The Port of Valencia has consolidated its position as the best connected port in the Mediterranean according to the Port liner shipping connectivity index (LSCI) prepared by the United Nations Conference on Trade and Development (UNCTAD) and is in 20th position worldwide in the second quarter of the year in terms of connectivity, according to the company’s release.

A position that reinforces Valenciaport as a benchmark for improving the competitiveness and opportunities of Spanish import/export companies. Maritime connectivity fosters new advantages for the ports and their hinterland by favouring greater participation in international trade and better access to markets, which reduces the transport costs of goods.

Moreover, the Port of Valencia continues to occupy first place in this ranking among Spanish ports, and fourth place in Europe after Rotterdam, Antwerp and Hamburg. According to the UNCTAD index, the Asian ports lead the ranking of connectivity with Shanghai at the head of the world classification followed by the ports of Ningbo, Singapore, Pusan, Qingdao and Hong Kong. Rotterdam is in seventh position, Antwerp in ninth and Hamburg in fifteenth place. After Valencia, as the fourth European port and twentieth in the world, among the Spanish ports, Algeciras is in 22nd position, while Barcelona is in 25th place.

In the case of Valenciaport, the precinct maintains connections with almost 1,000 ports in 168 different countries (87% of the countries in the world). In fact, from the Valencian docks, which operate with a hundred regular lines managed by 35 different shipping companies, goods have been sent or arrived from China or the United States, but the capillarity of the Port of Valencia also allows goods to be sent to remote islands such as Papua New Guinea, Vanuatu, Wallis and Futuna, the Virgin Islands or Guam, among others.

Valenciaport acts as a facilitator of commercial exchange in its area of influence, which represents 55% of Spain’s GDP, and its commitment to strengthening connectivity by adapting its infrastructures and services to the needs of the market with the aim of attracting the largest number of shipping companies and shipping lines. In fact, 41% of the export/import traffic of the Spanish port system passes through the Valencian docks, which this year has also consolidated its position as the fourth European port in container movement.

• Business groups supported a proposed bill that aims to strip the Philippine Ports Authority of its mandate as a revenue generator

• House Bill No. 1400 confines PPA solely to its role as public port developer and operator

• Philippine Chamber of Commerce and Industry, Philippine Exporters Confederation, Inc. and Supply Chain Management Association of the Philippines threw their support to the measure, which seeks to “decouple” the conflicting regulatory and commercial functions of the PPA

Business groups have expressed support for a proposed bill stripping the Philippine Ports Authority (PPA) of its mandate as revenue generator and confining its role to a public port developer and operator.

In a joint letter, the Philippine Chamber of Commerce and Industry (PCCI), Philippine Exporters Confederation, Inc. (PHILEXPORT), and Supply Chain Management Association of the Philippines (SCMAP) said they support House Bill (HB) No. 1400, which aims to “decouple” the conflicting regulatory and commercial functions of the PPA, according to Philexport News and Features.

READ: House bill seeks to strip PPA’s regulatory power

There is a long-running industry clamor to separate the two PPA functions. Stakeholders claim the apparent conflict of interest presented by these two functions has caused a increase in cargo-handling rates that has eroded the country’s competitiveness.

HB 1400, also known as the Philippine Ports Corp. (Philports) Act, seeks to avoid such conflict, according to bill author Bagong Henerasyon Party List representative Bernadette Herrera-Dy.

“This Act separates the regulatory and development functions of the Philippine Ports Authority (PPA) by converting it into a corporation solely for commercial and development purposes and transferring its regulatory functions and powers to the Maritime Industry Authority (MARINA),” the bill, filed on July 6, 2022, states.

“Under no circumstance should a regulatory agency benefit from its own regulation and/or use its regulatory powers to protect itself from competition at the expense of public interest,” Herrera-Dy said in the bill’s introduction.

Aside from backing the proposed measure, the joint letter—signed by PCCI president George T. Barcelon, PHILEXPORT president Sergio R. Ortiz-Luis Jr., and SCMAP president Pierre Carlo Curay—also favors a revisit of how ports are managed and regulated as recommended in the 2017-2022 Philippine Development Plan (PDP).

The PDP suggests separating the regulatory and operational functions of port authorities and establishing a single entity to regulate ports in order to increase their efficiency and competitiveness by allowing inter-port competition and encouraging more private sector participation.

This policy reform will address not only the conflict of interest, but more importantly, the “competitive neutrality” issue hounding the port authority, the joint letter said. Competitive neutrality recognizes that significant government business activities in competition with the private sector should not have a competitive advantage or disadvantage simply by virtue of government ownership and control.

In PPA’s case, the competitive neutrality issue centers on its power to regulate against competition to protect its commercial interest, sometimes at the expense of public interest.

According to industry expert Dr. Enrico L. Basilio, Philippine ports have seen a “systematic increase in cargo-handling rates happening over the years and extending even through the pandemic.”

This, he said in a talk last year, has led to the Authority generating a lot of income, which has been outstripping expenses in port operation, maintenance and development, with the situation effectively becoming a tax burden for port users.

As proposed by HB 1400, Philports will be a GOCC attached to the Department of Transportation and mandated to own, develop, manage and operate public ports within the port system of the old PPA.

It will no longer be a revenue generator but a service provider that “shall always give utmost priority and importance to public service delivery and promotion of public interest over commercial/financial profit,” the bill said.

Moreover, Philports shall collect only the port fees and dues duly approved by MARINA, with no share from the cargo-handling revenues of any service providers Philports contracts or from any revenue generated by private commercial ports.

Barcelon, Ortiz-Luis Jr., and Curay also advocate the rescission of Letter of Instruction No. 1005-A, which entitles PPA to a share of 10% to 20% of cargo handling revenues, the rates of which the agency also approves.

“This is a case of the regulator (PPA) benefitting from its own regulation. As a public enterprise (GOCC), PPA remits billions to the Treasury, even during the pandemic when trade was down by more than 30%, but in the process makes the Philippine economy uncompetitive with high port charges,” the business executives pointed out.

The Philippines is said to have the highest cargo handling cost in ASEAN, which undermines its global competitiveness.

May Darwich, Jutta Bakonyi (The Conversation)–Berbera port is the main overseas trade gateway of the breakaway Republic of Somaliland. The port city is located on the Gulf of Aden – one of the globally most frequented seaways connecting the Indian Ocean and the Mediterranean.

Only a few years ago, Berbera port was a dilapidated runway, originally built by the British empire, and then modernised first by the Soviet Union and later the US. The port is the lifeline of Somaliland, which imports most of what it needs, from food to construction material, cars and furniture. Its main export is livestock to the Arabian Peninsula.

This picture changed considerably after the Emirates-based Dubai Ports World (DP World), a leading global port operator and logistics giant, took over the port management in 2017. It expanded the quay by 400m, established a new container terminal, designed a free zone, and started to manage the port’s operations.

Lined up alongside the quay are the latest crane models, which have become operational since June 2022. DP World employees practise operating the cranes every day. The hope is that the port will attract 500,000 TEU (unit of cargo capacity) per year, about one third of the capacity of neighbouring Doraleh port in Djibouti. This would allow Somaliland to become a logistical hub on the Gulf of Aden competing with other ports in the region such as Djibouti, Mogadishu and Mombasa.

The cranes are crucial for the speedy handling of cargo required in a modern port. The staff training, however, takes place in a port that is yet to get busy. So far, container ships arrive only infrequently.

We have been studying the Horn of Africa’s emerging port infrastructures. The boost that the revamped Berbera port needs is for Ethiopia to come to the party. Ethiopia has been landlocked since Eritrea gained independence in 1993, and relies on the port of Djibouti – 95% of its trade goes through the port.

In 2017, a concession agreement was signed between DP World, Ethiopia, and the government of Somaliland to rebuild and modernise the port of Berbera. The 30-year concession involves: a commercial port, a free zone, a corridor from Berbera to Ethiopia’s borders, and an airport in Berbera.

The concession allowed Somaliland’s government to retain 30% of the shares in the port, 19% for Ethiopia, and 51% for DP World. But in June 2022, Somaliland announced that Ethiopia had failed to acquire its 19% share of Berbera port. Ethiopia failed to meet the conditions.

Somalilanders remain optimistic, nonetheless. The infrastructure project means a great deal to the country. It promises to foster its ambition to receive international recognition, achieve economic development, and fulfil hopes for improved living conditions of its citizens.

The context

DP World’s expansion in the Red Sea and the Gulf of Aden is taking place in the context of turbulent political transformations in the Horn of Africa.

Ethiopia’s Prime Minister Abiy Ahmed came to power in 2018 on the back of popular protests and awakened hopes of a democratic transition in the country. He ended the two-decades-long rivalry between Ethiopia and Eritrea, which brought him the Nobel Peace Prize. With a population of more than 100 million and one of the fastest growing economies in Africa, Ethiopia’s transition brought prospects of developments across the Horn of Africa.

DP World’s will to expand its operations in the region coincided with conflicts between DP World and Djibouti. In 2006, DP World had signed a 30-year concession to design, build, and operate the Doraleh container terminal in Djibouti. Growing tensions led the government of Djibouti to cancel DP World’s concession in 2018.

DP World shifted its interest from the port in Djibouti to Berbera in Somaliland and Bosaso in Somalia (Puntland). In 2017, a concession agreement was signed between DP World, Ethiopia, and the government of Somaliland to rebuild and modernise the port of Berbera. The projects covered by the 30-year concession included a commercial port, a free zone, a corridor from Berbera to Ethiopia’s borders, and an airport.

These projects are steadily progressing. Berbera port has already completed its first expansion phase. The DP World-owned free zone is under construction. Large parts of the Berbera corridor, a highway linking Berbera to Toqwajale at the Ethiopian-Somaliland border; and from there to Jigjiga and Addis in Ethiopia are finalised. According to Somaliland officials, the airport is also completed, but its original designation as a military outlet for the UAE remains ambiguous.

What next?

The infrastructure project means a great deal to Somaliland, promising to put the country on the path to international recognition and achieve economic development. However, these aspirations will not materialise without Ethiopia on board, which has not met the conditions under which it was to get a 19% share of the Berbera port. In addition it has not yet opened its markets to Somaliland traders.

Somalilanders remain optimistic, nonetheless, expecting that especially trade from eastern parts of Ethiopia will redirected to Somaliland. But this plan is not without risks. The pandemic and war in Tigray has slowed down Ethiopia’s economic growth, and the stability of the country is on the brink.

While DP World’s strategy to control ports along the Red Sea and the Gulf of Aden is already transforming the political geography of the Horn of Africa, the success of its strategy largely hinges upon Ethiopia, and so do the hopes and aspirations of Ethiopia’s coastal neighbours.

Everybody, so it seems, is currently waiting for Ethiopia.

Global Ports Holding subsidiary Bodrum Cruise Port in Turkey has received Odyssey of the Seas, a Royal Caribbean cruise ship.

Bodrum Cruise Port said this was the largest cruise ship it has hosted in its history.

With 3,693 American, British and German passengers, this was also the first voyage to Bodrum for Odyssey of the Seas.

Global Ports Holding Eastern Mediterranean ports director Aziz Güngör said: “We will be seeing more large ships like Odyssey of the Seas in Bodrum waters from next year. Bodrum is on its way to becoming a very important cruise destination.”

Most of the passengers from the ship visited the old town and bazaars in Bodrum, while other passengers opted for tour buses to visit Bodrum’s archaeological sites, such as St Peter Castle, Sandima Village Tour, Jeep Safari, Turkish Bath and Beach Clubs.

Odyssey of the Seas is Royal Caribbean’s second Quantum Ultra-class ship. Its sister Quantum Ultra-class cruise ship, Spectrum of the Seas, started service in April 2019.

Featuring a striking stern architecture, with large glazed areas offering 270° views, the cruise ship measures 347.1m long and 41.1m wide. It has a gross registered tonnage of 169,300t.

The ship consists of 18 decks and 2,137 passenger cabins, which include four different types of staterooms known as Interior, Ocean View, Balcony and Virtual Balcony.

Bodrum Cruise Port provides full terminal, marine and ancillary services to its customers, along with various amenities such as duty-free shopping areas and travel agencies. It has invested in the construction of a terminal building and pier.

Source: https://www.ship-technology.com/news/bodrum-cruise-port-royal-caribbean/