Research In Competitive Strategy Of Ferry Service For Qiongzhou Straits

Qiongzhou Strait is an important channel for the sea logistics and passenger flow, which connect with Hainan Island and Mainland. Since Hainan became China’s youngest province and largest special economic zone, the Qiongzhou Strait ferry transportation service operated by one company to two companies.Especially with the involvement of the train ferry, the ferry transportation market competition in the Qiongzhou Strait becomes more and more intense. In order to seek the maximize economic benefits, each ferry transportation company has taken improper competitive strategy to compete in the ferry transportation business. Which lead to the economic, social benefits extremely low. In order to standardize the Qiongzhou Strait ferry transportation market competition, the Ministry of Transport let all the ferries run according to the rotating schedule system starting in September 1, 2013.In this context, firstly, this paper will study some domestic and foreign related papers about shipping simulation model, the economic,social benefits evaluation of ferry services and competing game theory. Based on a large amount of research, to more in-depth research the content, so secondly understand the present situation and the operations of the ferry transportation service in the Qiongzhou Strait.Thirdly, Using the simulation modeling to analyse and identify difficulties in the ferry transportation system. Simulation on the impact of the ferry transportation service and give some suggestions when the new port and the bridge/tunnel is completed.Finally, with the application of the game theory in analyzing the participants’ bidding behavior in the ferry transportation market. Then build the appropriate game model for competitive game analysis.The research results in this paper will help to find the source of ferry transportation congestion and understand the cause of unfair competition between the ferry transportation companies, Which will help to improve the economic, social benefits of ferry transportation services. Also can give some suggestions to the port management department, maintain and support the long-term, effective operation of the ferry service in the Qiongzhou Strait.