Risk management and market structures in seaport–dry port systems

Bi Wang, Kwai Sang Chin and Qin Su ()
Additional contact information
Bi Wang: Xi’an Jiaotong University
Kwai Sang Chin: City University of Hong Kong
Qin Su: Xi’an Jiaotong University

Maritime Economics & Logistics, 2022, vol. 24, issue 1, No 6, 114-137

Abstract: Abstract As seaborne and inland transport hubs, seaports and dry ports are vulnerable to diversified risks, such as climate-change-related disasters and congestion in daily operations, owing to their special geographical locations and socioeconomic functions in seaborne supply chains. If appropriate investments are made before the risks occur, the probability and potential damage of such risks can be mitigated. We propose a two-stage game to simultaneously study the preventive and adaptive investments of seaport and dry port authorities on diversified risks in scenarios of vertical cooperation and horizontal competition. In addition, in the latter case, the asymmetry between seaports and dry ports, regarding their vulnerability to risks, is taken into account. Findings show that it is not always advisable to pursue close cooperation, as players in a horizontal relationship must consider not only their own vulnerabilities but also those of others when making investment decisions. Finally, we find that port authorities need to pay more attention to the free-riding problem in the process of preventive investments than in adaptive investments.

Keywords: Port prevention and adaptation; Peer effect; Competition effect; Vertical cooperation; Horizontal competition; Seaport–dry port system (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1057/s41278-021-00202-w Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:marecl:v:24:y:2022:i:1:d:10.1057_s41278-021-00202-w

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41278/PS2

DOI: 10.1057/s41278-021-00202-w

Access Statistics for this article

Maritime Economics & Logistics is currently edited by Hercules E. Haralambides

More articles in Maritime Economics & Logistics from Palgrave Macmillan, International Association of Maritime Economists (IAME) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().