Realms of Engagement for Public Policy
Both maritime shipping and terminal operations are characterized by a small number of large private players, some being publicly owned (e.g. sovereign wealth funds) but competing in the same manner than their private counterparts. The industry can be considered an oligopoly with high entry costs but also very competitive in regard of cargo. This industry is strongly globalized, having multinational assets and for maritime shipping those assets can quickly be reassigned. It thus represents one of the transportation realms where public policy is the least effective, unless concerted efforts are made and in line with the objectives of the industry.
Like any private industry, it is concerned by costs, efficiency and reliability and is actively seeking improvements in any of these dimensions. Among the numerous strategies being pursued a higher level of integration with elements of the intermodal chain. Particularly, maritime shipping companies, such as Maersk, have been involved in the development of a portfolio of terminals, and even trucking companies, rail operators and distribution centers. As this takes place, new realms of engagement with public policy become possible.
The maritime / land interface represents however a unique opportunity of engagement as it facilitates trade, reduces inefficiencies and offer new distribution alternatives. Flexibility in the movement of container assets is important as it enables to better take advantage of commercial opportunities. Many countries have restrictions about ports of entry, demurrage and cabotage. In this context freight forwarders tend to prefer transloading the contents of maritime containers into domestic containers or truck loads. This is linked with inefficiencies and delays.
The governance of hinterland access regimes is linked with port cluster formation16. It refers to the agglomeration effects and the degree of internal cohesion and competition within a port hinterland. Cluster governance relates to the mix of, and relations between, organizations and institutions that foster coordination and pursue projects that improve the cluster as a whole through regional strategies. The main advantages of cluster governance are a better access to competencies and innovative ideas, a better access to suppliers and customers, a better access to capital and an overall reduction of transactional costs.