Economic impact of port disruptions on industry clusters: A case study of Shenzhen

Seaport operations are highly important for industries as they rely heavily on imports and exports. A necessary consideration of the port risks is essential to govern the normal running of the seaborne transportation and thus the industrial economies. Trade facilitators, such as ports, will disrupt the smooth flow of supply chains for the industries when a breakdown occurs. The estimation of the economic loss in the industry associated with the port disruption is a challenging task as the relationship between the port and industry clusters is complex. This study aims to examine the existing tools which are in place for the purpose of estimating the risks to industry clusters due to port disruptions. Based on the major limitations of these tools, the study also aims to develop an original approach to address the limitations. This study develops a statistical approach with an integrated Petri Net analysis for the risk assessment in Shenzhen. Recommendations for risk management will be drawn accordingly.