Analysis of Competitive Position of Chinese Ports As Results of Non-Proximity Collaboration in the OBOR Period
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Erasmus University Rotterdam MSc in Maritime Economics and Logistics 2017/2018 Analysis of Competitive Position of Chinese Ports as Results of Non-proximity Collaboration in the OBOR Period by Guanjiabao Wen copyright © Guanjiabao Wen Acknowledgements The researcher wants to give thanks to all the persons that have supported a lot for this thesis. It is my honour to express my thanks. First, I would like to thank myself for full of passion and concentration to this study and finally finish the thesis successfully. To my family, I really appreciated that my father and mother support and believed me unconditionally. To my supervisor, Professor Dr. Elvira Haezendonck for guiding and helping me from the very start for the proposal until the completion of a thesis with her patience and rich knowledge. To my classmates, they companied me during whole thesis period; we encouraged and helped each other by updating the progress among our group. Especially Chen Yu, he inspired and taught me a lot with his rich working experience and precisian studying attitude. To MEL faculty, Renee, Felicia and Martha really did their best to help us with time management and thesis quality, which ensure most of us followed the thesis schedule. Last but not least, to my boyfriend, Chen Yichao for taking care of me during daily life, enable me to have a stable mental statue to deal with the pressure from the thesis. 1 Abstract Since the One Belt and One Road(OBOR) initiative was proposed by China’s president, Xi Jinping in 2013, China aims to create the world’s largest platform for economic cooperation. In 2015, the OBOR action plan was authorised by the State Council into two main components: The Silk Road Economic Belt and the 21st Century Maritime Silk Road. During the past decade, there are big changes regarding the geo-economic and geopolitical context for Chinese ports. Since 2013, the OBOR was launched, China positively promotes the international ports strategic alliance from different perspectives. Under the development background of Chinese OBOR, how the objectives, the structures, variations, and geography of non-proximity port collaboration related to the OBOR strategic view will be discussed in this thesis. To have a systematic overview, the Typology of collaboration strategies are applied. This research will also further explore that since OBOR started, how it influenced the competitive position of certain ports which are mainly involved in the international port collaboration. To attain the results of this part we chose Strategic Positioning Analysis as a research method since it can provide the related statistical information regarding recent change in the competitive position of diverse ports. Through the research, enable reader has a better insight into the influence of OBOR regarding the international ports collaboration of Chinese seaports system. Key Words: OBOR, Chinese Seapoorts, International Port Collaboration, Competitive Position 2 Table of Contents Acknowledgements ............................................................................................... 1 Abstract ................................................................................................................ 2 List of Tables ......................................................................................................... 5 List of Figures ....................................................................................................... 6 List of Abbreviations .............................................................................................. 8 1. Introduction ................................................................................................. 9 1.1 Research Scope and Objectives ........................................................... 10 1.2 Research Question and Sub-Research Questions ................................ 11 1.3 Research Design and Method ............................................................... 11 2. Literature Review ...................................................................................... 13 2.1 The strategic view of China OBOR initiatives ........................................ 13 2.2 China Port Governance ......................................................................... 16 2.3 Port Cooperation ................................................................................... 18 2.4 The recent development of Chinese international port cooperation ....... 21 2.5 Port Performance Benchmarking ........................................................... 28 3. Methodology ............................................................................................. 31 3.1 Introduction ........................................................................................... 31 3.2 Typology of collaboration strategies ....................................................... 31 3.3 Strategic Positioning Analysis ................................................................ 32 3.3.1 Product Portfolio Analysis ............................................................ 33 3.4 Research Scope .................................................................................... 34 4 Typology of Collaboration Strategies of Chinese seaports ........................ 35 4.1 China seaports inter-organisational relationships patterns ..................... 35 4.2 Typology analysis of Chinese seaports cross-border collaboration relationships .................................................................................................... 44 5 SPA of Guangzhou Port and Qingdao Port within OBOR period ............... 48 5.1 Introduction ........................................................................................... 48 5.2 Product Portfolio Analysis ...................................................................... 49 5.2.1 Guangzhou Port .......................................................................... 49 5.2.1.1 Portfolio of Ports for Total Traffic (Level 1) .................................. 50 5.2.1.2 Portfolio of Traffic Categories for Individual Seaports (Level 2) ... 51 5.2.1.3 Portfolio of Ports for Individual Traffic Categories (Level 3) ......... 52 5.2.1.4 Portfolio of Ports for Individual Traffic Categories, related to these Categories’ Share in Port Traffic and Share in the Range (Level 4) .......... 56 5.2.2 Qingdao Port ............................................................................... 59 5.2.2.1 Portfolio of Ports for Total Traffic (Level 1) .................................. 60 5.2.2.2 Portfolio of Traffic Categories for Individual Seaports (Level 2) ... 61 5.2.2.3 Portfolio of Ports for Individual Traffic Categories (Level 3) ......... 63 5.2.2.4 Portfolio of Ports for Individual Traffic Categories, related to these Categories’ Share in Port Traffic and Share in the Range (Level 4) .......... 66 3 Chapter 6 Conclusion ......................................................................................... 70 References ......................................................................................................... 73 4 List of Tables Table 1 Case with the model of investment or acquisition of Chinese seaport system. .................................................................................................... 25 Table 2 Case of modes of a strategic alliance between China and overseas. .. 27 Table 3 Illustrative case study of port performance scorecard ......................... 29 Table 4 Critical Performance Measures ........................................................... 30 Table 5 Categorization of collaboration objectives ........................................... 32 Table 6The classification matrix of ports based on Growth Rate and Market Share. ...................................................................................................... 34 Table 7 Categorization of collaboration objectives of Chinese Seaports .......... 36 Table 8 Inter-organizational relationships patterns recorded (Chinese Port management bodies) ............................................................................... 43 Table 9 Configuration of objectives patterns of selected seaports ................... 44 Table 10 PPA results comparable table ........................................................... 71 5 List of Figures Figure 1 The development of OBOR ................................................................. 9 Figure 2 FDI inflows, global and by a group of economies, 2015-2017 ............ 14 Figure 3 FDI inflows, top 20 host economies, 2016 and 2017 ......................... 15 Figure 4 Port performance scorecard .............................................................. 28 Figure 5 The methodology structure of the thesis ............................................ 31 Figure 6Configuration of Objectives pursued per port ...................................... 45 Figure 7Structure of collaboration relationships ............................................... 46 Figure 8 The geography of non-proximate ports collaboration (1).................... 47 Figure 9The geography of non-proximate ports collaboration (2)..................... 47 Figure 10Guangzhou port set portfolio of Ports with their Total Traffic in the selected range (2011-2012)-Weighted Analysis. ....................................... 50 Figure 11Guangzhou port set portfolio of Ports with their Total Traffic in the selected range (2015-2016)-Weighted Analysis ....................................... 50 Figure 12Traffic Structure of the Guangzhou