A STRATEGIC PLAN: TICKS THE BOXES BUT RADICAL ENOUGH?

COMMENT: The French Haropa ports of Le Havre, Rouen and Paris are steadily implementing the full merger announced over two years ago and the final step should be ready in June of this year, writes Peter de Langen.

As an important part of the integration, a strategic plan until 2025 was recently published. It is an interesting read and clearly reflects the changed landscape in the port industry. In 2015, Le Havre had the ambition to grow container volumes by 50 per cent, to around 4.8 million TEU, but the new plan aims for much more modest growth of 10 per cent, to reach 3.1. million TEU.

The plan also acknowledges the inevitable decline of liquid bulk volumes, which account for around 50 per cent of its throughput. As a consequence, the document suggests total maritime volumes (i.e. excluding river transport) will remain fairly stable at around 90 million tons.

The strategic plan ‘ticks all the right boxes’ in the sense that the widely recognised challenges around digitalisation, innovation (eco)systems, sustainability and circular economy are all included.

Based on my experience with strategic plans for ports, which certainly includes some mistakes, in my view the key question to ask about a strategic plan should be, ‘Is it radical enough?’ In hindsight, most strategic plans turn out to be too much based on business as usual, even if they tick all the right boxes.

Is Haropa’s plan radical enough? Well, time will tell. I certainly do not have a crystal ball, but here are my doubts. First, like most other ports, and in line with national and EU policies, Haropa aims to increase its share of barge and rail, while reducing the portion of road transport.

However, most ports have not achieved modal split targets, and in many countries the share of rail is stable or even declining. The transition to cleaner trucking is well underway and autonomous & assisted driving on the horizon. So it may be time to challenge the value of modal split ambitions.

Second, the strategic plan is mostly silent regarding the diversification of the ‘port business ecosystem’. The experience from other ports is that activities such as mega-yacht building, offshore wind, datacenters, circular manufacturing and even ‘industrial agriculture’ may be valuable additions to the port business ecosystem. Focusing commercial activities on attracting such new investments may be needed.

Third, perhaps the planned transformation of the port/city interface is not radical enough and could include a stronger commercial approach to develop maritime/cruise related leisure. If Port Strategy is still around in 2025, and I still write an opinion piece for it, I will report on ‘what really happened’ in 2025.