Conditions Supporting Market Power of Port Service Providers

Conditions Supporting Market Power of Port Service Providers

Source: Adapted from: De Langen P.W. and Pallis A.A. (2006). The benefits of intra-port competition. International Journal of Transport Economics, 33(1), 69-85.

The figure summarises the conditions under which port service providers enjoy excess market power and can extract economic rents. The introduction of intra-port competition is essential to maintain or improve the competitiveness of a port.