Stephen Nicol:
Turning the tide

A port can play a central role in shaping a city's economy and its competitiveness. The changing fortunes of Liverpool over the years have been in some significant part due to its role as a maritime city.

The presence of a port offers major opportunities. A large maritime and logistics sector within the local economy creates opportunities to attract and grow a wide range of related economic activities - one of the central planks of the Northern Way strategy is to attract value-added business into or close to the port estates of the North.

However there are also ongoing challenges. The maritime and logistics industries tend to have relatively low productivity and growth. Growing, competitive ports also require investment in high quality infrastructure, not only within the port but also in road and rail transport to and from the port. The Port of Liverpool is currently seeing major investment in facilities to cater for the new larger breed of container ships, the so-called post-Panamax vessels.

A recent Regeneris fact-finding trip to Rotterdam revealed how this Dutch city is facing up to these challenges. Rotterdam is the largest port in Europe and the third largest in the world, by traffic volume. The port estate covers an area of 10,500 ha, stretching approximately 40 km from central Rotterdam along the River Nieuwe Maas to the North Sea.

Although the port is the most productive in Europe, productivity is still relatively low, when compared to other sectors of the economy. The city is some way off the pace set by the neighbouring - and often seen as rival - cities of the Randstad region, such as Amsterdam and Den Haag.

Our research suggests there are lessons for Liverpool and other maritime locations in the UK which are seeking to maximise the economic development impacts of ports. These include:

Think big and plan ahead

Rotterdam continues to invest in the growth and competitiveness of maritime, logistics and related sectors to consolidate its position as the European leader. Most recently, the public sector has led the creation of Maasvlakte 2, 1,000 ha of industrial sites on reclaimed land with direct access to deep water channels, helping to meet the demand for post-Panamax port facilities. This €2.8bn investment will be financed mainly by the public sector Port of Rotterdam Authority.

The Port of Liverpool is currently investing £100m in a post-Panamax river container terminal which will allow it to maintain its dominant position in UK trade with the Americas. The leading ports of the eastern seaboard of the United States are also investing heavily in new infrastructure to handle these ships - and to compete for other deep-sea trade.

Promote innovation

As in the UK, many of the firms working in the wider maritime and logistics sector in Rotterdam are relatively small and exist on fairly tight profit margins. Rotterdam is keen to promote innovation to raise productivity, for example in the take-up of new technologies such as radio frequency identification.

Encouraging firms to invest in new skills and new technologies is a major challenge. The port authority is leading a long-term innovation strategy. A key lesson from its experience is the importance of working with supply chain leader companies who are able to set the tone for the rest of the cluster and to exert economic pressure to encourage the uptake of new working practices.

Invest in workforce planning

As existing workers age and leave the industry, employers need to replace them. Rotterdam is investing heavily in education and training, including reaching out to the longer-term unemployed. At Rotterdam's Shipping and Transport College, partners have invested in state-of-the-art simulation equipment to provide real-world training environments.

Broaden the sector's appeal

Rotterdam is a youthful and diverse city, with young people, women and ethnic minority groups making up a large proportion of its workforce. The maritime industry has not traditionally appealed to these three groups but partners are now working hard to change this by demonstrating the rewarding career paths it offers and encouraging greater flexibility of employment terms and conditions.

Reinvent maritime assets

Land and property uses within the port estate must constantly evolve in line with changing demands and opportunities. Sometimes things move too slowly - the challenges of managing long-term leaseholds to ensure that port facilities are used most productively should not be underestimated. Some land, particularly near the city centre, no longer has economic maritime uses and is ripe for commercial and residential development, as Peel is demonstrating with plans for Wirral and Liverpool Waters.

The opportunities and challenges in Rotterdam mirror those facing Liverpool as the city seeks to make good use of maritime assets.