Evolving competition between Hong Kong and Shenzhen ports

Xin TIAN, Liming LIU, Shouyang WANG

Research output: Journal PublicationsJournal Article (refereed)

7 Citations (Scopus)

Abstract

Shenzhen Port (SZP), once a negligible local port, has risen dramatically to a world-leading container port and an “equal” player with Hong Kong Port (HKP). Will this market share reallocation continue, or will equilibrium be eventually realized for HKP to prosper continuously? We examine the relationship between these two ports to answer this question. We propose a new transformation method to describe the growth of container cargo transport demand, define the quantitative measures of the competition relationship and port competitiveness, and present a rigorous analytical framework with econometric tests and models to understand the true relationship between HKP and SZP. Direct empirical tests suggest that SZP complements HKP; however, the two ports exhibit strong competition when the effect of demand growth is excluded. Considering transshipment separately, we find that the impact of SZP on HKP is negative in transshipment but complementary in direct shipment. We may conclude that HKP does not affect SZP, whereas SZP has competitive power over HKP. These results are consistent with the findings of some previous theoretical studies.
Original languageEnglish
Pages (from-to)729-745
Number of pages17
JournalMaritime Policy and Management: The flagship journal of international shipping and port research
Volume42
Issue number8
DOIs
Publication statusPublished - 1 Jan 2015

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Keywords

  • competition; container throughput; econometric model; Granger causality; competition coefficient; demand effect

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