
An Analysis of the Dynamics of Ownership, Capacity Investments and Pricing Structure of Ports
With more than 80% of the world's cargoes being transported by sea, effective port management is critical to the well-being of the global economy. This study models the effects of port ownership and governance on capacity investment and pricing structure, and these changes' implications
on port service level and social welfare. The study argues that capacity investment and pricing are significantly influenced by a port's ownership form, and the different levels of government involved. Inter-port competition leads to increased capacity investments by private investors and
local authorities, which can be either higher or lower than social optimal level. Therefore, it is important for policymakers to consider the effects of institutional and competition factors in port reform initiatives.
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Document Type: Research Article
Affiliations: 1: School of Mathematical Sciences,University of Electronic Science and Technology of China, Chengdu, People's Republic of China 2: Department of Logistics and Maritime Studies,The Hong Kong Polytechnic University, Hong Kong, People's Republic of China 3: School of International Trade and Economics,University of International Business and Economics, Beijing, People's Republic of China
Publication date: September 1, 2012
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