Transcending boundaries

Seaports, as essential hubs in the global trade network, function as trade and industrial zones where goods are not only transshipped but also processed, manufactured and distributed.

By Deniece Aiken *

Over the years, ports have undergone significant transformations, evolving from what were termed in the 1960s ‘first generation ports’, characterized by unchallenged hinterlands and minimal competition, to ‘fourth generation ports’ influenced by the principles of the “just in time” concept.

These modern ports exhibit increased competition, integration of information technology, development of port communities, establishment of port and logistics centres, and enhanced connectivity between land-side hinterlands and sea-side forelands. It is expected that with the shifts in the global landscape and global trade dynamics, the evolution of ports will continue.

Port Innovation ecosystems

The Fourth Industrial Revolution, which began in the late 20th Century to early 21st Century, produced rapid advancement and widespread adoption of digital technologies, defining the current era of technological innovation that is projected to continue influencing societies and economies well into the foreseeable future. As we continue to navigate these transformative changes, it becomes evident that, much like other global entities, ports must transcend their traditional roles as mere industrial gateways and embrace new identities such as innovation ecosystems.

An innovation ecosystem is a structured environment established within a region to promote economic progress and facilitate the efficiency of innovation endeavours among companies, universities, entrepreneurs, investors, government entities, and other stakeholders. This ecosystem comprises diverse actors and is characterized by intricate relationships and interdependencies among them. The concept of the ‘innovation ecosystem’ gained prominence as a business concept in the Harvard Business Review in 2005 and subsequently expanded to encompass various industries, including the maritime sector.

Although the notion of a port innovation ecosystem is relatively nascent in academic literature as suggested by Constante, Langen and Pruñonosa (2023) who identified five key components that shape the port innovation ecosystem: human capital, market demand for innovation, research collaboration, incubation services, and support for innovation projects. These elements are notably expressed in the transformative journeys of ports, such as the ports of Rotterdam and Valencia, showcasing the tangible evolution of innovation-driven port operations.

  • Port of Valencia

The port of Valencia, renowned as the hub for the Western Mediterranean and ranked as the 4th most productive European port while holding a position among the top 20 best-connected ports, embarked on a journey focused on innovation. This initiative is driven by the primary goal of nurturing innovative practices and fostering continuous professional development within the workforce of the port logistics community. Beyond fostering innovative practices, this effort seeks to provide targeted training to enhance the skills and expertise of the workforce. At the heart of this initiative lies the aspiration to cultivate innovation projects, stimulate collaboration within the sector, and facilitate the internationalisation of companies within the cluster.

Valencia’s commitment to advancing its innovation ecosystem emerged as the cornerstone of the port cluster’s overarching innovation plan and underscored the pivotal role played by institutions in steering port clusters toward innovation-driven growth.

Central to this endeavour is the provision of a comprehensive suite of support services designed to facilitate connections between corporations and entrepreneurs eager to innovate in the maritime and logistics sectors. Notably, initiatives such as hackathons served as catalysts for collaboration and ideation and fostered an environment conducive to creating new products and services. This concerted effort highlighted the significance of fostering collaboration and knowledge sharing within the maritime industry.

  •  Port of Rotterdam

The Port of Rotterdam, renowned as the 10th largest container port globally, the 5th most significant bulk port worldwide, and Europe’s premier port in terms of cargo volume, has cultivated a resilient innovation ecosystem. This ecosystem serves as a catalyst for navigating digital and energy transitions, while simultaneously diversifying the port’s portfolio to adapt to evolving market demands. Rotterdam’s commitment to fostering innovation is palpable through a diverse array of initiatives, including hackathons, smart port summits, and innovation meetings, all meticulously coordinated in partnership with the port and various organizations dedicated to advancing innovation at local and national levels.

Universities emerged as key contributors to this innovation ecosystem, as evidenced by initiatives such as Erasmus University Rotterdam’s Port Innovation Barometer. This initiative provides valuable insights into the innovation climate within the port and its surrounding industrial complex, serving as a vital resource for fostering collaboration and driving innovation in the maritime sector. Primarily, Rotterdam advocated a heightened level of ambition, pushing for the development of innovation projects with global significance rather than solely focusing on addressing local challenges.

The imperative for innovation and research has been widely acknowledged within the global port community, underscoring the collective commitment to driving forward-thinking initiatives that propel ports towards sustainable growth and prosperity.

Maritime Single Window and Port Community System

– key inputs in the port innovation ecosystem

As of January 1, 2024, the maritime single window for data exchange became mandatory for ports around the world. This milestone was spurred by the enactment of amendments to the Annex to the Facilitation (FAL) Convention, which signalled a significant leap forward in the digitalisation of the shipping industry.

These amendments now require public authorities to establish, maintain and utilise single window systems to electronically exchange vital information concerning the arrival, stay and departure of ships in ports. Moreover, these Authorities are mandated to streamline data transmission by integrating or coordinating electronic exchanges, ensuring that information is submitted or provided only once and is maximally re-used.

In numerous seaports, the administrative Maritime Single Window (MSW) seamlessly interfaces with the commercial Port Community System (PCS), a platform that facilitates the exchange of cargo-related commercial data. This integration effectively bridges administrative and commercial aspects of seaport operations and optimises business processes to enhance efficiency and effectiveness. However, such integration necessitates a comprehensive analysis of stakeholder processes within the seaport system to ensure seamless complementarity between both systems.

The symbiotic relationship between MSW and PCS lays the groundwork for the emergence of a port innovation ecosystem (PIE), characterized by the convergence of digitalisation and heightened involvement of universities within the port network. For PIE to thrive, intensified research and development efforts must be interwoven into the fabric of the port’s commercial network, fostering innovation and driving sustainable growth.

Caribbean possibilities

Antigua and Barbuda

Despite facing resource challenges, Caribbean countries have persistently transitioned their roles in global networks, emerging as pioneers of change. This transformation is exemplified by the active involvement of Antigua and Barbuda, alongside Norway, in the maritime single window project. Launched in October 2017, the project was implemented over a period of 19 months, and was funded by the Norwegian Ministry of Trade, Industries, and Fisheries, with technical expertise supplied by the Norwegian Coastal Administration, drawing from Norway’s own Single Window system, SafeSeaNet (SSN).

The ongoing implementation of digitalisation initiatives such as the MSW and PCS across the Caribbean region lay the groundwork for the emergence of robust port innovation ecosystems. While the importance of infrastructure, superstructure, and equipment in facilitating efficient port operations is undeniable, effective communication channels and a competent management team are equally vital. A motivated and well-trained workforce further enhances the operational effectiveness of ports.

Universities play a pivotal role in shaping the innovation landscape in the maritime sector. As hubs of knowledge creation and dissemination, universities contribute significantly to the development of human capital and the advancement of new technologies and innovation projects. Their involvement is essential for cultivating a conducive operating environment necessary for the growth of port innovation ecosystems.

With an abundance of more than 95 higher education institutions across the Caribbean, the Region is uniquely positioned to sustain its momentum as a key player in innovation and change within the port sector. Leveraging the expertise and resources available within these universities presents a prime opportunity to further drive innovation and foster sustainable growth within Caribbean ports.

As Caribbean ports press forward with the implementation of the MSW and PCS, it is imperative that they broaden their collaborative efforts to encompass a diverse array of stakeholders. This includes partnering with universities and other higher education institutions with the aim of fostering dialogue and collaboration in the realms of research, development and innovation. Engaging universities and higher education institutions in these endeavours creates immense potential for driving transformative change and catalysing innovation within the maritime sector. These institutions serve as centres for knowledge creation and dissemination and are equipped with the talent and resources necessary to tackle complex challenges and develop innovative solutions.

With the introduction of collaborative frameworks that facilitate the exchange of ideas, expertise, and resources between ports and academic institutions, a fertile ground can be cultivated for pioneering research; cutting-edge technology development; and, the incubation of innovative projects. This ethos of collaboration fosters a culture of innovation and a sense of ownership and collective responsibility among all stakeholders, driving collective efforts towards achieving shared goals and objectives.

Necessary element

Today, innovation is not merely a trendy term. It is a necessary element for both survival and success. This reality is particularly pronounced in the realms of shipping and port operations.

Given that the shipping industry shoulders the responsibility of transporting approximately 90% of the world’s goods, its significance in the global economy cannot be overstated. Ports serve as indispensable connectors between land and sea, facilitating an intricate web of global trade. The emergence of port innovation ecosystems holds immense promise in shaping the future of global trade.

Although there may be a tendency to prioritize short-term gains, it is crucial to adopt a long-term vision and foster greater collaboration to attain enduring success in this dynamic landscape.  []

* Deniece Aiken, PhD is an Attorney-at-Law and Regulatory and Maritime Consultant; President of the Jamaica chapter of the Women’s International Shipping & Trading Association (WISTA JAMAICA); member of the Women in Maritime Association, Caribbean; WMU-Koji Sekimizu Fellow for Maritime Governance.

 

      • FIRST PUBLISHED; Portsie Caribbean journal 2024 May 29
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