Using dry ports for port co-opetition: the case of Adriatic ports

This paper explores the use of dry ports as a tool of both inter-port competition and potential co-opetition. The case examined is of hinterland access to central Europe by Adriatic ports, an area that is mostly served by North European ports despite a much shorter sailing distance from Asian to Adriatic ports. A port choice model based on preference rates is presented to determine the trade-off between subjective port choice preference and transport distance using linear programming and analytic hierarchy process. The model investigates the gap between truly captive and competitive hinterland. Results suggest that individual dry ports established by individual Adriatic ports make only a small difference but a combined dry port could enable them to capture some of the hinterland from Northern ports, not only by reducing transport costs but also by improving the PR due to the provision of better access and facilities.