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Displaying items by tag: Port Industrial Clusters

#portsSurvey - According to the European Sea Ports Organisation (ESPO) Fact-Finding Report ‘Trends in EU Ports Governance 2016’ (download PDF) 66% of European ports are hosts to industrial plants.

The main industrial sectors that were present in the sample relate to ship building and repairing, chemical and energy-related industry, construction and steel industry, and food and fishing industry.

These plants benefit from their location in a port for the import of raw material or for the export of finished goods, thanks to the shortening of the transport leg.

Furthermore, synergies and clusters are often created in the ports, which generate even more advantages, like energy availability, circular economy etc.

Ownership of the port land

69% of the industrial companies do not own the land where they are located. In fact, industrial partners may lease the port land from port authorities through lease agreements or mixed contracts or own at least partially the land where they are located.

The contracts between port authorities and industrial companies are usually for a period of time between 20 to 30 years. Shorter and longer contracts also exist, depending on the sector.

Port authorities generate revenue both from the leasing of the land to industry and from the cargo throughput linked to it. European and global markets and macroeconomic trends will have a clear impact on whether certain industries will continue to be present in ports.

This remains outside the control of port authorities who still need to set the long-term planning and strategy of the port with the uncertain long-term situation of their important tenants and source of port traffic.

Background: Trends in EU Ports Governance

The information above was retrieved from the results of the sixth edition of the ESPO Fact-Finding Report ‘Trends in EU Ports Governance 2016’ that was published in June 2016. The aim of the report is to monitor port governance and organisation in Europe and its evolution over time. It is based on a web-based survey that was sent directly to individual port authorities. 86 port authorities from 19 EU Member States, Norway and Iceland completed the questionnaire. Together, they represent more than 200 ports and more than 57% of the overall volume of cargo handled in the European Union.

The PORTOPIA platform will bring an important value added for ports in terms of governance models. In fact, some of the fields of the ESPO Fact-Finding Report are going to be transferred to the PORTOPIA platform, allowing ports to compare geographical ranges, EU averages and evolutions over time in terms of governance model across Europe.

 

Published in Ports & Shipping

Ferry & Car Ferry News The ferry industry on the Irish Sea, is just like any other sector of the shipping industry, in that it is made up of a myriad of ship operators, owners, managers, charterers all contributing to providing a network of routes carried out by a variety of ships designed for different albeit similar purposes.

All this ferry activity involves conventional ferry tonnage, 'ro-pax', where the vessel's primary design is to carry more freight capacity rather than passengers. This is in some cases though, is in complete variance to the fast ferry craft where they carry many more passengers and charging a premium.

In reporting the ferry scene, we examine the constantly changing trends of this sector, as rival ferry operators are competing in an intensive environment, battling out for market share following the fallout of the economic crisis. All this has consequences some immediately felt, while at times, the effects can be drawn out over time, leading to the expense of others, through reduced competition or takeover or even face complete removal from the marketplace, as witnessed in recent years.

Arising from these challenging times, there are of course winners and losers, as exemplified in the trend to run high-speed ferry craft only during the peak-season summer months and on shorter distance routes. In addition, where fastcraft had once dominated the ferry scene, during the heady days from the mid-90's onwards, they have been replaced by recent newcomers in the form of the 'fast ferry' and with increased levels of luxury, yet seeming to form as a cost-effective alternative.

Irish Sea Ferry Routes

Irrespective of the type of vessel deployed on Irish Sea routes (between 2-9 hours), it is the ferry companies that keep the wheels of industry moving as freight vehicles literally (roll-on and roll-off) ships coupled with motoring tourists and the humble 'foot' passenger transported 363 days a year.

As such the exclusive freight-only operators provide important trading routes between Ireland and the UK, where the freight haulage customer is 'king' to generating year-round revenue to the ferry operator. However, custom built tonnage entering service in recent years has exceeded the level of capacity of the Irish Sea in certain quarters of the freight market.

A prime example of the necessity for trade in which we consumers often expect daily, though arguably question how it reached our shores, is the delivery of just in time perishable products to fill our supermarket shelves.

A visual manifestation of this is the arrival every morning and evening into our main ports, where a combination of ferries, ro-pax vessels and fast-craft all descend at the same time. In essence this a marine version to our road-based rush hour traffic going in and out along the commuter belts.

Across the Celtic Sea, the ferry scene coverage is also about those overnight direct ferry routes from Ireland connecting the north-western French ports in Brittany and Normandy.

Due to the seasonality of these routes to Europe, the ferry scene may be in the majority running between February to November, however by no means does this lessen operator competition.

Noting there have been plans over the years to run a direct Irish –Iberian ferry service, which would open up existing and develop new freight markets. Should a direct service open, it would bring new opportunities also for holidaymakers, where Spain is the most visited country in the EU visited by Irish holidaymakers ... heading for the sun!