THE INSURER

Neglecting a joined-up strategy

22 years ago

The high rates of port expansion currently written about the ports of China during these boom years prompts people to think: why shouldnt one of the new dragons supplant North East Asias traditional hub port Busan. That fine location, which resembles Hong Kong in certain respects in that it is ringed by hills, lacks frontage and is liable to be hit by tempestuous winds, carries about 70% of Koreas containerised goods and is handily placed for Japan and other local markets.

Meanwhile, ports in China are starting to make claims for themselves. The newest China enthusiasts, the would be acquirers of new berths, believe that they too could plausibly play a hub port role. And why should they not? The sceptics might point to the fresh mintedness of the new wave port promoters in China, who have been freed from the central controls of the Ministry of Communications to the extent that port companies are now freer to go out into the world and attract investors for new port phases, which can be sold to investors without the need for majority Chinese shareholdings.

Those same shrewd observers might also mention how very focused the individual port companies can be on their own agenda, to the extent that the need for joined-up port strategy in China gets a little neglected. Witness the oneupmanship which currently takes place between Ningbo and Shanghai when it comes to their place in the deepwater needs of shipping. Others may point to the need for port authorities and Customs offices in hub ports to be in tune with the needs of their customers and the cargo interests.

Although Singapore for instance can be a very bossy sort of place, they treat their shipping companies with great care and attention ever since a couple of them skedaddled away to Malaysia.

Our sources tell us the latest wannabes in the port business in China are the shipowners themselves, worried about whether they will be squeezed off their berths and languish, unable to enjoy the boom in container throughput currently running at such full throttle.

Certainly there are precedents to follow in the shape of COSCO, AP Moller, CMA CGM, P&O Nedlloyd and who knows who in the future? NOL perhaps?