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The Analyst: port cooperation and mega-shipsCategory

The Analyst: port cooperation and mega-ships

October 24th, 2015 Category, Containers, Featured, Viewpoints

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Investments and financing challenges of the EU’s port managing bodies; findings from a comprehensive survey
Investments and financing challenges of the EU’s port managing bodies; findings from a comprehensive survey
Port reform: World Bank publishes the third edition of its port reform toolkit
Port reform: World Bank publishes the third edition of its port reform toolkit
Investments and financing challenges of the EU’s port managing bodies; findings from a comprehensive survey
Investments and financing challenges of the EU’s port managing bodies; findings from a comprehensive survey
PortGraphic: Container port dynamics near Gibraltar
PortGraphic: Container port dynamics near Gibraltar

De LangenIn the, often heated, discussions on the effects of mega-ships on shoreside infrastructure, let’s include the question of co-operation between nearby ports. PortEconomics co-director Peter de Langen comments that the issue of co-operation is clearly relevant for the two large upstream ports in Europe that have called for such a discussion, Hamburg and Antwerp.

At his latest Port Strategy viewpoint column, as The Analyst (more @PortStrategy) Peter comments:

“Hamburg was initially involved in, but later stepped out of, the development of JadeWeserPort, a deep draft port in North Germany, less than 150 km away from Hamburg; in Antwerp, the theme of co-operation has been under discussion for at least a decade. However, while seemingly sensible co-operation between the coastal port of Zeebrugge and the upstream port of Antwerp eyes has been discussed at length, no concrete moves have been made.

Perhaps co-operation has not emerged because there is no tangible benefit: even though there is an intuitive logic, the numbers may not work. Another potential explanation may be that the centuries old and deeply rooted Hanseatic port development approach of ports in this part of the world prevents such co-operation. Through this approach, ports create wealth for their cities and regions, hence losing container volumes is equal to a wealth reduction for the regional and urban economy. Because winning is defined in volumes, co-operation is not necessarily a win-win game. 

Without having done the sums, I lean towards this second explanation. If we promote a shift in mindset to define ‘winning’ as ‘value for society’ instead of ‘throughput volumes’, co-operation becomes win-win. Hamburg and Antwerp can then continue to create value for port users through better connectivity and competitive supply chain costs and for society through environmentally-friendly transport and jobs creation. The added bonus is that these ports can concentrate on developing propositions to handle mega-ships in nearby deepwater satellite ports when the costs of accommodating such ships upstream are prohibitive. 

All three deepsea services – all Maersk’s – that call at JadeWeserPort also call at either Bremerhaven or Hamburg. This suggests that these ports may be complementary even without draft limitations. North German ports are an interesting ‘living lab’ in that respect: Bremen embraced the satellite port approach – the city state Bremen is a shareholder in the JadeWeserPort landlord port company and Eurogate, the container terminal operator in Bremen, operates JadeWeserPort container terminal. Hamburg, on the other hand, decided to go-it-alone.”

Next article Economic assessment of management reform in european seaports
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Peter de Langen

Dr. Peter de Langen is the owner and principal consultant of Ports & Logistics Advisory, based in Malaga, Spain and established in 2013. Peter de Langen is part-time professor at Copenhagen Business School and held a part-time position as professor Cargo Transport & Logistics, at Eindhoven University of Technology, from 2009 to 2016, From 2007 to 2013, Peter worked at Port of Rotterdam Authority (PoR), department Corporate Strategy as senior advisor. From 1997 to 2007, he worked at Erasmus University Rotterdam (EUR). Peter is co-director of the knowledge dissemination platform www.porteconomics.eu, co-organiser of conferences and training events and regular speaker at industry conferences on ports and shipping.

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