Assessing the impact of public–private partnerships and enabling factors on port efficiency: evidence from Latin America and the Caribbean

In response to the challenges posed by outdated infrastructure and fiscal constraints, Latin American and Caribbean (LAC) countries initiated comprehensive port sector reforms during the 1990 s and 2000 s. At present, LAC is a global leader in the domain of private port operations, with 96% of container throughput—mostly through Public-Private Partnership (PPP) operators under the landlord model. While there have been over 150 PPP port projects implemented since 1990, there is a lack of empirical evidence regarding their impact on port performance. This study presents a longitudinal analysis of container-handling ports in 22 LAC countries, based on selected years between 2001 and 2024, depending on data availability. The findings indicate that PPP-operated ports demonstrate 4641% higher technical efficiency compared to state-run ports. A comparative analysis reveals that ports managed by global terminal operators demonstrate a 3129% higher performance than those managed by local operators. The efficiency gains observed are primarily concentrated among medium-sized terminals. Competitive selection processes have been demonstrated to enhance efficiency, with the impact intensifying as the number of bidders rises. The findings of this study underscore the critical role of regulatory and policy instruments in the design of PPP contracts and procurement processes to drive port performance and optimize investment outcomes.