Spatial competition and complementarity in European port regions

- A spatial econometric framework is proposed for analyzing port competition.
- Competition is found to be strongest in northern European countries and lowest in Mediterranean countries.
- The role of port governance as a factor of influence is discussed.

The purpose of this study is to investigate whether inter-port relationships in European container shipping are characterized primarily by competition or complementarity, and to what extent this differs between major port regions. Utilizing a set of spatial dependence model specifications and quarterly container throughput data for 92 European ports in five regions between 2000 and 2014, it is found that the nature of inter-port relationships tend to differ between major port regions. While the Hamburg-Le Havre region is characterized mostly by competition, ports in the Mediterranean region are found to be complementary with regard to demand.