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Urban Road Congestion and Seaport Competition

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  • Yulai Wan
  • Anming Zhang

Abstract

This paper examines the interaction between urban road congestion and competition between two seaports. We find that an increase in road capacity or increasing tolls by a chain may increase its port's profit and reduce the rival port's profit. As a consequence, roads are tolled above the marginal external congestion costs, provided that the value-of-time of shippers is sufficiently large relative to that of commuters. When a discriminative toll system is implemented, commuters are tolled at the marginal external congestion costs while truck tolls are much lower. The case of ports' maximising welfare is examined, and the results compared with those of price competition. © 2013 LSE and the University of Bath

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  • Yulai Wan & Anming Zhang, 2013. "Urban Road Congestion and Seaport Competition," Journal of Transport Economics and Policy, University of Bath, vol. 47(1), pages 55-70, January.
    • Handle: RePEc:tpe:jtecpo:v:47:y:2013:i:1:p:55-70
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    Cited by:

    1. Marta Gonzalez-Aregall & Kevin Cullinane & Inge Vierth, 2021. "A Review of Port Initiatives to Promote Freight Modal Shifts in Europe: Evidence from Port Governance Systems," Sustainability, MDPI, vol. 13(11), pages 1-19, May.
    2. Zheng, Shiyuan & Wang, Kun & Fu, Xiaowen & Zhang, Anming & Ge, Ying-En, 2022. "The effects of information publicity and government subsidy on port climate change adaptation: Strategy and social welfare analysis," Transportation Research Part B: Methodological, Elsevier, vol. 166(C), pages 284-312.
    3. Wang, Xinchang & Meng, Qiang, 2019. "Optimal price decisions for joint ventures between port operators and shipping lines under the congestion effect," European Journal of Operational Research, Elsevier, vol. 273(2), pages 695-707.
    4. Czerny, Achim I. & Lang, Hao, 2019. "A pricing versus slots game in airport networks," Transportation Research Part B: Methodological, Elsevier, vol. 125(C), pages 151-174.
    5. Czerny, Achim & Höffler, Felix & Mun, Se-il, 2014. "Hub port competition and welfare effects of strategic privatization," Economics of Transportation, Elsevier, vol. 3(3), pages 211-220.
    6. Álvarez-SanJaime, Óscar & Cantos-Sánchez, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, José J., 2015. "The impact on port competition of the integration of port and inland transport services," Transportation Research Part B: Methodological, Elsevier, vol. 80(C), pages 291-302.
    7. Yang, Jinglei & Luo, Meifeng & Ji, Abing, 2016. "Analyzing the spatial–temporal evolution of a gateway’s hinterland: A case study of Shanghai, China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 355-367.
    8. Gong, Xu & Li, Zhi-Chun, 2022. "Determination of subsidy and emission control coverage under competition and cooperation of China-Europe Railway Express and liner shipping," Transport Policy, Elsevier, vol. 125(C), pages 323-335.
    9. Wan, Yulai & Basso, Leonardo J. & Zhang, Anming, 2016. "Strategic investments in accessibility under port competition and inter-regional coordination," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 102-125.
    10. Zheng, Shiyuan & Ge, Ying-En & Fu, Xiaowen & Nie, Yu (Marco) & Xie, Chi, 2017. "Modeling collusion-proof port emission regulation of cargo-handling activities under incomplete information," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 543-567.
    11. van den Berg, Vincent A.C., 2013. "Serial private infrastructures," Transportation Research Part B: Methodological, Elsevier, vol. 56(C), pages 186-202.
    12. Randrianarisoa, Laingo M. & Zhang, Anming, 2019. "Adaptation to climate change effects and competition between ports: Invest now or later?," Transportation Research Part B: Methodological, Elsevier, vol. 123(C), pages 279-322.
    13. Zheng, Shiyuan & Fu, Xiaowen & Wang, Kun & Li, Hongchang, 2021. "Seaport adaptation to climate change disasters: Subsidy policy vs. adaptation sharing under minimum requirement," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    14. Lang, Hao & Czerny, Achim I., 2022. "Airport pricing versus (grandfathered) slots: A generalization," Economics of Transportation, Elsevier, vol. 29(C).
    15. Jacob, Jagan, 2020. "Should competing firms cooperate to reduce congestion?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    16. Clark, Derek J. & Mathisen, Terje Andreas, 2020. "Salience in a simple transport market," Research in Transportation Economics, Elsevier, vol. 82(C).
    17. (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.
    18. Tan, Zhijia & Li, Wan & Zhang, Xiaoning & Yang, Hai, 2015. "Service charge and capacity selection of an inland river port with location-dependent shipping cost and service congestion," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 76(C), pages 13-33.
    19. Balliauw, Matteo & Kort, Peter M. & Zhang, Anming, 2019. "Capacity investment decisions of two competing ports under uncertainty: A strategic real options approach," Transportation Research Part B: Methodological, Elsevier, vol. 122(C), pages 249-264.
    20. Xiao, Yi-bin & Fu, Xiaowen & Ng, Adolf K.Y. & Zhang, Anming, 2015. "Port investments on coastal and marine disasters prevention: Economic modeling and implications," Transportation Research Part B: Methodological, Elsevier, vol. 78(C), pages 202-221.
    21. Sheng, Dian & Li, Zhi-Chun & Fu, Xiaowen & Gillen, David, 2017. "Modeling the effects of unilateral and uniform emission regulations under shipping company and port competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 99-114.
    22. Zheng, Shiyuan & Ge, Ying-En & Fu, Xiaowen & (Marco) Nie, Yu & Xie, Chi, 2020. "Demand information sharing in port concession arrangements," Transportation Research Part B: Methodological, Elsevier, vol. 138(C), pages 118-143.
    23. 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.
    24. Clark, Derek John & Jørgensen, Finn & Mathisen, Terje Andreas, 2014. "Competition in complementary transport services," Transportation Research Part B: Methodological, Elsevier, vol. 60(C), pages 146-159.
    25. Dong, Gang & Ishii, Masahiro & Zheng, Shiyuan & Tezuka, Koichiro & Lee, Paul Tae-Woo, 2024. "Port capacity-sharing decisions in the post-COVID-19 pandemic era," Transport Policy, Elsevier, vol. 147(C), pages 22-31.

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