Grasping the big issues

As planned, we’ve built the magazine around a framework of the industry’s basic elements then highlighted and tried to make sense of the big issues as and when they arise. And over three years there have been a few.

Typhoon Maemi, the Indian Ocean tsunami and Hurricane Katrina were grim reminders of the vulnerability of ports in the face of Nature’s devastating power. But the industry showed itself able to recover rapidly and these disasters also served to remind us of the importance of a robust insurance sector. The re-opening of Umm Qasr to commercial traffic following the US invasion of Iraq was another example of how the industry can mobilise itself in times of crisis.

Security has inevitably remained a top priority for everyone. Even if the ISPS Code doesn’t catch the headlines much these days, there are still impressive advances being made in security technology as evidenced in this month’s scanning feature.

Environmental issues are high on everyone’s agenda too of course.

Whether it’s new emission controls, habitat protection or modal shift, the whole subject of sustainability is bound to play an increasingly important role in the future. And it would be wrong to imagine the US doesn’t care. Just look at the Americas news this month. But the action is all at state and city level. The federal government still hasn’t bitten the bullet on climate change.

The congestion issue seemed to come and then go. But for how long? Whatever the future, the industry has learned much about how to get greater efficiencies from existing capacity whether by vehicle booking systems, better gate management, quicker ways of moving boxes around the terminal, improved terminal operating systems, or better cooperation with lines over vessel scheduling.

Another big issue that looks set to run and run, is mergers and acquisitions. We have entered a second post-deregulation/ privatisation era with ports now appearing as attractive investment opportunities for investment funds. The UK’s Associated British Ports is the latest with a bid worth more than £2bn being assembled by a consortium comprising US investment bank Goldman Sachs, Canada’s Borealis Infrastructure Management and Singapore’s GIC Special Investments. ABP has countered saying the bid is wholly inadequate.

Underlying all these issues is the unprecedented level of investment in port infrastructure throughout the world.

Finally there is the small matter of communication. There can be no better illustration of the dangers of bad communication than the DP World saga. This sad story has provided journalists with more than enough column inches already. But the comments made by Republican Congressman Christopher Shays cannot go unchallenged here. Shays has accused the industry of being “a mystery” and “not being part of a dialogue” with US politicians, whose onerous and sweeping duties to their nation give them a right to “know very little about a lot of issues”. That just isn’t good enough Congressman. Our industry, and I’m referring to shipping in general, is represented by an excellent portfolio of trade journals. You could start by reading your own Journal of Commerce, Mr Shays. Better still Port Strategy. And what’s this about a mystery? There’s nothing mysterious about the ports business. It’s only mysterious to those who fail to inform themselves.

PS has and will continue to communicate on all these issues and more because clear, honest and balanced communication, along with listening and understanding, have never been as important as now.