A game theoretic approach to analyzing container transshipment port competition

Abstract

This thesis investigates the competition between transshipment container ports and aims to develop the model that can capture the trends in transshipment container port competition and behaviours of key players, ports and shipping lines, in their decision making. Studying industrial events and relevant literatures led us to choose the key factors such as port capacity, price, congestion and transshipment level. Multiple functions are created to examine the interdependency among shipping lines when determining port demand. With a linear transshipment container demand, it is able to achieve analytical properties through a two-stage game approach. Considering a nonlinear transshipment container demand in the model, it results in Multiple Nash equilibria in shipping lines? port call decision. Asymmetric shipping lines are also studied in the model for investigating their demand driving forces. Overall, this thesis addresses the characteristics of transshipment container demand and shipping lines? port call decision towards transshipment benefit and congestion-associated effect.