminals,

and best cruise ship serves”(Port de Barcelona-Corporate Video), which are all factors

contributing to its success and positive impact on the economy.

 According to the dictionary definition, a port authority is “a governmental commission

empowered to manage or construct port facilities” (Merriam-Webster). The Barcelona Port

Authority is responsible for overseeing and managing the port, as well as reporting to the

national port authorities, who create government policy for the ports. In my opinion, Barcelona

Port Authority does an outstanding job of navigating between the advantages and disadvantages

that accompany coastal ports. They fulfill multiple functions, such as “providing general port

services..., planning,design,construction, maintenance and operations pertaining to..port

services,...promoting industrial and commercial activities linked to maritime transport and port

traffic…”(Port de Barcelona- Structure). They ensure all these functions and more are fulfilled to

sustain the Barcelona Port and ensure that they remain at the forefront of the race, driving

European economic activity.

1. https://reader.elsevier.com/reader/sd/pii/S2214241X15000413?
token=BE1212BB642AE6C8682B23174FF8B429083A4AD01C1C9B2F4F10E8403D09
D21AF75B38240D847BF76F99CD25D23AD8B2&originRegion=eu-west-
1&originCreation=20210811094525

2. https://porteconomicsmanagement.org/pemp/contents/part7/port-and-economic-
development/
3. https://ircgroupglobal.com/advantages-disadvantages-of-ocean-freight-
transportation-services/
4. http://www.portdebarcelona.cat/en/web/el-port/video-corporatiu
5. https://www.merriam-webster.com/dictionary/port%20authority
6. http://www.portdebarcelona.cat/en/web/autoritat-portuaria/organizacion