The “Boxed In” Hinterland

The “Boxed In” Hinterland

Geopolitical considerations have incited the setting of national hinterlands that are not necessarily natural hinterlands, implying that several ports are “boxed in”. The “boxed-in” effect concerns a port that could, in theory, have access to a larger hinterland simply from a distance-based perspective (accessibility). Still, this hinterland access is constrained by the dual impacts of limited corridor development and the additional friction imposed by borders. So countries may have restrictions on using a specific gateway for their national cargoes. This creates accessibility and market distortions, particularly at border crossings, further challenging port development.