Abstract
Hong Kong is an international port heavily influenced by the ‘active non-interventionist’ policy and, until very recently, segregated from China's national/regional planning due to its special political and economic status. However, the port is now facing considerable challenges, notably increased trade between China and overseas markets, challenges from neighbouring ports, notably Shenzhen and Guangzhou, the increasing importance of intra-Asian trade and the economic turmoil in 2008, which accelerated the industrial transformation of the Pearl River Delta (PRD) in South China. Hence, Hong Kong is compelled to undergo strategic changes, notably its gradual integration into China's national and regional planning, and to integrate itself within the PRD so as to establish a system with different PRD ports that is functionally complementary to each other. How such a newly developed regional port cluster should develop, notably the division of responsibilities of cargo flows between Hong Kong and other PRD ports, however, is still rather ambiguous. By developing a game theory model and calibrated on the basis of the PRD context, this article investigates the factors and conditions affecting regional port governance in South China, notably alliance formation for ports serving partially overlapping hinterlands. This article serves as an important step in developing an effective, fully integrated regional transportation system within the PRD, and to help it to become an efficient logistics hub in the Asia-Pacific region.
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Notes
For a more detailed analysis of the impacts of institutions on port operation and management, see Ng and Pallis (2010) and Tongzon and Ng (2011).
We adopted the THC set by CSAV shipping line, assuming that the THC charged by a shipping line to its shippers can largely reflect the port service levied by the port to the shipping line.
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Acknowledgements
Adolf K.Y. Ng was supported by the Hong Kong Research Grant Council (project code: A-PL60). Xiaowen Fu was supported by the Hong Kong Research Grant Council (project code: A-PK01). The authors would like to thank the reviewers in providing useful advice. Usual disclaimers apply.
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Wang, K., Ng, A., Lam, J. et al. Cooperation or competition? Factors and conditions affecting regional port governance in South China. Marit Econ Logist 14, 386–408 (2012). https://doi.org/10.1057/mel.2012.13
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DOI: https://doi.org/10.1057/mel.2012.13