ABSTRACT
Entry barriers comprise the placement of economic, regulatory, and locational impediments in seaports. Although the port industry has become a more open market in the last decades, entry barriers for those wishing to provide port services remain substantial. A barrier to entry is anything that prevents an entrepreneur from instantaneously creating a new firm in a specific market. Barriers to entry in seaports are classified into three categories: economic entry barriers, regulatory and institutional entry barriers, and locational. The first type of economic entry barrier in seaports is the absolute cost advantage that might be enjoyed by an existing port service provider. Sunk costs, such as networking, marketing, and advertizing costs, cannot be recovered once a firm decides to leave the market and, thus, might stand as the third type of economic barrier to entry. Regulatory and institutional entry barriers might make entry into a market costly, time-consuming, or impossible.
