- Elgar original reference
Edited by Kevin Cullinane
Simme Veldman and Eric van Drunen 15.1 Introduction 15.1.1 Background In maritime economics, port competition has received a great amount of attention and, for a number of years, models have been tested to capture port choice. Logit models that are popular in land transportation modelling to measure modal and route choice appear also to be useful for measuring port competition. Recently, a number of studies on port choice have been published using these models. The studies focused on: the assessment of a demand function as a basis of an economic and financial evaluation; market forecasting; the assessment of market power; or just had the academic goal of better understanding port choice. This analysis focuses on the existence of market power of ports from the perspective of the port authority in its function as provider of infrastructure. Studies are reviewed and appear to include information on the measurement of the existence of market power. The studies consulted concern port choice in the context of US imports and exports, Chinese imports and exports and Western European and Mediterranean container trades. The data included are revealed and stated preference data, aggregated and disaggregated (discrete) choice data and, for two studies, a link between the combined choice of port and liner service. The most prominent explanatory variables for port choice are ocean transport costs, inland transport costs, port costs and variables capturing quality of service aspects, such as Mohring effects. Market power means that the ports concerned have the ability to price at a...
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