A good performance, and even better raising your game, is something that can make a genuine contribution to offsetting the negative impact of recessionary forces. Perform like British Airways did, however, on the opening of the new Terminal 5 at Heathrow Airport, London, and it can have the opposite effect and accelerate your journey southwards.
Take, for example, Spain’s major Mediterranean container ports: Algeciras, Valencia and Barcelona. In general, these ports have over recent years consistently achieved double digit traffic growth. What they have not achieved, however, is a container handling performance that ranks in the top tier and which complements user requirements. There is a history of consistent under performance when measured against best practice internationally – one barometer of this being the average moves per hour over the quay.
In Valencia, for instance, the port’s flagship container terminal Maritima Valenciana achieves an over the quay container handling performance in the order of 18 moves per hour, not good enough given the huge investment that has gone into the terminal on the part of both the port authority and the terminal operator.
So what is the problem and what can be done to raise performance, and receive the added benefit of this in these troubled times? First, it has to be said, as will apply elsewhere, it is a most appropriate time to consider this aspect not just because leaner times call for such measures but also because the growth rate of traffic has fallen off and this, in turn, provides some breathing space to get to grips with the performance issue.
In terms of a remedy, no.1 it has to be a joint effort between management and workforce – a mutual recognition that to move in such a direction is in the interest of the business and thus, in turn, of direct benefit to its employees.
In Spain, traditionally in the major port centres there has been a very “us and them” attitude between labour and management. Effectively, labour has always known there is as much overtime available as is permissible and on the other side of the coin, while catering for major growth has been on the agenda, then to a significant extent management has been content to take the short cut of solving labour related problems with more money.
And underpinning this rather artificial situation has been a lack of political will on the part of government to back serious reforms in the port labour sector that put it on a realistic modern footing. Thus no.2 in terms of delivering an effective solution is government fostering a climate for positive change at a macro level.
The common denominator here is that there has to be recognition that maintaining entrenched attitudes, that to a large extent have survived due to ongoing strong demand, is no longer appropriate. Furthermore, there is every likelihood that new efficiency levels will be required by the shipping line client base as it looks to reduce cost in the face of reduced earnings brought about by falling freight rates.
There are perhaps strong indications of this in recent changes of transhipment base undertaken by certain lines and/or consortia in the Mediterranean – the Grand Alliance opting to use Cagliari and Maersk moving business out of Piraeus.
These are steps that have definitely been taken to enhance efficiency of operation and as a result make a contribution to protecting margins which are generally under pressure. In short, they are sensible steps in today’s business climate and it is this culture that the port sector must also progressively sign up to not just to weather the current storms but to lay firm foundations for the long term future. No-one stands still for ever
