Seaport Cluster

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Global Maritime Logistics Council

Seaport Cluster Research Programme 2007-201 1
Preliminary findings June 2009
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Port Clustering comes of age Announcement of Valencia, Spain as Benchmark Port Cluster Development Phase of a Transferable, Port Cluster Maturity Model Port Cluster Governance Committee (PCGC)

www.globeinst.org/portcluster

Seaport Cluster Research Program

PREFACE
This paper gives the position of a four-year research program on best practice Port Cluster Governance at its mid-way point Early research undertaken by the Global Institute of Logistics (GIL) on best practice and quality indicators for the entire supply chain nodes revealed that once outside of the port gates, there is little communication between supply chain stakeholders. This is despite the fact that performance of the port is inextricably linked with hinterland development and overall service levels. A preliminary study of distribution centers (DCs) prepared by the Institute found that simply aligning opening times of DCs and container terminals would vastly improve the supply chain system. In the majority of port clusters, there was found to be little or no formal communication between the stakeholders and in most cases, there was no commercial port stakeholder council. The research revealed a need to better understand service levels and to foster relationships between the players in the supply chain, connecting the hinterland and terminal by benchmarking and building up key performance indicators. The Institute proposes that the alignment of port stakeholders’ missions and visions will bring service level alignment. Further, a shared vision will break down silo-based systems and thinking, to be replaced by collaboration and cohesion so that the end result is a joined up system that maximizes the use of time and minimizes cost. This vision needs to be spearheaded by a ‘champion’ of the supply chain collaboration model, and complemented by a committee with representatives from all port stakeholders. The second phase of research will combine theoretical and practical knowledge on best practice port cluster governance to ascertain best-in-class cluster maturity. Further, it will examine how to find the champion to lead a culture of collaboration, and how to develop an efficient port cluster under that champion’s leadership. The resultant maturity model and best practice findings will be globalised, allowing ports to apply the knowledge learned at the end of the program to improve cluster cohesion and governance and ultimately quality service levels at ports. Research by Kieran Ring, CEO, Global Institute of Logistics Edited by Carly Fields, Research Editor, Global Institute of Logistics

Global Institute of Logistics

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Seaport Cluster Research Program

CONTENTS
1 Introduction The Global Institute of Logistics The Need for Quality Indicators Optimizing Relationship Management 20/20 Vision The importance of Port Clustering The origin of the concept Post cluster status quo The value of Governance Corporate Governance European perspective Americas perspective Asian perspective Best Practice Vision and leadership Establishing “Best in Class” Cluster Valenciaport as “Best-in-class” Introduction Background to Valenciaport Why Valenciaport? Valenciaport Cluster Governance Valenciaport Cluster Innovations Cluster Statistics Valencia timeline Port Clustering and Governance Committee Mission and Vision Mission Vision Research Program Share-learn-benchmark workshops Port Clustering Maturity Model Council Meetings Best practice Port Cluster Governance guide Expected Outcomes The importance of good governance 3

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Seaport Cluster Research Program

Port Cluster support 10 How to Participate PCGC Member Advisory Board Share-Learn-Benchmark Port Clusters 11 About the Global Institute of Logistics 12 Abbreviations...
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