A SWOT analysis of the Gdańsk-Gdynia port complex within the context of a change of its competitive position in the European market in port services 2

Transcription

1 Andrzej Montwiłł 1 Maritime Academy in Szczecin (Poland) A SWOT analysis of the Gdańsk-Gdynia port complex within the context of a change of its competitive position in the European market in port services 2 Introduction This article presents a reversed SWOT analysis of the Gdańsk-Gdynia port complex. It aims at indicating what factors in the areas of opportunities, threats, strengths and weaknesses are crucial for the competitive position of both ports in the European market in port services and for the strategy towards their continued development. In order to point out in what main directions the ports will develop as multimodal transport hubs this analysis can be used autonomously. It can also be part of a more detailed analysis determining the competitive position of the main Polish seaports within the context of a change in how they were perceived (typical transport hubs) and are perceived now (social and commercial spaces of high economic intensity and wide regional influence). Bearing in mind the fact that numerous analyses of the competitive positions of the Polish seaports have already been performed the author considered it legitimate to perform a reversed SWOT analysis due to the changes occurring in their external environment and resulting from the dynamics of the social and commercial situation which exists both in Europe and in the world. The new trends in the global and European trade, modern logistic solutions for the global supply chains, new laws established by IMO and EU as well as new challenges for intermodal transport in the context of the national or EU policy are only selected examples of changes which have their impact on the position of the Polish seaports and their development prospects. An analysis of the external environment of an organization as a component of an analysis of its competitive position Each organization operates in a specific external environment. According to the systems theory organizations are unable to operate in disconnection with their environment. No organization is self-sufficient and must exchange its resources with the external environment which is part of the organizational environment which can be divided into external and internal. Globalization of the world economy has resulted in circumstances in which an analysis of the organizational environment must be a basis for all decisions made by the executives who are in charge of company management as well as its economic areas. It has become a primary component of strategic management both on a level of a particular enterprise and on a level of a network system of an organization forming economic areas, including seaports which are regarded as specific social and commercial spaces. According to R.W. Griffin the external environment is everything that influences an organization from outside. This kind of environment is made up of two areas. The societal environment of an organization includes not very distinctly determined dimensions and forces within which it operates and which have their impact on its operational strategy. There are a few dimensions to the societal environment, i.e. economic, technological, social and cultural. The task environment includes specific organizations or groups which can have their impact on a particular organization. The task environment can include competitors, customers, suppliers, trade unions, owners and strategic allies 3. Other definitions of the components of the environment, which is divided into environments with closer and farther or direct and indirect influence, are also used in the reference books. By analyzing the issues relating to the forces within the environment influencing an organization and how this influence is exercised the author has come to a conclusion that in the event of seaports as a whole as well as their managing entities it is extremely difficult to precisely determine what forces and organizations are part of the task environment and which ones are part of the societal environment. It seems that in the event of seaports this division is not relevant to their position in the global economy in which transport is its nervous system playing a decisive role in the global development, and trade is of primary importance. Therefore, in the event of seaports it is correct to talk about the external environment of a seaport as well as the external environment of a managing entity without differentiating between the societal and task environment components. 1 Dr eng. A. Montwiłł Engineering-Economy of Transport Faculty, Maritime Academy in Szczecin, a.montwill@am.szczecin.pl. 2 Reviewed paper. 3 R.W. Griffin, Podstawy zarządzania organizacjami, [Management], translated by M. Rusiński, Wydawnictwo Naukowe PWN, Warsaw, 1996, p

2 Figure 1 illustrates this quality of seaports as well as each economic area, made up of numerous companies, including logistic centres or industrial and technological parks, forming a social and economic space. Globalization has also forced changes in methods used for assessing competitiveness of an organization in order to determine its competitive position correctly. An example of this method is a SWOT analysis which has, in practice, replaced its prototype model called LCAG. EXTERNAL of a seaport INTERNAL of a seaport EXTERNAL a Managing Entity INTERNAL a Managing Entity Fig. 1. A design of the seaport environment and the environment of an entity managing a seaport. Resources: own work. It is used mainly for analysing operations of an enterprise in the market in the context of attaining an advantageous, competitive position by this enterprise in a particular sector (business strategy) 4. It is a handy, simple, but also precise tool which, unquestionably, requires diligence in order to determine opportunities and threats to the company development (external environment) as well as its strengths and weaknesses (internal environment). And it is in the order presented above. That is why in the reference books a reversed acronym TOWS is mentioned more and more frequently. A TOWS analysis of the primary Polish port complexes A SWOT analysis, or, as a matter of fact, a reversed TOWS analysis, has been performed for the ports of Gdańsk and Gdynia taken together. Needless to say, it has also shown what is essential or distinctive for each of the ports and what they both share. The result of the analysis is presented in a tabular form (table 1a to 2c) with the following areas set apart: infrastructure, TSL 5 (transport, shipping, logistics) market and operations of the administration and management domain 6. This division allows to group opportunities, threats, strengths and weaknesses into separate areas which have been analysed individually. The analyses of the port market performed over many years and scientific research combined with the author's experience gained in the TSL sector show that these three primary areas determine the competitive position of seaports in Europe Strategor: Zarządzanie Firmą Strategie Struktury Decyzje Tożsamość [Company Management, Strategies, Structures, Decisions and Identity], Polskie Wydawnictwo Ekonomiczne, Warsaw 2001, p. 25, Including enterprises of other sectors, for example developers, investing in the TSL sector or port industry. Extended to include key influences of the external environment of the seaports on their operations

3 Tab. 1. An analysis of opportunities and threats to the Gdańsk-Gdynia port complex Opportunities location of the ports in the Pan-European Transport Corridor (VI); inclusion of the ports and main railways and roads for vehicles leading to them in TEN-T (Trans-European Network of Transport); accessibility of the ports for road and rail transport and in the case of Gdańsk also for pipeline and inland transport; financing (by the State Treasury, Voivodeship Office and Gdynia and Gdańsk municipalities) development of the infrastructure providing access to the ports from mainland; continued development of the A1 motorway which links Tricity to central and southern Poland as well as the south of Europe; modernization of the E65 and C-E65 railway main lines as well as rail links to both ports; modernization of the road systems linking the ports and their adaptation for handling 11.5 tonne axle load lorries; development of the potential of the intermodal terminals in Poland and Central European countries; restoring the Vistula river to its transport function. Infrastructure Threats continued development of the rail and road transport infrastructure in Europe along the circles of latitude which is advantageous to the North Sea ports; too little traffic capacity of the C-E65 rail main line in the context of the increasing trade in bulk and containerized cargo; considering some distances of the roads leading to the ports as regional roads of a low, acceptable axle load; powerful ecological lobby objecting to the revitalization of the Vistula river in order to restore it to its transport function. The ports of Gdańsk and Gdynia have a very well developed infrastructure which provides access from hinterland and foreland (which allows Baltimax vessels to enter Gdańsk Bay). And even the presence of bottlenecks does not alter it, as their elimination is specified in the plans for developing the transport infrastructure in the cities of Gdańsk and Gdynia (see the project regarding construction of a tunnel under the Martwa Wisła, which is now in progress). One of the threats can be too little a pace of modernization of railways in the context of dynamic increase in containerized and dry bulk cargo transport. Tab. 2. An analysis of opportunities and threats to the Gdańsk-Gdynia port complex, continued. Opportunities increase in Polish foreign trade resulting from the Polish economy development; growing demand of the Polish foreign trade for land and sea transport which results from a slow change in the structure of the Polish foreign trade along with overseas trade on the increase; increase in trade among the Baltic states with the use of land and sea transport chains; forecasts for continued, and lasting many years, strong, economic growth of the Baltic See Region (BSR) countries. increasing level of containerization of the Polish economy; advantageous location in relation to the biggest Polish economic centres as well as logistics and distribution centres; situation of the ports within the conurbation of Tricity which is now undergoing rapid development; inclusion of the port of Gdańsk in the oceanic container services of the biggest shipowner Mearsk Line and new P2 alliance; intermodal connections between the ports and hinterland being built by logistic operators; Market in services of the TSL sector Threats the Baltic ports on the southern coast becoming competitive; the North Sea ports becoming competitive, especially with regard to containerized cargo transport; in the case of international European trade substitutive, land transport chains becoming competitive; change in the structure of the Polish foreign trade towards goods with a higher and higher level of processing and individual value which are transportable within the structure of European transport chains. The location of the ports of Gdańsk and Gdynia is advantageous in relation to the biggest economic centres as well as logistics and distribution centres. In the case of land and sea transport chains a choice of these ports allows loaders (including exporters and importers) to optimize costs of a transport process in processes of supply and delivery. A significant threat to this situation can result from globalization of the multimodal transport operators who can choose from other European ports within intercontinental relations by following the principle of decreasing unit costs for large cargo streams. However, the example of 13575

4 Mears Line shows that this principle can be applied to a reversed action, that is including the Baltic Sea region in the network of global services. Tab. 3. An analysis of opportunities and threats to the Gdańsk-Gdynia port complex, continued Opportunities Operations of the administration and management domain objectives of White Paper of 2011 and EU policy with regard to the formation of a uniform, European, energy-saving and resource-efficient transport system; inclusion of the seaports in a policy of development of the integrated Polish transport system; granting the managing entities property rights to the land they own on a perpetual usufruct; amendment to the act on ports and harbours in order to extend shareholding by the self-government authorities of the province; amendment to the act on ports and harbours in order to extend the permitted range of the managing entities' operations by the issues related to marketing and free investment in the areas which facilitate development of the ports; coordination of operations performed by the customs and phytosanitary services with regard to clearance for cargo on a "one-stop-shop" basis (a fixed goal); inclusion of the port areas in Gdańsk in the programme aimed at developing the transport and logistics potential of the city of Gdańsk by means of building a logistics centre on these areas. Threats exercising proprietorial supervision over entities which provide management of the ports by the Ministry of State Treasury which does not take their uniqueness into consideration (as entities managing the seaports); proprietorial supervision and laws of the act on ports causing reduction of the range of operations performed by the managing entities to the function of a standard landlord which results in a formal reduction in operation to management of the landing property and port infrastructure; absence of an effective interdepartmental committee for the issues relating to the ports while the port issues are fragmented within several government departments; possibility for taking over parts of the port areas, which are not owned by the managing entities, by private companies who do not accept the port development strategy; exploiting the ports by the cities in some areas of their development strategy or with regard to financing some of their needs with port resources; disadvantageous (for importers and exporters) regulations on customs clearance and customs and tax payment settlements; EU sulphur directive leading to the growing costs of maritime ship transport in the Baltic Sea basin. Source: own work (2a-2c) based on the methodology applied in Strategia Rozwoju Transportu do 2020 [Transport Development Strategy until 2020], Ministry of Transport, Construction and Marine Economy, Warsaw 2013 and a joint publication edited by Cz. Christowa Podstawy budowy i funkcjonowania portowych centrów logistycznych: Zachodniopomorskie Centrum Logistyczne Port Szczecin [Fundamentals of development and functioning of the port logistic centres: Zachodniopomorskie Centrum Logistyczne Port Szczecin], Maritime Academy in Szczecin, Studia No. 45, Szczecin 2005 The EU policy of transport development in Europe assuming adoption of the widely recognized principle of "pay as you go" connected to the objectives included in White Paper 2011 with regard to reduction of road transport creates favourable conditions for the development of land and sea intermodal transport. A crucial threat to the dynamic development of ports of Gdańsk and Gdynia is a policy of proprietorial supervision which reduces the role played by the entities managing these ports and scales them down to play a role of a standard landlord, which is in contradiction with the modern rules concerning operation of III and IV generation ports. Another threat is the tax laws, which results in loaders finding it often more cost-effective to transport cargo via the North Sea ports

5 Tab. 4. An analysis of weaknesses and strengths of the Gdańsk-Gdynia port complex Strengths accessibility of the ports for road and rail transport and in the case of Gdańsk also for pipeline and inland transport; co-financing of the port infrastructure development with the EU resources; development of the infrastructure of the deepwater, external port of Gdańsk; deepening the port basins in Gdynia (towards a target of 15.5 m); well developed technological infrastructure for handling all sorts of types of cargo; generally, an excess of the technological infrastructure potential, including the transport infrastructure of both ports, for handling and storing all types of cargo (exceptions presented in weaknesses in Table 3a. and 3b.); substantial areas in the port of Gdańsk for developing the logistics and distribution as well as industrial function; developed technological infrastructure providing favourable conditions for development of the production function with regard to production and processing. Infrastructure 7 Weaknesses potential of the rail infrastructure in both ports unadapted to the dynamic increase in container transport; small development areas in the port of Gdynia limiting development of the production as well as logistics and distribution function. The fully accessible technological infrastructure in both ports, including the transport infrastructure, is very well developed, which allows to improve the handling and warehouse potential of the port terminals and increase cargo handling in both ports. In its deepwater part the port of Gdańsk handles Baltimax vessels, including the biggest Mearsk Line container ships of 18,000 TEU and the port of Gdynia continues to deepen its basins and thus prepares to handle oceanic container vessels of more than 10,000 TEU. Tab. 5. An analysis of weaknesses and strengths of the Gdańsk-Gdynia port complex, continued Strengths well developed (and continuously in development) handlingstoring potential for handling dry bulk cargo; well developed handling-storing potential of the port of Gdańsk for handling liquid bulk cargo, especially in the crude oil and petroleum products sector; well developed (and continuously developed by the world TSL sector companies) handling and warehouse potential for handling containerized cargo (both ports); well developed handling and warehouse potential in the port of Gdynia for handling rolling cargo and ro-ro vessels; the port of Gdańsk taking over the role of a transport hub for the Baltic Sea in containerized cargo handling; oceanic status of the port of Gdańsk in containerized, liquid bulk (crude oil and petroleum products) and dry bulk cargo handling; vigorous actions of the cluster structures grouping the TSL and production sector companies who enhance the operating and service domain of both ports Market in services of the TSL sector Weaknesses the port of Gdańsk unadapted to handling ferries and ro-ro vessels of more than 180 m in length; insufficient handling and warehouse potential of the port of Gdynia for handling ferries and ro-pax vessels; logistics and distribution function in both ports developed only to a small extent and a low, generated value added logistics (VAL). The handling and warehouse potential of both ports is continuously in development at a level which allows to handle the growing volume of cargo uninterruptedly. In particular, it refers to liquid bulk cargo (Gdańsk), containerized cargo (both ports) and rolling cargo (Gdynia). The terminals for handling dry bulk cargo in both ports, which are still undergoing development, will also increase the handling and warehouse potential significantly, which can lead to assuming the role of transport hubs for the Baltic (also for this cargo type). 7 In general, in terms of the port infrastructure which is fully accessible

6 In the operating-service domain of both ports there are operators who are financially sound and connected with the European and global TSL sector market. Therefore, the importance of the ports of Gdańsk and Gdynia increases not only in the European but also in the global transport chains. Permanent cooperation of enterprises in such a type of chains is one of the constituents of their economic effectiveness. It manifests in seeking development of the existing land and sea transport chains on the basis of a long-term partnership, which is advantageous to the analysed ports. Tab. 6. An analysis of weaknesses and strengths of the Gdańsk-Gdynia port complex, continued Strengths consistent and agreeable development strategies for the ports with the expectations of the loaders and TSL market; preparing the ports for the fulfilment of the EU objectives related to the development of intermodal transport with regard to arrangement of the land and sea containerized cargo transport and intermodal transport units; ongoing coordination of operations performed by the customs and phytosanitary services with regard to clearance for cargo on a "one-stop-shop" basis (a fixed goal); actions of the managing entities for the development of the logistics and distribution function, including actions with regard to establishment of the logistics centres in both ports. Weaknesses Operations of the administration and management domain passive actions of the managing entities (reduction to the role of a standard landlord), which results in formal reduction of their operations to managing landing property and infrastructure of the ports; reduced possibilities of operations performed by the managing entities with regard to mix marketing; very limited possibilities for mutual investment of the managing entities and loaders as well as the TSL sector enterprises in ventures leading to the development of the port; long-lasting procedures of winning investors for many years of a lease on the port landing property; absence of a systematic collaboration of the port cities and managing entities with regard to joint development of the city and the port; absence of possibilities of a joint investment of the managing entities and self-governments in ventures leading to the development of the ports. Source: own work (3a-3c) based on the methodology applied in Strategia Rozwoju Transportu do 2020 [Transport Development Strategy until 2020], Ministry of Transport, Construction and Marine Economy, Warsaw 2013 and a joint publication edited by Cz. Christowa Podstawy budowy i funkcjonowania portowych centrów logistycznych: Zachodniopomorskie Centrum Logistyczne Port Szczecin [Fundamentals of development and functioning of the port logistic centres: Zachodniopomorskie Centrum Logistyczne Port Szczecin], Maritime Academy in Szczecin, Studia No. 45, Szczecin Consistent and agreeable development strategies for both ports with expectations of the TSL market and their consequent fulfilment results in an increase in handling in both ports as well as expansion of the range of services for cargo and means of transport. Limited possibilities of operations by the managing entities with regard to marketing mix, joint venture investments with enterprises from the operating and services domain as well as self-governments connected with the development of the ports hinder the development of ports of Gdańsk and Gdynia. It is especially important in the context of developing the logistics and distribution function since in the ports of III and IV generation involvement of the managing entities in marketing and investment actions aimed at developing this function is key for its development 8. The actions of ZMP Gdynia connected with development of the warehouse and office infrastructure on the area which is designated for a logistic centre in the port of Gdynia seem positive in this respect. Conclusions 1. The seaports of Gdańsk and Gdynia have changed their attributes from being regional ports to oceanic ports and as a result they have become important components of the European port market and TSL sector. 2. The port complex of Gdańsk-Gdynia has become a crucial component of the Polish transport system, which is in compliance with the provisions of Transport Development Strategy until Modernization of the general port infrastructure and infrastructure which provides access to both ports has increased attractiveness of the ports for investors from the TSL sector and these investors who are related to this sector as well as maritime and land carriers. 4. A much higher growth in handling performed by the port complex of Gdańsk-Gdynia in relation to what was assumed in the analytic documentation on which Transport Development Strategy until 2020 is based confirms that the position of the ports in the Baltic and European port market is strong. According to the guidelines included in the above mentioned strategy the Polish seaports will have handled 58 million tonnes by However, in 2013 the ports handled 64 million 8 Montwiłł A. Generacje portów morskich a rozwój funkcji logistyczno-dystrybucyjnej [Generations of seaports and development of the logistics and distribution function], Logistyka 1/2011, pp

7 tonnes of cargo nett (excluding the weight of containers and means of transport). 9 The growth in handling over the last three years confirms the assumptions presented in the analysis that the importance of the Polish ports, especially the ports of Gdańsk and Gdynia where handling went up to a level of 42 tonnes, is growing. 5. Inclusion of the port of Gdańsk in the network of oceanic container services has converted it into a Baltic hub generating new feeder connections, which significantly increases importance of both ports in the transport system of North and Central Europe. 6. The development of intermodal transport and inclusion of both ports in the Polish network of intermodal terminals successively increases their importance in the European and global supply chains. 7. The key components which enhance the competitive position of the Gdańsk-Gdynia port complex in the Baltic and European market in port services are: properly designed and executed development strategies for both ports, financially sound and connected with the external environment operation and services domains as well as the EU financial resources dedicated to the development of the fully accessible port infrastructure. 8. Continued strengthening of the competitive position of the Gdańsk-Gdynia port complex in the Central European transport market depends not only on the development of the transport function, but also on the logistics and distribution as well as production function, which results in an increasing array of services and generated value added logistics (VAL). Abstract The article presents a SWOT analysis of the Gdańsk-Gdynia port complex. The performed analysis shows opportunities and threats to the development of both ports determined by the external environment factors. The analysis also indicates strengths and weaknesses of both ports. The external and internal factors are divided into three areas including the infrastructure, market in the TSL sector services and actions of the administration and management domain. As a result the key components of the environment of the ports of Gdańsk and Gdynia have been indicated. It is these components on which the development of the ports and their current, strong competitive position in the European market in port services and Polish transport system depends. REFERENCES 1. Christowa Cz., Podstawy budowy i funkcjonowania portowych centrów logistycznych: Zachodniopomorskie Centrum Logistyczne Port Szczecin [Fundamentals of development and functioning of the port logistic centres: Zachodniopomorskie Centrum Logistyczne Port Szczecin], Maritime Academy in Szczecin, Studia No. 45, Szczecin Griffin R. W., Podstawy zarządzania organizacjami [Management], translated by M. Rusiński, Wydawnictwo Naukowe PWN, Warsaw Montwiłł A. Generacje portów morskich a rozwój funkcji logistyczno-dystrybucyjnej [Generations of seaports and development of the logistic and distribution function], Logistyka 1/2011, Strategor: Zarządzanie Firmą Strategie Struktury Decyzje Tożsamość [Company Management, Strategies, Structures, Decisions and Identity], Polskie Wydawnictwo Ekonomiczne, Warsaw Gospodarka morska 2013 [Maritime economy 2013], Statistical Office in Szczecin, Szczecin Strategia Rozwoju Transportu do 2020 [Transport Development Strategy until 2020], Ministry of Transport, Construction and Marine Economy, Warsaw Gospodarka morska 2013 [Maritime economy 2013], Statistical Office in Szczecin, Szczecin