Integrated Coastal Management in the Philippines: Testing New Paradigms

With fisheries declining, coral reefs battered, mangrove forests under threat, pollution levels rising, and coastal communities experiencing increased poverty, the Philippines faces severe challenges in managing its coastal resources. Coastal management efforts began in the Philippines more than 20 years ago through various community-based projects. Now, integrated coastal management is expanding in the country and holds the potential to reverse the trends. This article analyzes the situation in relation to new approaches for coastal management being undertaken through the Coastal Resource Management Project supported by the United States Agency for International Development implemented by the Department of Environment and Natural Resources. This project, drawing on the lessons generated by past and ongoing coastal management initiatives, is emphasizing integrated approaches to management over narrowly focused fisheries management and habitat protection efforts. It highlights the increasingly important role of local governments and the changing roles of national government to effectively support integrated coastal management. Multisectoral collaboration is explained as standard procedure to achieve outcomes that are broad based and sustainable. Local and national level activities are contrasted and shown as essential complements in building institutionalization of resources management within all levels of government. A practical result framework is explained for measuring relative success at the local government level of implementing best practices for coastal management. Finally, lessons being learned related to collaboration, level of focus, education, and communication; who is responsible; and expansion of the project are highlighted.     

Investment strategies in market uncertainty

The nature of the global economy is one of dynamic change. Shipping is a service industry with its demand related to changes in international trade levels and patterns. As a consequence shipping is subject to sometimes unpredictable swings in demand so that the operator is required to make strategic planning decisions while navigating through boom or bust environments. While boom economies generate rising freight rates which are welcomed and encourage investment, ship operators may also have to face falling freight demand and declining freight rates that may have significant impact on profitability, often falling to uneconomic levels for extended periods. In such a period of uncertainty and declining profitability management will make operational decisions to reduce costs. However, shipping lines operate in a market environment so any decisions made to rationalize the trade may have significant long-term competitive implications. For example, traditional micro economic theory might suggest that the prudent strategy to adopt would be to close down the operation and reopen when the market conditions improve. In a world of certainty or when costs of taking this action are zero, this would be a valid strategy. However, because of fear of competitors taking up a line's market share if the shipping company exits, even temporarily, this strategy cannot be valued simply in terms of shut-down and start-up costs. A further consideration is the fact that standard capital budgeting techniques, such as Net Present Value (NPV), cannot incorporate the flexibility to respond to new information and strategic responses explicitly into their investment analysis. This paper will demonstrate the use of Real Option Analysis (ROA) to provide guidelines for decisions about closing operations in adverse market conditions.     

Freight Transport Deceleration: Its Possible Contribution to the Decarbonisation of Logistics

The paper challenges the conventional view that the movement of goods through supply chains must continue to accelerate. The compression of freight transit times has been one of the most enduring logistics trends but may not be compatible with governmental climate change policies to cut greenhouse gas emissions by 60–80% by 2050. Opportunities for cutting CO₂ emissions by ‘despeeding' are explored within a freight decarbonisation framework and split into three categories: direct, indirect and consequential. Discussion of the direct carbon savings focuses on the trucking and deep-sea container sectors, where there is clear evidence that slower operation cuts cost, energy and emissions and can be accommodated within current supply chain requirements. Indirect emission reductions could accrue from more localised sourcing and a relaxation of just-in-time (JIT) replenishment. Acceleration of logistical activities other than transport could offset increases in freight transit times, allowing the overall carbon intensity of supply chains to reduce with minimal loss of performance. Consequential deceleration results from other decarbonisation initiatives such as freight modal split and a shift to lower carbon fuels. Having reviewed evidence drawn from a broad range of sources, the paper concludes that freight deceleration is a promising decarbonisation option, but raises a number of important issues that will require new empirical research.