This document discusses value-added services that ports can provide to sharpen their competitive edge. It defines value-added services as any service that differentiates a port from its competitors and increases loyalty. The document provides examples of value-added services ports have implemented, such as improved hinterland connections, dedicated operations for customers, and controlling the logistics chain after cargo leaves the port. It recommends ports identify value-added services by understanding their customers and competitors better to enhance their market position.

1. Value-added Service in the port environment,
sharpening the competitive edge
Richard Szuflak – Director of European Operations,
BMT Maritime Consultants Pty Ltd
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2. Value-added Services in Port
 What is a port?
 What are Value-added Services (VAS)?
 Why should ports look for added-value?
 Where is added-value?
 Examples (all examples may not be from the Baltic Region)
 A toll that helps
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3. What is a port ?
 Different Ownership Structures
 Different responsibilities
Owner
Port
Marine Approach
Port Owner
Port Owner
Quay (Depth)
Full ownership
Concessionaire
Land
Concessionaire
Civil Infrastructure
Operations Concessionaire
 The landlord model is the one that we will consider
 Because most ports are developed under this model
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4. Added-value services for ports – general view
 Port authorities create added-value
 Ports often link added-value with:
 The number of jobs created within the port and the port
system (industries/logistics)
 The amount of taxes paid to Governments
 Turnover or Brut Margin gained from port and related
activities
 The global economic impact of a port on a region
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5. But in reality:
 VAS is a marketing advantage
 VAS is any service that differentiate positively a port (or a
terminal) from its competitors
 VAS are activities that:
 Increase turnover and margin
 Create a better stand over competitors
 Build customer’s loyalty
 VAS are about services and marketing
 They sell the advantages of your port and terminal
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6. Why?
 Because customers have an abundant choice
 Because customers are less loyal
 Because competition is harder
Therefore, in an open market, only specific and
dedicated services will help maintaining high
margin, keep existing clients and attract new ones.
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7. Selling your Port’s Advantages
Best performance is achieved when both port authority and
Terminals work together
• Port Authority
– Market its advantages versus other competing ports
in the region
– Stress the port’s future development
• Port Facility or Terminal
– Market its advantages towards users
– Different sectors and different requirements: bulk,
general cargoes, containers or passengers/RORO
– Depends on your own technical and service
advantages
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8. It is a customer’s perspective…
… but also your competitor’s perspective
…and don’t forget your customer’s
competitors
Added-value Services build Loyalty
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9. Marketing Advantage of the Port Authority
Competitive
Vision
Advantage
 Nautical Access, dredging  Commercially driven
program
 Vision for the future; shippers
 Night Access and shipping companies like
to know that their growth is
 Faster turnaround of vessels taken into account and in
– no delays advance
 Better hinterland connections
 Easy Customs
 EDI Services
 Security
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10. Marketing Advantage of the Terminal
Competitive
Vision
Advantage
 Faster discharging/loading  Commercially driven
rates
 Willingness to study
 More storage/parking customers needs and
requirements
 Flexibility, like working 24/24
 Capacity to adapt
 Web based services:
invoicing, reporting…
 Better price mix
 Services that other don’t offer
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11. Before cargo reach your port
 You should be on the maps and lists of your:
– Existing Clients
– Competitor’s of your clients
– Competitor’s Clients
 This does not “make” money but creates a clear vision of
your will to develop competitive environment for the Clients
using your facility
 In case of any difficulty at another place, potential clients
should know if you are up to the job.
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12. Examples
 Port Marketing Activities: you can appoint a port marketing
agent that will visit clients and prospects on your behalf.
This is mostly used by port authorities but terminals can do
it as well: Rotterdam or Dunkirk
 Alliances with other Ports: Look at ports or regions where
you think the growth rate is the best, or from which you
receive/load an important part of your cargoes. Team-up
with ports there, exchange information, dominate this
market by your knowledge; Port of Georgia in the US have
increased their market share of Australian cargo from 43%
to 76% by teaming up with the Port of Sydney
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13. Examples
 Improve the hinterland connections:
– The Port of Dunkirk has obtained from the French
Government authorization to load trucks at 44 tons
instead 40 tons
 Provide services not available elsewhere:
– The Port of Turku in Finland is the only one with a train
harbor
 Freeport operations for the Ports of Riga and Ventspils
 In 2001, I have developed the first bonded warehouse
operations in Vietnam for a private port; this has had a huge
impact on business with trading houses
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14. VAS when the cargo are at your port
 Enhance your market position
 Develop services that “attach”
customers to you
 That’s the easiest part because
you can measure and take
decision/action:
 Investment
 IRR and ROI
 Increase turnover and brut margin
 Cash-flow impact
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15. Examples
 The Port of Kokkola has developed an All Weather
Terminal (AWT) to load/unload even in blizzard conditions.
 Port of Klaipeda Information System
 Generally speaking, dedicated or specific operations for a
given customer will boost “normal” traffics with this
customer; Northern Manuport in Antwerp has invested into
a specific debulking linked with a dedicated storage area
that has resulted in handling much larger volumes: 10 =
100!
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16. VAS after the cargo has left your port
 Control the Logistics Chain
– Develop freight forwarding
– Trucking
– Inland transport management
 Improve the Logistics Chain
– EDI
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17. Examples
 PD Ports in UK has developed a wide range of trucking and
forwarding services as a prolongation of their port’s services
 Northern Manuport in Antwerp has created a J-V with
barge operators and operates a fleet of barges to supply
their customers based inland
 Invest in inland depots to control the flow from your ports up
to the final customer
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18. Benefits of VAS
 Long-term contracts
 More visibility on your
business
 Less influence from
competitors
 Secure Investments
 Show your willingness to
accompany your customer
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19. How to find VAS?
 BMT develop a toll helping port to strengthen their market
positioning
 Look at the current market position:
– Understand and control logistics chain better
– Find out where your customers are
 Look ahead of the game:
– Behave as your (future) customer:
– Figure out how and why he would use your port or terminal
– Use information to outline how he can improve his
competitiveness
– Work and test the case and then sell
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20. Analyse of the Current Market Position
Path analysis
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21. Look Ahead of the Game
Forecasting & simulating transport flows with
the STAN European Freight Model (STAN EFM)
Analysis of new ferry line concept
 Actual pattern of transport flows from
Spain to Scandinavia
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22. Look Ahead of the Game
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23. With EFM (European Freight Model)
 You know better:
– Where your Clients are?
– What’s your competitive
position?
– What’s happening to traffic flows
when logistics changes (price,
access, speed, reliability)?
– What are the likely volumes and
flows in the future?
– What will happen with congestion
issues?
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24. Final
Differentiate positively yourself from the
competition and do things that will
enhance your competitive position
Think where you are best and develop a
strong argument around your strong
points.
Think about your customers needs.
To help you, use specific tools.
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25. BMT transportation market advisory services
Recognising the growing requirements of the port and
logistics industry BMT is focusing on enhancing its
transportation sector capabilities to assist its customers
in:
 Operational improvements
 Reducing and optimising transport costs
 Increasing overall efficiency
 Improving financial performance
 Business planning for optimal returns
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26. Thank You
BMT Maritime Consultants
Leader in port & logistics business intelligence & advisory services
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