ABSTRACT
Competition between sea ports is inherently different from that between branches of the transport industry. Whereas in competition in inland transport the demand is mainly influenced by productivity and price it is the attractiveness of the port which, apart from numerous other factors, influences the volume of traffic. The sea ports consequently occupy an intermediate position between inland transport which is capable of coordination and the elements of competition in shipping on the high seas which is essentially governed by private agreements. Competition between sea ports is largely also politically influenced in view of the fact that the competitive position of national ports is frequently artificially improved by government measures. Import and export trade as well as goods handling via the German sea ports, for instance, are exempt from turnover-tax. Given otherwise equal conditions the natural geographical limits of the area in and around a sea port are influenced by the level of costs of transport in inland traffic.
