STRATEGIC and ECONOMIC IMPORTANCE of PORTUGUESE PORTS

Version 1:3 May, 2024

José A. A. Costa

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While Portuguese ports may not be the largest in Europe in terms of total cargo throughput, they offer competitive advantages such as strategic location, shorter transit times, lower congestion, efficient logistics solutions, connectivity, and commitment to sustainability.

These factors contribute to their relative position within the European port landscape, and make them attractive options for certain types of cargo and shipping routes, and can be of crucial importance for the near future.

While they may face competition from larger ports with greater economies of scale, Portuguese ports leverage their strategic location, specialization, and efficient operations to remain competitive in certain markets.

PORTUGUESE MARITIME FRONTLINE

1. Geographical Features:

-?Length: The Portuguese coastline stretches for approximately 1,214 kilometers (754 miles), bordering Spain to the north and east.

-?Archipelagos: Portugal includes strategic archipelagos in the Atlantic Ocean, such as the Azores and Madeira.

-?Strait of Gibraltar: The southernmost point of Portugal is not far from the Strait of Gibraltar, connecting the Atlantic Ocean to the Mediterranean Sea.

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2. Physical Characteristics:

Coastal Diversity: Portugal boasts an immense variety of sands and seascapes, making it an attractive destination and a gateway to the world.

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3. Maritime Industry Relevance:

Exclusive Economic Zone (EEZ): Portugal has one of Europe’s largest EEZs, making it a crucial player in maritime activities.

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4. Harbors and Terminals:

With over 20 main harbours, cruise terminals, marinas, and optimized fishing harbours, Portugal’s coast significantly impacts the national economy.

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5. Distances between the Portuguese ports and some of the world’s biggest ports in Asia, America, and Europe:

Leix?es Port:

Distance to Major ports:

• to Shanghai, China: Approximately 10,000 nautical miles.
• to Los Angeles, USA: Approximately 5,800 nautical miles.
• to Rotterdam, Netherlands: Approximately 1,600 nautical miles.

Aveiro port:

Distance to Major Ports:

• to Singapore: Approximately 9,000 nautical miles.
• to New York, USA: Approximately 3,800 nautical miles.
• to Hamburg, Germany: Approximately 1,700 nautical miles.

Lisbon port:

Distance to Major Ports:

• to Hong Kong: Approximately 10,000 nautical miles.
• to Los Angeles, USA: Approximately 5,200 nautical miles.
• to Rotterdam, Netherlands: Approximately 1,300 nautical miles.

Setúbal port:

Distance to Major Ports:

• To Shanghai, China: Approximately 10,500 nautical miles.
• to New York, USA: Approximately 4,900 nautical miles.
• to Hamburg, Germany: Approximately 1,800 nautical miles.

Sines port:

Distance to Major Ports:

• to Singapore: Approximately 9,500 nautical miles.
• to Los Angeles, USA: Approximately 6,000 nautical miles.
• to Rotterdam, Netherlands: Approximately 1,700 nautical miles.

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These distances highlight the strategic positions of Portuguese ports in global trade routes, connecting Europe to Asia and the Americas.

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6. Distances between the Portuguese ports and some of the world’s biggest ports in Asia:

• Port of Singapore: approximately 10,000 nautical miles away from the Portugal.
• Port of Shanghai: approximately 10,500 nautical miles away from Portugal.
• Port of Laem Chabang: approximately 8,000 nautical miles from Portugal.
• Port of Busan: is approximately 5,800 nautical miles away from Portugal.
• Port of Hong Kong: Is approximately 9,000 nautical miles from Portugal.

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These distances highlight the extensive maritime connections between Europe and Asia, with these major ports serving as critical hubs for global trade.

7. Front line of Europe for communication network through submerged cables:

The Portuguese coast plays a crucial role as a front line for Europe’s communication network through submerged cables. Here are the key value-added aspects:

-?Equiano Subsea Cable:

Recent Landing: The Equiano subsea cable recently landed on the beach in Sesimbra, Portugal in May 2022. This cable connects Sesimbra (Portugal) to Cape Town (South Africa) with branches to Accra (Ghana), Lagos (Nigeria), Lomé (Togo), Swakopmund (Namibia), and Saint Helena (Rupert’s Bay).

Google’s Involvement: A Google LLC company, Blue Path Technology Unlimited Company, contracted with the Portuguese State to land the Equiano cable in Portugal. The cable station in Sesimbra is operated by MEO, a subsidiary of Altice Portugal.

-?Strategic Connectivity: Portugal’s geographic location makes it a strategic hub for international submarine cable infrastructure, enhancing communication between Europe, Africa, and beyond.

- Other Submarine Cables:

Pacific Caribbean Cable System (PCCS): Although not directly landing on the Portuguese coast, the PCCS connects Brazil to the United States, passing through the Atlantic Ocean. It contributes to global connectivity and data exchange.

Future Cables: Portugal is set to host additional cables like Africa and Medusa, further strengthening its position as a communication gateway.

- High Capacity and Reliability:

Submarine cables provide high-speed data transmission with capacities reaching terabits per second (Tbps). They form the backbone of global internet connectivity.

Portugal’s coast ensures reliable communication links, minimizing latency and supporting real-time data transfer for businesses, research, and everyday users.

?-?Economic Impact:

Trade and Commerce: Reliable communication networks facilitate international trade, financial transactions, and supply chain management. Portugal’s coast enables seamless connectivity for businesses across Europe.

Data Centers: Portugal’s strategic location attracts data center investments. These centers rely on submarine cables for intercontinental data exchange.

Portugal’s coast ensures reliable communication links, minimizing latency and supporting real-time data transfer for businesses, research, and everyday users.

?-?Collaboration and Innovation:

Research and Development: Portugal actively participates in research related to submarine cables, ensuring their resilience, security, and environmental impact.

European Cooperation: Portugal collaborates with other European countries to enhance cross-border communication infrastructure.

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MARITIME TRADE: A DRIVING FORCE FOR PORTUGUESE ECONOMIC GROWTH

The importance of shipping and ports cannot be overstated, as they form the cornerstone of global trade and commerce and the efficient movement of goods and services. To bolster trade and solidify Portugal's standing on the global stage, it is crucial to align various factors.

Crucial for the Portuguese economy understand that effective governance, plays a fundamental role in national development. That means strategic alignment is required across sectors such as agriculture, industry, and access to raw materials. Good governance promotes the sustainable management of those, ensuring their availability for long-term development. By prioritizing governance, Portugal can create an environment conducive to growth, innovation, and sustainable development.

The development of a robust infrastructure, namely in terms of maritime infrastructure such as ports, business based, which serves as the backbone for facilitating smooth trade flows, needs to be focused on the movement of goods, either inbound either and desirable outbound. For a small economy like the Portuguese, transshipment can assume a vital role (considering as well the multimode perspective).

Strategic investments in ports, on a complementary basis enhance the movement of goods and services, driving trade and industry growth. A coherent national strategy, encompassing our industrial capacity (goods and services) urge to be increased, qualitative and quantitatively.

It is imperative to harmonize these elements over the long term, guided by national consensus and immune to transient political dynamics. By doing so, Portugal with its specific nautical characteristics, competitive advantages can navigate through challenges and future expectations to emerge as a player in the international arena, fostering overall economic growth and development.

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MAIN NAUTICAL CHARACTERISTICS

§? Deep-Water Access: Natural deep-water terminals accommodate large vessels, enhancing accessibility and operational efficiency.

§? Harbor Protection: Well-protected harbours ensure safe navigation, bolstering operational reliability even in adverse weather conditions.

§? Navigational Aids: Modern navigational aids facilitate safe vessel navigation, especially in challenging conditions.

§? Towage and Pilotage Services: Expert guidance ensures safe navigation through complex channels, contributing to efficient port operations.

§? Tidal and Current Conditions: Understanding and managing tidal patterns are crucial for safe vessel operations and berth scheduling.

§? Berthing Facilities: Diverse facilities cater to different vessel types, equipped with mooring systems to ensure secure operations.

§? Operations Management: Modern systems optimize traffic, berth utilization, and cargo handling, minimizing delays and enhancing efficiency.

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COMPETITIVE ADVANTAGES

These advantages give to Portuguese ports a superior position in terms of attributes, resources, and capabilities to outperform and be competitive within the European context.

§? Transatlantic Trade Access: Portuguese ports are strategically linking Europe, the Americas, and global markets.

§? Specialization and Expertise: Focused sectors such as automotive, container handling, and energy logistics bolster efficiency and adjusted to industry-specific needs.

§? Integrated Transport Networks: Seamless connections with road, rail, and inland waterways enhance accessibility and streamline cargo movement.

§? Competitive Services: Portuguese ports excel in offering quality, reliable, and cost-effective services, ensuring competitiveness with European counterparts. Services available such as freight forwarding, agencies, pilotage, towage, are well developed.?

§? Regulatory Compliance: Adhering to evolving standards underscores commitment to operational excellence and sustainability.

§? Environmental Sustainability: Prioritizing eco-friendly practices, Portuguese ports actively work towards emission reduction and sustainable operations.

§? Emergency Response: Robust capabilities ensure swift and effective response to maritime incidents, safeguarding port operations and the environment.

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CHALLENGES and FUTURE EXPECTATIONS

§? National Integrated Vision: A cohesive vision for major ports will facilitate investments, promote best practices, and address common challenges through public-private partnerships and international cooperation initiatives.

§? Infrastructure Development: Continued investment is essential to meet growing demands, accommodate larger vessels, and adapt to industry needs. Investments in deep-water infrastructure and logistics can position ports as key transshipment hubs, capitalizing on strategic location.

§? Collaboration and Partnerships: Strengthening collaboration among ports, shipping lines, and government agencies is vital for driving development and enhancing competitiveness.

§? Specialization and Diversification: Developing specialized facilities and diversifying cargo handling capabilities will sustain competitiveness and capture niche markets.

§? Intermodal Connectivity, Digitalization, Innovation: Embracing digitalization and innovation, along with enhancing intermodal connectivity, will optimize operations and improve customer experiences.

§? Environmental Sustainability: Continued efforts to reduce environmental impact are imperative to align with global sustainability goals and ensure long-term viability.

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Sources:

WTO - World Trade Statistical Review 2023

WEF - Global Risks Report 2023

Chief Economists Outlook - January 2024

OECD - Challenges to international trade and the global economy 2023

S&P Market Intelligence - The Storm Before the Storm: Q1 2024 Supply Chain Outlook

WEF - World Economic Forum’s 2024 Annual Meeting in Davos

Mordor Intelligence - Maritime Freight Transport Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Eurostat statistics - Maritime transport of goods

European-container-port-system-multi-port-gateway-regions

The EU Maritime Profile – overview of the EU maritime economy

Sea Europe - Report on “Building A Comprehensive European Port Strategy” European Parliament

European Commission - EU Blue Economy Observatory

UN Trade and Development - Review of Maritime Transport 2023

Ship Hub - The largest ports in Europe 2023

APDL – Administra??o do porto de Leix?es e Viana do Castelo

APA – Administra??o do porto de Aveiro e Figueira da Foz

APL – Administra??o do porto de Lisboa

APSS – Administra??o do porto de Setúbal

APS – Administra??o do Porto de Sines

AMT – Autoridade da Mobilidade e dos Transportes 2024

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#ports #economy #geostrategy #energytransition #governance #Portugal #EU #internationaltrade #development

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