Evolving competition between Hong Kong and Shenzhen ports
Document Type
Journal article
Source Publication
Maritime Policy & Management: The flagship journal of international shipping and port research
Publication Date
2015
Volume
42
Issue
8
First Page
729
Last Page
745
Keywords
competition; container throughput; econometric model; Granger causality; competition coefficient; demand effect
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.
DOI
10.1080/03088839.2015.1029553
Print ISSN
03088839
E-ISSN
14645254
Publisher Statement
Copyright © 2015 Taylor & Francis.
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Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Tian, X., Liu, L., & Wang, S. (2015). Evolving competition between Hong Kong and Shenzhen ports. Maritime Policy & Management: The flagship journal of international shipping and port research, 42(8), 729-745. doi: 10.1080/03088839.2015.1029553