IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v143y2021icp14-29.html
   My bibliography  Save this article

Strategic interdependence in capacity expansion: A spatial analysis for port infrastructure services

Author

Listed:
  • Hidalgo-Gallego, Soraya
  • Núñez-Sánchez, Ramón
  • Coto-Millán, Pablo

Abstract

This study analyses the possible existence of spatial interdependence in port authorities’ capacity expansions in the port industry. We propose a dynamic model that allows quantifying the degree of port authorities’ interdependence in capacity decisions and simulating a hypothetical scenario of cooperation agreements among different port authorities. The econometric specification is based on a structural model of demand, cost and market equilibrium. The empirical results suggest that strategic interdependence exists in port infrastructure services. Furthermore, using a simulation analysis, we show that incentives to invest in port capacity increase under a cooperative setting.

Suggested Citation

  • Hidalgo-Gallego, Soraya & Núñez-Sánchez, Ramón & Coto-Millán, Pablo, 2021. "Strategic interdependence in capacity expansion: A spatial analysis for port infrastructure services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 143(C), pages 14-29.
    • Handle: RePEc:eee:transa:v:143:y:2021:i:c:p:14-29
    DOI: 10.1016/j.tra.2020.11.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856420307758
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2020.11.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yuen, Chi-lok Andrew & Zhang, Anming & Cheung, Waiman, 2012. "Port competitiveness from the users' perspective: An analysis of major container ports in China and its neighboring countries," Research in Transportation Economics, Elsevier, vol. 35(1), pages 34-40.
    2. Moura, Ticiana Grecco Zanon & Chen, Zhangliang & Garcia-Alonso, Lorena, 2019. "Spatial interaction effects on inland distribution of maritime flows," Transportation Research Part A: Policy and Practice, Elsevier, vol. 128(C), pages 1-10.
    3. Shanhua Wu & Kevin X. Li & Wenming Shi & Zhongzhen Yang, 2016. "Influence of local government on port investment: implications of China’s decentralized port governance system," Maritime Policy & Management, Taylor & Francis Journals, vol. 43(7), pages 777-797, October.
    4. Cohen, Jeffrey P., 2010. "The broader effects of transportation infrastructure: Spatial econometrics and productivity approaches," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(3), pages 317-326, May.
    5. Kim, Moshe & Vale, Bent, 2001. "Non-price strategic behavior: the case of bank branches," International Journal of Industrial Organization, Elsevier, vol. 19(10), pages 1583-1602, December.
    6. Lorena Garcia-Alonso & Monica Martin-Bofarull, 2007. "Impact of Port Investment on Efficiency and Capacity to Attract Traffic in Spain: Bilbao versus Valencia," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 9(3), pages 254-267, September.
    7. JOSÉ I. Castillo-Manzano & Xavier Fageda, 2014. "How are Investments Allocated in a Publicly Owned Port System? Political Factors versus Economic Criteria," Regional Studies, Taylor & Francis Journals, vol. 48(7), pages 1279-1294, July.
    8. Moura, Ticiana Grecco Zanon & Garcia-Alonso, Lorena & Salas-Olmedo, María Henar, 2017. "Delimiting the scope of the hinterland of ports: Proposal and case study," Journal of Transport Geography, Elsevier, vol. 65(C), pages 35-43.
    9. Soraya Hidalgo-Gallego & Ramón Núñez-Sánchez & Pablo Coto-Millán, 2017. "Game Theory And Port Economics: A Survey Of Recent Research," Journal of Economic Surveys, Wiley Blackwell, vol. 31(3), pages 854-877, July.
    10. Christopher M. Anderson & Yong-An Park & Young-Tae Chang & Chang-Ho Yang & Tae-Woo Lee & Meifeng Luo, 2008. "A game-theoretic analysis of competition among container port hubs: the case of Busan and Shanghai 1," Maritime Policy & Management, Taylor & Francis Journals, vol. 35(1), pages 5-26, February.
    11. H E Haralambides, 2002. "Competition, Excess Capacity, and the Pricing of Port Infrastructure," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 4(4), pages 323-347, December.
    12. Yibin Xiao & Adolf K.Y. Ng & Hangjun Yang & Xiaowen Fu, 2012. "An Analysis of the Dynamics of Ownership, Capacity Investments and Pricing Structure of Ports," Transport Reviews, Taylor & Francis Journals, vol. 32(5), pages 629-652, June.
    13. Malchow, Matthew B. & Kanafani, Adib, 2004. "A disaggregate analysis of port selection," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(4), pages 317-337, July.
    14. Bruno De Borger & Stef Proost & Kurt Van Dender, 2008. "Private Port Pricing and Public Investment in Port and Hinterland Capacity," Journal of Transport Economics and Policy, University of Bath, vol. 42(3), pages 527-561, September.
    15. Carbo Valverde, Santiago & Fernández de Guevara y Rodoselovics, Juan & Humphrey, David & Maudos, Joaquin, 2009. "Estimating the intensity of price and non-price competition in banking," MPRA Paper 17612, University Library of Munich, Germany, revised 2009.
    16. Piyush Tiwari & Hidekazu Itoh & Masayuki Doi, 2003. "Shippers' Port and Carrier Selection Behaviour in China: A Discrete Choice Analysis," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 5(1), pages 23-39, March.
    17. Chang, Young-Tae & Lee, Sang-Yoon & Tongzon, Jose L., 2008. "Port selection factors by shipping lines: Different perspectives between trunk liners and feeder service providers," Marine Policy, Elsevier, vol. 32(6), pages 877-885, November.
    18. Emmanuel Guy & Bruno Urli, 2006. "Port Selection and Multicriteria Analysis: An Application to the Montreal-New York Alternative," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 8(2), pages 169-186, June.
    19. Koi Yu (Adolf) Ng, 2006. "Assessing the Attractiveness of Ports in the North European Container Transhipment Market: An Agenda for Future Research in Port Competition," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 8(3), pages 234-250, September.
    20. Mary R. Brooks & Thanos Pallis & Stephen Perkins, 2014. "Port Investment and Container Shipping Markets: Roundtable Summary and Conclusions," International Transport Forum Discussion Papers 2014/3, OECD Publishing.
    21. Pinho, Paulo Soares de, 2000. "The impact of deregulation on price and non-price competition in the Portuguese deposits market," Journal of Banking & Finance, Elsevier, vol. 24(9), pages 1515-1533, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tsakiridis, Andreas & Mateo-Mantecón, Ingrid & O'Connor, Eamonn & Hynes, Stephen & O'Donoghue, Cathal, 2021. "Efficiency benchmarking of Irish and North Atlantic Spanish ports: Implications for blue growth," Utilities Policy, Elsevier, vol. 72(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hidalgo-Gallego, Soraya & Núñez-Sánchez, Ramón & Coto-Millán, Pablo, 2017. "Spatial non-price competition in port infrastructure services," MPRA Paper 80417, University Library of Munich, Germany.
    2. Julián Martínez Moya & María Feo Valero, 2017. "Port choice in container market: a literature review," Transport Reviews, Taylor & Francis Journals, vol. 37(3), pages 300-321, May.
    3. Vega, Laura & Cantillo, Víctor & Arellana, Julián, 2019. "Assessing the impact of major infrastructure projects on port choice decision: The Colombian case," Transportation Research Part A: Policy and Practice, Elsevier, vol. 120(C), pages 132-148.
    4. Kaliszewski, Adam & Kozłowski, Arkadiusz & Dąbrowski, Janusz & Klimek, Hanna, 2021. "LinkedIn survey reveals competitiveness factors of container terminals: Forwarders’ view," Transport Policy, Elsevier, vol. 106(C), pages 131-140.
    5. Flitsch, Verena & Brümmerstedt, Katrin, 2015. "Freight Transport Modelling of Container Hinterland Supply Chains," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Blecker, Thorsten & Kersten, Wolfgang & Ringle, Christian M. (ed.), Operational Excellence in Logistics and Supply Chains: Optimization Methods, Data-driven Approaches and Security Insights. Proceedings of the Hamburg , volume 22, pages 233-266, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    6. Hokey Min & Byung-In Park, 2020. "A two-dimensional approach to assessing the impact of port selection factors on port competitiveness using the Kano model," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(3), pages 353-382, September.
    7. Mingzhu Yu & Chung-Yee Lee & James Jixian Wang, 2017. "The regional port competition with different terminal competition intensity," Flexible Services and Manufacturing Journal, Springer, vol. 29(3), pages 659-688, December.
    8. Yuen, Chi-lok Andrew & Zhang, Anming & Cheung, Waiman, 2012. "Port competitiveness from the users' perspective: An analysis of major container ports in China and its neighboring countries," Research in Transportation Economics, Elsevier, vol. 35(1), pages 34-40.
    9. Steven, Adams B. & Corsi, Thomas M., 2012. "Choosing a port: An analysis of containerized imports into the US," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(4), pages 881-895.
    10. Yang, Jinglei & Luo, Meifeng & Ji, Abing, 2016. "Analyzing the spatial–temporal evolution of a gateway’s hinterland: A case study of Shanghai, China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 355-367.
    11. Su-Han Woo & Stephen Pettit & Anthony Beresford & Dong-Wook Kwak, 2012. "Seaport Research: A Decadal Analysis of Trends and Themes Since the 1980s," Transport Reviews, Taylor & Francis Journals, vol. 32(3), pages 351-377, January.
    12. Likun Wang & Anne Goodchild & Yong Wang, 2018. "The effect of distance on cargo flows: a case study of Chinese imports and their hinterland destinations," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(3), pages 456-475, September.
    13. Jiannan, Cheng & feng, Lian & Zhongzhen, Yang, 2020. "Impacts of the choice habits of port users on the effects and efficiencies of port investment," Transport Policy, Elsevier, vol. 99(C), pages 203-214.
    14. Kammoun, Rabeb & Abdennadher, Chokri, 2022. "Seaport efficiency and competitiveness in European seaports," Transport Policy, Elsevier, vol. 121(C), pages 113-124.
    15. Hong-Oanh Nguyen & Anthony Chin & Jose Tongzon & Mahinda Bandara, 2016. "Analysis of strategic pricing in the port sector: The network approach," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 18(3), pages 264-281, September.
    16. Martínez-Moya, Julián & Feo-Valero, María, 2022. "Do shippers’ characteristics influence port choice criteria? Capturing heterogeneity by using latent class models," Transport Policy, Elsevier, vol. 116(C), pages 96-105.
    17. Talley, Wayne K. & Ng, ManWo, 2013. "Maritime transport chain choice by carriers, ports and shippers," International Journal of Production Economics, Elsevier, vol. 142(2), pages 311-316.
    18. Yoon, Junghyun & Lee, Hee Yong & Dinwoodie, John, 2015. "Competitiveness of container terminal operating companies in South Korea and the industry–university–government network," Transportation Research Part A: Policy and Practice, Elsevier, vol. 80(C), pages 1-14.
    19. David Guerrero, 2020. "A global analysis of hinterlands from a European perspective. In: Global Logistics Network Modelling and Policy: Quantification and Analysis for International Freight," Post-Print hal-02551947, HAL.
    20. Li, Shengchao & Cao, Xiaoshu & Liao, Wang & He, Yongquan, 2020. "Factors in the sea ports-of-entry and road ports-of-entry cross-border logistics route choice," Journal of Transport Geography, Elsevier, vol. 84(C).

    More about this item

    Keywords

    Strategic interdependence; Port infrastructure capacity; Port cooperation; Spanish ports;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:143:y:2021:i:c:p:14-29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.