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Modeling port competition from a transport chain perspective

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  • Song, Dong-Ping
  • Lyons, Andrew
  • Li, Dong
  • Sharifi, Hossein

Abstract

This paper considers the competition between two ports involving both hinterland shipments and transhipments. Taking a transport chain perspective including deep-sea, port, feeder and inland transportation, we present a static cost model to examine ports’ relative competitiveness and justify the development of game models. A non-cooperative game model is then formulated for a two-ports-one-ocean carrier system. The optimal ports’ pricing and the carrier’s port-of-call decisions are derived. A centralized supply chain model is then discussed. The game model is further extended to uncertain demand situations. A case study of Southampton and Liverpool ports is provided to illustrate the results.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:transe:v:87:y:2016:i:c:p:75-96
    DOI: 10.1016/j.tre.2016.01.001
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