Study On The Port Investing Behavior Considering Generalized Port City Benefit

Since China’s reform and opening up, there have been great changes in China’s port industry. The corresponding governance system has been through three development stages:centralization, semi-decentralization and decentralization. After the decentralization, the previous port organizations were split into two parts: administrations and corporations. China’s port industry under the supervision of the government, regulated by the market mechanism, significantly enhanced its efficiency.With the development of economy in China, the trade requirements growth constantly. As a point on a regional transport network, a port have an innate advantage to attract capital. The development of port industry can not only improve a city’s transportation capacity, but also can heighten urban charm and overall strength. The enthusiasm in developing port industry surged ahead on account of the stimulus, while many cities put forward to a slogan "booming city by developing port". The government’s support on ports construction so that the scale of port keep expanding. The world’s top 10 ports included 7Chinese ports. However, many port cities have proposed and implemented some projects that are more oriented to the local economies but may not be the best from a regional or national perspective because of the decentralization. The result of ports dense distribution and hinterlands overlap in China, which brought about the homogenization of competition around the ports group in the Bohai sea.This paper used a combined method of theoretical analysis and Simulation. In terms of Chinese ports characteristics, making theoretical analysis about internal results of ports construction and competitive model which result of the stimulation of local government. A bi level planning model is established according to the relationship of ports logistic supply and demand, whose lower model, a classification model of traffic means, is about the owners’ random selection of ports. Objective function of the upper layer is based on the best interests of port cities. A critical point of ports investment was simulated through saga GIS simulation.