Optimum cooperation strategy for different cooperative motivations: a case study of the Kobe and Osaka ports

Abstract

ABSTRACT Developing cooperative relationships between neighboring ports has emerged as an effective strategy for enhancing overall productivity. Two key factors to consider in such collaborations are: cooperative motivation (which drives the decision to cooperate between ports) and cooperation type (which defines the business scope of collaborative activities). Cooperative motivation can be categorized into regional welfare and competition, while cooperation type encompasses activities related to hinterland access and terminal management. This study aims to determine the most optimal types of cooperation based on different motivations. To achieve this, a bi-level optimization model was developed to analyze the relationship between shippers and ports, specifically focusing on the cooperation between the Kobe and Osaka ports. Competition with the Busan port was examined as a case study to provide a comprehensive understanding of the dynamics involved. The findings revealed that cooperation plays a crucial role in enhancing regional welfare for both North American and Southeast Asian cargo, particularly when cooperation levels are relatively low. Furthermore, it was observed that an effective cooperative strategy for competition in the Kobe and Osaka ports is contingent upon specific conditions. Hence, for successful competition-based cooperation, careful consideration of market dynamics and prevailing circumstances is essential.