Port cooperation opportunities in the Aegean & Black Sea region

1. Port cooperation opportunitiesin the Aegean & Black Sea region A. Halatsis Hellenic Institute of Transport (HIT/CERTH) Burgas, 3-4/10/2011

2. Where we stand • port choice based on the overall effectiveness/efficiency of the supply chain it belongs to (natural gateway or strategic geographical location is not enough any more) • increased concentration of shipping lines, port operators, 3PLs => everyone is getting bigger while ports’ negotiating power is getting lower • furtherincrease of hinterland • ability toenter other ports’ hinterland(competition islands) • frequent changes of scenery (footloose cargo) Port A Port B Source: based on Notteboom & Rodrigue, 2005

3. Why cooperate ? • to mutually increase the competitiveness of our region and common corridors, and thus increase our total market share • to promote the development of common-interest infrastructure (e.g. port rail connections) • to explore new business opportunities that cannot be sought independently • to increase ports’ negotiating power cooperation makes participating ports more vulnerable to each other but stronger to outsiders

4. Cooperate ? How ? Informal Formal • Information sharing meetings • Joint approach of large potential customers • Joint trade fair participation • Promotion of common R&D (e.g studies) • Promotion of common-interest corridors • Participation in Associations (ESPO, MedCruise, HPA, BASPA) • Common business development projects between ports (MoUs) • Common branding • Joint ventures Marketing & Business Development • Working hours’ coordination • Charges’ coordination • Combined services’ provision • Capacity sharing • Interoperable PMIS • Best practice exchange Every day operations Policy issues • Development of common positions on public policy issues • Promotion of common-interest infrastructure • Legislation harmonisation

5. Where to cooperate ?(just one of the options) Alternative port-hinterland freight corridors Intermodal linkage of two seas • strong regional ports’ interest • strong rail operators’ interest • idea already in place • funding mechanisms for the first steps (Marco Polo, MoS) Constantza Varna Burgas Kavala Alexandroupolis the competitive battle among ports will increasingly be fought ashore, thus hinterland connections are a key area for competition and coordination

6. Where to cooperate ?(just another option) The cruise industry • A very promising option • recession-proof • based on port cooperation • slow steaming effects (200 n.m.) • The Aegean & Black Sea region • emerging markets • 360o tourist product • common destination themes

7. Where do we go from here ? • establish a common understanding of who we are • current capabilities • future plans • establish a common understanding of where we are & where we want/can go • current situation (freight flows, services, infrastructure needs) • short- and medium-term prospects • establish a common understanding of how we can get there faster and/or more efficiently, by combining efforts • identify areas of potential cooperation • do the “cooperation mathematics” • identify missing common-interest infrastructure • set a specific action plan

8. Thank youfor your attention A. Halatsis halatsis@certh.gr