OECD/ITF Joint Transport Research Centre Discussion Papers
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- International Transport Forum Discussion Papers
The International Transport Forum at the OECD is an intergovernmental organisation with 52 member countries. It acts as a strategic think tank for transport policy and organizes an annual summit of ministers. Our work is underpinned by economic research, statistics collection and policy analysis, often undertaken in collaboration with many of the world's leading research figures in academia, business and government. This series of Discussion Papers is intended to disseminate the International Transport Forum’s research findings rapidly among specialists in the field concerned.
- ISSN: 20708270 (online)
- https://doi.org/10.1787/20708270
The Impact of Hinterland Access Conditions on Rivalry between Ports
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 will increase own port’s output, reduce the rival port’s output, and increase own
port’s profit. On the other hand, an increase in inland road capacity may or may not increase own
port’s output and profit, owing to various offsetting effects. Essentially, while more road capacity
reduces local delays and moderates the negative impact of own output expansion, it induces greater
local commuter traffic and may moderate the reduction by local commuter traffic in response to a
rise in cargo traffic, both of which reduces own output and profit. Similarly, inland road pricing
may or may not increase own port’s output and profit. Finally, case examples for selected ports and
regions are discussed.
Keywords: competition, investment
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