Latest challenges to ports in public-private partnership: Case of Dandong Port (China)'s bankruptcy

Abstract

The investment environment in port infrastructure appeared fluctuating in recent years, which threw more uncertainties and challenges in port Public-Private Partnership (PPP). Among ports in PPP, Dandong Port is the first case for port bankruptcy in China. In this contribution, the Interpretative Structural Model (ISM) is employed to investigate why the bankruptcy of Dandong Port happened and analyze the causes from different perspectives. The ISM-based model interprets the interrelationships among those causes and their positions in the structural hierarchy from high- to low-level. Results reveal that: (i) these factors ( i.e. the economy slowing down in the hinterland, ambitious port plan of local government and unprofessional top management) were the most direct factors to Dandong Port’s bankruptcy; (ii) these factors ( i.e. the economy slowing down in the hinterland, ambitious port plan of local government and unprofessional top management) were the most fundamental causes to this failure; (iii) these factors ( i.e. the ambitious port plan of local government, inappropriate strategic positioning, continuous expansion in port investment and unprofessional top management) were the most core causes for this collapse. Findings provide lessons to be learned from the bankruptcy for port PPP and offer managerial insight into port management policy.