increasing efficiency – increasing return on investment in mediterranean ports joint trade...
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Increasing efficiency – increasing return on investment in
Mediterranean PortsJoint Trade Conference
Parliamentary Assembly of the Mediterranean (PAM)and the
United Nations Trade and Productive Capacity ClusterHosted by UNECE and UNCTAD
Palais des Nations, Geneva, 4-5 May 2011
Vincent F. Valentine, Officer-in-Charge, Transport Section,
Division on Technology and Logistics, UNCTAD
World seaborne trade
• It is estimated that world seaborne trade by volume amounts to 77 per cent of total world trade. Some 16 per cent of world trade passes overland, 6.7 per cent through pipelines and only 0.3 via air[1].
Source: [1] Lloyds MIU (2007)
Port development
• Ports are a catalyst for trade development.– Well developed ports attract shippers and spur local
enterprises to export– Value added services (e.g. repackaging, engineering
and design, knowledge processing, light manufacturing and processing, warehousing and logistics) can be performed within ports or adjoining FTZ.
– Consolidation services (e.g.container stuffing) allow smaller exporters to group cargo
Challenge for ports: Growing customers
• In 2011 Maersk ordered 10 Malaccamax 18,000 TEU ships for delivery between 2013 and 2015 with an option to buy 20 more.
• 16% bigger and 20% more energy efficient
• Beam: 59 meters • Draught: 14.5 meters• Dwt: 165,000 metric tonnes• Reefer capacity: 600• Top speed: 23 knots
For video explanation: http://www.youtube.com/watch?v=z8f4ESIRK0o
Jebel Ali Port (United Arab Emirates)
Twin FEU
The port has 16 Tandem lift cranes
Average moves per hour > 60
Re-design of the quay side crane
• AMPT – Fastnet crane system said to double present handling capacity
• Cranes are suspended from the girders allowing them to deploy more cranes per vessel,
For video explanation: http://www.youtube.com/watch?v=zuQzwe8ZmYo
Super post-panamax cranes
• The latest container cranes with an outreach of 23 TEU cost around US$8million each
Global terminal operators have a monopoly of the largest cranes
• Global terminal operator control all the ship-to-shore gantry cranes with an outreach specification of 22 rows and above in the following regions:– Caribbean/Central America,– the Middle East,– South Asia and– South Europe
• In northern Europe only three out of 108 super post-panamax cranes are in non-global operator terminals.
Source: Drewry (2010) Annual Review of Global Container Terminal Operators
Public/private control of container terminals
(Million teu)
• The share of traffic moved by state-owned terminals – other than those controlled by state-backed global terminal operators – is declining.
• In 2002 - 22.4% • In 2009 - 20.5% • By 2015 - 19.5%
Source: Drewry (2010) Annual Review of Global Container Terminal Operators
World container port handling by region and ownership, 2008-2009
Source: Drewry (2010) Annual Review of Global Container Terminal Operators
Prerequisites for attracting international terminal operators
• A clean and transparent bidding process
• Quality and Capacity landside connections (multi-modal) and port infrastructure
• No Government cap on profits• Good safety and security
requirements
UNCTAD meeting on Globalization of Port Logistics: Opportunities and Challenges for Developing Countries, December 2007, Geneva
• A training and retrenchment of labour plan
• A clear role for the port authority (e.g. landlord model)
• Smooth customs procedures• Absence of corruption
Source: World Bank Port Toolkit
Aspects of Port Labor Potentially Affected by
Reform• Restrictions on which entities can offer services in the port• Reducing overstaffing• Rigid and outdated job descriptions and duties• Limitations on working hours and days• Inefficient overtime allocation at excessive wage rates• Hiring of port labor exclusively through the unions• Restrictions on output• Unsettled and combative workplace culture• Insufficient training and retraining opportunities• Lack of clear and meaningful productivity objectives• Inadequate occupational health and safety procedures
Ranking of Mediterranean Container ports(Millions of TEUs )
Source: Cargo Systems (2008) Top 100 Container ports and Containerisation International Online database 2011
DecreaseIncrease
2008 2010 Port 2008 2010
28 39 Gioia Tauro 3.45 2.8530 41 Algercias 3.41 2.8135 26 Valencia 3.00 4.2037 .. Istanbul 2.86 ..38 33 Port Said 2.82 3.4742 56 Barcelona 2.60 1.9460 50 Malta Freeport 1.90 2.3763 62 Genoa 1.86 1.7678 .. Pireaus 1.37 ..85 75 La Spezia 1.19 1.2986 76 Haifa 1.15 1.2694 88 Marseilles 1.00 0.9595 108 Alexandria 0.98 0.6696 77 Damietta 0.97 1.21
ThroughputRank2008 Ranking
Ports with Intra port competition
Intra Port Competition- Mediterranean Ports where global operators compete head-to-head
Source: Cargo Systems (2008) Top 100 Container ports and Drewry (2010) Annual Review of Global Container Terminal Operators
2008 Ranking
Ports with Intra port competition between global terminal operators
Port opportunities
Import /export port
Gioia Tauro
Dalian
logistics centre port
transshipment port
HKS’pore
Rotterdam
Source: UNESCAP (2005) Free Trade Zone and Port Hinterland Development, ST/ESCAP/2377.
Other issues to consider
• National transport systems need to be linked together with international trade networks.– Road and rail networks should extend into the
hinterland – National networks should extend to and
across national borders to regional networks (e.g. AH, TAR TEN-T)
– ICD should be situated at nodal points combining multimodal transport.
Recommendations to improve port performance
1. Reform labour laws governing port workers.
2. Seek public-private partnerships as a way to provide investment and increase productivity.
3. Make the process as transparent as possible and avoid excessive regulation.
Further information
• UNCTAD’s Trade Logistics Branch
www.unctad.org/ttl
• UNCTAD’s Review of Maritime Transport
www.unctad.org/rmt2010
• UNCTAD’s Port Training Programme
http://learn.unctad.org/