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Port Activities, Hinterland Congestion, and Optimal Government Policies The Role of Vertical Integration in Logistic Operations

De Borger, Bruno ; De Bruyne, Denis

Journal of transport economics and policy, 2011-05, Vol.45 (2), p.247-275 [Peer Reviewed Journal]

London: LSE and the University of Bath

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Title:
Port Activities, Hinterland Congestion, and Optimal Government Policies The Role of Vertical Integration in Logistic Operations
Author: De Borger, Bruno ; De Bruyne, Denis
Subjects: Business structures ; Economic policy ; Economic theory ; Fees ; Industrial market ; Logistics ; Motor vehicle traffic ; Port congestion ; Ports ; Sea transport ; Studies ; Tolls ; Traffic congestion ; Transport economics ; Transport infrastructure ; Transport planning ; Transport policy ; Transportation economics ; Trucking industry ; Vertical integration
Is Part Of: Journal of transport economics and policy, 2011-05, Vol.45 (2), p.247-275
Notes: (HE) Economics of Transport & Comm
0022-5258(20110501)45:2L.247;1-
ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
Description: We study the implications of vertical integration in logistics and transport operations for welfare-optimal port access charges and hinterland congestion tolls. We show that, first, vertical integration of terminal operators and transport firms does not affect the optimal congestion toll rule for the hinterland, but it does imply higher optimal port access charges. Second, the government not only has an incentive to promote competition between downstream firms, it may also be beneficial to approve of vertical mergers in the logistic chain. Third, the government's failure to respond to changes in industry market structure may have large welfare effects. Fourth, both under separation and integration, optimal port fees may imply subsidies if downstream firms enjoy a high degree of market power.
Publisher: London: LSE and the University of Bath
Language: English

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Port Activities, Hinterland Congestion, and Optimal Government Policies The Role of Vertical Integration in Logistic Operations

De Borger, Bruno ; De Bruyne, Denis

London: LSE and the University of Bath

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