Modeling the effects of competition on seaport terminal awarding

Tsz Leung Yip, John Jianhua Liu, Xiaowen Fu and Jiejian Feng

Transport Policy, 2014, vol. 35, issue C, 341-349

Abstract: In the maritime transport industry, a terminal concession often specifies the competition conditions during the concession period. This study proposes a game model with which the effects of competition for seaport terminal awards can be studied. The modeling results suggest that (a) a terminal operator always prefers to control more terminals in the region; (b) if all terminal operators expand their operations to every port, they will be worse off due to an increase of inter- and intra-port competitions, a situation similar to the prisoners׳ dilemma; and (c) when a port authority has significant market power, it prefers to introduce inter- and intra-port competition, rather than allowing one operator to monopolize all terminals. (d) multiple equilibria may be observed in concession awarding depending on market characteristics associated to a particular market. Anecdotal observations consistent with these modeling results are presented and discussed.

Keywords: Seaports terminal awarding; Port competition; Intra-port competition; Port concessions (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:trapol:v:35:y:2014:i:c:p:341-349

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DOI: 10.1016/j.tranpol.2014.04.007

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