Modeling the effects of competition on seaport terminal awarding

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

Research output: Journal article publicationJournal articleAcademic researchpeer-review

33 Citations (Scopus)


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.
Original languageEnglish
Pages (from-to)341-349
Number of pages9
JournalTransport Policy
Publication statusPublished - 1 Jan 2014


  • Intra-port competition
  • Port competition
  • Port concessions
  • Seaports terminal awarding

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Transportation
  • Law

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