ABSTRACT

Over the past 50 years, the maritime transportation sector has been profoundly transformed through the processes of containerization and economic globalization. Yet, if proximity within ports has been seen as an asset promoting internal coherence and collective action, proximity between ports was viewed as a liability to the external competitive positioning of the port. Economic geographers have pointed out the great irony that globalization has actually made proximity even more important to economic development processes. Advanced economic interaction in the form of innovation and upgrading implies a certain degree of cognitive proximity. Organizational proximity internal to the port can provide benefits as it creates contractual interdependencies, reduces uncertainty and lowers transaction costs. A level of social proximity among actors within a port might be beneficial for learning, as it establishes trust, reduces transaction costs and facilitates cooperation. The various dimensions of proximity interact to shape the development trajectories of ports.