1. World Port Industry and its Role in Development of World Trade
Ports Transport &
Transit of Russia
2010
World Port Industry and its Role in Development of World Trade
Susumu Naruse
Secretary General, IAPH
The International Association of Ports & Harbors

2. Outline of Presentation
1. About IAPH: International Association for Port Authorities in the World 2. Financial Crisis and Container Transport 3. Ports & Globalization 1. Capacity Expansion 2. Logistics & Security 3. Environments 4. Global Issues and IAPH 5. Port Administration Models
IAPH

3. About IAPH (1) Foundation
Only international association of the world’s port authorities and maritime industries.
Established in 1955,
headquartered in Tokyo
Motto: World Peace through World Trade;
World Trade through World Ports
IAPH

4. About IAPH (2) Missions and Structure of IAPH
--to foster good relations and collaboration among all ports of the world
--to promote and increase the efficiency of ports
--to facilitate the formulation of common positions and policies of ports
--to promote favorable publicity of all port affairs
Members of IAPH
--The major members are port authorities.
--Regular members cover over 200 ports in some 90 countries, who handle nearly 80% of the world container traffic
Regional Principle
--Three vice-presidents are elected from 3 regions (Asia/Oceania, Europe/Africa, and Americas), and the president is basically elected in rotation of the 3 regions from among these vice presidents.
Consultative Status
--IAPH is given a Consultative Status as NGO from the UN organizations such as IMO, UNCTAD, UNEP and ILO.

5. About IAPH (3) Activities
Networking & sharing best practices
IAPH World Ports Conference, seminars, etc
Representing the world’s ports internationally
Consultative NGO status
Studying & tackling common port issues
Technical Committees, etc
Developing human resources
IAPH training scholarship,
essay contest, etc.
IAPH

6. Financial Crisis and Ports (1) Financial Crisis vs
Financial Crisis and Ports (1) Financial Crisis vs. Container Throughput
Port (world ranking)
2009 (mil TEU)
% Change (2009/2008)
Singapore (1)
25.9
-14%
Shanghai (2)
25.0
-11%
Hong Kong (3)
21.0
Busan (5)
12.0
Dubai (7)
11.1
-6%
Rotterdam (10)
9.7
-10%
Hamburger (15)
7.0
-28%
Los Angeles (16)
6.7
Long Beach (18)
5.1
-22%
Tokyo (27)
3.8
-9%
Sydney (59)
1.8
-3%
St Petersburg (73)
1.3
-32%
Tanger Med (81)
1.2
+36%
Total of top
120 ports
399.2
World economy contracted by 0.5% in (GDP decreased by 0.5%)
International trade also contracted to a great degree.
Container transport has experienced decrease (about 10%) for the first time in its over 60 year history.
Degrees of decrease differ from region to region, and from port to port.
The table shows information cited from “World Top Container Ports 2010” by “Container Management”
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7. Financial Crisis and Ports (2) Outlook for 2010
IMF projected this year’s economic growth rate of 4.5%.
Applying a usual coefficient of elasticity (growth rate of container trade/growth rate of economy) 2 or 2.5, it may be expected that the global container throughput as a whole would increase by approximately 10%.
This means that the level of throughput in 2010 might reach almost the same level of 2008.
All of this depends on how the economy will bounce back again (no currency crisis, etc.).
Of course, the situation differs from region (port) to region (port).
IAPH

8. Financial Crisis and Ports (3) Recovery from Crisis
Some signs of recovery in port throughput were able to be observed from the middle of 2009.
Almost all the major container ports in the world showed recovery in the first half of 2010.
Table shows growth rates of the first half of 2010 over 2009 of the major container ports in each region.
They fall into the range of 15 to 20% with some exceptions.
Port
Growth Rate (2010/2009)
Singapore
+14%
Hong Kong
+15%
Busan
+23%
Los Angeles
Long Beach
+20%
Rotterdam
+18%
Hamburg
+3.7%
Antwerp
+16%
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9. Capacity Expansion(1) Key to increase Capacity
Expanding port capacity based on long range planning
Improving port productivity based on strategic programs for port operations
Strengthening in-house capabilities on port engineering, port planning and port economics
Learning lessons of other ports
Developing its own approaches rather than copying others’ or traditional models
IAPH

10. Capacity Expansion(2) Infrastructure Development
Large-scale expansion
projects, new or
re-development
huge investment
space limitation
environmental
restrictions
IAPH

11. Logistics & Security (1) Logistics
Globalization and Ports
Meeting needs for supply chain management
Dealing with super-giant customers/partners
Ensuring port contribution to local economy
Evolution of new port strategy
“interface between maritime transport & land transport”
“hub of seamless logistics chain”
“logistics value-creator or value-adder”
IAPH

12. Logistics & Security (2) Port Security
SOLAS Con. ISPS Code (July 1st 2004~)
exercises & drills, self-auditing,
awareness improvement
Supply chain security
WCO SAFE standards
introduction of AEO and mutual recognition
US Act: 100% container scanning
IAPH

13. Port Environments Ship emission control Port clean air program
MARPOL Annex VI
SECA to ECA
Port clean air program
to provide onshore power supply
to introduce energy-efficient handling gears
to use low-sulphur oil
to use rail and water transport for hinterland connection (avoid using trucks or road)
Dumping of dredged materials
London Convention, 1972
waste management assessment
Ballast water problems
invasion of harmful organizations in ballast
water into marine environment in/around ports
Ballast Water Management Convention, 2004
Port reception facilities for ship waste
MARPOL requirements, guidelines 2000
IMO Action Plan to tackle inadequacy
IAPH

14. Global Issues and IAPH (1) Key Issues being tackled by IAPH
Economic Downturn and Port Development
Position of IAPH: Ports have to continue to be prepared for the future demand by developing necessary port infrastructure.
Safety and Security
Position of IAPH: We advocate AEO (Authorized Economic Operators) programs and strongly condemn piracy and urges the governments to ratify the related international conventions.
Supply Chain Logistics
Position of IAPH: Ports improve supply chain logistics by providing better intermodal connection (rail and short sea shipping) and developing dry ports and other necessary infrastructure.
Ports and Cities
Position of IAPH: As ports need to co-habit with cities, necessary measures should be taken when developing port infrastructure.
Environment Issues (Climate Change)
Position of IAPH: Ports need to minimize environmental impacts associated with port activities and at the same time ports themselves need to adapt to climate change.

15. Global Issues and IAPH (2) Ports and Climate Change
WPCI (World Ports Climate Initiative) was created under the umbrella of IAPH in 2008.
Six (6) projects were set up.
--Carbon Footprinting
--Intermodal Transport
--Lease Agreement Template
--Cargo-handling Equipment
--Environmental Ship Index
--On-shore Power Supply
Some projects have already yielded certain outcomes.

16. Global Issues and IAPH (3) On Shore Power Supply
On-shore power supply is a system to provide electricity from the local grid to ships to meet their power demand.
As some ports have already taken this measures (US West Coast and Northern Europe), interest in the technology is rapidly growing.
With this OPS website, the users can carry out an initial feasibility study to introduce OPS in their own ports.

17. Port Administration Models (1) -- Definition by the World Bank --
--- Public Service Port
The public authority takes almost all the responsibilities of port activities. The most classical model.
--- Tool Port
The public authority provides almost all the necessary infra & super structure.
--- Landlord Port
The public authority owns infrastructure of a port but port operation is carried out by the private sector. This is the currently most popular model.
--- Private Service Port
The private sector takes almost all the responsibilities of a port.

18. Port Administration Models (2) Responsibilities of Public & Private
Super
Cargo
Pilotage
Other
Type
Administration
Infrastructure
Structure
Operation
Towage
Functions
Public
Service
Tool
Landlord
Private
Public Responsibilty
Private Responsibility
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19. Port Administration Models (3)
Russia needs to seek its own efficient management system by considering its historical and social backgrounds.
From international perspectives, it may be safe to say “Landlord” model is the best administrative model which can be applied to most countries.
“Landlord” model has a great advantage in terms of a legal aspect because it strictly divides the roles of “Regulators” and “Operators” of ports.
Having said that, there are many exceptions in the world such as ports in UK and PSA, which have shown good performance.
You can learn a lot of first-hand experience of other leading ports in the world b actively participating in IAPH events and committees.
IAPH

20. Let’s work together with IAPH
Come and join us !
27th IAPH World Ports
Conference
Busan, Korea
23-27 May 2011
IAPH Head Office,Tokyo
IAPH