Divergent effects of container port choice incentives on users' behavior

Port choice decisions are often considered to be based on unambiguous choice criteria. The authors examine how port users' evaluation of these criteria can differ and how this may affect actors' incentive structure and decision making, and ultimately port performance. Apart from ports' physical characteristics, the paper considers port policy and freight market conditions as components of actors' incentive structures. As port users interact, each actor's decision making has consequences for the incentives offered to others – with an important role for strategic behavior. The aggregate of port users' decisions affects a port's throughput, cargo composition, and value added, and has implications for handling efficiency. This paper combines these insights within an overarching framework linking port characteristics, policy, and freight market conditions to port user choice behavior and the consequences for ports.