Week 1: Introduction

Question 1

Port functions

Answer 1

Transport node
Industrial location (accessibility, low transport costs, proximity to other industrial activities / service providers)
Distribution and logistics (optimizing supply chain, shift towards hinterland due to containerization)
Trade and service (maritime business services)

Question 2

Formation network
Chain network
Complex network

Answer 2

Formation: pooled relations, same location factors (competition or cooperation)
Chain: output is input for another
Complex: use each other’s output

Question 3

Captive vs contestable hinterland

Answer 3

Captive: structural cost advantage, dominant market position, geographically well positioned
Contestable: no port has cost advantage, competition, no dominant market position, area served from multiple ports

Question 4

Intra port competition (+ benefits / negative effects)

Intra terminal competition

Answer 4

Port: terminal operators within the same port are vying for the same market (firms competing to provide the same services)
Benefits: prevents market power (monopolistic prices) and excess rent seeking by service providers & specialization, adaptation and innovation
Negative: duplicating facilities leading to wasteful allocation of resources & increased negative externalities
Terminal: competition to provide service in the same terminal

Question 5

Inter port / range competition

Answer 5

Port: (multi-port gateway region or range): competition between PAs, sharing same hinterland (same shore)
Range: between port ranges

Question 6

Competition factors industry

Answer 6

Nautical accessibility, transport costs raw materials, availability and price of land, proximity sales market, quality/availability labour force, investment climate