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April 20th, 2019
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By invitation, PortEconomics member Jean-Paul Rodrigue took part in a OECD/IFT Roundtable on Future maritime trade flows, held in Paris, and included 30 members of government, industry and academia. The two days were divided in five sessions covering selected topics, including the changing demand for maritime trade, costs and trade flows, maritime business strategies, infrastructures and the North Sea Route. A large array of issues were discussed and Jean-Paul Rodrigue summarises what has retained his attention. Future Maritime Trade...
April 15th, 2019
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The association between ports and manufacturing has constantly evolved through technological and economic changes. Prior to containerization, there were strong linkages between ports and heavy industrial activities, and indirectly with lighter forms of manufacturing. Many ports were a combination of commercial and warehousing activities requiring a large amount of labour, while other ports focused on transshipping bulk commodities with the related heavy industrial activities. Manufacturing activities are influenced in their...
April 12th, 2019
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By Peter de Langen There is a clear transition towards a circular economy, where materials and components are reused or recycled at the end of their lifecycle, and this transition has important consequences for supply chains, ranging from the way products are designed to the business models of companies. Ports as transport nodes and as locations for logistics and manufacturing activities will be affected by the transition towards the circular economy. On the downside, ports handle huge volumes of non-renewable primary resources; the...
March 22nd, 2019
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By Theo Notteboom Interesting times in the container terminal business in Europe. PSA International together with Polish sovereign wealth fund PFR and IFM Investors have agreed a deal with Macquarie to buy DCT Gdansk, the number 15 container port in Europe. Also, MSC has plans to strengthen its ownership position in Medcenter Container Terminal (Gioia Tauro). In the past two years, there has been quite some activity in the terminal industry. For example, Cosco Shipping Ports got involved in Zeebrugge (Belgium) and Noatum Port holdings...
March 12th, 2019
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By Peter de Langen At the end of 2018, the Danish municipality of Kolding, the owner of Port of Kolding and the landlord port development company, decided to shut down the commercial port with a transition period of 25 years. That deserves a WOW. It also begs questions: is this a bold visionary move to be applauded? Is it likely to be replicated elsewhere? Does it have repercussions for the way we think about the ownership of state-owned port companies? From a public policy perspective, the core question is whether or not closing...
March 2nd, 2019
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By Theo Notteboom The cargo volume handled remains a key performance indicator for ports. While also other indicators related to logistics performance, sustainability, innovation and economic impact are gaining ground, it remains relevant to observe how cargo volumes have evolved over time. The table shows the top 15 container ports in the European Union in 2018 based on container throughput expressed in TEU. It also includes container growth figures compared to 2017 and pre-crisis year 2007. What do the figures reveal? Top 15: y-o-y...
February 28th, 2019
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By Peter de Langen Lately, there has been much talk about the entry of new disruptors into ocean shipping, with Amazon most frequently referenced When ‘entry’ is understood as providing ocean freight services, this is now happening: Amazon is already handling shipment of goods by ocean for Chinese merchants that sell on Amazon’s site. In addition, Amazon has entered the market for delivery services for businesses, competing with the like of UPS and FedEx. It has not gone unnoted that Amazon owns and leases more than 40 cargo...
February 19th, 2019
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Automation is bringing a series of paradoxes to the shipping industry. Since maritime shipping is in the derived demand business, it is misleading to assume that automation does not affect the demand for shipping as well. Although automation is mostly considered by the industry at the port terminal level, it also takes place across entire supply chains, a process associated with the fourth industrial revolution (manufacturing 4.0/4IR). The impacts of automation may thus be more significant on the activities that drive port volumes, such as...
February 7th, 2019
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Genova - In the Port 4.0, that runs towards the automation of as many activities as possible, the work on the dock is not destined to become extinct, but rather to evolve. A path that however can not pass only through the transformation of processes, but rather from the training of workers. George Vaggelas, professor at the University of the Aegean and a partner of P & S Advisory, a consulting firm for some big port terminals, such as COSCO and DP World, is convinced of this. Which are, in short, the skills that the docker of the future...
February 4th, 2019
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By Peter de Langen The recent announcement of a new container storage system, which according to the developers can triple terminal capacity, is interesting news. Container storage methods have changed little, if at all, over the last decades. But now a German industrial engineering group — an ‘outsider’ with no prior expertise in container storage systems — and DP World have jointly developed a system, similar to those in automated warehouses, to store and retrieve containers up to 11 stacks high. The value of such a...
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