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The port paradoxes of our age - sustainable port competitiveness through partnershps

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In a mature port cluster, conflicting interests are usually accommodated in the sense of a settlement of differences. This approach suggests that the quality of cluster performance us a product of the bargaining society. The question is whether bargaining is effective for solving the highly complex challenges of today? It is certainly not the most constructive one. This presentation covers the paradoxes in the port landscape, the existing paradigms towards issue management as well as an alternative approach based on organisational learning, knowledge sharing and collaborative action.

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The port paradoxes of our age - sustainable port competitiveness through partnershps

  1. 1. The port paradoxes of our age Sustainable competitive advantage through partnerships Maurice Jansen ORAM / STC-Amsterdam Masterclass 2 juni 2015
  2. 2. Challenges What are the challenges we are facing in port development? How can we create value ‘beyond horizons’ in such a way that societal (green, quality of life, employment) can be strengthened at the same time?
  3. 3. Ports with paradoxes • The challenges of this century are unparalled in history. To name a few: – World population growth (poverty, migration) – Energy transition (from fossil to renewables) – Scarcity of resources (globalisation, protectionism?) – Disruptive innovations (e.g. UberPop, AirBnB) • Do you think it makes sense to make a vision while knowing the future will be different? • Do you think these challenges can be solved alone? • Do you think it is a matter of either one or the other? Welcome to the world of ambiguity !
  4. 4. Cluster governance results in trade-offs Conflicts of interests for port development • Environment protection vs port development • Urban development vs port development • Labour conditions vs port development • Resident interests vs port development • Overall economic development vs port development Source: De Langen P.W., 2007 In a mature port cluster, conflicting interests are usually accommodated in the sense of a settlement of differences The lower the transaction costs and the better the coordination, the higher the cluster performance Question is whether bargaining is effective for solving the highly complex challenges of today?
  5. 5. Paradoxes of port development More cargo, less congestion Photo: Havenbedrijf Rotterdam
  6. 6. Paradoxes of port development More automation, more jobs
  7. 7. Paradoxes of port development More port, more space for leisure Photo: Haven van Amsterdam
  8. 8. Paradox of port development More data, more to share
  9. 9. Paradoxes in port development Photo: Stedenbouw Rijnboutt More view, more tolerance for noise, odeurs and pollution
  10. 10. Paradoxes in port development More flexibility, more investing in talent development
  11. 11. 4 ways of looking at these challenges Puzzle • Search for the optimum • Algorithms, fomal logic • Single loop learning • Thinking leads to solution Dilemma • Problem is a choice of principle • Choice between heart and head • Winner takes all • Debate Trade-off • Combination of head and heart • Ratio vs Emotion • Cost-benefit • Bargaining Paradox • Thinking in reconciliation of head, heart and hands • Two seemlingly contradictory […] factors appear to be true at the same time. Dealing with paradoxes requires a participative, integrative, creative and holistic thinking. Source: Van Tulder, 2014 Education of the heart
  12. 12. Bargaining society hampers innovation Innovation is hampered by a lack of openness, relevance, reliable and timely knowledge exchange The bargaining society: “More and more assertive stakeholders are willing and capable of bargaining over the rules of the game and its outcome” Forbes over the recent US Port strike: “It’s time to get past the constant power plays and adversarial negotiating strategies each time a shipping industry labor contract comes up for renewal, no matter which coast is involved. It’s never worked to anyone’s satisfaction and clearly is hurting the U.S. economy.”
  13. 13. Challenges What are the challenges we are facing in port development? How can we create value ‘beyond horizons’ in such a way that societal (green, quality of life, employment) can be strengthened at the same time?
  14. 14. Port competitiveness based on connectivity, clusters and partnering ports Competitiveness of ports and logistics clusters is determined by the connectivity within and with other clusters Source: Rotterdam School of Management, 2011 Port of Rotterdam Port of Amsterdam Lead firms as owner and carrier of (tacid) knowledge and expertise play a crucial role Hinterland Foreland Cluster
  15. 15. Managing the partnering space for collaborative action State Market Civil Society PARTNERING SPACE Institutional context… Source: Van Tulder, EUR, RSM Role of a Port Authority is to manage the conditions and bring partners around the table. This is in line with the 3 roles the Port of Amsterdam distinguishes: Market Master, Matchmaker and Co-creator
  16. 16. Knowledge sharing and trust is key for a cluster Cluster competitiveness • Trust: It is easier to develop a level of trust among organisations and people with similar backgrounds. • Tacit knowledge exchange supports easier, faster and less expensive sharing of benchmark or market information • Collaboration; concentration of firms with similar needs and concerns gives natural rise to joint activities, such as lobbying, public relations and trade and export promotion • Research & Education; state-of-the-art research, expertise used in education, leading to a steady supply of educated employees • Supply base: Strong supply base with multiple suppliers brings competitive pricing yet cutting edge supplier innovations, crucial for competitiveness Source: Yossi Sheffi, MIT, 2010
  17. 17. Collaborative approach to port development Role Landlord (lessor) Project developer Cluster manager Co-creator Strategy alignment Firm Shareholder Cluster Society Objectives Maximise Throughput Profit Dividends Return on investment Maximise revenue and profit for companies in the port Accessibility Enable regional or national societal and economic development Direct and indirect employment Resource allocated to Maximise productivity Grow the business Innovate products and services Develop new business models Knowledge transfers Within the firm With customers / suppliers Between business community and research and education institutes Within clusters overseas and within port networks in the foreland and hinterland Social responsiveness Inactive Reactive Active Pro-active Partnership model No partnership, individual Contractual agreements Under cluster management In cross-sector partnerships
  18. 18. Port competitiveness based on connectivity, clusters and partnering ports • The Dutch experience in building prosperous port is put in practice by the PDP-combination. • Providing a total package of expertise in advanced technology, the environment, stakeholder and customer concern as well as governmental relations • The PDP is a unique collaboration between 17 Dutch companies and knowledge institutes with expertise in the following three critical areas: Management, Infrastructure and development, Transport and logistics • Supported by Dutch government (Embassy of The Netherlands in Ghana) Foreland strategy: Connecting with ports overseas
  19. 19. • Need to have more information on intermodal services and options • To have better access to intermodal options • Inlandlinks maps out the hinterland network and provides information on the package of intermodal services on offer. and facilities. Synchromodal transport - inlandlinks Once platform exists, other companies see the shared value and add content and connections to the network Port competitiveness based on connectivity with partner ports in the network (2) Hinterland strategy: Connecting with hinterland ports
  20. 20. Discussion
  21. 21. Maurice Jansen Sr Manager Innovation, Research & Development E. m.jansen@stc-r.nl / T. +31 6 20283925 www.stc-group.nl Contact details
  22. 22. Putting people first

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