A new wine in new wineskins: unfolding dimension of port-hinterland connectivity and market shares

Abstract

ABSTRACT The increasing globalization of trade has expanded the business boundaries of ports beyond their traditional port areas, extending into the hinterland. Effective and efficient connectivity between port and hinterland has become a pivotal factor in determining a port's competitiveness. To enhance hinterland connectivity, ports are encouraged to extend their intermodal networks into distant hinterland markets, aiming to increase their market shares from the hinterland. It has been traditionally argued that extending an intermodal network to the hinterland gives ports a competitive advantage over their rivals in increasing market shares. In recent years, a new dimension of port-hinterland connectivity has emerged: that is, ports are not only expanding their intermodal networks but also striving to integrate inland logistics centers to varying degrees. This integration varies by port, resulting in different hinterland connectivity configurations as ports strive to increase their market shares from the hinterland. The extension of intermodal networks into the hinterland has long been seen as a competitive advantage for ports, enabling them to secure a larger market share compared to rivals. This leads us to explore the issue of 'port-hinterland connectivity' from a unique perspective, considering both 'port-hinterland connectivity' and 'port market shares.' This paper aims to comprehensively discuss related conceptual and theoretical aspects associated (in)directly with these concepts. To achieve this, we conduct a comprehensive literature review, incorporating recent developments in the field. Subsequently, we establish a conceptual framework for port hinterland and port-hinterland connectivity, with a primary focus on container ports. This framework can serve as a foundational basis for future empirical investigations in this field and could provide stakeholders with insight into the mixed dynamics of these two concepts.