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Risk prevention and adaptation strategies for geographically complementary seaports and dry ports under intermodal interaction

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  • Wang, Bi
  • Wang, Canyou
  • Qiao, Haike
  • Su, Qin

Abstract

Geographically complementary seaports and dry ports confront an elevated susceptibility to a spectrum of regular and disruption risks resulting from their unique geographical location and pivotal socioeconomic roles. Port authorities (PAs) respond to these challenges through preventive investments aimed at reducing the probability of risk occurrence and adaptive investments designed to mitigate the severity of consequences. This study develops a two-stage game-theoretic model to jointly examine these investment decisions, incorporating the dynamics of intermodal competition and cooperation between geographically complementary seaports and dry ports. The analysis reveals a bidirectional free-rider phenomenon, wherein seaports may underinvest in prevention while deriving benefits from the efforts of dry ports, and conversely, dry ports may depend on the adaptation implemented by seaports without contributing proportionally. Under intermodal competition, PAs compete for overlapping hinterland markets, incentivizing them to actively resolve risk uncertainties to strengthen competitive advantage. In cooperative settings, reduced market rivalry leads to a higher tolerance for unresolved uncertainties, prompting PAs to prioritize investments in risks characterized by lower uncertainty. The findings indicate that differentiated investment strategies may compromise the overall profitability of PAs. These findings offer managerial insights for decision-makers seeking to enhance port resilience and optimize resource allocation in port-hinterland system.

Suggested Citation

  • Wang, Bi & Wang, Canyou & Qiao, Haike & Su, Qin, 2025. "Risk prevention and adaptation strategies for geographically complementary seaports and dry ports under intermodal interaction," Research in Transportation Economics, Elsevier, vol. 114(C).
    • Handle: RePEc:eee:retrec:v:114:y:2025:i:c:s0739885925001374
    DOI: 10.1016/j.retrec.2025.101654
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    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D25 - Microeconomics - - Production and Organizations - - - Intertemporal Firm Choice: Investment, Capacity, and Financing

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