The Influence of Port Management Exclusivity Contracts on Regional Supply Chain Stability
Author(s): Haroon Rashid
Publication #: 2412014
Date of Publication: 05.10.2020
Country: Dubai, UAE
Pages: 1-10
Published In: Volume 6 Issue 5 October-2020
DOI: https://doi.org/10.5281/zenodo.14282066
Abstract
The contracts between a port management entity and given stakeholders have developed into a fundamental strategy that drives regional supply chains. Such contracts confer exclusive rights on terminal operations, cargo handling, or shipping routes and thus have wide-ranging implications for regional supply chain stability and efficiency. While a contract in such cases can enhance predictability of operability, ease logistic handling, and even stimulate economic growth, attracting investment that allows large-scale manufacturing operations to depend on assured port services, it also entails other risks: lessening of market competition, possible monopolistic tendencies, over dependency on one port or service provider, thus disrupting supply chains in cases of breach of contracts, natural catastrophes, or geopolitical conflicts. However, the exclusivity agreements would also mean a number of ramifications for manufacturing operations alone-from cost optimization opportunities through streamlined processes to exposing vulnerabilities because of restricted flexibility and access to alternative trade routes. This article evaluates the many faces of exclusivity contracts' impact on supply chain stakeholders in the developing world and presents case studies from high-manufacturing-activity regions. It interestingly develops a balanced perspective on the benefits and challenges that exclusivity contracts create for port management policies, manufacturing supply chains, and regional trade networks by drawing lessons to be shared with policymakers, port authorities, and industry leaders for resilient and equitable supply chain practices.
Keywords: Port Management, Exclusivity Contracts, Regional Supply Chain, Supply Chain Stability, Logistics, Manufacturing Operations, Economic Growth, Market competition, Trade Networks, Policy Implications
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