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Concession Agreements and Market Entry in the Container Terminal Industry

Author

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  • Athanasios A Pallis

    (Department of Shipping Trade and Transport, University of the Aegean, 2 Korais St, Chios 82100, Greece.)

  • Theo E Notteboom

    (ITMMA - University of Antwerp, Keizerstraat 64, 2000 Antwerp, Belgium.)

  • Peter W De Langen

    ([1] 3Department of Applied Economics, Erasmus University Rotterdam, The Netherlands [2] 4Department of Corporate Strategy, Port of Rotterdam Authority, Rotterdam, The Netherlands.)

Abstract

In this paper, we describe the capabilities and strategies required for obtaining a concession to operate a terminal in a seaport. The extent to which concession procedures create entry barriers and lower the contestability of the market is assessed. Recent studies and policy initiatives have stressed the importance of lowering economic, institutional, and locational entry barriers in seaports. Concession procedures have an effect on market entry. Tenders may lower entry barriers by ensuring transparency, restricting discrimination and exclusivity, and limiting concessions to certain periods. However, tender procedures may also introduce entry barriers in a number of ways, including the requirement of capabilities and track records to win a tender. This paper examines relevant empirical material of recently completed or intended concessions in major European ports to evaluate these issues. Maritime Economics & Logistics (2008) 10, 209–228. doi:10.1057/mel.2008.1

Suggested Citation

  • Athanasios A Pallis & Theo E Notteboom & Peter W De Langen, 2008. "Concession Agreements and Market Entry in the Container Terminal Industry," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 10(3), pages 209-228, September.
    • Handle: RePEc:pal:marecl:v:10:y:2008:i:3:p:209-228
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    Citations

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    Cited by:

    1. Yip, Tsz Leung & Liu, John Jianhua & Fu, Xiaowen & Feng, Jiejian, 2014. "Modeling the effects of competition on seaport terminal awarding," Transport Policy, Elsevier, vol. 35(C), pages 341-349.
    2. Kaselimi, Evangelia N. & Notteboom, Theo E. & Pallis, Athanasios A. & Farrell, Sheila, 2011. "Minimum Efficient Scale (MES) and preferred scale of container terminals," Research in Transportation Economics, Elsevier, vol. 32(1), pages 71-80.
    3. Theys, Christophe & Notteboom, Theo E. & Pallis, Athanasios A. & De Langen, Peter W., 2010. "The economics behind the awarding of terminals in seaports: Towards a research agenda," Research in Transportation Economics, Elsevier, vol. 27(1), pages 37-50.
    4. Tiago Santos & Adriano Santos & Carlos Guedes Soares, 2015. "The ?Portuguese Range? as the Westernmost Maritime Region of Europe," ERSA conference papers ersa15p253, European Regional Science Association.
    5. Pallis, Athanasios A. & de Langen, Peter W., 2010. "Seaports and the structural implications of the economic crisis," Research in Transportation Economics, Elsevier, vol. 27(1), pages 10-18.
    6. Geraldine Knatz & Theo Notteboom & Athanasios A. Pallis, 2022. "Container terminal automation: revealing distinctive terminal characteristics and operating parameters," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(3), pages 537-565, September.
    7. Theo Notteboom & Jean-Paul Rodrigue, 2023. "Maritime container terminal infrastructure, network corporatization, and global terminal operators: Implications for international business policy," Journal of International Business Policy, Palgrave Macmillan, vol. 6(1), pages 67-83, March.
    8. Yoshihisa Sugimura & Kazuhiko Ishiguro & Azuma Kato, 2022. "Possibility of Sustainable Entry into Overseas Port Operation Markets by Japanese Companies," Sustainability, MDPI, vol. 14(19), pages 1-16, September.
    9. Wang, Junjin & Liu, Jiaguo & Zhang, Xin, 2020. "Service purchasing and market-entry problems in a shipping supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    10. Evangelos Kounoupas & Angeliki Pardali, 2015. "Adding some context to port marketing: Exploring the content and measurement of market orientation in the port industry," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 65(1-2), pages 3-26, january-m.
    11. Athanasios A. Pallis & Francesco Parola & Giovanni Satta & Theo E. Notteboom, 2018. "Private entry in cruise terminal operations in the Mediterranean Sea," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(1), pages 1-28, March.
    12. Xiao, Zengqi & Lam, Jasmine Siu Lee, 2019. "Willingness to take contractual risk in port public-private partnerships under economic volatility: The role of institutional environment in emerging economies," Transport Policy, Elsevier, vol. 81(C), pages 106-116.
    13. Notteboom, Theo E. & Parola, Francesco & Satta, Giovanni & Pallis, Athanasios A., 2017. "The relationship between port choice and terminal involvement of alliance members in container shipping," Journal of Transport Geography, Elsevier, vol. 64(C), pages 158-173.
    14. 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.
    15. Notteboom, Theo & Verhoeven, Patrick, 2010. "The awarding of seaport terminals to private operators: European practices and policy implications," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 45, pages 83-101.
    16. Theo Notteboom & Thanos Pallis & Jean-Paul Rodrigue, 2021. "Disruptions and resilience in global container shipping and ports: the COVID-19 pandemic versus the 2008–2009 financial crisis," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(2), pages 179-210, June.
    17. Zhang, Jihua, 2016. "Quasi-landlord port financing in China: Features, practice and a contract theory analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 89(C), pages 73-88.
    18. Theo Notteboom & Jean-Paul Rodrigue, 2012. "The corporate geography of global container terminal operators," Maritime Policy & Management, Taylor & Francis Journals, vol. 39(3), pages 249-279, May.
    19. Xiao, Zengqi & Lam, Jasmine Siu Lee, 2020. "The impact of institutional conditions on willingness to take contractual risk in port public-private partnerships of developing countries," Transportation Research Part A: Policy and Practice, Elsevier, vol. 133(C), pages 12-26.
    20. Panayides, Photis M. & Parola, Francesco & Lam, Jasmine Siu Lee, 2015. "The effect of institutional factors on public–private partnership success in ports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 71(C), pages 110-127.
    21. Theo Notteboom & Jasmine Siu Lee Lam, 2018. "The Greening of Terminal Concessions in Seaports," Sustainability, MDPI, vol. 10(9), pages 1-17, September.
    22. Wang, Grace W.Y. & Pallis, Athanasios A., 2014. "Incentive approaches to overcome moral hazard in port concession agreements," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 162-174.
    23. Notteboom, Theo E., 2010. "Concentration and the formation of multi-port gateway regions in the European container port system: an update," Journal of Transport Geography, Elsevier, vol. 18(4), pages 567-583.

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