Application of geoeconomics in seaport operations: a theoretical proposal for post Covid-19 recovery strategy

Abstract

Johor Port and Port of Tanjung Pelepas (PTP) are two adjacent seaports act as backbone of the Malaysian international trade and economy. The probability of these seaports catering the same client is very high and may cause overlapping in the hinterland area. This will further result in the waste of resources, congestion in traffic and reducing the competitiveness of seaports. The situation worsened during Covid-19 outbreak as these two seaports faced issues related to capacity and efficiency. This paper employs geoeconomics concept to assist these seaports to design a post Covid-19 recovery plan for these seaports via temporal, spatial and policy taxonomies. An explanatory sequential mixed method design has been employed to meet aims of the paper. The results show that hinterlands in the Southern region are important as production centres, providing logistics efficiency and improving the connectivity. Given the importance of service recovery to continue patronage of these seaports among customers, revitalising 4th industrial revolution and materialising inland capacity are additional post Covid-19 recovery strategies for improved seaport performance from a policy and spatial taxonomies.

Seaports during the COVID-19 Pandemic: The Terminal Operators’ Tactical Responses to Disruptions in Maritime Supply Chains

“…Our research study has also confirmed the impact of the COVID-19 pandemic on changes in handling the seaport hinterland transport [48]. Additionally, we found that the problems encountered by road transport operators at border crossings during the pandemic as well as decreased passenger traffic in the railway infrastructure increased the attractiveness of rail transport on the routes to/from the hinterland.…”

“…Depellegrin et al [47] indicated a negative impact of progressive lockdown restrictions connected with the COVID-19 pandemic on the ship traffic frequency and cargo handling at ports. Jeevan et al [48] identified a negative impact of the COVID-19 pandemic which deepened the problems faced by seaports as a result of overlapping in the hinterland area. Van den Oord et al [49] analysed the influence of the pandemic on the management of seaports as organizational networks.…”

“…The studies suggest the need to ensure a universal approach to establish protocols and best practices to counteract the spreading of COVID-19, and to introduce strict financial sanctions in case of infringing the established principles. Jeevan et al [48] also concluded that seaport policy and management during the COVID-19 pandemic and afterwards should take into account improvement of the hinterland transport infrastructure, especially rail transport. Zhang et al [56] in addition to strengthening the overseas port policy, also pointed to measures such as port linking tracking, avoiding ship charter disputes and legal risks, improving the system of prevention and control of cruise ships, and promoting the development of smart ports and smart shipping.…”

“…The preliminary research regarding the condition of selected port companies functioning in the seaports of Poland and Ukraine were conducted by Pluci ński et al [68]. Depellegrin et al [47] Jeevan et al [48] Russell et al [50] Donnan et al [51] Notteboom et al [52] Zhang et al [56].…”

Revisiting the marketing approach between seaports and dry ports in Malaysia: current trend and strategy for improvement

“…The main problem currently faced by the seaport is its very competitive environment (Jeevan et al, 2020). The seaport faces difficult times because of its former monopolistic market captive position.…”