Port sector must remain strong, says UKMPG

New research presented today sets out the key characteristics of the "strong ports" that the UK needs to thrive post-Brexit

Global trade, and the maritime sector that enables so many of its flows, faces uncertain and challenging times. Nowhere more so than the UK, with Brexit - in whatever form it takes - dominating the agenda. But ports are long horizon businesses and must steer through the immediate storms.

What these trends mean and how strong ports can be delivered will be discussed at a breakfast roundtable being held today, Tuesday 10th September, during London International Shipping Week, by the UK Major Ports Group for port CEOs, the UK’s Maritime Minister (Nusrat Ghani, MP), Chinese Government representatives, major infrastructure investors, global traders and academics.

Research from maritime industry research experts Drewry being presented at the breakfast roundtable has identified a small number of key factors that will make a port resilient and robust through all weathers. In summary, these are:

Drewry Maritime Advisers' wheel of fortune

• Productivity and efficiency – fundamentally, the success of any port will remain underpinned by the competitiveness it offers to customers both on the water and inland

• Active role in supply chains – A compelling proposition to customers has to be more than just the traditional role of goods handling. Ports can play a vital role in creating and realsing shared value for as proactive links in broader supply chains as a whole

• Logistics zones – A modern major ports is much more than a point of transit. It is the home to a range of other economic activity and value addition. A particularly significant opportunity is port-centric logistics, realizing both economic and environmental benefits. To maximise the potential for port-centric development models, the right planning processes have to be in place to unlock the ambition and capital of the port operator

• Digital platforms – the modern port is increasingly a gateway for data as well as goods. Digital platforms can realise major value through providing better visibility and increased supply chain efficiency both contractual and physical

• Hinterland connectivity – The value of the UK’s ports to the economy is already considerable - £9.7bn in 2017 – but this value and maximising the growth ambitions of the UK’s port operators is largely dependent to how well ports are connected to the major inland economic and population centres. By way of example, 7 out of every 10 cars made in the UK are exported via a UKMPG member.

Port owners and operators relish the responsibility to deliver a number of these factors themselves, says UKMPG’s CEO Tim Morris, but many can only be fully delivered through partnership with others - customers, supply chain partners and, crucially, governments at all levels.

"Brexit and uncertain times make Strong Ports more vital than ever for the UK," said Morris. "The research being shared at UKMPG’s London International Shipping Week roundtable highlights the five key characteristic of Strong Ports for long term success."

Source: WorldCargo News

First World Ports Climate Action Program conference

The Port of Rotterdam will host the first conference by the World Ports Climate Action Program in May 2020

The WPCAP currently has 11 members from European and American ports - Antwerp, Hamburg, Amsterdam, Le Havre, Barcelona, Gothenburg, Los Angeles, Long Beach, Vancouver (BC), New York/New Jersey and Rotterdam.

The project’s initiator and current chair, the Port of Rotterdam will host the event, the first major appearance since the organisation was set up in September 2018.

The launch event will take stock of what has been achieved so far, and to share the results with other interested port operators and port authorities, the shipping industry, government bodies, etc. Next steps will also be agreed.

LNG-powered dredger WERKENDAM has been long-term chartered by launch customer Port of Rotterdam

The measures that WPCAP’s five working groups are addressing include:

• Increasing the efficiency of handling ships in ports.

• Making cargo handling climate neutral.

• Providing shore feeding of electricity.

• Alternative fuels.

The affiliated ports expect to achieve better results by sharing knowledge, by jointly developing projects and by seeking the involvement of the shipping industry, rather than when ports "go it alone."

Announcing the event, the Port of Rotterdam reiterated its ambition to be the global forerunner in energy transition, encompassing the petrochemical and other port-based industries and shipping/logistics. Local projects being prepared in the Rotterdam port and industry complex aim to reduce CO2 emissions to the tune of about 25% of the entire Dutch CO2 reduction that the Netherlands is aiming for by 2030, although this does not yet include stopping coal-fired electricity generation.

The port claims to be the first to have supplied bio fuel to container ships. In addition to providing €5M to support shipping greening initiatives, Rotterdam offers harbour dues rebates to clean ships and promotes the use of LNG.

Whereas the Maasvlakte-based container terminals have electrified nearly all equipment, all public inland shipping berths in Rotterdam offer cold-ironing. Later this year, various systems to offer cold-ironing in the marine terminals will be tested. A big cold-ironing project is being prepared for the Calandkanaal, the Europort navigation basin, which also features board-board oil transhipment and long stay offshore rig repairs.

Meanwhile, the port authority’s commercial PRONTO software is designed to curb emissions by reducing the duration of a ship’s port stay.

All pictures shown here are from the port authority.

Source: WorldCargo News

Portsmouth makes its point

The UK’s Portsmouth International Port has published a report from independent specialists Oxford Economics showing that it contributed £390M to the national economy in 2017

The economic impact study was announced at a Parliamentary reception in Westminster on Wednesday, 4th September. Using data for 2017, the port was revealed to be worth: £390M to the national economy, for every £1M generated a further £1.9M was sustained elsewhere; £189M to the local economy, for every £1m generated by the port locally a further £0.4M is stimulated through induced and indirect impacts; 5590 overall jobs; 2410 jobs in the local area through direct employment and supply chain

Mike Sellers, Portsmouth International Port director (photo above from Portsmouth Post), said: “These latest findings validate the investment and vision we, and our customers, have for the future of the port."

The economic impact report also revealed that the port handled £700M of non-EU trade, through Portico Shipping, its international cargo operator, with the value of bananas totalling £330M. In 2017 Portsmouth was responsible for 50% of the UK’s banana imports and but this will increase to 70%, as major shipping line Geest is relocating back.

The port has just struck a new 5-year deal with Geest Line, just two years after the shipper relocated to Dover, although it left its 32-man headquarters in Fareham, near Portsmouth.

Geest Line’s Managing Director, Capt Peter Dixon, said: “We left Portsmouth because of scheduling difficulties when we replaced our fleet with five larger and newer ships, increasing our capacity by 40%. “The port at Dover was able to accommodate us and enabled our business to continue and grow, but changes at Portsmouth mean it can now handle our larger and modified service and it makes sense to return.

Captain Peter Dixon announced that Geest Line is returning to Portsmouth in January

“It has nothing to do with Brexit, but is simply a business decision and we intend to welcome our ships back to Portsmouth from January, two years after we left. “We’re grateful to the port and people of Dover and look forward to re-engaging with the port and people of Portsmouth.”

The Oxford Economics report showed that Portsmouth was the top municipal port in the country for managing the most non-EU fruit and vegetables, and the fourth largest overall in the UK by volume for the same goods.

It is considered the second largest port by volume on the South Coast and the second busiest cross-channel ferry port - albeit a long way behind Dover. Portsmouth’s long-term deal with major customer Brittany Ferries sees passengers regularly using routes to France and Spain, with 80% of passengers travelling to Spain sailing from Portsmouth. As the competent harbour authority it’s also responsible for 9M passengers using services to France, Spain, the Channel Island, Isle of Wight and neighbouring town Gosport.

Portsmouth is also a critical shipping route for Channel Island trade through Condor Ferries. With daily sailings carrying predominantly freight, there are regular exports of cars, building materials, food and drink supplies, clothing and utilities.

Sellers said: “While the figures alone are impressive, since 2017 we have seen further improvements, such as welcoming back global shipping line Geest to Portsmouth and a significant rise in our cruise numbers.

“As a local authority-owned port we play a vital role in employment for the area and also a critical contribution to the council’s budget, however the importance of the port goes beyond the PO post code. We have an impact nationally and are a crucial trade link for both EU and international goods." Sellers singled out the examples of fisheries in the Scotttish Islands shipping fresh fish to restaurants in Paris via Portsmouth, and exotic fruits for the UK market imported over its quays. The port also handles large wind blades for a major offshore energy company.

Cllr Gerald Vernon-Jackson, Leader of Portsmouth City Council said that this year alone the port contributed £8.4m to the council’s budget.“It’s essential we protect the port, as a critical trade route for goods, a vital contributor to the economy and a crucial support for council services. We hope that these latest findings resonate with others, and demonstrate the significance of the port to make sure it’s always considered on a national level."

Source: WorldCargo News