Determinants of the competitive position of Dutch seaports

Transcription

1 Ministerie van Verkeer en Waterstaat Determinants of the competitive position of Dutch seaports 26 April 2007

2 Ministerie van Verkeer en Waterstaat Determinants of the competitive position of Dutch seaports 26 April 2007

3 Colophon Edited by Transport Research Centre (AVV), Dutch Ministry of Transport, Public Works and Water Management Information: Phone: +31(0) Fax: +31(0) Executed by Claudine van der Sluijs Consultant of the Economics and Freight Transport Section Lay-out: Date: 26 April 2007 State: Draft - confidential Number: 1 3 Determinants of the competitive position of Dutch seaports

4 Contents Preview 3 Abstract 3 1. Reason Structure of the research The Dutch seaports The Dutch economy and seaports How to read this paper 3 2. Literature study Seaport functions and policy Scope and definition: what is competition between ports? Competition between port clusters Competition between ports Science and determinants of the competitive position of a seaport Determinants of competition Main port of cargo throughput Place of business for industries and services Conclusions 3 3. Methodology of follow-up research Objective of the empirical research Scope General approach Phasing Sending questionnaire Interviews with port users Strategy of seaport authorities Experts session 3 4. What are we working to achieve? 3 Appendix A Literature list 3 4 Determinants of the competitive position of Dutch seaports

5 Preview The submitted abstract of October 2006 assumes a paper concerning the results of empirical research into which determinants are important for the competitive position of Dutch seaports. Policy-related developments resulted in a delay in the execution of this empirical research. The subject paper will address the results of the literature study and the methodology employed for the empirical research. The latter is currently being executed and will be concluded at the end of June 2007, therefore during the Young Researchers Seminar more in-depth information can be given about the preliminary results of the empirical research. 5 Determinants of the competitive position of Dutch seaports

6 Abstract The Dutch Ministry of Transport, Public Works and Water Management (in short the Ministry of Transport) asked the Transport Research Centre (AVV) to research the way in which, and the level at which their seaport policy contributes to improving the competitive position of the Dutch Seaports. An overall definition of the competitive position of ports doesn t exist. The determinants that define the competitive position depend on the function of the seaport (place of business for industry and services or main port of cargo throughput) and the commodity (containers, dry bulk, liquid bulk). In addition, the competitiveness of seaports can be determined on different levels, namely: Different ranges of seaports (Northwest Europe and Southern Europe); Seaports within a range in different countries (The Hamburg-Le Havre range); Seaports within a range in one country; Inside a seaport. The Ministry of Transport is in the first place competent to establish the development of the main port function. Within this function, the literature describes several determinants of the competitiveness of ports: Maritime: location (geographical), accessibility from the sea Seaport: transit costs, infrastructure (wharfs, cranes), port services, quality of labour and labour organisation/regulation, customs and inspection, fiscal aspects and legislation, maintenance, environment and port policy; Hinterland: Infrastructure, Transport services intermodal connections, Accessibility Other: Irrational, ICT infrastructure This contribution proposes a link between the theoretical determinants and the way seaport users choose a seaport. Through interviews with users of the Dutch seaports (shipowners and shippers) and with the Dutch port authorities, the study will determine the importance of each determinant. Hereby a ranging of the determinants will be one of the possible results. The interviews can also give other determinants that are important for users when choosing a seaport, such as trends and developments in the world economy. Based on the results of this empirical research, an evaluation is made that will allow the Ministry of Transport to influence the competitive position of the Dutch seaports within the sphere of influence of the Ministry. For instance, if the results show that the labour market, or the exchange rate of the dollar, is an important determinant, the Dutch Ministry of Transport isn t able to influence the development of this aspect. 6 Determinants of the competitive position of Dutch seaports

7 1. Reason On 2 November 2004, the Dutch Minister of Transport, Public Works and Water Management submitted the memorandum entitled Zeehavens: ankers van de economie - Seaports: anchors of the economy 1 to the Second Chamber. This memorandum describes the seaport policy for , and works out in further detail the 'Nota Mobiliteit - Mobility Memorandum'. The chosen seaport policy focuses on maintaining and reinforcing the robust competitive position of the Dutch seaports in the international interplay of forces. The policy searches to strengthen the position within the area bounded by the environment, the living environment and safety. The policy addresses three main themes: Market operation: improving the market conditions for port-related companies; Preconditions: regulating and promoting the safety and quality of the living environment; Capacity: maintaining and improving the accessibility of the seaports and realising physical room for growth. The seaport policy formulates a large number of policy actions for its execution, one of which is the reason for this research: To develop and maintain a set of policy indicators for the improvement of the international competitive position of the Dutch seaports. The objective of this policy action is: To measure the international competitive position of the Dutch seaports; To measure the effectiveness and efficiency of the seaport policy employed. The Ministry of Transport implements the seaport policy in cooperation with other ministries (Agriculture, Nature and Fisheries, Economic Affairs and Public Housing, Spatial Planning and the Environment), local authorities, the 'Nationale Havenraad - National Harbour Council', port authorities and other involved parties. 1.1 Structure of the research For the execution of the above-mentioned policy action, the Directorate General of Transport and Aviation (DGTL) expressed the need to 1 Zeehavens: ankers van de economie - Seaports: anchors of the economy. Nationaal zeehavenbeleid National seaport policy Ministry of Transport, Public Works and Water Management; November Determinants of the competitive position of Dutch seaports

8 obtain more insight into the manner in which, and to what degree, the current policy of the Ministry of Transport, as formulated in the 'Nota Zeehavens (NoZe) - Seaport Memorandum', contributes to improving the competitive position of the Dutch seaports. AVV has been requested to perform the research. The objective of the research is: To provide more insight into the manner in which and to what degree the current policy of the Ministry of Transport as formulated in the Seaport Memorandum contributes to improving the competitive position of the Dutch seaports. The research consists of two main research phases: 1. Literature study and desk research: A. Determinants of the competitive position of Dutch seaports an inventory of the determinants that form the basis of the competitive position. B. Policy measures form the Seaport Policy to improve the competitive position of Dutch seaports an overview of the intended and executed policy measures (Seaport Policy) tot improve the competitive position. C. Connection between policy measures from the Seaport Policy (B) and the determinants of the competitive position of Dutch seaports (A) 2. Empirical research: through interviews with users of seaports (ship owners and major shippers), with port authorities and with experts, policy makers the relative contribution of the policy of the Ministry of Tranport to the improvement of the competitive position of the Dutch seaports until 2010 will examined. o The effect of the policy measures on the separate determinants of the competitive position of seaports o Qualitative estimate of the contribution that the policy of the Ministry of Transport makes (for each separate determinant), compared to the significance of, for instance, (autonomous) developments, the behaviour of private market participants and policy measures taken by other authorities. o The weighting of the importance of the separate determinants on the competitive position of a seaport (qualitative). The research is intended as exploratory research in which initially the existing literature and knowledge present within the Ministry of Transport is examined. The theoretical framework that has been drawn up is then translated into the Dutch situation of the seaports. The vision of the seaport users and authorities is important if one is to gain more insight into the manner in which, and the degree to which, the seaport policy can contribute to improving the competitive position of Dutch seaports. This test is an exploratory test in which the aim is to 8 Determinants of the competitive position of Dutch seaports

9 obtain a balanced representation of the various actors. Chapter 3 addresses this in more detail. The result of phases B and C of the literature study and desk research are not presented in this paper. The considerations taken to not present the results of Phases B and C are related to confidentiality. For now, the results are for internal use within the Ministry of Transport. 1.2 The Dutch seaports The Dutch seaports have an important role in the international freight transport networks, due to their position with respect to the economic centres in Europe and the infrastructural access to the ports. The Netherlands has 18 ports, distributed over 4 seaport regions: Table 1.1 Dutch seaport regions Seaport regions Seaports 1 Rijn- en Maasmond Rotterdam Schiedam Vlaardingen Maassluis Other Rijnmond Moerdijk Scheveningen Drechtsteden 2 Scheldebekken Vlissingen Terneuzen 3 Northern seaports Delfzijl Eemshaven Harlingen Den Helder 4 Noordzeekanaal (North Sea Canal) area Amsterdam Beverwijk Velsen/IJmuiden Zaanstad 9 Determinants of the competitive position of Dutch seaports

10 Figure 1.1 Map of Dutch seaport regions The Dutch economy and seaports The Dutch seaports are of major importance for the Dutch economy. Therefore, the Dutch government has chosen to strengthen the role that the Dutch seaports fulfil in the national economy. Annually, the economic significance of the Dutch seaports is mapped out by means of the 'Havenmonitor - Harbour Monitor' 2, on the order of the Ministry of Transport. In 2004 and 2005, the Dutch seaport regions performed better than the entire Dutch economy in terms of labour and added value. In 2005, the seaport regions showed a trend in the growth of added value of 5.9%, compared to 1.5% for the entire economy. In addition, the Dutch seaport regions show a more than average growth in productivity. 3 2 Economic significance of Dutch seaports. Main report: 'Havenmonitor - Harbour Monitor' Buck Consultants International and RebelGroup, on the order of the Ministry of Transport, Public Works and Water Management. December Economic significance of Dutch seaports. Main report: 'Havenmonitor - Harbour Monitor' Buck Consultants International and RebelGroup, on the order of the Ministry of Transport, Public Works and Water Management. December Determinants of the competitive position of Dutch seaports

11 In 2005, the Dutch seaport regions were responsible for 4.2% of the Gross National Product (based on 2002 prices). The direct added value that was realised by the Dutch seaport economy amounted to EUR 20.3 million in The seaport regions provide 1.7% of the entire employment in the Netherlands Table 1.2 Development of direct seaport-related employment and added value, per sector (index 2002=100) 4 Main sector and subsector Employment (index 2002=100) Added value (index 2002=100) Transport Seagoing shipping Inland shipping Road transport Rail transport Pipelines Transport-related service provision Transhipment / storage Industry Food industry Petrochemical industry Chemical industry Base metal and metal products industry Equipment for the transport industry Electricity production Other Wholesale business Business and non-business service provision Total Table 1.2 shows the development of the direct seaport-related employment and added value, per sector in Direct employment in the seaport regions drops in this period. However, the direct added value grows in the same period, which indicates a strong growth of added value per position. 4 Economic significance of Dutch seaports. Main report: 'Havenmonitor - Harbour Monitor' Buck Consultants International and RebelGroup, on the order of the Ministry of Transport, Public Works and Water Management. December Determinants of the competitive position of Dutch seaports

12 1.3 How to read this paper This paper addresses the results of Phase 1A Inventory of the determinants of the competitive position of the Dutch seaports. In addition, it contains an explanation of the method used in the last research phase, Phase 2, which is an empirical test of the results of Phases 1A through 1C. Chapter 2 gives an overview of the results of the literature study into the determinants of the competitive position. The method employed in research Phase 2 is the subject of Chapter 3. Chapter 4 gives a preview of the expected results, the first of which can be presented during the Young Researchers Seminar. 12 Determinants of the competitive position of Dutch seaports

13 2. Literature study During the literature study, research was done into the determinants used by the scientific community that determine the competition between ports. Before addressing in more detail the choice of these determinants, we briefly address the various dimensions of the competition between ports. 2.1 Seaport functions and policy The Seaport Memorandum makes a distinction between two seaport functions: Main port of cargo throughput; Place of business for industries and services. A translation of the figures in table 1.2 shows considering the added value growth a positive evolution for the function place of business. Employment is decreasing for both functions Table 2.1 Development of direct seaport-related employment and added value, per sector (index 2002=100) 5 Main sector and subsector Employment (index 2002 = 100 Added value (index 2002=100) Main port of cargo throughput Place of business Total The Ministry of Transport appears to have (direct) points at which it can act to improve the main port of cargo throughput function of the Dutch seaports. The research will not be limited to just those determinants that fall under the authority of the Ministry of Transport, so related to the throughput-function of the seaport. The current seaport policy is implemented by several parties, like other ministries and local authorities. The distinction made between the two functions is confirmed by the literature and will be used further in this chapter. 5 Economic significance of Dutch seaports. Main report: 'Havenmonitor - Harbour Monitor' Buck Consultants International and RebelGroup, on the order of the Ministry of Transport, Public Works and Water Management. December Determinants of the competitive position of Dutch seaports

14 2.2 Scope and definition: what is competition between ports? An overall definition of the competitive position of a seaport does not exist. Dependent on the function (place of business or main port of cargo throughput) of a seaport that is being examined and the market segment (containers, general cargo or chemicals), there are different determinants on which the competitive position is based and/or these determinants have a different meaning. Welters and De Langen (2002) make a distinction between competition between port clusters and ports and find that, also here, different determinants form the basis of the competitive position. Other opinions and theories are presented in the summary below: Competition between port clusters The competition between port clusters mainly concerns the attractiveness of the place of business function and the ability to attract investment to a region. A port cluster often also competes with locations outside of the port. As an illustration: Chemical companies for instance choose between investing in Rotterdam, Antwerp or the Ruhr area, areas where clusters of chemical activities are already present Table 2.2 The most important determinants in the competition between port clusters (Welters, De Langen, 2002) Activity Determinant Transhipment Location Quality of the hinterland infrastructure Transport Availability of affordable labour Good transport infrastructure Logistics / distribution Acceptable land prices Central location with regard to customers Production / industry Well-trained labour A stable and reliable environment Trading / service economy Urban business centre Good information infrastructure This table leaves no room for doubt about the diversity of the determinants that play a role in the competition for investment in a port cluster. After all, a different determinant applies for every cluster. To be competitive in every area of activity, several conditions for place of business must be met Competition between ports In the competition between ports, the focus is on the main port of cargo throughput function of a port and the handling and attracting of cargo within a port. Two particularizations are important here. In the first place, the competition between ports occurs in different segments, 14 Determinants of the competitive position of Dutch seaports

15 such as containers, general cargo, dry bulk and liquid bulk. Each of these markets has its own dynamics, in which different determinants determine the competitive position: Table 2.3 Important determinants for the various segments in the port Activity Containers Bulk Other general cargo Determinant quality / reliability of service provision Speed of transit and efficiency of hinterland connections draught hinterland connections opening hours (24/7) labour costs A second particularization is that of the geographical scale of the competition between ports. Here a distinction can be made into four levels of competition (table 2.4). In the first three levels of competition, external competition between ports is concerned. The fourth level relates to internal competition within a port. According to cluster economist Porter (1980), the level of the internal port competition (4) is the most important determinant for the competitive strength of a port cluster. Empirical research has shown that internal port competition is also important for ports where the chance of a strong competitive position with respect to other ports (external competition) is concerned. The degree to which a port is confronted both internally (between companies providing the same services / products within a port) and externally (internationally, between various ports) with competition, in part determines the competitive capacity of a port. On the basis of a monopoly position, so where there is no internal competition, companies / ports can make "unseemly surplus profits". As a result there is the chance that it becomes weaker, after all, the monopoly does not promote innovation and optimisation, as there is no stimulus provided by competitors. As soon as alternatives (competition) appear, the port is incapable of offering competitive products / services and its position is endangered. (BCI, 2006) 6 'Zeehavens in Europees perspectief - Seaports in a European perspective' (KPMG, 2003). On the order of DGTL. 15 Determinants of the competitive position of Dutch seaports

16 Table 2.4 The most important determinants in the competition between ports (Welters, De Langen, 2002) Competition level Determinant 1. Port ranges Size of hinterland Quality of infrastructure axes 2. Ports in a range, in National regulations and enforcement Quality and pricing of hinterland infrastructure various countries. 3. Ports in a range, in the Quality of hinterland connections Local freight-generating capacity same country. 4. Internal competition in a port Quality of service provision Efficiency, flexibility and price Science and determinants of the competitive position of a seaport In addition to Welters and De Langen, there are many more scientists who have ideas in response to the question of what are the most important determinants for the international competitive position of a seaport: Goss (1990) and Heaver (1995) state that the international harmonisation of port policy and the local autonomy of port authorities, in which there is a reduction in the role played by central government, have promoted competition between ports. Coeck e.a ( (1997) state that competition between ports can hardly ever be defined for the port as a whole. The competitive position of a port is determined by a combination of the competitive position in relation to the various goods flows, such as general cargo, containers, dry bulk, liquid bulk and roll on roll off. Slack (1994) and Fleming (1989) observe that seaports specialised in the container segment are currently facing intense competition. Hayuth and Fleming (1994) state that the geographic location is the key to explaining the competitive position of a seaport. Miyajimi and Kwak (1989) suggest that containerisation is one of the most important exogenous determinants for the changing competitive relationships between seaports. The increase in scale of container ships and the need for faster turn-around times will, according to Baird (1996), lead to a competitive disadvantage for seaports that are situated further inland and for which maritime access (draught) is limited. Other authors, such as Notteboom (1997), have demonstrated that this is not a valid conclusion and suggest that 16 Determinants of the competitive position of Dutch seaports

17 other determinants, such as access to the hinterland, quality of the infrastructure and productivity, also play a vital role in strengthening the competitive position of a port. In a case study into the competitive position of Antwerp, Huybrechts e.a. (2002) signal, among other things, that there is a lack of uniformity with respect to government intervention in the supply chain of which the port forms part. It is also concluded that port authorities and companies active in the ports, in the Netherlands and abroad, have the idea that the ports they are active in are being discriminated against with respect to ports in other countries. Huybrechts e.a. (2002) conclude that the choice for a port is increasingly often taken by shipowners. When making this choice, the competition between logistic chains takes a more important position, instead of the competition between seaports. External factors such as hinterland connections, partnerships between shipowners and shippers / logistics service providers in hinterland transport, and the geographic and economic position of the ports play a more important role for the shipowners than just the seaport's own performance. It can be concluded that there are varying opinions about, and insights into, the question of what the international competitive position of a port entails and on which factors it is based. 2.3 Determinants of competition This subsection contains an inventory of the most important factors of a seaport that determine competition. In spite of a diversity of theories and opinions, based on the literature study two sets of determinants have been arrived at for the seaport functions: Main port of cargo throughput Place of business for industries and services. The sets are assumed to be as complete as possible Main port of cargo throughput The competitive position is determined by the position within the forces that play a role in chains, the chain quality and the chain costs. The emphasis lies on transport and transhipment/storage. The significance of this can be found in the collected determinants. The determinants for the port as a main port of cargo throughput are subdivided into 4 main groups: Maritime: those factors that influence the maritime location of the seaport; Seaports: contains elements that relate to the internal organisation and structure of the seaport, from policy to enforcement, and from infrastructure to costs; 17 Determinants of the competitive position of Dutch seaports

18 Hinterland: relates to the access of the seaport region to the sales region, with respect to both the infrastructure and the services that are offered, and the availability and efficiency of the capacity. Other: a remaining group of factors The last column of the table below shows a first elaboration of the operationality of the determinants. These elements give a further explanation of the determinant and the various ways they are interpreted Table 2.5 Determinants for seaport as main port of cargo throughput Determinant Operationalisation Maritime Geographic location distance to important economic centres in Europe Accessibility nautical access, including draught Seaport Costs to enter a port Pilot, tugs, gauger, port and quay dues, communication and administration, traffic management, transport, terminal handling, storage and bunkering, commissions, agency fees and waste processing Port infrastructure Available room and transhipment capacity Service provision in the port Labour Labour organisation Customs and inspection Legislation and regulations Enforcement level Environmental aspects Port policy Turnaround time of ship in port, elapsed time Quality, quantity, costs, productivity, loyalty Legislation and organisation, contracting and right of dismissal, flexibility of working hours, power of trade unions Notification, fitting into the supply chain, service provision Stability, permit procedures The freedom for economic development within the framework of environmental regulations. Quality of management and organisation Hinterland Infrastructure Per mode, proximity of rail and inland shipping terminals Transport services Price and quality of transport services per mode, quality of 3PLs and logistics service providers Accessibility Flow, congestion, reliability of travelling time per mode Other Irrational Personal relationships of shipowners, port image ICT infrastructure 18 Determinants of the competitive position of Dutch seaports

19 Place of business for industries and services. The competitive position for this function is determined by among other things the location quality and location costs. But the position within the network of the company also plays a role here. In addition, for the determinants of a seaport as a place of business for industries and services, 7 main groups have been identified: Fiscal, the climate and capital structure Labour, availability, organisation and quality Space and infrastructure, both in the port and in the hinterland Accessibility, of both the port and the hinterland Policy, legislation and regulations at national and at port level Natural and living environment Other, business climate, innovation opportunities and personal factors. The determinants mentioned have a less direct relationship to transport and goods flows and more with the place of business function. A large number of factors will also apply to industrial sites outside of seaports, although the importance or order will be different than for companies established in the port region. Maritime accessibility and access to the hinterland will, for instance, take an important position for companies established in the port region. 19 Determinants of the competitive position of Dutch seaports

20 Table 2.6 Determinants for seaport as a place of business for industries and service provision Determinant Operationalisation Fiscal Fiscal climate VAT, taxes Capital structure Availability of risk capital Labour Availability of labour Quality, quantity, costs, productivity, loyalty Labour organisation Legislation and organisation, contracting and right of dismissal, flexibility of working hours, power of trade unions Knowledge Education level infrastructure Space and infrastructure Availability of space and real estate Space for development, ground, production sites (industrial sites), head offices Port infrastructure Available room and transhipment capacity Infrastructure of hinterland ICT infrastructure Per mode, proximity of rail and inland shipping terminals Accessibility Maritime accessibility Draught, incl. nautical access Accessibility of hinterland Hinterland transport services Flow, congestion, reliability of travelling time per mode Price and quality of transport services per mode, quality of 3PLs and logistics service providers Policy, Port policy Quality of management and organisation legislation and regulations Natural and living environment Other Customs and inspection Legislation and regulations Enforcement level Environmental aspects Living climate Stability of the business climate Innovation Irrational Notification, fitting into the supply chain, service provision Stability, permit procedures Related to attracting labour Strikes, water levels, politics, earthquakes, crime rate Personal relationships, port image 2.4 Conclusions A separate set of determinants has been drawn up for both seaport functions, these sets intersect at several points. In particular, the Ministry of Transport appears to have (direct) points at which it can act to improve the main port of cargo throughput function of the Dutch seaports. Where creating an optimum climate for establishing industry and service provision in the Dutch seaports is concerned, the (direct) 20 Determinants of the competitive position of Dutch seaports

21 points at which the Ministry of Transport can act appear to be limited to the determinants related to infrastructure and accessibility. In relationship to the climate for establishing businesses and the business climate, initially the policy domain of the Ministry of Economic Affairs will have more logical connections. Other ministries can also be involved, for instance with respect to labour aspects and education. This distinction can be made to a lesser degree for local authorities, in particular with respect to port authorities. The research will not be limited to just those determinants that fall under the authority of the Ministry of Transport. This is in part due to the fact that the current seaport policy is already being implemented by several parties. The research can result in determinants that the Ministry of Transport does not directly influence, for this cooperation must be sought with other departments and government organisations. The research is intended to determine the controlling power the Ministry of Transport has and to search for elements that can determine the efficiency of the national seaport policy, in order to improve the competitive position of the seaports. With respect to the national policy, there is currently no reason to focus in the research on one or several sectors / market segments (container, dry bulk, liquid bulk, general cargo). Therefore no specification has been made of the inventory. 21 Determinants of the competitive position of Dutch seaports

22 3. Methodology of follow-up research The first three phases of the research have delivered the following: sets of determinants based on a literature study; insight into the accents and important aspects of the current seaport policy by linking the determinants to the policy actions. In the last phase of the research, this theoretical framework will be translated to the Dutch seaport situation. The vision of the seaport users and authorities is important if one is to gain more insight into the manner in which, and the degree to which, the seaport policy can contribute to improving the competitive position of Dutch seaports. 3.1 Objective of the empirical research The objective of the empirical phase of this research is to gain insight into three aspects of the competitive position of the Dutch seaports: 1. A test of the inventory of determinants at users of a seaport and an estimate of which determinants are more / less important when selecting a seaport (weighting, ranking). 2. An inventory of the factors that seaport authorities focus on in their port policy. Based on which determinants do they determine their vision and strategy? 3. The options that the Ministry of Transport has/ can have to influence the direction taken per relevant determinant. This part can be compared to the significance of for instance (autonomous) developments, the behaviour of private market parties and policy measures taken by other governments. 3.2 Scope The scope of the empirical research can be summarised in three areas: Exploratory research The empirical research has an exploratory nature. The aim is to gain insight into the visions and strategy of the port users and port authorities by approaching a limited number of parties using questionnaires and in-depth interviews. 22 Determinants of the competitive position of Dutch seaports

23 In the 'Internationale Havenbenchmark - International Port Benchmark' (AVV, 2003), AVV concludes that the quantitative weighting of the importance of the individual determinants of the competitive position and with it (indirectly) the relative importance of policy measures is a very complex task. Therefore, such research requires clear choices with respect to scope and whether it should be large-scale or fundamental research. For this reason, the subject research has an exploratory nature and no all-encompassing, deterministic impression will be sketched out. No focus on competences The Ministry of Transport mainly has authority for those aspects that focus on the seaport as a main port of cargo throughput, such as accessibility, infrastructure and enforcement. In the literature study, a separate set of determinants has been established for both functions. For this research phase, the choice has been made to not limit the research to only the authority of the Ministry of Transport. The current seaport policy is implemented by several policy directorates, local authorities and other involved parties. No policy evaluation The objective of the research is not to evaluate the current seaport policy. This concerns the exploration of a set of determinants that the Ministry of Transport can use to further develop the port policy. This will be to the benefit of the competitive position of seaports. 3.3 General approach 7 By entering into discussions with port users and authorities and through a session with experts, the controlling power of the Ministry of Transport will be explored and the selected determinants tested. The results of the interviews and the experts session will be the final element to allow a determination to be made of the effect of the policy measures on the individual determinants of the competitive position of the Dutch seaports, and to estimate the control options of the Ministry of Transport. 3.4 Phasing The empirical study consists of four phases: 1 Sending a questionnaire to port users 2 Interviews with port users; shipowners and major shippers. 3 Making an inventory of the strategy of seaport authorities. 7 Detailing the approach of BCI in cooperation with AVV, Determinants of the competitive position of Dutch seaports

24 4 Experts session with policy makers of DGTL, representatives of other authorities (national and decentral), scientists and private parties Sending questionnaire Dependent on the market segment, there are determining factors for the choice of a seaport within a logistics chain. For instance, in the container market these are the shipowners, in the general cargo market segment the major shippers determine the choice. In the end, seaports are chosen based on chain quality (reliability, flexibility, elapsed time, service, security, safety) and chain costs in the perspective of the users. In this phase, questionnaires will be sent to 150 port users. (The aim will be to achieve a 50% response, this is guaranteed by the consultants carrying out the research.) The port users are asked about the determinants that are decisive for them when choosing a port as a place of business or as a main port of cargo throughput for the shipment of their goods flows. The questionnaire contains all determinants from the two sets as presented in subsection 2.2. These determinants are included in concrete sentences that map out the operationality of the determinants. When selecting the research panel, an appeal will be made to the network and knowledge of various parties, including: The Ministry of Transport. 'Nationale Havenraad National Port Board', representatives of the port authorities. The consultants carrying out the research. For a balanced result of the research among the users of the seaports, the following points will be addressed: Users will be approached in every port region; Both larger and smaller companies will be asked to contribute; Both originally Dutch companies and foreign / multinational parties will be involved in the study; Both newcomers and older companies will be interviewed; Companies located in the hinterland that use the ports for the transport of goods will also be involved; The companies are active in a wide range of sectors and segments Interviews with port users From the selection of 150 port users, 25 companies will be selected that will be interviewed in depth. Based on the answers to the questionnaire, the determinants that are considered to be of importance will be addressed in more detail. When doing so, special 24 Determinants of the competitive position of Dutch seaports

25 attention is given to the operationality of the determinant and the meaning behind the assigned importance. The operationality of the determinants is important as this can lead to very different policy actions. The aspect of space is an example for which the operationality of the term can be interpreted in different ways. If a port user indicates a need to have more space, this can mean the actual physical space on a plot, or a more efficient use of space of the port region, or rather the environmental freedom with which the company can carry out its activities. A question about capacity of the hinterland connections can be substantiated by a physical extension of the network by building railways or roads, or by the more efficient use of the current capacity. In the open interviews, the ranking of the important determinants can also be addressed. Here as well the conditions for a balanced result of the research among the users of the seaports apply, as stated in the previous phase Strategy of seaport authorities In addition to the port users, the vision of the port authorities is also important for estimating the controlling power of the Ministry of Transport. Through interviews with the seaport authorities of the four seaport regions, insight can be gained into the focus of the ports in the port policy for improving the international competitive strength of a specific port region Experts session During the experts session, the controlling options of the Ministry of Transport will be estimated per determinant. This estimate will among others be based on a reflection of the interview results. The effect of the majority of the policy measures will only be visible after 2010, when the Seaport Memorandum has terminated. However, it is already possible to estimate the (possible) influence that the policy of the Ministry of Transport could have, when compared to other (f)actors, with respect to influencing the individual determinants. A point of attention here is the differences between control ambitions in the policy in the Seaports Memorandum and the control options that the Ministry of Transport can have in the practical situation. As explained above, a possible result can be that determinants can be deemed to be important by port users and authorities that the Ministry of Transport has no authority to control. Examples are space for company premises, labour and knowledge. Possible participants are policy advisors of the Ministries of Transport, Economic Affairs (EZ) and Public Housing, Spatial Planning and the Environment, representatives of local authorities, scientists, trade 25 Determinants of the competitive position of Dutch seaports

26 organisations, representatives of the business community and port authorities. 26 Determinants of the competitive position of Dutch seaports

27 4. What are we working to achieve? The expected results consist of an assessment of the opinion of the seaport authorities, the seaport users and the experts about what the seaport policy does for the competitive position of the Dutch seaports, and gives insight into how these parties regard the control options of the government. In addition, the Ministry of Transport can gain insight into the effectiveness of the policy and the possibilities of further developments and detailing of the policy actions. For those results that fall outside of the domain of the department, recommendations can be given about cooperative agreements to be established and/or strengthened with other departments, local authorities and other interested parties. The final result will be a set of determinants that are of importance for improving the competitive position of the Dutch seaports. This concerns a qualitative result that is supported by port users, port authorities, involved authorities and experts. A possible follow up to this research could be the translation of the set of determinants into measurable indicators. This could mean that in the future a measurement instrument could be used to determine the improvement in the competitive position. In addition, the set of determinants can be used in the evaluation of the port policy and in drawing up a new Seaports Memorandum in Determinants of the competitive position of Dutch seaports

28 Appendix A Literature list Baird, A.J. (1996. Containerization and the decline of the upstream urban port in Europe. Maritime and Policy Management, 23. Buck Consultants International and RebelGroup, on the order of the Ministry of Transport, Public Works and Water Management. (December 2006). Economic significance of Dutch seaports. Main report: 'Havenmonitor - Harbour Monitor' Buck Consultants International (2006). The Competitive position of the Port of Rotterdam. Coeck, C., Haezendonck, E., Notteboom, T., Verbeke, A., Winkelmans, W. (1997)- The competitiveness of seaports: business and government agendas in strategic planning.- In: Essays in honour and in memory of late professor emeritus of maritime economics Dr. Basil N. Metaxas, Athens, University of Piraeus, Department of Maritime Studies, 1997, p Fleming, D.K. (1989). On the beaten track: a view of US West coast container port competition. Maritime Policy & Management (16). Fleming D.K., Hayuth Y. (1994). «Spatial characteristics of transportation hubs: centrality and intermediacy». Journal of Transport Geography, vol. 2, n 1, p Goss, R.(1990). Economic Policies and Seaports 2: The diversity of the port policy, Maritime Policy and Management (17). Hazeldonck, E. and Notteboom, T. (1997) editing and extending of Creating and sustaining superior performance by Micheal E. Porter (1985). Heaver, T.D. (1995). The implications of increased competition among ports for port policy and management, Maritime Policy and Management (22). Huybrechts, Meersman, Van Voorde, Van Hooydonk, Verbeke and Winkelmans (2002). Port Competitiveness, an economic and legal analysis of the factors determining the competitiveness of seaports. KPMG, in opdracht van het Ministerie Verkeer & Waterstaat- DGTL (2003). Zeehavens in Europees perspectief. The Ministry of Transport, Public Works and Water Management Directorate-General of Publics Works and Water Management AVV Transport Research Center (2003). 'Internationale Havenbenchmark - international port benchmark' The Ministry van Transport, Public Works and Water Management 'Goederenvervoer (2004) Freigth Transport (2004)'. 'Zeehavens: ankers van de economie - Seaports: anchors of economy'. 'Nationaal Zeehavenbeleid National seaport policy '. Miyajimi, M and S. Kwak (1989) Economic analysis of interport competition in container cargo: Peripheral ports versus Tokyo Bay ports - Maritime Policy and Management. Slack, B. (1994). Domestic Containerization and the Load Centre Concept. Maritime and Policy Management, 21. Welters, H.W.H., Langen, P.W. de (2002) Haveneconomie in de Praktijk; gebundelde serie van in totaal 22 artikelen - Port economy in practise; a bundled series of 22 articles. 28 Determinants of the competitive position of Dutch seaports