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Competition dynamics between container ports in East Asia

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  • Yap, Wei Yim
  • Lam, Jasmine S.L.

Abstract

This paper unveils the competitive dynamics between the major container ports in East Asia by analyzing their extent and intensity. Time series data, with the longest series dating back to 1970 ending 2001, on container throughput for the ports of Hong Kong, Kaohsiung, Keelung, Kobe, Nagoya, Osaka, Pusan, Taichung, Tokyo and Yokohama are computed. Cointegration tests are employed to determine the existence of long run relationship between various port pairs. Error correction models are constructed to determine short run inter-port dynamics. The results reveal that Hong Kong and Pusan are beneficiaries from inter-port competition in the region for the past three decades. The study suggests that inter-port competition in the region would intensify in the future as the centre of gravity of cargo volume shifts to mainland China. Moreover, concentration of services by shipping lines at the primary load centers might lead to intense competition between the primary load centers and ports located in close proximity that share their hinterlands.

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  • Yap, Wei Yim & Lam, Jasmine S.L., 2006. "Competition dynamics between container ports in East Asia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(1), pages 35-51, January.
  • Handle: RePEc:eee:transa:v:40:y:2006:i:1:p:35-51
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    Cited by:

    1. 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.
    2. Figueiredo De Oliveira, Gabriel & Cariou, Pierre, 2015. "The impact of competition on container port (in)efficiency," Transportation Research Part A: Policy and Practice, Elsevier, vol. 78(C), pages 124-133.
    3. Wang, Junjin & Liu, Jiaguo, 2019. "Vertical contract selection under chain-to-chain service competition in shipping supply chain," Transport Policy, Elsevier, vol. 81(C), pages 184-196.
    4. Lam, Jasmine Siu Lee & Yap, Wei Yim, 2011. "Dynamics of liner shipping network and port connectivity in supply chain systems: analysis on East Asia," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1272-1281.
    5. Sanchez Rodrigues, Vasco & Beresford, Anthony & Pettit, Stephen & Bhattacharya, Syamantak & Harris, Irina, 2014. "Assessing the cost and CO2e impacts of rerouteing UK import containers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 53-67.
    6. Wang, Yuhong & Cullinane, Kevin, 2014. "Traffic consolidation in East Asian container ports: A network flow analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 152-163.
    7. Yeo, Gi-Tae & Pak, Ji-Yeong & Yang, Zaili, 2013. "Analysis of dynamic effects on seaports adopting port security policy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 49(C), pages 285-301.
    8. (Kevin) Park, Hyosoo & Chang, Young-Tae & Zou, Bo, 2018. "Emission control under private port operator duopoly," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 40-65.
    9. Wang, Fan & Zhuo, Xiaopo & Niu, Baozhuang & He, Jiayi, 2017. "Who canvasses for cargos? Incentive analysis and channel structure in a shipping supply chain," Transportation Research Part B: Methodological, Elsevier, vol. 97(C), pages 78-101.
    10. G-T Yeo & D-W Song & J Dinwoodie & M Roe, 2010. "Weighting the competitiveness factors for container ports under conflicting interests," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(8), pages 1249-1257, August.
    11. Qu, Chenrui & Wang, Grace W.Y. & Zeng, Qingcheng, 2017. "Modelling port subsidy policies considering pricing decisions of feeder carriers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 99(C), pages 115-133.
    12. Tongzon, Jose & Nguyen, Hong-Oanh (Owen), 2009. "China's economic rise and its implications for logistics: The Australian case," Transport Policy, Elsevier, vol. 16(5), pages 224-231, September.
    13. Twrdy, Elen & Batista, Milan, 2016. "Modeling of container throughput in Northern Adriatic ports over the period 1990–2013," Journal of Transport Geography, Elsevier, vol. 52(C), pages 131-142.
    14. Wang, Chengjin & Ducruet, César, 2012. "New port development and global city making: emergence of the Shanghai–Yangshan multilayered gateway hub," Journal of Transport Geography, Elsevier, vol. 25(C), pages 58-69.
    15. Zheng, Shiyuan & Negenborn, Rudy R., 2014. "Centralization or decentralization: A comparative analysis of port regulation modes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 21-40.
    16. Shan, Jun & Yu, Mingzhu & Lee, Chung-Yee, 2014. "An empirical investigation of the seaport’s economic impact: Evidence from major ports in China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 41-53.
    17. Woo, Su-Han & Pettit, Stephen J. & Kwak, Dong-Wook & Beresford, Anthony K.C., 2011. "Seaport research: A structured literature review on methodological issues since the 1980s," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(7), pages 667-685, August.
    18. Liu, Jiaguo & Wang, Junjin, 2019. "Carrier alliance incentive analysis and coordination in a maritime transport chain based on service competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 333-355.
    19. Liehui Wang & Theo Notteboom & Yui-yip Lau & Adolf K. Y. Ng, 2017. "Functional Differentiation and Sustainability: A New Stage of Development in the Chinese Container Port System," Sustainability, MDPI, vol. 9(3), pages 1-17, February.
    20. Song, Dong-Ping & Lyons, Andrew & Li, Dong & Sharifi, Hossein, 2016. "Modeling port competition from a transport chain perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 75-96.
    21. Pérez, Ivone & González, María Manuela & Trujillo, Lourdes, 2020. "Do specialisation and port size affect port efficiency? Evidence from cargo handling service in Spanish ports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 234-249.
    22. Yuen, Andrew Chi-lok & Zhang, Anming & Cheung, Waiman, 2013. "Foreign participation and competition: A way to improve the container port efficiency in China?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 49(C), pages 220-231.
    23. Ching-Chih Chou & Chien-Wen Shen & Dapeng Gao & Yang Gao & Kai Wang & Sang-Bing Tsai, 2018. "Modelling the Dynamic Impacts of High Speed Rail Operation on Regional Public Transport—From the Perspective of Energy Economy," Energies, MDPI, vol. 11(5), pages 1-15, May.
    24. Lam, Jasmine Siu Lee, 2011. "Patterns of maritime supply chains: slot capacity analysis," Journal of Transport Geography, Elsevier, vol. 19(2), pages 366-374.
    25. Chathumi Kavirathna & Tomoya Kawasaki & Shinya Hanaoka & Takuma Matsuda, 2018. "Transshipment hub port selection criteria by shipping lines: the case of hub ports around the bay of Bengal," Journal of Shipping and Trade, Springer, vol. 3(1), pages 1-25, December.

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