Presentation on theme: "World Port Industry and its Role in Development of World Trade"— Presentation transcript:
1World Port Industry and its Role in Development of World Trade Ports Transport &Transit of Russia2010World Port Industry and its Role in Development of World TradeSusumu NaruseSecretary General, IAPHThe International Association of Ports & Harbors
2Outline 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 ModelsIAPH
3About IAPH (1) Foundation Only international association of the world’s port authorities and maritime industries.Established in 1955,headquartered in TokyoMotto: World Peace through World Trade;World Trade through World PortsIAPH
4About 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 affairsMembers 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 trafficRegional 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.
5About IAPH (3) Activities Networking & sharing best practicesIAPH World Ports Conference, seminars, etcRepresenting the world’s ports internationallyConsultative NGO statusStudying & tackling common port issuesTechnical Committees, etcDeveloping human resourcesIAPH training scholarship,essay contest, etc.IAPH
6Financial Crisis and Ports (1) Financial Crisis vs Financial Crisis and Ports (1) Financial Crisis vs. Container ThroughputPort (world ranking)2009 (mil TEU)% Change (2009/2008)Singapore (1)25.9-14%Shanghai (2)25.0-11%Hong Kong (3)21.0Busan (5)12.0Dubai (7)11.1-6%Rotterdam (10)9.7-10%Hamburger (15)7.0-28%Los Angeles (16)6.7Long 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 top120 ports399.2World 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”IAPH
7Financial 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
8Financial 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.PortGrowth Rate (2010/2009)Singapore+14%Hong Kong+15%Busan+23%Los AngelesLong Beach+20%Rotterdam+18%Hamburg+3.7%Antwerp+16%IAPH
9Capacity Expansion(1) Key to increase Capacity Expanding port capacity based on long range planningImproving port productivity based on strategic programs for port operationsStrengthening in-house capabilities on port engineering, port planning and port economicsLearning lessons of other portsDeveloping its own approaches rather than copying others’ or traditional modelsIAPH
10Capacity Expansion(2) Infrastructure Development Large-scale expansionprojects, new orre-developmenthuge investmentspace limitationenvironmentalrestrictionsIAPH
11Logistics & Security (1) Logistics Globalization and PortsMeeting needs for supply chain managementDealing with super-giant customers/partnersEnsuring port contribution to local economyEvolution of new port strategy“interface between maritime transport & land transport”“hub of seamless logistics chain”“logistics value-creator or value-adder”IAPH
12Logistics & Security (2) Port Security SOLAS Con. ISPS Code (July 1st 2004~)exercises & drills, self-auditing,awareness improvementSupply chain securityWCO SAFE standardsintroduction of AEO and mutual recognitionUS Act: 100% container scanningIAPH
13Port Environments Ship emission control Port clean air program MARPOL Annex VISECA to ECAPort clean air programto provide onshore power supplyto introduce energy-efficient handling gearsto use low-sulphur oilto use rail and water transport for hinterland connection (avoid using trucks or road)Dumping of dredged materialsLondon Convention, 1972waste management assessmentBallast water problemsinvasion of harmful organizations in ballastwater into marine environment in/around portsBallast Water Management Convention, 2004Port reception facilities for ship wasteMARPOL requirements, guidelines 2000IMO Action Plan to tackle inadequacyIAPH
14Global Issues and IAPH (1) Key Issues being tackled by IAPH Economic Downturn and Port DevelopmentPosition of IAPH: Ports have to continue to be prepared for the future demand by developing necessary port infrastructure.Safety and SecurityPosition 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 LogisticsPosition 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 CitiesPosition 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.
15Global 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 SupplySome projects have already yielded certain outcomes.
16Global 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.
17Port Administration Models (1) -- Definition by the World Bank -- --- Public Service PortThe public authority takes almost all the responsibilities of port activities. The most classical model.--- Tool PortThe public authority provides almost all the necessary infra & super structure.--- Landlord PortThe 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 PortThe private sector takes almost all the responsibilities of a port.
18Port Administration Models (2) Responsibilities of Public & Private SuperCargoPilotageOtherTypeAdministrationInfrastructureStructureOperationTowageFunctionsPublicServiceToolLandlordPrivatePublic ResponsibiltyPrivate ResponsibilityIAPH
19Port 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
20Let’s work together with IAPH Come and join us !27th IAPH World PortsConferenceBusan, Korea23-27 May 2011IAPH Head Office,TokyoIAPH