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The Impact of Hinterland Access Conditions on Rivalry between Ports

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  • Anming Zhang

    (University of British Columbia)

Abstract

This paper examines the interaction between hinterland access conditions and port competition. Competition between ports is treated as competition between alternate intermodal transportation chains, while the hinterland access conditions are represented by both the corridor facilities and the inland roads. We find that when ports compete in quantities, an increase in corridor capacity will increase own port’s output, reduce the rival port’s output, and increase own port’s profit. On the other hand, an increase in inland road capacity may or may not increase own port’s output and profit, owing to various offsetting effects. Essentially, while more road capacity reduces local delays and moderates the negative impact of own output expansion, it induces greater local commuter traffic and may moderate the reduction by local commuter traffic in response to a rise in cargo traffic, both of which reduces own output and profit. Similarly, inland road pricing may or may not increase own port’s output and profit. Finally, case examples for selected ports and regions are discussed.

Suggested Citation

  • Anming Zhang, 2008. "The Impact of Hinterland Access Conditions on Rivalry between Ports," OECD/ITF Joint Transport Research Centre Discussion Papers 2008/8, OECD Publishing.
  • Handle: RePEc:oec:itfaaa:2008/8-en
    DOI: 10.1787/235411150338
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    Cited by:

    1. Hidalgo-Gallego, Soraya & Núñez-Sánchez, Ramón & Coto-Millán, Pablo, 2017. "Spatial non-price competition in port infrastructure services," MPRA Paper 80417, University Library of Munich, Germany.
    2. Simme Veldman & Lorena Garcia-Alonso & José Ángel Vallejo-Pinto, 2011. "Determinants of container port choice in Spain," Maritime Policy & Management, Taylor & Francis Journals, vol. 38(5), pages 509-522, January.
    3. 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.
    4. Chen, Hsiao-Chi & Liu, Shi-Miin, 2016. "Should ports expand their facilities under congestion and uncertainty?," Transportation Research Part B: Methodological, Elsevier, vol. 85(C), pages 109-131.
    5. Álvarez-SanJaime, Óscar & Cantos-Sánchez, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, José J., 2013. "Vertical integration and exclusivities in maritime freight transport," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 51(C), pages 50-61.
    6. 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.
    7. Mona Kashiha & Jean-Claude Thill, 2016. "Spatial competition and contestability based on choice histories of consumers," Papers in Regional Science, Wiley Blackwell, vol. 95(4), pages 877-894, November.
    8. Álvarez-SanJaime, Óscar & Cantos-Sánchez, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, José J., 2013. "Competition and horizontal integration in maritime freight transport," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 51(C), pages 67-81.
    9. 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.
    10. 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.
    11. Yulai Wan & Anming Zhang & Andrew C.L. Yuen, 2013. "Urban road congestion, capacity expansion and port competition: empirical analysis of US container ports," Maritime Policy & Management, Taylor & Francis Journals, vol. 40(5), pages 417-438, September.
    12. 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.
    13. Chen, Hsiao-Chi & Liu, Shi-Miin, 2024. "Optimal investments of port authorities facing ambiguity on uncertain market demands," Transportation Research Part B: Methodological, Elsevier, vol. 179(C).
    14. Min Ju Bae & Ek Peng Chew & Loo Hay Lee & Anming Zhang, 2013. "Container transshipment and port competition," Maritime Policy & Management, Taylor & Francis Journals, vol. 40(5), pages 479-494, September.
    15. Ishii, Masahiro & Lee, Paul Tae-Woo & Tezuka, Koichiro & Chang, Young-Tae, 2013. "A game theoretical analysis of port competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 92-106.
    16. Saeed, Naima & Larsen, Odd I., 2010. "An application of cooperative game among container terminals of one port," European Journal of Operational Research, Elsevier, vol. 203(2), pages 393-403, June.
    17. 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.
    18. Mingzhu Yu & Chung-Yee Lee & James Jixian Wang, 2017. "The regional port competition with different terminal competition intensity," Flexible Services and Manufacturing Journal, Springer, vol. 29(3), pages 659-688, December.
    19. Yuen, Chi-lok Andrew & Zhang, Anming & Cheung, Waiman, 2012. "Port competitiveness from the users' perspective: An analysis of major container ports in China and its neighboring countries," Research in Transportation Economics, Elsevier, vol. 35(1), pages 34-40.
    20. Liying Song & Dong Yang & Anthony Theng Heng Chin & Guangzhi Zhang & Zhengbing He & Wei Guan & Baohua Mao, 2016. "A game-theoretical approach for modeling competitions in a maritime supply chain," Maritime Policy & Management, Taylor & Francis Journals, vol. 43(8), pages 976-991, November.
    21. Hanaoka, Shinya & Sota, Masashi & Kawasaki, Tomoya & Thompson, Russell G., 2019. "Performance of cross-border corridors in East Africa considering multiple stakeholders," Transport Policy, Elsevier, vol. 81(C), pages 117-126.
    22. Dong, Gang & Huang, Rongbing & Ng, Peggy, 2016. "Tacit collusion between two terminals of a port," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 199-211.
    23. Simme Veldman & Eric van Drunen, 2011. "Measuring Competition between Ports," Chapters, in: Kevin Cullinane (ed.), International Handbook of Maritime Economics, chapter 15, Edward Elgar Publishing.

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    Keywords

    competition; investment;

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