Prashanth Balasubramanian presented his master's thesis on identifying the factors that led to the success of the North German maritime industry. He conducted interviews and analyzed Germany's cluster policies. He found the key factors were geographic location, infrastructure, support industries, human resources, innovation/technology, and demand. Cluster policies strengthened cooperation between research and companies. For India, he recommended improving ports and transport, developing research facilities, enhancing IT infrastructure, and implementing long-term cluster policies to develop its untapped maritime potential.

1. 12 September 2012
Master thesis defense
Presenter : Prashanth Balasubramanian
Supervisor : Dr. Rod J Franklin

2. Agenda
• Introduction
• Purpose of study
• Methodology
• Main Findings
• Recommendations
• Conclusion

3. > Introduction > Purpose of study > Methodology > Main Findings > Recommendations > Conclusion
Introduction
The thesis is based on an internship at the Consulate General of India,
Hamburg.
Maritime market survey : To gather information about the
North German logistics and maritime market , its trends,
clusters and cluster policies.
To find opportunities for India and Indian companies to
invest in German firms in these sectors in the motive of
transferring knowledge and technology.
To identify the problems and possible ways to perform
knowledge and technology transfer.

4. > Introduction > Purpose of study > Methodology > Main Findings > Recommendations > Conclusion
Introduction
• The thesis identifies the various factors that led to the success of the
North German maritime industry.
• Area of study – Hamburg, Lower Saxony and Schleswig-Holstein
• All these three states have very intensive logistics and maritime
clusters. Recently, several cluster policies were introduced in
Hamburg across various sectors.

5. > Introduction > Purpose of study > Methodology > Main Findings > Recommendations > Conclusion
Introduction
• Clusters are geographic concentrations of interconnected companies
and institutions in a particular field. It is an array of linked industries
and other entities which are import to competition. Clusters are
naturally formed over a period of time when a lot of firms start up in a
region by identifying the market potential in that specific region.
• Cluster policies are when the government intervenes with a set of
policies aiming at strengthening the existing clusters or help the
emergence of new clusters. In Germany, the cluster initiatives are
PPPs formed by a set of firms from the cluster and the government,
aimed at strengthening the cluster by various means.
The common cluster management for the three
states of Hamburg, Lower Saxony and
Schleswig Holstein.

6. > Introduction > Purpose of study > Methodology > Main Findings > Recommendations > Conclusion
Purpose of study
• India is in its twelfth five year plan from 2012 to 2017.
• PPPs (Public Private Partnership) are becoming very popular in India
after witnessing the success of various PPP projects which were
introduced in several sectors previously.
• In this twelfth planning period, India is expanding its PPP programs
across a much wider set of sectors like the maritime, air and road.
• India being a peninsular country, has a tremendous potential in its
maritime sector which is untapped.

7. > Introduction > Purpose of study > Methodology > Main Findings > Recommendations > Conclusion
Purpose of study
• 90 per cent of India’s trade volume takes place by water transport.
61 13 major
200 ports
Operational ports
• Many ports are either under utilized or over utilized. Turn around
times are very long compared to other major ports in the World.
• India is interested to learn the success factors of North German
maritime industry in particular, aiming to strengthen its maritime
sector.

8. > Introduction > Purpose of study > Methodology > Main Findings > Recommendations > Conclusion
Methodology
• Interviewing was my main approach to learn about the maritime
sector.
• I used the method of triangulation to check for the credibility of data
that I was collecting.
• What defines success? What factors define success to the maritime
industry? Two methods or references were used as a base to
determine the factors.

9. > Introduction > Purpose of study > Methodology > Main Findings > Recommendations > Conclusion
Methodology
• Porter’s Diamond of competitive national advantage.
• Evolving factors of measuring success with time.
Variety of
Volume/Size Flexible/Resilient
Services

10. > Introduction > Purpose of study > Methodology > Main Findings > Recommendations > Conclusion
Main findings
North German maritime cluster map

11. > Introduction > Purpose of study > Methodology > Main Findings > Recommendations > Conclusion
Main findings
North German maritime industry success factors
Innovation
Geographic
Infrastructure and
Location
Technology
Support Local
Services
Industries engagement
Human
Demand
resource

12. > Introduction > Purpose of study > Methodology > Main Findings > Recommendations > Conclusion
Main findings
Clusters create ‘Synergy’

13. > Introduction > Purpose of study > Methodology > Main Findings > Recommendations > Conclusion
Main findings
North German maritime cluster policy
• A common cluster initiative by the three North German states aimed
at strengthening the maritime cluster.
• It is a PPP with fifty percent of the funding provided by the state.
• To promote the transfer of technology between Research facilities and
Companies.
• To enhance the cooperation with other supporting clusters.
• Extend the number of players in the sector to make it more
competitive.
• To start innovative projects for the betterment of the industry.

14. > Introduction > Purpose of study > Methodology > Main Findings > Recommendations > Conclusion
Recommendations (for India)
• India must improve its ports and services immediately. With the example of
the port of Mundra, it is clear that more interesting PPP projects must be
introduced in all the major ports.
• Steps are taken to improve hinterland transport but only few corridors
between Mumbai and Delhi. All major roads have to increased in size. The
inland waterways in North India must be put to good use which will reduce
both cost and time.
• Unlike Germany, India does not have high quality Universities or research
facilities for the maritime sector. This has to be sorted out in order to
innovate and provide skilled labor to the sector.
• India being IT leaders in the world, does not have a proper database and
communication infrastructure. With proper funding and management, this
problem can resolved quickly.
• India has to find a way to implement cluster policies in the long run. A type
of policy that would suit a huge country like India is something that requires
further research.

15. > Introduction > Purpose of study > Methodology > Main Findings > Recommendations > Conclusion
Conclusion
• The success factors that were identified in the North German
maritime industry were in coherence with porter’s diamond of national
competitive advantage.
• The maritime cluster policy has already proved to be a success with
over 78 members within the first year of its debut.
• The cluster policy will bring resilience to the industry and take
innovation to the next level with the introduction of various innovative
projects.
• The port of Hamburg has prospects of becoming an IMC
(International Maritime Centre) in the future, provided that it improves
its capacity and infrastructure to even a higher level.

16. Thank you
Questions?