Susumu NaruseSecretary General, IAPH

The International Association of Ports & Harborshttp://www.iaphworldports.org, s_naruse@iaphworldports.org

Ports Transport & Transit of Russia 2010

Outline of Presentation

1. About IAPH: International Association for Port Authorities in the World

2. Financial Crisis and Container Transport

3. Ports & Globalization 1. Capacity Expansion 2. Logistics & Security 3. Environments

4. Global Issues and IAPH

5. Port Administration Models

IAPH

About IAPH (1)FoundationOnly international association of the world’s

port authorities and maritime industries.

Established in 1955,headquartered in Tokyo

Motto: World Peace through World Trade;World Trade through World Ports

IAPH

About IAPH (2)Missions and Structure of IAPHMissions --to foster good relations and collaboration among all ports of the

world --to promote and increase the efficiency of ports --to facilitate the formulation of common positions and policies

of ports --to promote favorable publicity of all port affairs

Members of IAPH --The major members are port authorities. --Regular members cover over 200 ports in some 90 countries,

who handle nearly 80% of the world container traffic

Regional Principle --Three vice-presidents are elected from 3 regions (Asia/Oceania,

Europe/Africa, and Americas), and the president is basically elected in rotation of the 3 regions from among these vice presidents.

Consultative Status --IAPH is given a Consultative Status as NGO from the UN

organizations such as IMO, UNCTAD, UNEP and ILO.

About IAPH (3) Activities

Networking & sharing best practicesIAPH World Ports Conference, seminars, etc

Representing the world’s ports internationallyConsultative NGO status

Studying & tackling common port issuesTechnical Committees, etc

Developing human resourcesIAPH training scholarship,

essay contest, etc.

IAPH

IAPH

Financial Crisis and Ports (1) Financial Crisis vs. Container Throughput

World economy contracted by 0.5% in 2009. (GDP decreased by 0.5%)

International trade also contracted to a great degree.

Container transport has experienced decrease (about 10%) for the first time in its over 60 year history.

Degrees of decrease differ from region to region, and from port to port.

The table shows information cited from “World Top Container Ports 2010” by “Container Management”

Port (world ranking)

2009 (mil TEU)

% Change (2009/2008)

Singapore (1) 25.9 -14%

Shanghai (2) 25.0 -11%

Hong Kong (3) 21.0 -14%

Busan (5) 12.0 -11%

Dubai (7) 11.1 -6%

Rotterdam (10) 9.7 -10%

Hamburger (15) 7.0 -28%

Los Angeles (16) 6.7 -14%

Long Beach (18) 5.1 -22%

Tokyo (27) 3.8 -9%

Sydney (59) 1.8 -3%

St Petersburg (73) 1.3 -32%

Tanger Med (81) 1.2 +36%

Total of top 120 ports 399.2 -9%

Financial Crisis and Ports (2)Outlook for 2010

IMF projected this year’s economic growth rate of 4.5%.Applying a usual coefficient of elasticity (growth rate of container

trade/growth rate of economy) 2 or 2.5, it may be expected that the global container throughput as a whole would increase by approximately 10%.

This means that the level of throughput in 2010 might reach almost the same level of 2008.

All of this depends on how the economy will bounce back again (no currency crisis, etc.).

Of course, the situation differs from region (port) to region (port).

IAPH

IAPH

Some signs of recovery in port throughput were able to be observed from the middle of 2009.

Almost all the major container ports in the world showed recovery in the first half of 2010.

Table shows growth rates of the first half of 2010 over 2009 of the major container ports in each region.

They fall into the range of 15 to 20% with some exceptions.

Port Growth Rate (2010/2009)

Singapore +14%

Hong Kong +15%

Busan +23%

Los Angeles +15%

Long Beach +20%

Rotterdam +18%

Hamburg +3.7%

Antwerp +16%

Capacity Expansion(1)Key to increase Capacity Expanding port capacity based on long range

planningImproving port productivity based on strategic

programs for port operationsStrengthening in-house capabilities on port

engineering, port planning and port economicsLearning lessons of other ports Developing its own approaches rather than copying

others’ or traditional models

IAPH

Capacity Expansion(2)Infrastructure DevelopmentLarge-scale expansion

projects, new or

re-development huge investment space limitation environmental

restrictions

IAPH

Globalization and PortsMeeting needs for supply chain management Dealing with super-giant customers/partners Ensuring port contribution to local economy

Evolution of new port strategy

“interface between maritime transport & land transport”

“hub of seamless logistics chain”

“logistics value-creator or value-adder” IAPH

Logistics & Security (1)Logistics

Logistics & Security (2)Port Security

Port security SOLAS Con. ISPS Code (July 1st 2004~) exercises & drills, self-auditing, awareness improvement

Supply chain security WCO SAFE standards introduction of AEO and mutual recognition US Act: 100% container scanning

IAPH

Port Environments

Ship emission control MARPOL Annex VI SECA to ECA

Port clean air program to provide onshore power supply to introduce energy-efficient handling gears to use low-sulphur oil to use rail and water transport for hinterland connection (avoid

using trucks or road)Dumping of dredged materials

London Convention, 1972 waste management assessment

Ballast water problems invasion of harmful organizations in ballast water into marine environment in/around ports Ballast Water Management Convention, 2004

Port reception facilities for ship waste MARPOL requirements, guidelines 2000 IMO Action Plan to tackle inadequacy

IAPH

Global Issues and IAPH (1) Key Issues being tackled by IAPH Economic Downturn and Port DevelopmentPosition of IAPH: Ports have to continue to be prepared for the future

demand by developing necessary port infrastructure.

Safety and SecurityPosition of IAPH: We advocate AEO (Authorized Economic Operators)

programs and strongly condemn piracy and urges the governments to ratify the related international conventions.

Supply Chain LogisticsPosition of IAPH: Ports improve supply chain logistics by providing better

intermodal connection (rail and short sea shipping) and developing dry ports and other necessary infrastructure.

Ports and CitiesPosition of IAPH: As ports need to co-habit with cities, necessary

measures should be taken when developing port infrastructure.

Environment Issues (Climate Change)Position of IAPH: Ports need to minimize environmental impacts

associated with port activities and at the same time ports themselves need to adapt to climate change.

Global Issues and IAPH (2)Ports and Climate Change

WPCI (World Ports Climate Initiative) was created under the umbrella of IAPH in 2008.

Six (6) projects were set up.

--Carbon Footprinting

--Intermodal Transport

--Lease Agreement Template

--Cargo-handling Equipment

--Environmental Ship Index

--On-shore Power Supply

Some projects have already yielded certain outcomes.

Global Issues and IAPH (3) On Shore Power Supply On-shore power supply is a system

to provide electricity from the local grid to ships to meet their power demand.

As some ports have already taken this measures (US West Coast and Northern Europe), interest in the technology is rapidly growing.

With this OPS website, the users can carry out an initial feasibility study to introduce OPS in their own ports.

Port Administration Models (1) -- Definition by the World Bank ----- Public Service Port The public authority takes almost all the responsibilities of port

activities. The most classical model.

--- Tool Port The public authority provides almost all the necessary infra & super

structure. --- Landlord Port The public authority owns infrastructure of a port but port

operation is carried out by the private sector. This is the currently most popular model.

--- Private Service Port The private sector takes almost all the responsibilities of a port.

IAPH

Port Port Port Super Cargo Pilotage Other

Type Administration Infrastructure Structure Operation Towage Functions

Public 　 　 　 　 　 　 　 　 　 　 　 　

Service 　 　 　 　 　 　 　 　 　 　 　 　

Port 　 　 　 　 　 　 　 　 　 　 　 　

Tool 　 　 　 　 　 　 　 　 　 　 　 　

Port 　 　 　 　 　 　 　 　 　 　 　 　

　 　 　 　 　 　 　 　 　 　 　 　 　 　

Landlord 　 　 　 　 　 　 　 　 　 　 　 　

Port 　 　 　 　 　 　 　 　 　 　 　 　

　 　 　 　 　 　 　 　 　 　 　 　 　 　

Private 　 　 　 　 　 　 　 　 　 　 　 　

Service 　 　 　 　 　 　 　 　 　 　 　 　

Port 　 　 　 　 　 　 　 　 　 　 　 　

　 Public Responsibilty

　 Private Responsibility

Port Administration Models (3)Russia needs to seek its own efficient management system by

considering its historical and social backgrounds.From international perspectives, it may be safe to say “Landlord”

model is the best administrative model which can be applied to most countries.

“Landlord” model has a great advantage in terms of a legal aspect because it strictly divides the roles of “Regulators” and “Operators” of ports.

Having said that, there are many exceptions in the world such as ports in UK and PSA, which have shown good performance.

You can learn a lot of first-hand experience of other leading ports in the world b actively participating in IAPH events and committees.

IAPH

Let’s work together with IAPH

Come and join us !

27th IAPH World Ports

ConferenceBusan, Korea

23-27 May 2011

IAPH

IAPH Head Office,Tokyowww.iaphworldports.org