The European Sea Port Organisation (ESPO) held the 9th edition of its annual Conference in Sopot, the Polish seaside town located in between the ports of Gdansk and Gdynia, who were hosting the event. PortEconomics co-directors Peter de Langen, Theo Notteboom and Thanos Pallis, as well as PortEconomics associate members  Michael Dooms, Patrick Verhoeven, and Larissa van der Lught were there actively contributing to discussions around the theme of port financing and investment, the most important enabling factors behind port development.

Port privitisation has again become a topical issue in Europe as the economic crisis is pushing some countries to sell off ports and other vital infrastructures. During a special roundtable discussion on port privatisation, PortEconomics co-directors Theo Notteboom and Thanos Pallis joined port authorities trade unions, terminal operators and conference delegates, and discussed whether this a trend that is here to stay and would full privatisation be in the interest of ports and the trade that they serve. 

Another higlight of the second day of ESPO 2012 was, the presentation of the results of the PPRISM (Port Performance Indicators - Selection and Measurement) project conducted by several partners of the PortEconomics initiative by Chris Wooldridge.

The conference also devoted attention to the review of European ports policy that the European Commission recently announced. Other topics which were discussed included the financial capabilities of port authorities, public private partnerships, concessions and regional investment opportunities.

Acting at his capacity as Secretary General of the ESPO, PortEconomics associate member Patrick Verhoeven presented the ESPO 'Port Manifesto' advocating a 'renaissance' of port management and policy. The manifesto addresses port authorities, governments and the European Union. It advocates first of all a change of management culture among port authorities, one that combines a dynamic business policy with good corporate governance and transparency, both within and beyond the port area. Secondly, it invites responsible governments to devise frameworks that guarantee independent port management, removing all necessary bottlenecks. Finally, it recognises the potential of the European Union to be a positive force by ensuring a level playing field and legal certainty and fostering growth and development of ports.

Commission Vice-President Siim Kallas gave the closing keynote speech of the conference. "The ports policy review will not be a one size fits all approach. After all, there must be sufficient flexibility to take local circumstances into account. It is certainly not for the Commission to tell ports how their business should be run, or to suggest particular business models", said Mr. Kallas, "The review is about having greater transparency and fewer restrictions, to remove barriers for new entrants wanting to tender fairly and openly for port services. Fair competition is a healthy – and I would say, usual – requirement for improving port performance generally and for the system's overall efficiency."

In his conclusions, ESPO Chairman Victor Schoenmakers emphasised the need to balance legal certainty with the flexibility that port authorities need to manage the dynamic nature of the industry. "This is the most important challenge to resolve", said Mr. Schoenmakers.

You might download:
Theo's presentation via PortEconomics:  The end of the landord model? Economics pressures to privitise ports 
Thanos' presentation via PortEconomcis: Privitisation of Greek ports
The ESPO Manifesto via ESPO's webpage: ESPO Manifesto for Port Authorities, Governments and the European Union
Details of the event, and all speakers presentations @ the ESPO 2012 Conference webpage.

 Read also @ PortEconomics: ESPO 2012 twitted by Patrick Verhoeven as happened

Classics in Port Policy and Management, is a journey of discovery of the evolution of port studies in the 20th century. PortEconomics co-director Thanos Pallis and associate member Mary Brooks bring together 41 seminal contributions from 50 years of scholarly research in port policy and management, while they discuss the evolution of this emerging research field.

Building a foundation of knowledge in port studies is not easy in today's ivory tower. The modern scholar searches the electronic journals readily available in library databases, relies on citation indices to indicate the most important journals in the field and reads few others unless the process of discovery is cherished, not common in the modern time-starved world of the academy.

From the perspective of port researchers, many of the more important journals have not been widely adopted by libraries, and some journals are only now seeking to have a citation impact factor. 

Yet if new scholars in the field want to understand the evolution of port policy and management, they should read the seminal works. The challenge is that only a few libraries retain the dusty "stacks" housing them. 

This volume intends to address that by making the early work more accessible. In revisiting the key foundations established by previous researchers, the reader of the volume that was just published by Edward Elgar, will discover the knowledge necessary to examine these issues in new contexts and in conjunction with new port business models.

'Mary Brooks and Thanos Pallis have sculpted this voluminous and impressive tome from some of the best historical work on the topic of maritime transport. By so doing, they have provided researchers in the field with a highly useable and informative first port of call for any investigation of previous work.'
– Kevin Cullinane, Edinburgh Napier University, UK

Visit the publisher @ Edward Elgar, to access the Full table of contents, and Order the book.

The annual conference of the European Sea Port Organisation (ESPO) will be held this year in Sopot, the elegant Polish seaside resort town which is located in between the ports of Gdansk and Gdynia. The event will take place May 10-11, 2012

PortEconomics co-directors Theo Notteboom and Thanos Pallis will join port authorities and conference delegates, participating at the round-table discussion on port privatisation on the second day of ESPO 2012. 

As the economic crisis is pushing some countries to sell of ports and other vital infrastructures the round table will discuss wether this a trend that is here to stay and would full privatisation be in the interest of ports and the trade that they serve. Based on the experience of past and ongoing cases in the United Kingdom and Greece, a panel of experts including port authorities, trade unions and terminal operators will share the podium with Theo and Thanos to discuss the costs and benefits of port privatisation.



The conference theme addresses port financing and investment, the most important enabling factors behind port development. By comparing financial trends affecting the port sector, regional investment opportunities and regulatory issues related to public private partnerships, concessions and financial capabilities of port authorities, the conference aims to gather stimulating food for thought in challenging economic times.

Acting at his capacity as Secretary General of the ESPO, PortEconomics associate member Patrick Verhoeven, will present the ESPO 'Port Manifesto', whereas Chris Wooldridge, also associate member will present the results of the PPRISM (Port Performance Indicators - Selection and Measurement) project conducted by several partners of the PortEconomics initiative,

The ESPO 2012 conference will also devote considerable attention to the future EU 'ports package' that the European Commission recently announced and Commission Vice-President Siim Kallas has kindly agreed to give the closing keynote speech.

A full programme, all practical details, and registration details are available @ the Conference webpage.

This quarter's issue of the UNCTAD Transport Newsletter takes a closer look at the study "How to utilize FDI to improve transport infrastructure: Ports, Lessons from Nigeria" conducted by PortEconomics co-director Thanos Pallis and published in UNCTAD Investment Policies Branch's Investment Advisory Series.

The best practice lessons from Nigeria, as reviewed in the Newsletter were:

A. When moving from public to private port terminals

• Identify potential for private port investment
• Establish legal and institutional framework for private participation
• Create a high‐level body to catalyse and coordinate reforms
• Carefully diagnose needs and formulate new port model, drawing on external knowledge if necessary.

B.When promoting and negotiating FDI entry

1. Establish a strong and stable foreign investment regime
2. Fiscal incentives are unnecessary, except in the case of certain greenfield projects 
3. Appoint an independent transaction advisor to help manage the concession process
4. Allow for the widest possible expression of investor interests – select through phases
5. Set and follow clear procedures and timelines for bidding
6. Ensure that contracts address key issues throughout the lifetime of project

C. When facilitating project implementation and ensuring positive long‐term outcomes

1. Proactive management of the labor force adjustments
2. Strengthen infrastructure and government services within the port complex 
3. Appoint an independent institution to monitor and follow up on project implementation and operations
4. Build on and promote positive experiences

Other recent UNCTAD publications/activities presented include:

1. "Liability and Compensation for Ship‐Source Oil Pollution: An Overview of the International Legal Framework for Oil Pollution Damage from Tankers", part of the UNCTAD Trade Logistic Branch's Studies in Transport Law and Policy,
2. "Trade Facilitation in Regional Trade Agreements", from the UNCTAD Trade Logistic Branch's Transport and Trade Facilitation Series, and
3. The upcoming UNCTAD XIII, to be held in Doha, Qatar, from 21 to 26 April 2012 and the special session on transport, "Paving the Way for Sustainable Freight Transport" The Trade Logistic Branch's new trade facilitation capacity building project "Implementation Plans for WTO Trade Facilitation Agreement in Developing Members",

Moreover, the UNCTAD Transport Newsletter continues to provide a space for UNCTAD and its partners, including international organizations, NGOs and academics, to share information on recent and upcoming events, publications, and other news on international transport and trade facilitation. .

You mid download to the newsletter @ UNCTAD's webpage: Weblink

In conditions of intensified port competition and increased complexity of relations developed between port actors, PortEconomics members Thomas Vitsounis and Thanos Pallis discuss the presence of port value chains and the role of port actors' interdependencies in a chapter included in the edited volume Maritime Logistics: Contemporary Issues, that is now published by Emerald Group publishing.

Thomas and Thanos examine the rather under-researched issue of the value creation for port users. Relations developed in seaports fall within business-to-business (B-2-B) frameworks and caused by the interdependencies of port actors. Value measurements are a predictor of behaviour intentions of satisfaction generated for port users. Value in B-2-B markets place extra emphasis on relations developed between services providers and users and the same stands true for seaport configurations.

The study analyses how actors in seaports are embedded in network configurations and develop B-2-B relations that result in functional and relational value. The emphasis is on port value chains wherein positioning and effective networking contribute significant to the total value proposition of the various actors involved. Concluding that co-creation of value, via matching resources with upstream and downstream entities, is vital, the chapter details how actors inter- dependence as a significant variable determining the level of co-creating value. The empirical analysis provides insights about the existence of three types of inter-dependencies in ports (namely, serial, pooled and reciprocal) being found in a number of distinctive relationships developed between freight forwarders, shipping lines and key port actors.

Maritime Logistics: Contemporary issues is a collective book edited by Prof. Dong-Wook Song (Heriot-Watt University Edinburgh) and Prof. Photis Panayides (Cyprus University of Technology, Cyprus). Contemporary practice and scientific innovation consider the logistics aspects of shipping or maritime and seaport operations as one of the most important areas for future development of competitive advantages in business and for study and research. This book adopts the innovative approach of dealing with the overlap between shipping, ports and logistics covering the current issues having a significant impact on the industry. It brings together leading authorities in the field to consider for the first time maritime logistics, and in doing so it defines the area, registers its boundaries and contributes to its development. Contributions cover holistically a broad range of major topics at the forefront of practice, research and scholarship in the shipping and port industry in terms of its relevance to logistics management. Topics include: CSR aspects of maritime logistics; green, sustainable and environmental issues in maritime logistics; network development of shipping and ports as major players in the industry; security aspects of maritime logistics and supply chains; IT in maritime logistics; and, supply chain oriented port and its performance.

You might read the authors' version of Thomas and Thanos contribution @ PortEconomics:  Creating Value in Seaports: Port Value Chains and the Role of Interdependencies

More about the book @ the publisher's webpage: Maritime Logistics: Contemporary Issues

PortEconomics co-director Thanos Pallis discussed the strategies of port authorities amidst the current economic crisis, at an event that took place at the Palazzo Granafei-Nervegna (Brindisi Municipal City Hall) in Italy as part of the Apulian Distinguished Lectures series.

The Apulian distinguished lectures series are held in Brindisi, Italy and are a joint initiative by the Region Puglia, the City of Brindisi, the University of Salento and the Port Authority of Brindisi. Speakers at the seminar consist of top international opinion leaders, businessmen and academics, while subjects revolve around issues of port management and policy; infrastructure development and finance; cargo systems and mobility; and global logistics and supply chain management.The project is co-ordinated by the President of the Port of Brindisi Prof. Hercules Haralambides.

Thanos, who was also named Puglia Port Ambassador of Goodwill, shared with participants the trends of seagoing trade; the structural changes of the global and european economy that need to be taken into account by European ports, and discussed in detail five different strategies that port authorities and policy-makers are worth to develop:
- market opening;
- port cooperation;
- integration in the trans-European transport design;
- Thinking and acting 'Green';
- Integrate in port authorities strategies non-productive performance indicators.

You can download the presentation @ PortEconomics: Ports amidst Economic Crisis (strategies to face the future)

PortEconomics co-director Thanos Pallis presented his views on the prospects and current initiatives to promote the competitivess of Greek ports, during the Financial Times World Shipping Congress that took place in Athens Greece, 19 & 20 February 2012.

In front of a crowd that included presidents of shipowners' Associations representing 3 continents, 10 major Shipping Countries and almost 60% of the international fleet. Thanos, acting at his capacity as General Secretary of ports and port policy of the Hellenic Republic, presented his assessment of the major port issues and defined strategies to cope with the volatile environment in world economy and finance. 

Along with other institutional and industry representatives, Thanos discussed challenges and trends in Greek ports, focusing more on the institutional reform that is currently in progress in Greece:

Thanos prosentation is available via PortEconomics : Greek Ports: Serving the Greek Economy

The awarding of terminals in seaports are the theme of the latest issue of the Maritime Policy and Management. The issue is co-edited by PortEconomics co-directors Theo Notteboom, and Thanos Pallis, in collaboration with Dr. Sheila Farrell.

In many countries around the world, governments and public port authorities have retreated from port operations in the belief that enterprise-based port services and operations would allow for greater flexibility and efficiency in the market (through more competition) and a better response to consumers' demands. In this new environment, the awarding of port terminals to private operators has become common practice. This can takes different forms ranging from management contracts/leases to BOT arrangements, with each type having specific modalities with regard to the spread of investments and of risks. In particular, concession policy has become a powerful governance tool to port managers. Through concession policy, port authorities can retain some control on the organization and structure of the supply side of the port market. The issue of terminal awarding processes has not received a lot of attention in academic circles, while it has become a key issue in port governance.

This special issue adds value to the existing knowledged by  deepening and broadening the discussion on the award of terminals to private terminal operators. In particular it contains seven port studies address key issues in terminal awarding processes combining theoretical insights with empirical case studies:

1. The ownership and management structure of container terminal concessions, by Sheila Farrell;
2. Concession of the Piraeus container terminal: turbulent times and the quest for competitiveness, by Harilaos N. Psaraftis & PortEconomics co-director Thanos Pallis;
3. Managing port concessions: evidence from Italy, by PortEconomics associate member Francesco Parola along with Alessio Tei & Claudio Ferrari;
4. Awarding of Port PPP contracts: the added value of a competitive dialogue procedure, by Hidde Siemonsma, Wouter Van Nus & Patrick Uyttendaele;
5. A new approach to granting terminal concessions: the case of the Rotterdam World Gateway terminal, by PortEconomics co-director Peter W. De Langen, along with Roy Van Den Berg & Aernoud Willeumier
6. A new lease charging system for Busan container terminals: a historical case study, by Paul T.-W. Lee & Tsung-Chen Lee; and 
7. Current practices in European ports on the awarding of seaport terminals to private operators: towards an industry good practice guide, by PortEconomics co-director Theo Notteboom, the PortEconomics associate member Patrick Verhoeven & Martina Fontanet
8. The guest editorial Terminal concessions in seaports revisited by Theo Notteboom, Thanos Pallis & Sheila Farrell

These port studies have been completed through discussions in the working group on concessions of the Port Performance Research Network (PPRN), that has put the concession issue on the research agenda of maritime economists.

 The special Maritime Policy & Management issue (vol 39, issue 1) is now available online @ Taylor & Francis Online.
   
 Download the authors' version of the guest editorial @ PortEconomics: 
  Terminal Concessions in Seaports revisited (2012)

The UNCTAD study "How to utilize FDI to improve transport infrastructure - ports: Lessons from Nigeria" prepared by Thanos Pallis with inputs and assistance from PortEconomics member Aimilia Papachristou was released on January 31st in Geneva and New York.

The study draws lessons from the experience of Nigeria and its broad-based port reforms over the past decade. A rising number of developing countries have reformed governance models and introduced private investment and management in formerly State-dominated ports. Foreign direct investment in port infrastructure is an attractive policy option for many developing countries, although it is not without its challenges. The challenges should not be underestimated, and include, among others, establishing the necessary legal and institutional framework, restructuring port entities, managing the bidding process, negotiating with international terminal operators, and providing fair and effective regulation throughout the life of the project. The experience that Nigeria has had in the development of its port infrastructure and management provides examples for policymakers on actions that have led to success and challenges that arise when a country opens its ports to foreign investors.

Being part of UNCTAD's Investment Advisory Series B this is a case study of good practices in policy and strategic matters related to foreign investment and development in ports. It is intended to help policy makers with issues related to investment promotion and facilitation and the work of investment promotion agencies and similar institutions.

While it was prepared by PortEconomics co-director Thanos Pallis and Aimilia Papachristou, valuable guidance and local insights were provided by Stanley Yitnoe. The report was finalized by Cam Vidler and Silvia Constain. Contributions and comments were received from Chantal Dupasquier, Jan Hoffmann, Vincent Valentine, and Joerg Weber. The report has also benefited from views of current and former Government officials, the domestic and foreign private sector and academics. The programme receives financial support from the Government of Germany.

You can freely download the study @ UNCTAD's webpage: "How to utilize FDI to improve transport infrastructure - ports: Lessons from Nigeria"

Year 2011 concludes with a highlight for the port research activities of the PortEconomics team, the contribution of five port studies in the just published Blackwell Companion to Maritime Economics. The volume, edited by Wayne Talley, provides a comprehensive and in-depth coverage of the entire scope of issues relating to shipping and port economics, containing in total 11 chapters concerned with the economics of ports – i.e., the provision of port services and the users of these services,

Mary Brooks and Thanos Pallis discuss the recent developments in port governance. The globalization of production and distribution, changing forms of cargo transportation and technological breakthroughs ended a long period of stable, state-controlled (govern- ment) port governance in most countries. Although government ownership of ports remains firmly entrenched in many countries, private management in the provision of port services has also been widely adopted. Port corporatization continues to be an acceptable governance option. Under port reform, ports have incurred difficulty in addressing issues with their hinterlands, such as congestion and infrastructure investment beyond the traditional boundaries of the port. In some cases, this has spurred interest in broader and more community-based governance models. A study of major international ports reveals the involvement of private interests in port terminal operations, a movement toward more effective and efficient management of ports, a trend for port authorities to go beyond their traditional functions, and recognition of the economic influences on ports.

Competition among and the competitiveness of container ports is the theme of the study conducted by Theo Notteboom and Wei Yim Yap. Container ports are in a better position to compete with neighboring container ports if they have modern infrastructures supported by competitive and reliable transportation services and serve as collection and distribution points for hinterlands that extend far beyond their traditional boundaries. Ports that lose ship calls will experience a decline in connectivity, choice of service providers and container throughput. The negative impact will also affect other ports that have complementary services with the port. A methodology is presented for analyzing inter-container port competition and competitiveness of container ports along the Malacca Strait, the Pearl River Delta and the Antwerp–Hamburg range. It is demonstrated that the configuration of container shipping line services has a direct effect on inter-container port competition. The decision by a container shipping line to switch port calls from one port to another can lead to significant economic and commercial ramifications for both ports. Container ports that are less flexible in accommodating the needs of shipping lines may be circumvented, while ports that are able to accommodate, complement and add value to the port calls of container shipping lines will be preferred.

Peter de Langen and Elvira Haezendonck discuss port clusters. A port cluster is a spatially concentrated group of firms of related industries for which one firm is a port; these firms are linked through vertical and horizontal relationships. The chapter discusses the relevance of applying the cluster concept to ports, as well as the port cluster concept as a tool for analyzing the impact of port cooperation and changing port governance structures on ports located in geographical proximity. Central to the port cluster concept is the recognition that interdependent firms cluster together in port regions for purposes of coordination and resource sharing. Analyzing ports from the perspective of port clusters provides (1) new insights into determinants of port competitiveness, (2) additional measures of port performance, (3) insights into the role of the port in promoting activities among interdependent firms in its region, and (4) an alternative framework to that of port governance for describing the role of port authorities. A dominant firm such as a port authority may have a strong influence on the performance of a cluster. In many port clusters, the port authority or a terminal operator plays a crucial role in the success of the port cluster.

George Vaggelas along with Adolf K.Y. Ng focus on port security, and the ISPS Code in particular. Their study is concerned with port security activities within the port's domain that protect port facilities and coordinate security activities between the port and its users. It discusses the International Maritime Organization's International Ship and Port Facility Security (ISPS) Code, the major international port security regulatory code, and examines the challenges faced by ports in the implementation of this Code. For the latter, cases studies of port security at Hong Kong in Asia and Piraeus in Europe are used. In Hong Kong, port security is not widely regarded as an important port issue, as revealed by the fact that port security man- agers hold junior positions. The core rationale of port security compliance by major stakeholders of the Port of Hong Kong appears to be one of avoiding potential economic consequences from non-compliance (e.g., losing US trade). In contrast, the Port of Piraeus has a strong security culture. It has implemented a stricter form of the ISPS Code, and cooperates with other ports on port security know-how and good practice.

Finally, PortEconomics associate member Pierre Cariou partners with François-Charles Wolff and Maximo Q. Mejia, Jr in a discussion of port state control (PSC) – a regime of unannounced safety inspections on board foreign ships in ports or marine terminals by designated PSC authorities for the purpose of verifying the adherence of ships to international regulations related to ship manning, equipment, maintenance and operations – and the deficiencies of the system PSC inspections provide information about factors such as vessel age, vessel type, classification society and vessel flag, which may predict the likelihood that a vessel will be found to be substandard. These factors are reflected in the target factors used by PSC regional memoranda of understanding (MoUs). This chapter describes these target factors and how vessel deficiencies detected during PSC inspections are corrected or recur over time. A data set of 42,071 vessels/ inspections carried out from 2002 to 2009 by 18 state members of the Indian Ocean MoU (IO-MoU) is used to determine factors that increase the likelihood of detecting vessel deficiencies in PSC inspections and the persistence of vessel deficiencies in sub- sequent PSC inspections over time.

Read the Introductory chapter, the full Table of Contents more about the Blackwell Companion of Port Economics at the publisher's page.