ABSTRACT
Intra-port competition refers to the presence of two or more firms competing to provide the same services in the same port complex. Intra-port competition is beneficial for the competitiveness of ports, local and national economies, and consumers and exporting industries. Intra-port competition suppresses monopolistic market power and, thus, economic rent-seeking by port service providers. Economic rents in seaports consist of the savings on the generalized transport cost that the use of a port offers over the next best available routing. Intra-port competition fosters specialization, innovation, and diversity in the provision of port services. It is, in principle, competition on a level playing field. Competitors face cost curves that are similar and operate within the same regulatory framework, labor market conditions, trade costs, and supplier bases. The Minimum Efficient Scale is the smallest terminal provider scale at which output can be produced at a minimum average long-run cost under the assumption that the terminal is operating with a given technology.
