Impact of the New International Land–Sea Transport Corridor on Port Competition between Neighboring Countries Based on a Spatial Duopoly Model

Abstract

The development of international land–sea transport corridors has provided more convenient access to the sea for inland areas and promoted the improvement of transportation efficiency, environmental improvement, and the strengthening of international cooperation. However, the construction of international land–sea transport corridors has also intensified competition among the ports, which has extended from the local and regional to the national and even international levels. This paper explores the impact of international land–sea transport corridors on oligopolistic port competition between neighboring countries using the Hotelling model. By setting up the utility of the shipper’s port selection, the equilibrium price, market share, and profit of duopoly ports in neighboring countries are analyzed under different conditions of cross-border land transportation and maritime transportation. It is found that the high cross-border transportation cost of the international land–sea transport corridor is not conducive to increasing the market share of the overseas oligopolistic ports in the region. If the maritime transportation cost of overseas oligopoly ports is too high compared with domestic oligopoly ports, it will offset the land transport advantages brought by international land–sea transport corridors. The findings in this paper could provide support for strategic decision making in port markets and cross-border transport corridor development.