Title

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

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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