Evolutionary journey
Carly Fields
Director | Non-Executive Director | Trustee | Passionate Editorial Professional and Champion for DEBRA
The role of port authorities is evolving, for the better. Where once port authorities were simply required to toe the government line on transportation, they now need to drive change, foster collaboration and nurture innovation.
It is no longer enough to simply serve customers. Dynamism is now a requisite skill for port authorities looking to be part of the conversation on future port development.
This metamorphosis of port authorities was a recurring theme at this year’s annual American Association of Port Authorities conference, which took place in Chile in October.
Patrick Verhoeven, managing director of policy and strategy at the International Association of Ports and Harbors, spoke of the need for port authorities to be more vocal, collectively and on a global level, on the benefits trade brings. Today’s port authorities have morphed into hybrid entities that must marry a clear commercial role with a public vocational one.
A particularly pertinent remark was that while the moniker ‘port authority’ is not fashionable these days, it still says what it does on the tin. Mr Verhoeven encapsulated the potential noting that port authorities today provide “great potential for leadership, sustainability, closer collaboration and a stronger voice for the port industry in global fora”.
But as port authorities shift into this more prominent, public-facing role, they mustn’t neglect their commercial roots, which are also transforming in tandem.
At the AAPA event, Association of Canadian Port Authorities’ president Wendy Zatylny remarked how port authorities are evolving to become critical links within the supply chain, building resilience through collaboration and partnership. Provincialism should be consigned to the annals of history.
Shippers present spoke of port authorities taking more responsibility for what goes on in their ports – concessioning of terminals does not absolve authorities of their commercial responsibilities, no matter what the tender contract says. Here, the Maersk Line representative at the event called for more “partners” in the ports and terminals industry.
Social responsibilities also remain with port authorities or at best are shared with concessionaires. Today, ports need a ‘social licence’ to operate, sometimes literally, but always figuratively. Let’s showcase ports, not hide them away, through the adoption of joined-up approaches.
That the role of port authorities is shifting is plain to see, but the breadth of that transformation – socially, publicly, commercially and collaboratively – might come as a surprise to many. Ultimately, there needs to be a willingness to change. Without that, natural selection will play its part in deciding which port authorities make it to the next stage of their evolutionary journey.
Marine & Port Operational Management | Noxious & Dangerous Goods Shipping | Pollution Prevention | Vessel Inspections
6 年Thanks Carly, interesting article indeed. Having worked for the Rotterdam Port Authority (RPA) I recognise the challenges you describe for a modern day effective Port Authority very well. As Neil said, there are many stakeholders with different interests. In my line of work the safety of the people working in the port and the public living in and around the port and protection of the environment were always first priorities for the RPA. On many occasions this clashed with commercial interest of business. However, I always felt we RPA) were managing this balancing act, protecting the public and environment versus facilitating commercial interests very well.
Retired
6 年Thanks Carly, interesting article. Port authorities are indeed exceptional organisations, with a huge range of stakeholders (can't be many other types of organisations that have to juggle so many - terminal operators, shipping lines, cargo owners, forwarders, truckers, rail companies, tug companies, customs, government, the general public - the list goes on!). They have an immensely challenging role balancing all these interests while at the same time trying to be responsive and nimble. But this also places them in a unique position of influence and, yes, authority!? For me the two biggest challenges for port authorities today are i) judging how far and to what extent their evolving influence should go (i.e. don't over-reach) and ii) making sure that ultimately their primary role is one of doing their duty for stakeholders rather than trying to be profit maximisers. Of course in the UK, with privatised port authority companies as Nick points out, these dynamics have a different slant compared to state-owned ones.?
Commissioner at Commissioner for the Independent Transport Commission
6 年Dear Carly. I like your pieces on Maritime issues and your keen observational eye for important policy issues. However the international ports industry is still dominated by state owned enterprises and policy shifts are generally slow and sometimes bogged down by lack of entrepreneurial focus, shortage of funding and internal bureaucracy. I know that you applaud the UK privatised model. It's far more dynamic. The trouble is that, until Brexit focused politicians minds on the importance of the sector, it went about its business largely unnoticed. I know that Tim Morris and Richard Ballantyne are on the case and are driving the case for infrastructure support within Government. They need all the help they can get.
Head of Corporate Communications at Associated British Ports
6 年Good piece Carly. I’d very much agree that port owners need to be entrepreneurially developing their estates and activities if they’re to fulfil the potential of ports as multi faceted hubs of economic activities. That’s important not just important for the future of the port itself, it also multiplies the value (investment, jobs, prosperity) the port brings to the surround community. *rant ends*