Port Competition and Hinterland Connections

image of Port Competition and Hinterland Connections
This Round Table publication discusses the policy and regulatory challenges posed by the rapidly changing port environment. The sector has changed tremendously in recent decades with technological and organisational innovation and a powerful expansion of trade. Although ports serve hinterlands that now run deep into continents, competition among ports is increasingly intense and their bargaining power in the supply chain has consequently weakened. Greater port throughput is meeting with increasing resistance from local communities because of pollution and congestion. In addition, local regulation is warranted but made difficult by the distribution of bargaining power among stakeholders. Higher-level authorities could develop more effective policies.

English French


The impact of hinterland access

conditions of rivalry between ports

International Transport Forum

This paper examines the interaction between hinterland access conditions and port competition. Competition between ports is treated as competition between alternate intermodal transportation chains, while the hinterland access conditions are represented by both the corridor facilities and the inland roads. We find that when ports compete in quantities, an increase in corridor capacity by a region will increase its port’s output, reduce the rival port’s output, and increase its port’s profit. On the other hand, an increase in inland road capacity by a region may or may not increase its port’s output and profit, owing to various opposing effects. Essentially, while more road capacity reduces local congestion delays and moderates the negative impact of the port’s output expansion, it induces greater local commuter traffic and may moderate the effect by which a rise in cargo traffic reduces local commuter traffic, both of which reduces the port’s output and profit. Similarly, inland road pricing by a region may or may not increase its port’s output and profit. Finally, case examples for selected ports and regions are discussed.

English French

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error