New canal construction and marine emissions strategy: a case of Pinglu

Abstract

As an important component of new western land-sea corridor, the construction of Pinglu Canal will effectively alleviated waiting time and congestion costs and enhance the reliability and resilience of the regional maritime transport network in the post-pandemic era in particular. From the perspective of competition and cooperation game, this paper investigates typical transportation routes from the port of Jakarta in Indonesia to the port of Nanning in China from the key factors of the changes in freight volume and the evolution of profits and subsidies, considering local government subsidies, environmental costs, marine emissions and other critical factors. The results demonstrated that in the centralized strategies adopted by two transport route operators, as the volume of goods transported through Pinglu Canal increased, so the corresponding profits increased. The increase in subsidies also contributed to generating the volume of freight through Pinglu Canal, but the social welfare under the decentralized strategy adopted by both transport route operators was more effective than that of the centralized strategy.