Competition, market concentration, and relative efficiency of major container ports in Southeast Asia

Nguyen, Phong Nha, Woo, Suhan, Beresford, Anthony ORCID: https://orcid.org/0000-0001-5368-2752 and Pettit, Stephen ORCID: https://orcid.org/0000-0001-7265-4079 2020. Competition, market concentration, and relative efficiency of major container ports in Southeast Asia. Journal of Transport Geography 83 , 102653. 10.1016/j.jtrangeo.2020.102653

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Abstract

This study aims at investigating the degree of market concentration of container ports in Southeast Asia and to associate the concentration tendency with efficient container operations. While Singapore is the busiest container port in the region, its premier position is threatened by the emergence of other container ports in neighbouring countries. Major top ten container ports in Southeast Asia are included in the analysis, and market concentration is evaluated using established measures and analytical techniques such as the Hirschman-Herfindahl Index (HHI), Gini coefficient, and shift-share analysis from 2007 to 2017. A super-efficiency model is then applied to the ports to investigate the association between shift effects and port efficiency. The HHI index indicates that the container port system in Southeast Asia has become ‘moderately concentrated’ with a score of 0.21 in 2017, contrasting with an index of 0.27 in 2007 suggesting it was ‘highly concentrated’ indicating a tendency towards de-concentration. ‘Super efficiency DEA’ results suggest that Laem Chabang and Singapore ports are ‘efficient’ exhibiting efficiency scores higher than one, while the other eight ports are ‘less efficient’. It is also found from the association of the net-shift effects and efficiency scores that Laem Chabang is the only port that is efficient and gaining market share, and, more importantly, and perhaps surprisingly, the ports gaining market share are ‘inefficient’. This study contributes to the literature not only by investigating the concentration tendency of the fast growing container port system of Southeast Asia, but also by associating efficiency evaluations with the market concentration.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Publisher:	Elsevier
ISSN:	0966-6923
Date of First Compliant Deposit:	20 January 2020
Date of Acceptance:	14 January 2020
Last Modified:	07 Nov 2023 02:59
URI:	https://orca.cardiff.ac.uk/id/eprint/128542

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