Port Prosperity

PORT PROSPERITY
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Port Prosperity
Introduction
There has been a differential rate of port prosperity in different ports around the world. Different seaports have been faced with differing risks and uncertainties hence giving some ports competitive advantage as compared to others. On the other hand increased production and consumption of goods has increased the need for seaports as compared to other means of transport. Various market developments have also led to the success of many ports in the world. This paper is going to focus on the various factors that influence port prosperity taking into account the elements of hinterland and foreland.
Most of the port operators have been involved in a process of integration thereby generating more power than before intergration.These bonds helps to strengthen their market positions. Some of the container carriers like Maersk sea land have increased their operations to hinterland transportation. Horizontal mergers have been considered as one of the best integration because of the reduced operational cost and improved services to their clients. These integrations have been proven to increase the efficiency of many ports because of the improved services and reduced operational costs of the seaport. Mergers bring synergy by making ports to grow stronger thus improving their prosperity.
Another factor which has made many ports to grow stronger is the use of containers and changing technology. This factor has made many new ports to overdo the new ones by having an operational advantage. Adoption of new technology comes with increased productivity. For example ports like Rotterdam and Antwerp are facing competition from both large load areas like LeHarve-Harmburg range and also from small areas like Zeebruges and Amsterdam which employs better technology. In fact, competition has also been proven to come from medium load areas in different port ranges like UK ports and hubs alongside Mediterranean. This concept has brought too much pressure on some ports which used to prosper before. This process of containerisation has brought an increase in geographical coverage of many ports to the extent that hinterland has become less important, (Khan, 2011, par 6).
Changes in market structures have also influenced the rate of success in ports. This change usually comes with adverse effects as the ports strive to accommodate those changes. This has led to a state of stiff competition between different ports, with quick adopting ports doing well as compared to the slow adopting ports. The power of a port is dictated by its inside strengths and weak points. The success of ports is also determined by other external variables like hinterland. Good fortune of a port is normally influenced by external factors rather than internal factors. For example the performance of a seaport may become poor because of its poor marketing services as compared to its high level of technology.
Ports that have a higher chance of flourishing are the ones that take special care to its customers in terms of quality service delivery. This helps by creating goodwill for the port which gives it a competitive edge against its rivals. For a port to achieve this, it must be using quality technology in its operations which goes hand in hand with quality services delivery. Another aspect which gives a port power to prosper is the ability of its management to adapt easily to changing operational opportunities. Therefore, the port management is taken as key factor influencing the success of a port. The authority is concerned with almost all the operations of the port hence its operations greatly influence the success of a port.
Port networking is also a major factor in determining the performance of a port. Hence a port needs to be integrated with other ports in order for it to improve its performance. Port Antwerp has become one of the most competitive seaports due to the forwarding business which is available there. There exists a number of forwarding companies which makes the port to remain strong. A field research is also so vital in improving the performance of a port. This research encompasses a thorough evaluation of ports activities. This helps to discover the areas of weaknesses of a port and rectify them in time. After a research is taken, a thorough analysis is done in order to come up with good results. For example in the port of Antwerp a research was conducted in 1988 and an evaluation conducted thereafter in order to obtain good results.
The labor force is also another important factor in determining the success of a port (Antunes, 2010, par 33). This usually dictated by the skills and talents of the workers. Port Antwerp improved its efficiency by simply employing highly trained workers. This aspect helps in generation of a high quality output at low costs. Services of piloting also need to be reformed in order to lower the operational cost. This makes a port more attractive as compared to its rivals. A port can also be improved by increasing its accessibility. This can be done by deepening the involved rivers. Such a project makes a port to be outstanding in its operations. For example it increases the navigational window for those vessels which depend on tides. The port of Antwerp management is having plans of a second deepening project which will enhance easier navigation of big vessels.
According to a 1997-1998 survey conducted in port Antwerp, it showed that most of the weaknesses have been removed thus giving it a competitive advantage to other ports. Market changes have also weakened some of the ports which were strong initially. It’s now clear that giving a port a competitive advantage is a complex process which is hard to complete. Port prosperity is mostly created through a localized process, (Redding, &Venables, 2000, pg 98). Different factors that contribute to ports well being are generally connected to each other. In many cases for a factor to be efficient it needs the existence of other factors. It becomes more efficient when various factors act as one. For example, a project which involves the creation of new terminals will affect the process of deepening a river. Where the impact of various projects is combined, a notable change is seen as compared to the effects of a single project. The whole process makes a port to develop a competitive advantage over other ports. The process of prosperity normally starts with major projects like deepening of a river which then acts as a booster to other minor projects. The minor projects acts as a helping hand the major project.
Ports operating around the same hinterland have been proven to have a fierce competition against each other in terms of market share between port authority and its operators. Central government involvement in ports administration has decreased the level of port competition. Geographical location of a port also determines its prosperity. Ports with limited accessibility like port Antwerp will not prosper incase faster turnaround vessels are using this port. This gives them competitive disadvantage as compared to ports with better accessibility. In other cases oth...