Port Automation and Risks

This paper examines how automation in the maritime industry, exemplified by Singapore's Tuas Port, drives market concentration in the Southeast Asian transshipment market. Using the Structure–Conduct–Performance framework, it analyzes the operational and structural advantages of automation—such as economies of scale, network externalities, and enhanced efficiency—which confer market power on dominant ports. The study finds that automation leads to a highly concentrated market, allowing Singapore's port to charge higher prices, resulting in allocative inefficiency and welfare loss. The paper recommends policy interventions to mitigate these negative impacts while preserving efficiency gains.

Title

Port Automation and Risks

Category

social-science

Keywords

port automation, market concentration, market power, Singapore port, transshipment hub, welfare loss

Organization

Beijing Huijia Private School