An analysis of port congestion alleviation strategy based on system dynamics

Abstract

Port congestion has become a key factor restricting the international trade and economic development, especially during the COVID-19 epidemic. It is essential for the port to implement the effective alleviation strategies for handling the uncertain congestion. This paper aims to investigate the performance of the epidemic prevention alliance strategy (EPAS), shared berths strategy (SBS) around adjacent ports and their hybrid strategy in alleviating the port congestion. To simulate the effect of these three strategies, a system dynamics model of dual-port operation is developed considering the factors of the integrated service level of liner routes, empty container allocation, port congestion and regional economics, and so forth. The results indicate that the key issue of port congestion stems from the implementation of epidemic preventive measures. Among these three strategies, the hybrid strategy performs the best in alleviating the port congestion, improving integrated service levels, and curbing the fluctuation of container price. Moreover, the measures of investing more human resources and fixed assets are always taken in many current ports to alleviate the issue of port congestion. Therefore, the impacts of various investment in human resources and fixed assets on alleviating the port congestion are discussed. Finally, some suggestions are provided for the government to strengthen the cooperation between ports and promote the construction of port facility resources.