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.
The Impact of Hinterland Access Conditions on Rivalry between Ports
Working paper
OECD/ITF Joint Transport Research Centre Discussion Papers
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Abstract
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1 November 2010