Loading presentation...

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.


Ports & Canals


Guido Borgato

on 31 October 2013

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Ports & Canals

Why do you think Egypt and Panama do not profit more from the economic importance they play in shipping?
G. Borgato, F. Kleophas I. Schwall & B. Zagel
What are typical characteristics that distinguish your choosen country from your home-country?
Take note of 3 cultural aspects

Problem statement
Article "Huselid"
Chapter 16
Article "Ulrich"
What are the measures by which the success of HR practices can be defined?

And are there any paradigm shifts with regard to the salience of certain practices?
What comes to your mind when we speak about ports and canals ?
What happened so far...
-HRM in new and small enterprises-
-International HRM-
Farndale et al. (2010)
Baron & Hannan (2012)
- Management and evaluation of HRM-
This is where our facilitation starts..
Zip in
How to overcome the capacity constraints of ports and canals?
What are Incoterms?
Pre-defined commercial terms intended to clearly communicate
the tasks distribution
the costs of transport
and the risks
associated with the transportation and delivery of good.
How would you explain to your grandma the following terms?
Practical approach
For what routes are these canals salient?
What is their
global significance?
Transportation vs. Environment
Rotterdam - The main gateway to Europe
- Opened in: 1914
- Length: 77.1 km
- Duration: 20-30 h
- Capacity: 52,500 DWT/ ship
- S.F. <-> N.Y.: shortened by
~12,530 km
~30 days (60 -> 30)
- Constraints:
-> 6 locks
-> 37% of the world's container
ships are too large
- Opened in: 1869
- Length: 193.3 km
- Duration: 12-16 h
- Capacity: 240,000 DWT/ ship
- London <-> Mumbai: shortened by
~8,200 km
~10 days (24 -> 14)
- Constraints:
-> Only one-way passage
Panama Canal
Suez Canal
What are the reasons for this continuous expansion of the ports?
What are the consequences?
Why are the US ports so much smaller?
- Geo-political & trade importance
-> Shortest link btw. East & West
1. Europe & Asia
-> e.g., London <-> Mumbai: -41.41% distance

-> Less costs:
distance (fuel)
salary for employees
-> Less risk

- 7.5% of the world total sea trade
New York <-> Hong Kong
- Geo-political & trade importance
-> Short link btw. East & West
1. N. (& S.) America (East Coast) & Asia
2. N. (& S.) America (West Coast) & Europe
3. N. (& S.) America (E.C.) & N. (& S.)
America (W.C.)
-> e.g., S.F. <-> N.Y. -59.95% distance
-> Less costs:
distance (fuel)
salary for employees
-> Less risk

- 5% of the world total sea trade
-> >80% per cent of the volume of world trade
is carried by sea
Panama Canal
Suez Canal
- Microclimate change
-> Loss of another income factor for the country
- Deterioration of air & water quality
-> Higher regulation fees
-> Higher fees for cleaning methods
- Deforestation
-> Soil erosion
-> Sediments in lakes & canals
Panama Canal VS. Suez Canal
Role Play
Nils Smedegaard Andersen
(CEO) Maersk A/S
“Business opportunities are like buses, there’s always another one coming.”
"Our container shipping business has never been more on the edge as in this century, facing a variety of challenges that need to be overcome"
Let´s dive into the topic...
Richard Branson
(CEO) Virgin Group
What do you think are the challenges Andersen is referring to?
Cost efficiency
Capacity constraints
So let´s catch the bus and solve the limitations of ports and canals...
It is impossible to infinitely enlarge ports or deepen canals!
New solution are needed to solve this problem!
Ports today:
3,470,000 TEUs/ year
How could competition solve the problem of capacity?
Ports in Europe

Specialization of ports
Specialization into different geographic areas
Different transportation modes
What could the future for ports be like?
Additional Issue for Maas Line:
Should capacity be crucial in this decision?
High-paying return cargo from USA -> Asia
If carriers can’t make enough money on the backhaul
to justify the higher costs of all-water service.
-> Danger for the canal if environmental
issues are not resolved
-> Constraint of pollution
Incoterms simplify trade and commerce agreements
First published in 1936 by the ICC
Latest update: 'Incoterms 2010'
11 different rules
FAS - Free Alongside Ship:
The seller must place the goods alongside the ship at the named port. The seller must clear the goods for export.

FOB - Free on Board:
The seller must load the goods on board the vessel nominated by the buyer. Cost and risk are divided when the goods are on board of the vessel.

CFR - Cost and Freight
Seller must pay the costs and freight to bring the goods to the port of destination. Risk is transferred to the buyer once the goods is loaded to the vessel.

CIF - Cost, Insurance and Freight:
The same as CFR except that the seller must pay for insurance
The new Incoterms 2010 rules discussed by the author further foster
of trading processes.
of these bureaucratic processes lead to
greater efficiency
or is it more important to maintain
Ashar, A. (2007). Sounding off. Containerisation International.Canal de panama. (n.d.). Retrieved from http://www.pancanal.com/eng/

Dekker, S. (2003). Economic impacts and public financing of port capacity investments: the case of Rotterdam port expansion. (Doctoral dissertation) Retrieved from https://docs.google.com/viewer?a=v&q=cache:VZ-6zlQ2mOYJ:www.ltrc.lsu.edu/TRB_82/TRB2003-001572.pdf &hl=en&gl=nl&pid=bl&srcid=ADGEESihLzTW-l6uVTXZIMGbFswCIdxJxvMzJ8lG1OUm6qRkaUXjlrnmR8o9QWio7H4XhLzyeiJZkm0klBI6jCFLgmTUh1LlxBsQDhOlLhT54w3pz9X7fevwWsTdNJKPjDBqpZ-e0Cak&sig=AHIEtbQ8_0ysBFNZ3mIGBe2ENPUqg9GJOw

Lowe, D. (2010, September 27). Incoterms 2010 - making trading easier. Retrieved from http://www.wragge.com/published_articles_6466.asp

Heckadon-Moreno, S. (1993). Impact of development 0n the panama canal environment. Journal oflnteramerican Studies and World Ajjfairs,, 35(3), 129-149.

WORLD BANK PORT REFORM TOOL KIT. (n.d.). Module 2: The evolution of ports in a competitive world.
Concluding Summary
How to overcome the capacity constraints of ports and canals?
It is not possible to enlarge ships, canals and ports forever!

Panama & Suez Canal
- Size matters!
Environmental issues

Port of Rotterdam
- What comes afters Maasvlakte2 ?
Activity spreading & port coordination

Incoterms 2010
- How is transportation coordinated?
Increasing capacity by diminishing administrative barriers
networks crying
for flexibility
standardized IT
Full transcript