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Disaster prevention and strategic investment for multiple ports in a region: cooperation or not

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  • Nan Liu
  • Zixiang Gong
  • Xiao Xiao

Abstract

With the growth of maritime transportation, seaports have become critical to the world economy as linking nodes between shipping and inland transport. However, the port system is fragile under certain unconventional emergency events. This study addresses the issue of investment on disaster prevention within the port competition context. The present model discusses and compares four situations of different relationships and strategies of pre-disaster prevention between two adjacent ports. Results indicate that both ports increase the disaster prevention investment under the cooperation scenario compared with that in the case of non-cooperation wherein they are complementary ports. Meanwhile, a numerical simulation is conducted to examine the collective and individual rationality of both ports. Although cooperation strategy decreases the total risk cost of two ports, one of the two ports may profit, whereas the other may suffer losses.

Suggested Citation

  • Nan Liu & Zixiang Gong & Xiao Xiao, 2018. "Disaster prevention and strategic investment for multiple ports in a region: cooperation or not," Maritime Policy & Management, Taylor & Francis Journals, vol. 45(5), pages 585-603, July.
    • Handle: RePEc:taf:marpmg:v:45:y:2018:i:5:p:585-603
    DOI: 10.1080/03088839.2018.1454991
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    Cited by:

    1. Liu, Weichen & Cao, Youhui & Chen, Jianglong & Guo, Jiaying & Liang, Shuangbo, 2023. "Organization of river-sea container transportation in the Yangtze River: Processes and mechanisms," Journal of Transport Geography, Elsevier, vol. 108(C).
    2. Wang, Kun & Zhang, Anming, 2018. "Climate change, natural disasters and adaptation investments: Inter- and intra-port competition and cooperation," Transportation Research Part B: Methodological, Elsevier, vol. 117(PA), pages 158-189.
    3. Bi Wang & Kwai Sang Chin & Qin Su, 2022. "Risk management and market structures in seaport–dry port systems," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(1), pages 114-137, March.
    4. Zheng, Shiyuan & Luo, Meifeng, 2021. "Competition or cooperation? Ports’ strategies and welfare analysis facing shipping alliances," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 153(C).
    5. Mehmet Sinan Yıldırım, 2023. "Quantifying the Operational Benefits of Dry Port Integrated Cooperation in Port Clusters: A Microsimulation Study," Sustainability, MDPI, vol. 15(6), pages 1-18, March.
    6. Notteboom, Theo & Yang, Dong & Xu, Hua, 2020. "Container barge network development in inland rivers: A comparison between the Yangtze River and the Rhine River," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 587-605.

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