Maritime Infrastructure Development and Its Impact on SME Growth in Coastal Regions

Authors

  • Zahid Hameed Research Scholar, Netherlands Maritime University College, Malaysia Author
  • Syed Waqar Hasan Zaidi Deputy Vice Chancellor, Netherlands Maritime University College, Malaysia Author

DOI:

https://doi.org/10.71317/kjard.2.8.2026.361

Keywords:

maritime infrastructure, ports, small and medium-sized enterprises, coastal regions, regional development, port connectivity, logistics, hinterland, maritime policy

Abstract

Maritime infrastructure is increasingly viewed not simply as transport capital but as a platform connecting coastal economies to domestic and international production networks. Yet the extent to which port and maritime infrastructure development translates into growth of small and medium-sized enterprises (SMEs) remains insufficiently understood. This paper examines the relationship between maritime infrastructure development and SME growth in coastal regions through a structured integrative review of peer-reviewed literature published through 2026. Particular attention is given to recent evidence on port connectivity, port–hinterland integration, port-industry-city development, regional economic spillovers, resilience, logistics performance and firm-level market access. The synthesis identifies five principal transmission mechanisms: reductions in logistics and transaction costs; expansion of domestic and international market access; formation of industrial and service clusters; improvements in productivity, employment and investment; and integration of SMEs into maritime and global value chains. The findings indicate that port development can generate substantial regional economic opportunities, but infrastructure investment alone is insufficient to ensure broad-based SME growth. Benefits depend on the quality of hinterland transport, digital and customs systems, human capital, access to finance, local supplier capabilities and institutional coordination. Moreover, improved maritime connectivity may generate uneven spatial outcomes, stronger competitive pressures, land-use conflicts and exposure to disruption when coastal economies become dependent on a narrow set of ports or trade routes. The paper consequently proposes a shift from a port-expansion paradigm toward an SME-inclusive coastal development framework in which maritime infrastructure is integrated with local enterprise policy, logistics digitalisation, supplier-development programmes, resilient hinterland networks and environmental safeguards. The analysis contributes to maritime policy research by connecting the traditionally macro-level literature on ports and regional development with the firm-level literature on SME competitiveness and market access.

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Published

2026-08-10

How to Cite

Zahid Hameed, & Syed Waqar Hasan Zaidi. (2026). Maritime Infrastructure Development and Its Impact on SME Growth in Coastal Regions. Kashmir Journal of Academic Research and Development, 2(8), 141-154. https://doi.org/10.71317/kjard.2.8.2026.361