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Urban road congestion, capacity expansion and port competition: empirical analysis of US container ports

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  • Yulai Wan
  • Anming Zhang
  • Andrew C.L. Yuen

Abstract

In this study, we empirically investigate the impacts of urban road congestion and road capacity expansion on the competition between major container ports in the US. We find that more delays on urban roads may cause shippers to switch to competing rival ports: a 1% increase in road congestion delays around the port is associated with a 0.90-2.48% decrease in the port's container throughput but a 0.62-1.69% increase in the rival port's throughput. Adding local roads tends to benefit the port and harm its rival (in terms of throughput) by reducing road congestion. However, the overall impact of road provision on ports' throughput varies among the sample ports, as road capacity expansion may affect ports' output through channels other than road congestion delays.

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  • 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.
    • Handle: RePEc:taf:marpmg:v:40:y:2013:i:5:p:417-438
    DOI: 10.1080/03088839.2013.797615
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    References listed on IDEAS

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    1. Gilles Duranton & Matthew A. Turner, 2011. "The Fundamental Law of Road Congestion: Evidence from US Cities," American Economic Review, American Economic Association, vol. 101(6), pages 2616-2652, October.
    2. 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.
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    Cited by:

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    4. Chang, Zheng & Yang, Dong & Wan, Yulai & Han, Tingting, 2019. "Analysis on the features of Chinese dry ports: Ownership, customs service, rail service and regional competition," Transport Policy, Elsevier, vol. 82(C), pages 107-116.
    5. Qu, Chenrui & Zeng, Qingcheng & Li, Kevin X. & Lin, Kun-Chin, 2020. "Modeling incentive strategies for landside integration in multimodal transport chains," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 47-64.
    6. 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.
    7. 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.
    8. Balliauw, Matteo, 2021. "From theoretical real options models to pragmatic decision making: Required steps, opportunities and threats," Research in Transportation Economics, Elsevier, vol. 90(C).
    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. Caldeira dos Santos, Murillo & Pereira, Fábio Henrique, 2021. "Development and application of a dynamic model for road port access and its impacts on port-city relationship indicators," Journal of Transport Geography, Elsevier, vol. 96(C).
    11. Lee, Chung-Yee & Song, Dong-Ping, 2017. "Ocean container transport in global supply chains: Overview and research opportunities," Transportation Research Part B: Methodological, Elsevier, vol. 95(C), pages 442-474.
    12. 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.
    13. Zeng, Qingcheng & Wang, Grace W.Y. & Qu, Chenrui & Li, Kevin X., 2018. "Impact of the Carat Canal on the evolution of hub ports under China’s Belt and Road initiative," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 117(C), pages 96-107.
    14. 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.
    15. Wenming Shi & Hee-Seok Bang & Kevin X. Li, 2016. "A cross-region analysis of the output elasticity of transport investment in China," Maritime Policy & Management, Taylor & Francis Journals, vol. 43(2), pages 222-241, February.
    16. Changmin Jiang & Yulai Wan & Anming Zhang, 2017. "Internalization of port congestion: strategic effect behind shipping line delays and implications for terminal charges and investment," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(1), pages 112-130, January.
    17. 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.

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