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Port Competition Revisited

Author

Listed:
  • H. Meersman
  • E. Van De Voorde
  • T. Vanelslander

Abstract

Port competition is an important topic in transport economics. This is due not only to the large volumes of goods involved in port throughput – a direct measure of a port’s competitive strength – but also to derived effects in terms of employment and investment. Strikingly, the existing literature on the subject tends to regard ports as rather homogeneous entities. In practice, it is increasingly apparent that ports are far from homogeneous environments. This paper elaborates a methodology for analyzing relationships between port operators. Moreover, competition unfolds not only between ports, but also, primarily even, between individual production companies and service providers located in those ports or making use of them, and increasingly also between entire supply chains. The chain element that contributes most to making the chain the cheapest possible, will have the highest chance of being included. This can be derived from a preliminary analysis of port selection criteria, where cost turns out to be the most important criterion. Next to that, also other factors are shown to be possibly important, depending on the conditions and the actor. These factors will have an impact on the generalized cost, and it is shown how this cost can be decomposed in basically a time and a distance component. In order to quantify that cost, it is important to have an overview of the objectives that the different actors aim at, and of the instruments they can use to make the objectives materialize, which are therefore summarized in the paper. The last section of the paper assesses the role of a number of factors which affect port competition. The most striking ones are the changes in world trade, and market structure changes on the side of shipping companies and terminal operating companies.

Suggested Citation

  • H. Meersman & E. Van De Voorde & T. Vanelslander, 2010. "Port Competition Revisited," Review of Business and Economic Literature, Intersentia, vol. 55(2), pages 210-233, June.
  • Handle: RePEc:sen:rebelj:v:55:i:2:y:2010:p:210-233
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    Citations

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    Cited by:

    1. Yoon, Junghyun & Lee, Hee Yong & Dinwoodie, John, 2015. "Competitiveness of container terminal operating companies in South Korea and the industry–university–government network," Transportation Research Part A: Policy and Practice, Elsevier, vol. 80(C), pages 1-14.
    2. Thomas Vanoutrive, 2012. "Explaining Port Size: Accessibility, Hinterland Competition and a Semi-Endogenously Determined W," ERSA conference papers ersa12p668, European Regional Science Association.
    3. Dariusz Bernacki & Christian Lis, 2021. "Investigating the Sustainable Impact of Seaport Infrastructure Provision on Maritime Component of Supply Chain," Energies, MDPI, vol. 14(12), pages 1-22, June.
    4. Caldeirinha, Vítor & Felício, J. Augusto & Salvador, Antónia Sena & Nabais, João & Pinho, Tiago, 2020. "The impact of port community systems (PCS) characteristics on performance," Research in Transportation Economics, Elsevier, vol. 80(C).
    5. Hilde Meersman & Eddy Van de Voorde & Thierry Vanelslander, 2013. "Nothing remains the same! Port competition revisited," Chapters, in: Thomas Vanoutrive & Ann Verhetsel (ed.), Smart Transport Networks, chapter 2, pages 9-28, Edward Elgar Publishing.
    6. Mona Kashiha & Jean-Claude Thill, 2013. "The functional spaces of major European forwarding ports: study of competition for trade bound to the United States," Chapters, in: Thomas Vanoutrive & Ann Verhetsel (ed.), Smart Transport Networks, chapter 5, pages 68-98, Edward Elgar Publishing.
    7. Górecka, Aleksandra, 2016. "Transportation Costs of Containers from Asia to Europe via DCT Gdansk and Hamburg Seaports," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 16(31), pages 1-8, December.
    8. Martínez-Pardo, Ana & Orro, Alfonso & Garcia-Alonso, Lorena, 2020. "Analysis of port choice: A methodological proposal adjusted with public data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 136(C), pages 178-193.
    9. Meersman, Hilde & Van de Voorde, Eddy, 2019. "Freight transport models: Ready to support transport policy of the future?," Transport Policy, Elsevier, vol. 83(C), pages 97-101.
    10. Moura, Ticiana Grecco Zanon & Garcia-Alonso, Lorena & del Rosal, Ignacio, 2018. "Influence of the geographical pattern of foreign trade on the inland distribution of maritime traffic," Journal of Transport Geography, Elsevier, vol. 72(C), pages 191-200.
    11. Castelein, R.B. & Geerlings, H. & van Duin, J.H.R., 2019. "Divergent effects of container port choice incentives on users' behavior," Transport Policy, Elsevier, vol. 84(C), pages 82-93.
    12. Katrien Storms & Christa Sys & Thierry Vanelslander & Ruben Deuren, 2023. "Demurrage and detention: from operational challenges towards solutions," Journal of Shipping and Trade, Springer, vol. 8(1), pages 1-31, December.
    13. Mohd Zarir Yusoff* & Mohd Saiful Izwaan Saadon & Nurul Haqimin Salleh & Tomingan Kamaron & Hanafi Ahmad, 2018. "Literature Review on Determinants Affecting Knowledge Sharing," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 860-866:2.
    14. Kashiha, Mona & Thill, Jean-Claude & Depken, Craig A., 2016. "Shipping route choice across geographies: Coastal vs. landlocked countries," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 1-14.
    15. Musso, Antonio & Piccioni, Cristiana & Van de Voorde, Eddy, 2013. "Italian seaports' competition policies: Facts and figures," Transport Policy, Elsevier, vol. 25(C), pages 198-209.
    16. 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.
    17. MEERSMAN, Hilde & VAN DE VOORDE, Eddy, 2014. "Port capacity extension. A trade-off between public investment and shipping companies' time losses," Working Papers 2014009, University of Antwerp, Faculty of Business and Economics.
    18. Moura, Ticiana Grecco Zanon & Chen, Zhangliang & Garcia-Alonso, Lorena, 2019. "Spatial interaction effects on inland distribution of maritime flows," Transportation Research Part A: Policy and Practice, Elsevier, vol. 128(C), pages 1-10.
    19. Felipe Lobo Umbelino Souza & Cira Souza Pitombo & Dong Yang, 2021. "Port choice in Brazil: a qualitative research related to in-depth interviews," Journal of Shipping and Trade, Springer, vol. 6(1), pages 1-22, December.

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