Barriers to progress or windows of opportunity? A study in career path mapping in the maritime industries

The objective of the study was to provide, through a series of interviews with key personnel from a range of European Member States, an overview of the following:

Maintaining the maritime skills base: does the Government have a realistic strategy?

The UK has a requirement for people with seafaring expertise to fill a wide range of jobs in the maritime-related sector of the economy ashore. The pool of seagoing ships' officers has now reached the level where shore-based demand for such officers cannot be satisfied by natural wastage from this pool alone. This paper considers the implications of this for the Government's recently announced strategy for maintaining the maritime skills base. The paper concludes that it is inevitable that the Government's present strategy will fail, and suggests what measures need to be taken if the skills base is to be saved.     

Why are maritime ports (still) urban,and why should policy-makers care?

Despite ongoing transformations in the maritime transportation industry and the rise of global supply chain systems, most of the world's important container ports remain urban. Ports continue to occupy urban spaces, are embedded in localized knowledge systems, draw on urban labour markets and infrastructure and are subject to local politics and policy concerns. We identify contemporary geographic theories which help us understand the often increasingly urban attachment of core economic activities despite globalization. We explore how these theories may apply to port studies, highlighting both how they have been used by maritime scholars to this point and also why further development and application are warranted. We argue that a central concern of these geographic theories is the articulation of place- and sector-specific processes operating at a variety of spatial scales. This is in contrast to most maritime studies which continue to be dominated by perspectives which emphasize the global logic of the transportation industry and the analysis of space in generalized and abstract terms. We conclude that a re-appreciation in maritime studies of urban economic processes, informed by geographical theory, will provide policy-makers and others with more understanding of why deep connections between ports and urban places still matter.     

Can clusters be bi-polar? Exploring the case of the Piraeus port–maritime cluster

ABSTRACT

Further to being Greece’s biggest port, Piraeus has been a traditional pole of attraction for a plethora of organisations, companies, and institutions engaged in port- and shipping-related activities. Regional development literature has already indicated that the benefits deriving from adjacency and agglomeration economies are maximised when individual entities are organised in forming business clusters. Therefore, the paper critically addresses the existence of theoretical preconditions to a competitive port–maritime cluster formulation in wider Piraeus area. Based on a thorough review of cluster theory, the basic characteristics of clusters are identified to provide the analytical tools for examining the geographical concentration and economic specialisation in Piraeus. Field research in the form of in-depth interviews with leading shipping- and port-related business representatives and institutional bodies and the analysis of qualitative and quantitative data collected revealed that necessary preconditions for successful cluster formulation are met despite the inexistence of a formally recognised cluster. Two distinct poles of economic activity (shipping and port related) are recognised, demonstrating differentiated clustering behaviours and patterns of interaction with other players. The paper concludes with proposals deriving from this dual cluster structure and governance and the need for innovative, differentiated strategies.     

How optimal was the Sydney Metro contract?: Comparison with international best practice

The New South Wales (NSW) government created the Sydney Metro Authority to design, build and operate a completely separate underground Metro rail system to supplement the existing public transport network in Sydney. By the time the NSW government abruptly cancelled the entire Metro project in early 2010, the Authority had conceived and designed a contract that was proceeding to procurement. This paper compares the elements of the proposed Sydney Metro contract to findings of the literature on optimal contracting and optimal incentives and on PPP best practice. The paper concludes that the Metro seems to have at least implicitly drawn fairly heavily on best practices and principles, but that its ultimate failure to be implemented is an instructive lesson about how operating environment can impede integration of useful knowledge and experience.     

How can stakeholders promote environmental and social responsibility in the shipping industry?

The highly globalized and competitive nature of the shipping industry poses serious governance challenges. Recently, the use of voluntary measures, such as corporate social responsibility (CSR) initiatives, has been explored in terms of moving towards environmentally and socially responsible as well as safe shipping industry practices. Limited attention has been paid on the role of stakeholders such as consumers, employees, NGOs, and academia in pressuring the shipping industry towards greater environmental and social responsibility. Here, by applying stakeholder theory and drawing on examples of already materialized stakeholder actions and multi-stakeholder initiatives, we study the potential ways that stakeholders can promote CSR in the shipping industry: we explore the resource dependencies between stakeholders, the stakeholder influence strategies, and the importance of multi-stakeholder pressure. We show that stakeholders can gain more power by using indirect strategies such as working via and/or in alliances with NGOs, trade unions, banks and financers, and/or different national or international regulatory bodies, as well as with the industry itself. Our results reveal the potential of multi-stakeholder pressure and action to promote the adoption of CSR activities, support the transparency, legitimacy, and enforcement of the practices, as well as widen the scope and focus of CSR initiatives and practices by focusing on a broad range of social and environmental issues. Finally, stakeholder pressure can push towards improved regulations. The study suggests that increased attention needs to be paid on the multi-stakeholder demands, especially considering the accentuated importance of effective maritime governance in the future.     

Corporate social responsibility and service quality provision in shipping firms: financial synergies or trade-offs?

This study examines whether the implementation of corporate social responsibility (CSR) and provision of service quality (SQ) to satisfy shippers result in financial synergies or trade-offs for shipping firms. To address this question, a contingency framework was introduced in this study. The literature was first reviewed for hypotheses development, followed by interviews with eight industry practitioners. Subsequently, an internet survey was administered to 156 shipping firms in Singapore, and the obtained data were analysed using path model analysis and simple slope analysis. The results indicate that CSR complements SQ and provides additional but modest financial contribution to shipping firms via customer satisfaction. In addition, synergistic interactions between SQ and CSR were found. Although there are financial synergies from the implementation of CSR and provision of SQ, the analysis reveals that CSR should only be engaged when a shipping firm is fairly competent at delivering quality shipping services. This paper contributes to both theory and practice by framing business decisions on implementing CSR under contingency theory and offering a strategic approach to managing SQ as well as CSR of shipping firms.     

Does ISO 9000 series certification matter for the financial performance of ports? Some preliminary findings from Europe

This article investigates the role of ISO 9000 certification on the financial performance of the port authorities. The financial and scale efficiency of 18 European port authorities, some certified and some not, have been reviewed and results derived using data envelopment analysis. The inputs and outputs used in the analysis were selected following the literature and after employing regression analysis on the whole data set and the results reveal that ISO certified ports are more efficient financially than their non-certified competitors. By further using the efficiency slacks from the frontier, an indicative estimation of the magnitude of this inefficiency has been also calculated. The method followed may provide the impetus for a research agenda aiming explicitly on the exact contribution of certification on the financial ‘below the line’ results of the companies.     

Transport infrastructure provision and operations: Why should governments choose private–public partnership?

Recent transport sector liberalisation, as well as global economic crisis, is favouring the implementation of transport infrastructure projects through Public–Private Partnerships (PPP). However, there is a debate as to whether PPP schemes are a better option than conventional procurement. To this end, an evaluation framework is proposed, to assess which of these two alternative schemes for transport projects financing is preferable for the public. The proposed framework is complimentary to the Value for Money (VfM) approach and is based on a Multi Criteria Analysis (MCA). The first step is the estimation of the Public Sector Comparator (PSC) for the case of conventional procurement, dealing with construction, maintenance and operation costs revenues, as well as any costs associated with risks undertaken by the public. As for the PPP case, it includes any payments by the public sector and related risks costs. The MCA is then applied only if the PPP is found preferable for the public sector. The latter considers additional impacts, including among others the social attributes of a particular scheme, job creation, environmental impacts and safety and security aspects. The proposed framework was applied to a pilot Bus Rapid Transit (BRT) corridor infrastructure project in the city of Indore, India, in order to demonstrate its validity. The framework and its application could provide useful guidance when considering PPP for a transport project, since it demonstrates in a transparent way the society's attitude towards this project, something that is critical to its acceptance.     

The UN’s 2030 Agenda for sustainable development and the maritime transport domain: the role and challenges of IMO and its stakeholders through a grounded theory perspective

In September 2015, the United Nations (UN) officially adopted the 2030 Agenda for Sustainable Development together with 17 sustainable development goals (SDGs) (UN, 2016). The attainment of the SDGs requires a strong commitment by all UN Member States, not least by the Member States at the International Maritime Organization (IMO). This empirical research aims to identify the role and challenges of stakeholders at IMO, when implementing the UN’s 2030 Agenda in the international maritime transport domain using a grounded theory approach. This paper describes the methodology and the analytical process undertaken and presents the main findings based on empirical data. The results are presented as a set of six propositions. The first proposition presents the phenomena engulfing Member States at IMO stemming out from lack of knowledge and policy incoherency on the 2030 Agenda at national level. The other five propositions suggest how these challenges could potentially be best alleviated through an IMO-led strategy on sustainable development within the context of the 2030 Agenda, supported by an appropriate governance structure that sees the introduction of strategic actors for coordinating the implementation of the SDGs at national level. With the support of a Task Force, and by also making use of the IMO Member State Audit Scheme (IMSAS), to create more awareness and ownership, the strategic actors could work towards balancing the three dimensions of sustainable development—the economic, the environmental, and the social dimensions—which were found to be imbalanced in the international maritime transport domain.     

The concept of “shipowner” under new maritime labor law (MLC, 2006): does the shipowner own the ship? (comparative analysis of national law of Denmark,Finland, Germany,Norway, and the United Kingdom)

The identification of the responsible shipowner is essential for seafarers in order to claim payments and compensation in respect of their employment on board a ship. Often this may be difficult because of corporate arrangements and the many intermediaries traditionally involved in ship operation. The Maritime Labour Convention 2006 (MLC, 2006), adopted by the International Labour Conference (ILC) 94th (Maritime) Session in 2006, entered into force on August 2013; it significantly affects the shipowner’s responsibility in respect to seafarers’ employment. Taking into account the mentioned issue, the article examines the concept of “shipowner” under the MLC, 2006 and presents comparative analysis of the relevant national law implementing the MLC, 2006 in Denmark, Finland, Germany, Norway, and the United Kingdom.     

Reducing the probability of ship grounding: which measure to undertake?

The analytic hierarchy process has been used to elicit the knowledge of maritime transport stakeholders, such as seafarers, authorities, insurers and academics, regarding human factors and risk-reducing measures for ship groundings. Measures against human fatigue, alcohol abuse, language barriers, poor bridge management and safety climate have been compared with regard to costs and benefits. The measures are discussed in the context of large ships on a voyage of at least 24 h containing Bridge Resource Management. The study shows that stakeholders consider the costs of the measures to reduce human fatigue at sea surpass the benefits. Measures against alcohol abuse are regarded as the most cost–benefit efficient. Also, the stakeholders consider the watch scheme 8–4–4–8 to be less fatiguing than the 12–12 watch scheme. In addition, the results of the study support previous findings that inadequate manning levels contribute the most to human fatigue within the bridge management team.     

How do the new shipping routes affect Asian liquefied natural gas markets and economy? Case of the Northern Sea Route and Panama Canal expansion

This study focuses on the expected impact of Northern Sea Route (NSR) usage and the Panama Canal (PC) expansion on liquefied natural gas (LNG) imports of Asian countries, from not only the macroeconomic viewpoint but also diversification of the supplying countries. First, the amounts saved from shipping costs due to these events are estimated, based on scenarios on the navigable period of the NSR, transit fee of the NSR considering the exchange rate between the Russian ruble and US dollar, and bunker fuel price. Second, a spatial general equilibrium model based on macroeconomic theory is applied to predict changes in LNG trade patterns and measure economic impacts due to the reduction of shipping costs. Finally, the impacts of NSR usage as well as the PC expansion on LNG imports of Asian countries are discussed based on the calculations. The results show that diversification of supplying countries for LNG imports can be observed, especially in Japan, the largest LNG importer in the world, and other Asian countries are secondarily affected by changes in Japan’s import pattern, with limited impacts on these countries’ national economies.     

Structural changes in logistics: how will port authorities face the challenge?

The market environment in which ports operate has changed dramatically, and this continuous process of change raises questions on the role of port authorities. This paper discusses the impact of some structural changes in international trade, transport and shipping on strategic and operational issues in the framework of port management. The central hypothesis put forward is that a successful port (authority), like a successful actor, must be prepared to constantly adopt new roles in order to cope with the changing market environment. The content and strategic scope of these new roles are highlighted, especially with regard to the European container port system.     

Energy facility siting in the urban coastal zone: Compatible or not?

Abstract

Most federal and state coastal laws were framed with a distinct emphasis on preservation of rural/recreational areas. Yet in recent years a rural/urban coastal dichotomy has emerged. This has been especially prominent in the siting of energy facilities since these operations are often water dependent; power plants, for example, need huge amounts of cooling water, and offshore oil and gas extraction requires onshore support facilities. Recently, this issue has gained special prominence on the East Coast with the commencement of offshore oil and gas exploration. A case study was conducted in Hudson County, New Jersey, in New York harbor. In this area five oil‐related facility proposals were rejected from 1972 to 1976, primarily due to citizen opposition. Citizen activists now see the urban waterfront as a special place to which they want access and amenity uses rather than a continuation of past, almost exclusive industrial development. Hudson County citizens share the aspirations of those in several urban coastal areas which have experienced waterfront revitalization, including Baltimore, Boston, Chicago, Detroit, New Haven, Philadelphia, San Francisco, Seattle, and Toronto. Innovative siting which utilizes inland, rather than coastal, locations is suggested as one way to lessen urban/rural siting tensions.     

Marine Protected Areas in the Canadian Pacific: Do They Fulfill Network Criteria?

As a signatory to the Convention on Biological Diversity, Canada has committed to establishing a network of marine protected areas (MPAs) that effectively conserves at least 10% of coastal and marine areas by 2020. Research shows that the most effective MPAs are large, well enforced, no-take, and designed as part of a network. Canada's Pacific MPAs, designated site-by-site, cover approximately 3% of Canadian Pacific waters. We investigated how these MPAs could effectively contribute to Canada's national network by analyzing the implementation of management intent through the application of fisheries closures and conducting a preliminary assessment of their size and spacing relative to scientific guidelines. Fisheries closures outside of MPAs were similarly assessed. Results showed that 90% of existing MPAs were intended to exclude commercial fishing, yet only 2.5% fully or partially met this goal, therefore management intent was not achieved. Further, existing MPAs were small, 75% less than 10 km² in size, but were reasonably spaced, from one to 50 km apart. While a suite of fisheries closures may be better suited to effectively contribute to a network than MPAs without fisheries closures, they would require permanent designations and management plans to meet network inclusion criteria.     

Market structures in coastal shipping: what to expect in Canada following the Comprehensive and Economic Trade Agreement with the European Union?

After several years of negotiation between Canada and the European Union, the Comprehensive and Economic Trade Agreement (CETA) was ratified in early 2017. The regime set out by the Canadian Coasting Trade Act that reserves shipments of cargo between Canadian ports to Canadian vessels remains mostly untouched under CETA. Minor, yet potentially significant, changes to the regime are introduced by the trade agreement. Provisions are made to liberalize the repositioning of empty containers within Canada. The liberalization of public markets now allows European firms to compete in the Canadian dredging market. Finally, EU vessels can undertake some transshipment activity in Canada but this is limited to international cargo on the specific Montreal-Halifax route. The paper attempts to highlight some possible CETA’s consequences for domestic Canadian shipping markets. It uses industrial economics analytical tools drawn from a Structure-Conduct-Performance (SCP) paradigm. From a literature review, it reconstructs different cases of deregulation that occurred internationally. The observed transformations are then characterized in terms of the SCP model. The paper identifies some common impacts which occurred in different transportation industries after a deregulation process. Using these findings, it concludes by discussing potential impacts for domestic shipping markets in Canada.