Using coopetition to increase asset utilization and market coverage of dry ports

Abstract

Successful dry port operation requires a collaborative effort among the various stakeholders, including seaport authorities and seaport terminal operators, dry port operators, transport providers and shippers. Although these stakeholders operate independently and pursue their own objectives, collectively their activities can influence the overall network. The purpose of this research is to explore how such stakeholder activities affect the network, particularly through the lens of coopetition, which is an overlooked type of cooperation in the research on dry ports. Coopetition is a process whereby stakeholders collaborate horizontally with competitors in order to increase opportunities for all. The research in this paper is based on a case study methodology and identifies six coopetition activities which together address two objectives: improving resource utilization and navigating market dynamics. Resource utilization is improved by obtaining economies of scale and allowing short-term planning by rail asset sharing, as well as reducing costs by balancing flows and optimising empty container logistics. The overall market dynamics are improved by increasing awareness through joint marketing and lobbying, increasing volume in the network and system flexibility by optimising train schedules, and increasing capacity and quality of railway infrastructure via joint lobbying for infrastructure investment. Rail operators were found to be the stakeholder group most active in coopetition, while shippers faced internal management barriers to working with competitors.