Ports Transport &
Transit of Russia
2010
Susumu Naruse
Secretary General, IAPH
The International Association of Ports & Harbors
http://www.iaphworldports.org, s_naruse@iaphworldports.org
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)
Foundation
 Only 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 IAPH
 Missions
--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 practices
 IAPH World Ports Conference, seminars, etc
Representing the world’s ports internationally
 Consultative NGO status
Studying & tackling common port issues
 Technical Committees, etc
Developing human resources
 IAPH training scholarship,
essay contest, etc.
IAPH
Financial Crisis and Ports (1)
Financial Crisis vs. Container Throughput
 World economy contracted by 0.5%
in 2009. (GDP decreased by 0.5%)
Port (world
ranking)
Singapore (1)
2009 (mil
TEU)
25.9
% Change
(2009/2008)
-14%
 International trade also contracted to
a great degree.
Shanghai (2)
25.0
-11%
Hong Kong (3)
21.0
-14%
 Container transport has experienced
decrease (about 10%) for the first
time in its over 60 year history.
Busan (5)
12.0
-11%
Dubai (7)
11.1
-6%
Rotterdam (10)
9.7
-10%
 Degrees of decrease differ from
region to region, and from port to
port.
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%
399.2
-9%
 The table shows information cited
from “World Top Container Ports
2010” by “Container Management”
Total of top
120 ports
IAPH
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
Financial Crisis and Ports (3)
Recovery from Crisis
 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.
IAPH
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




planning
Improving port productivity based on strategic
programs for port operations
Strengthening in-house capabilities on port
engineering, port planning and port economics
Learning lessons of other ports
Developing its own approaches rather than copying
others’ or traditional models
IAPH
Capacity Expansion(2)
Infrastructure Development
Large-scale expansion
projects, new or
re-development
 huge investment
 space limitation
 environmental
restrictions
IAPH
Logistics & Security (1)
Logistics
Globalization and Ports
 Meeting 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 (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 Development
Position of IAPH: Ports have to continue to be prepared for the future demand by
developing necessary port infrastructure.
 Safety and Security
Position 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 Logistics
Position 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 Cities
Position 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.
Port Administration Models (2)
Responsibilities of Public & Private
Port
Type
Port
Administration
Port
Infrastructure
Super
Structure
Cargo
Operation
Pilotage
Other
Towage
Functions
Public
Service
Port
Tool
Port
Landlord
Port
Private
Service
Port
Public
Responsibilty
IAPH
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
Conference
Busan, Korea
23-27 May 2011
www.iaphworldports.org
IAPH Head Office,Tokyo
IAPH