IDEAS home Printed from https://ideas.repec.org/a/spr/josatr/v5y2020i1d10.1186_s41072-020-00062-2.html
   My bibliography  Save this article

A competitive analysis of port of Hong Kong: from external to internal

Author

Listed:
  • Zihua Liu

    (University of Hong Kong)

  • Dong Yang

    (The Hong Kong Polytechnic University)

  • Y. N. Eppie Ng

    (The Hong Kong Polytechnic University)

Abstract

This paper aims to analyse the competitive equilibrium of Hong Kong international port after the cooperation among terminal operators. To achieve our research objective, a comprehensive analysis framework is proposed. We assume that the port services provided by Shenzhen and Hong Kong have heterogeneity, thus apply Cournot price competition model to understand the external competition. We find that the heterogeneity level can affect the demand of Hong Kong international port. For different heterogeneity levels, different competitive equilibriums among terminal operators of Hong Kong are discussed. We further apply Edgeworth model and Stackelberg Leadership Model to describe the internal competition of Hong Kong international port. Based on analysis, some recommendations are provided to the terminal operators of Hong Kong.

Suggested Citation

  • Zihua Liu & Dong Yang & Y. N. Eppie Ng, 2020. "A competitive analysis of port of Hong Kong: from external to internal," Journal of Shipping and Trade, Springer, vol. 5(1), pages 1-17, December.
    • Handle: RePEc:spr:josatr:v:5:y:2020:i:1:d:10.1186_s41072-020-00062-2
    DOI: 10.1186/s41072-020-00062-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s41072-020-00062-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1186/s41072-020-00062-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Evangelia N. Kaselimi & Theo E. Notteboom & Bruno De Borger, 2011. "A game theoretical approach to competition between multi-user terminals: the impact of dedicated terminals," Maritime Policy & Management, Taylor & Francis Journals, vol. 38(4), pages 395-414, January.
    3. Christopher M. Anderson & Yong-An Park & Young-Tae Chang & Chang-Ho Yang & Tae-Woo Lee & Meifeng Luo, 2008. "A game-theoretic analysis of competition among container port hubs: the case of Busan and Shanghai 1," Maritime Policy & Management, Taylor & Francis Journals, vol. 35(1), pages 5-26, February.
    4. Ivaldi, Marc & Vibes, Catherine, 2005. "Intermodal and Intramodal Competition in Passenger Rail Transport," IDEI Working Papers 345, Institut d'Économie Industrielle (IDEI), Toulouse.
    5. Bruno De Borger & Stef Proost & Kurt Van Dender, 2008. "Private Port Pricing and Public Investment in Port and Hinterland Capacity," Journal of Transport Economics and Policy, University of Bath, vol. 42(3), pages 527-561, September.
    6. 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.
    7. Carl Davidson & Raymond Deneckere, 1986. "Long-Run Competition in Capacity, Short-Run Competition in Price, and the Cournot Model," RAND Journal of Economics, The RAND Corporation, vol. 17(3), pages 404-415, Autumn.
    8. Kevin Cullinane & Yahui Teng & Teng-Fei Wang, 2005. "Port competition between Shanghai and Ningbo," Maritime Policy & Management, Taylor & Francis Journals, vol. 32(4), pages 331-346, October.
    9. Dong-Wook Song, 2003. "Port co-opetition in concept and practice," Maritime Policy & Management, Taylor & Francis Journals, vol. 30(1), pages 29-44, January.
    10. DongJoon Lee & Seonyoung Lim & Kangsik Choi, 2017. "Port privatization under Cournot vs. Bertrand competition: a third-market approach," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(6), pages 761-778, August.
    11. Simme J Veldman & Ewout H Bückmann, 2003. "A Model on Container Port Competition: An Application for the West European Container Hub-Ports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 5(1), pages 3-22, March.
    12. Tongzon, Jose L., 2009. "Port choice and freight forwarders," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(1), pages 186-195, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pisit Jarumaneeroj & Jorge Barnett Lawton & Morten Svindland, 2024. "An evolution of the Global Container Shipping Network: port connectivity and trading community structure (2011–2017)," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 26(2), pages 283-306, June.
    2. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Song, Dong-Ping & Lyons, Andrew & Li, Dong & Sharifi, Hossein, 2016. "Modeling port competition from a transport chain perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 75-96.
    3. (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.
    4. Zheng, Shiyuan & Negenborn, Rudy R., 2014. "Centralization or decentralization: A comparative analysis of port regulation modes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 21-40.
    5. Luo, Meifeng & Chen, Fuying & Zhang, Jiantong, 2022. "Relationships among port competition, cooperation and competitiveness: A literature review," Transport Policy, Elsevier, vol. 118(C), pages 1-9.
    6. 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).
    7. Shiyuan Zheng & Rudy R. Negenborn, 2017. "Terminal investment timing decisions in a competitive setting with uncertainty using a real option approach," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(3), pages 392-411, April.
    8. 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.
    9. Jiannan, Cheng & feng, Lian & Zhongzhen, Yang, 2020. "Impacts of the choice habits of port users on the effects and efficiencies of port investment," Transport Policy, Elsevier, vol. 99(C), pages 203-214.
    10. 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.
    11. Wang, Hua & Meng, Qiang & Zhang, Xiaoning, 2014. "Game-theoretical models for competition analysis in a new emerging liner container shipping market," Transportation Research Part B: Methodological, Elsevier, vol. 70(C), pages 201-227.
    12. 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.
    13. 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.
    14. Gang Dong & Dandan Zhong, 2019. "Tacit Collusion of Pricing Strategy Game between Regional Ports: The Case of Yangtze River Economic Belt," Sustainability, MDPI, vol. 11(2), pages 1-17, January.
    15. Song, Zhuzhu & Tang, Wansheng & Zhao, Ruiqing, 2018. "Cooperation mode for a liner company with heterogeneous ports: Business cooperation vs. port investment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 513-533.
    16. Dong, Gang & Zheng, Shiyuan & Lee, Paul Tae-Woo, 2018. "The effects of regional port integration: The case of Ningbo-Zhoushan Port," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 120(C), pages 1-15.
    17. Guo, Liquan & Yang, Dong & Yang, Zhongzhen, 2018. "Port integration method in multi-port regions (MPRs) based on the maximal social welfare of the external transport system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 110(C), pages 243-257.
    18. 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.
    19. Lam, Jasmine Siu Lee & Yap, Wei Yim, 2011. "Dynamics of liner shipping network and port connectivity in supply chain systems: analysis on East Asia," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1272-1281.
    20. Hong-Oanh Nguyen & Anthony Chin & Jose Tongzon & Mahinda Bandara, 2016. "Analysis of strategic pricing in the port sector: The network approach," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 18(3), pages 264-281, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:josatr:v:5:y:2020:i:1:d:10.1186_s41072-020-00062-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.