TOWARDS A BETTER INDUSTRY

“Well, the regular Port Strategy columns aim to provide an interesting perspective and an actual issue or news item,” confirms de Langen, adding, “whereas the book is somewhat more ambitious and aims to provide professionals in freight transport and maritime logistics, and specifically the port industry, with a solid conceptual understanding of the port industry, including best practices for port management and development, and an overview of new trends and developments.”

When asked about the key conclusion that can be drawn from his efforts, the reply from de Langen is succinct. “A considerable part of the output deals with getting port governance right, as this is, in my opinion, the root cause of many bottlenecks and inefficiencies in ports.”

NO OPTIMAL PORT GOVERNANCE MODEL

This is an interesting concept and de Langen may have a point. While there is not one ‘optimal’ port governance model his research does offer some clear insight on the matter.

First, port development is a commercial activity and should therefore be undertaken by a corporation, not by a public port authority, as is the case in many countries.

Second, on top of the need for regulation, there are good reasons for state ownership of this port development company. While state ownership is not required in all cases, for most large ports, especially those in urban areas it is appropriate.

Third, in case of state ownership, the public owner is advised to draw up a very specific ‘shareholder policy’ and with that policy in place refrain from interfering in the decision making and appoint an independent and professional supervisory board.

Fourth, in this framework investments in port development are rightly considered based on their business case. Governments are advised also to assess the ‘value case’ as port development often creates value for society as well as value for users.

As a consequence of this analysis, de Langen states that partial public funding, ideally mainly through loans is appropriate. He then outlines that port development is the development of an integrated ‘port business ecosystem’ that includes logistics, manufacturing and leisure such as cruise and marinas.

Thus one developer for the total ecosystem works better than a model in which various developers are responsible for various parts of the ecosystem, such as a Free Zone or an industrial park. This is relevant for quite a few countries that operate a ‘disintegrated model’ including Oman, Indonesia and Brazil.

DISRUPTIVE TRENDS

De Langen draws parallels with the monthly columns in Port Strategy and a key area that always receives a lot of attention – namely, new (disruptive) trends.

“In the book I argue that one of the main reasons for investments without return, for society as well as users, is that decisionmakers often assume ‘business as usual’ while disruptions deeply influence global value chains and the port business ecosystem. A deep understanding of such trends is needed for successful port development. Many port development companies may benefit from more focus on attracting circular, sustainable energy and leisure activities to their business ecosystems,” he explains.

ROTTERDAMIZATION

One final areas of definite interest to the reader will be the preface, where de Langen claims the book is based on experience in over fifty countries. “Well, unfortunately we no longer get stamps in our passports, so I have no definite proof, but with a couple of friends we keep track of the countries we have visited so all I had to do was to count the ones visited for work and that gives a good overview of the depth of understanding.”

In the preface references are also made to the influenced from de Langen’s experiences in Rotterdam, both at Erasmus University and as corporate strategist at Port of Rotterdam. This is something he clearly feels passionately about. “If this book contributes to the ‘Rotterdamization’ of the ports industry, I consider that a good thing,” he concludes.

Fair point.