The Minor Ports in the UK - Essay Example

Analyzing the potential of growing of the minor ports in UK in the future and current situation of the ports in UK Overview The development of British ports has been continuous for quite a long. However, compared to the past, the current rate of growth of ports in UK is rather slow representing the relevant delay in the financial development of the relevant regions. The above phenomenon could be possibly explained if taking into account the global financial and political turbulences as well as the entrance of developing countries in the specific market (shipping – related activities). On the other hand, tourism that has been also a factor for the development of a port has been remained at high levels in UK and this is an issue that should be taken into consideration by the country’s politicians when designing and applied relevant schemes on the particular regions; the needs of the specific areas for further development should be also highlighted and sufficient funds would be released by the governmental and non-governmental organizations; in any case, such an investment would have the prospects to achieve a significant performance – in accordance with the growth of shipping and tourism industry in Britain and the performance of ports (even of the minor ones) across the country. 1. Aims and objectives of the research Current research focuses on the potential of growing of minor ports in the UK and the examination of the current and future situation of ports in the above country. Apart from the above issues, a series of additional themes will be also developed in current research (in accordance with their relevance with the main issue under examination): a) role of ports in the development of Britain through the years, b) industrial areas that are depended on the operation of ports, c) cost of maintenance of ports across the country (at an average level), d) evaluation of the importance of ports in UK for the local economy, e) position of Britain in the international market (regarding the performance of its ports) – a comparison with other countries that are also heavily based on ports is also possible. 2. Research Methodology The research methodology employed in this research will be mainly a secondary one. In other words, no interviews or surveys will be conducted; rather all necessary data and info will be gathered from relevant databases (referring to books, journals and websites). In any case statistical data published by governmental and non-governmental organizations will be used and analysed in this study trying to emphasizing on the importance of ports for the development of local and national economy. The reference to similar studies conducted by other researchers would be also considered – at the level that these studies could help to support more effectively the study. It should be also noticed that graphs and tables (where available) will be incorporated in the study are will be appropriately analyzed supporting the various issues developed throughout the paper. The resources used for the development of this study will be analyzed as possible – the presentation of data and the various issues will be followed by the necessary explanations as of the relevance of the material used with the issue under examination. 3. Research limitations As already noticed above, current research will be based on the secondary research. There will be no data retrieved through primary research. In fact, the retrieval of such data would be too difficult if taking into consideration the complexity of the activities related with ports (we can refer indicatively to fishing, travelling, carrying goods, provision of services to the marine industry – ship construction - use as strategic areas for military purposes and so on). In this context, it would be too difficult to handle a primary research on this study because in this way there were areas (one of the many mentioned above) that were not analyzed as of their importance for the development of ports. Under these terms, the current study could be characterized as limited by the fact that no primary research would be appropriate for the support of this study – partial development of the paper would be resulted as explained above – because it is necessary that all aspects related with the operation of ports across UK are equally analyzed (as possible). 4. Significance of the study In accordance with the issues developed above, this study is considered to be of significant importance referring to an area that has not been particularly analyzed in the literature. There may be many data released on the performance of the various industrial activities related with the operation of ports (these activities have been mentioned in previous section) but the studies related with the operation of minor ports in Britain are rather limited. On the other hand, ports are an important part of the British economy which is strongly depended on all activities conducted through the ports (travelling, shipping, and fishing). For this reason, this study could be considered as significant offering a series of explanations for the importance of ports in Britain, the role of minor ports in the development of the country as well as the potential prospects for ports in the particular country especially under the influence of globalization and the extensive involvement of developing countries in the shipping and other commercial activities worldwide. 5. Literature Review The importance of ports for the development of the local and the national economy (referring to all states internationally) cannot be doubted. In accordance with the study of Pettit et al. (2008, 53) ‘in all major trading regions there are geographic concentrations of ports, and their prosperity is closely related to the economic well-being of their hinterlands and of the overseas regions to which they are linked via shipping services’. In other words, the development of ports can support the improvement of a country’s position within the international market; however, it depends on the ability of the country’s government to administer effectively the resources available in order for this target to be achieved. One of the most important roles of ports within the national economy is that of supporting the development of the supply chain services used in various commercial activities across a particular country. Regarding this issue, it is noticed by Woodburn (2007, 311) that ‘as supply chains become increasingly global and companies seek greater efficiencies, the importance of good, reliable land-based transport linkages to/from ports increases; this poses particular problems for the UK, with its high dependency on imported goods and congested ports and inland routes; it is conservatively estimated that container volumes through British ports will double over the next 20 years, adding to the existing problems’. The efficiency of British ports to respond to the needs of the national market can be strongly doubted in accordance with the above study. Specific plans should be introduced regarding the development of ports in the particular country in order for the various commercial activities in the country to be appropriately supported. Otherwise, the effects on the country’s economy could be extremely adverse. The development of the shipping industry in UK can be also considered as important in order for all aspects of commerce in the country to be effectively supported. Of course, the shipping industry has its own (direct) benefits like the profits from the ship construction or repair and the profits from the provision of salvage services. For this reason, it is necessary for all aspects of activities in ports to be taken into consideration when designing and developing a plan of action regarding the restructuring of ports in a particular country. In the case of UK the coastal line of the country is really impressive and is offered for various marine activities. However, the ports of the country need development in order to meet the needs of the market and support effectively the local economy. The above issue was examined by Saldanha et al. (2002, 77) who noticed that ‘the geography of Great Britain and the modern preference for just-in-time deliveries have severely restricted the ability of coastal shipping to compete effectively with road freight transport’. From a different point of view, Gilman (2004, 275) supported that ‘as ports policy is being brought into line with transport policy generally, and in particular with Government policy for sustainable development, ports are being faced with a more challenging regulatory framework’. In the case of Britain, the development of ports has been incorporated in the Town and Country planning Acts – it is necessary that all plans designed for ports around the country to be appropriately examined and carefully evaluated in order to make sure that the targets set will not harm the environment. On the other hand, the current efforts of British government for the development of ports can be characterized as limited. The relevant study of Gilman (2004, 275) showed that ‘ports are already well used to the process of obtaining approval, to negotiations with objectors and environmental interests, and to mitigating the effects of development when defining projects and seeking approval’. In other words, there are extensive plans related with the development of ports of all sizes in Britain but the relevant procedure is rather slow. Moreover, no particular provision seems to be taken for ports of low interest (i.e. minor ports). Instead, most of the relevant provisions involve in ports of major importance, like London, Carfiff and Portsmouth. The performance of British ports is estimated using a series of relevant statistics; these statistics are used in order to evaluate the performance of ports and their importance for the development of the region; at a next level, the restructuring of these ports is decided using as indicators the above data. The specific issue has been examined by Pettit et al. (2008, 53) who noticed that ‘the concentration of economic activity and port capacity in the southeastern region of the UK is reflected in port traffic statistics; important influencing factors are EU expansion, increasing use of unit loads and a move towards Far East sourcing’ . Despite the problems related with the appraisal of the performance of ports in Britain, the country’s ports remain a significant resource of wealth keeping their competitiveness towards the ports of other countries, like Spain. When comparing the ports of the above two countries, Britain and Spain, Saundry et al. (1999) came to the conclusion that ‘through a contextualized comparison of labour regulation in the two countries, it is possible to demonstrate that an `institutionally saturated and `politically bargained system of production and employment is compatible with, if not a necessary condition for, competitive performance in the international port transport industry’ (Saundry et al., 1999, 71). Even when compared with highly industrialized countries, like Japan, Britain seems to keep its superiority regarding the level of development of marine-related activities. The above assumption can be based on the study of Baird (1999, 33) who – focusing specifically on the ferry industry of the two countries - noticed that ‘in the UK, ferry services are predominantly international, whereas in Japan, ferry services are predominantly domestic; the RoRo ferry is now arguably the most important transport mode for UK international trade; this is not the case in Japan, where links with nearby countries are rarely maintained by ferries’. In accordance with the above, British ports are expected to be highly developed in order to respond to the needs of the ferry industry as well as other marine activities across the country. In accordance with the above, ports in UK are well developed but additional plans are required in order for them to become more competitive; additional funding is also required in order to make sure that all relevant schemes will be appropriately applied. The privatization of the ports has been considered by the British Government as a potential solution for the retrieval of the funds necessary for the their restructuring; however it would be necessary that additional plans – less costly for the state in terms of the limitation of the power of the state on its territory – are developed. Examining specifically the case of Medway Ports Arnold (1999) supported that when this port was privatized in 1992 ‘half the work force was dismissed by the new management; within a short time, Medway was resold to Mersey Dock & Harbour Company for £37 per share, making millions for Medways directors and financial backers; the resale price was eight times more than the amount the UK Treasury had received from the original sale only 18 months earlier prompting an investigation into the governments handling of the privatisation’ (Arnold, 1999, 127). In other words, the development of ports within any country should be carefully reviewed trying to choose the appropriate solution in terms of the benefits offered to the state especially in the long term – the rights of control over the various aspects of ports should be kept by the state as possible. References/ Bibliography Arnold, P., Cooper, C. (1999) A Tale of Two Classes: The Privatisation of Medway Ports. Critical Perspectives on Accounting, 10(2): 127-152 Baird, A. (1999) A comparative study of the ferry industry in Japan and the UK. Transport Reviews, 19(1): 33-55 Gilman, S. (2004) Sustainability and national policy in UK port development. Maritime Policy and Management, 30(4): 275-291 Pettit, S., Beresford, A. (2008) An Assessment of Long-Term United Kingdom Port Performance: A Regional Perspective, 10: 53-74 Saldanha, J., Gray, R. (2002) The potential for British coastal shipping in a multimodal chain. Maritime Policy and Management, 29(1): 77-92 Saundry, R., Turnbull, P. (1999) Contractual (In)Security, Labour Regulation and Competitive Performance in the Port Transport Industry: A Contextualized Comparison of Britain and Spain. British Journal of Industrial Relations, 37(2): 271-294 Woodburn, A. (2007) The role for rail in port-based container freight flows in Britain. Maritime Policy and Management, 34(4): 311-330 Read More