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A Study on the Optimal Concession Contract Decision Model between Port Authority and Terminal Operators  

Ashurov, Abdulaziz (한국해양대학교 무역학과)
Kim, Jae-Bong (한국해양대학교 국제무역경제학부)
Publication Information
Journal of Korea Port Economic Association / v.35, no.3, 2019 , pp. 1-18 More about this Journal
Abstract
The competition between port authorities (PAs) and terminal operating companies (TOCs) in providing port logistics services has gained importance. The PAs enter into leasing contracts with TOCs in various ways. This study aims to model a contract method that maximizes the joint profit between a PA and a TOC. Particularly, this study aims to model the equilibrium by comparing four types of contract schemes in the non-coordination, cooperation, Cournot, and collusion models. The results of the analysis show that the two-part tariff scheme generates a higher joint profit than the fixed and fee contracts. It is understood that risk- and profit-sharing between the PAs and TOCs helps the latter to maximize the throughput and the joint profit. These results are expected to provide an important theoretical basis for decision-making about port rent and freight between the PAs and TOCs.
Keywords
Port marketing; channel coordination; joint-profit; freight rate decision;
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