Challenges and opportunities for Southeast Asia's container ports throughout the COVID-19 pandemic

Abstract

The COVID-19 pandemic has had a profound impact on the Southeast Asian seaport system, with a decrease in container throughput and ship calls. However, the pandemic has also presented excellent opportunities for ports to increase competitiveness and market share, as some ports are weakened. This study will assess challenges and opportunities for container port development during the pandemic. The study analyses Southeast Asia's port system through three perspectives: market share gain/loss, changes in market concentration, and the relationship between market share gain/loss and efficiency. The study found that Vietnam and Malaysia's seaports have grown during the pandemic due to maintaining domestic production, increasing transportation demand, and changes in shipping routes. Moreover, small and medium-sized ports gain market share from larger ports, this leads to a decrease in the degree of concentration and shows their active participation in the regional transport network, providing more route options for shippers. The study also shows that while some seaports that gained market share were inefficient, some that lost market share were efficient due to the timely implementation of policies to cope with COVID-19. Finally, many ports are struggling to recover due to inadequate infrastructure, equipment, and low loading/unloading productivity, or facing unexpected risks.