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Port and Transport Development & Human Capital

from a knowledge institute’s perspective

Capt. Albert BosOctober 2014

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Content

• Short introduction

• (Regional) maritime and transport industry development.

• Port vision 2030.

• Cluster Thinking

• Knowlegde institute

• Aruba

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STC-Group

• 850 employees in the Netherlands

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Locations in the Netherlands

• HQ

North-South : 275 kmEast-West : 150 kmCoastline : 450 kmLand : 33,893 km2

Water : 7,650 km2

People : 17 mlnHinterland : 350 mln

• Europe

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Offices and projects worldwide

Established: Brazil, Colombia, Kazakhstan, Philippines, South-Africa, Sultanate of Oman, The Netherlands (11), Vietnam (4)

Planned/ WiP: Indonesia, West Africa, East Africa

• HQ

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Ho Chi Minh City (Vietnam, 2011)

Rotterdam (NL, 2012)

Rotterdam (NL, 2005)

Recent New Offices

Sohar (Oman, 2011)

Brielle (NL, 2011)

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Performance data

- No of employees : 850 - 1100- No of students : 8,000- No of certificates issued annually : 12,000- Average annual turnover : EUR 80 million- Accredited by : ISO 9001:2008

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(Regional) maritime and transport industry

development

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Economic development and world shipping

Change in consumption

Trade patterns

Market structures

Industry production structure

Population growth

Technological improvements

Productivity growth

Globalisation

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The boom in shipping trade

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EXAMPLES OF MAIN COMMODITIES SHIPPED

Iron Ore / DRI

Thermal Coal

Cocking Coal

Main importers; EU & China

Traditional cargo flows

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Source: Maritime Traffic based on AIS, http://www.marinetraffic.com/en/p/satellite-ais

Actual global maritime traffic of the entire global merchant fleet

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Evolving trends affecting internationalshipping and seaborne trade

Some key trends currently affecting international shipping and its operating landscape include the following elements:

• Effect of the 2008/2009 crisis on global demand, finance and trade

• Structural shifts in global production patterns• Changes in comparative advantages and mineral resource

endowments• Rise of the South and shift of economic influence away from

traditional centers of growth• Demographics with related implications for global production

and consumption patterns• Arrival of container megaships and other transport-related

technological advances • Climate change and natural hazards• Energy costs and environmental sustainability• Panama Canal upgrade and expansion

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Future nautical accessibilityTier 1: Ports are preparing for New Panamax vessels

ColonCartagena

Limon/Moin

Freeport

Kingston

Veracruz

Point Lisas

Legend

nautical draft at berth

>15m or more

12-15m

10-12m

<10m

Causedo

Source: MTBS, Study on Ports and Maritime Strategies in Greater Caribbean, July 2014

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Regional port developmentTier 2: Developing and maturing ports, regional transshipment ports, niche ports

Barranquilla

Santa Marta

Port au Prince

Altamira

Port of Spain

Havana

Rio Haina

Port de Jarry

Fort de France

Progreso

Santo Tomas de Castilla

Puerto Barrios

Puerto Cortes

Puerto Cabello

La Guaira

Willemstad

Mariel

Legend

nautical draft at berth

>15m or more

12-15m

10-12m

<10m

Source: MTBS, Study on Ports and Maritime Strategies in Greater Caribbean, July 2014

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Port Vision

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Example: Port Vision 2030

Trends

Factors

1. Increasing globalisation leading to increasing global transport of goods

2. Growing mismatch supply and demand for fossil fuels, ores, water, food and minerals leading to price increases, hikes and spikes, shortages and export restrictions … geo-politics

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Example: Port Vision 2030

Trends

Factors

3. Development labour market and knowledge economy• Demand for competent people exceeds

supply• Competition for competent workforce

increases, leading to an international labour market

• Dutch economy will be hampered to compete on cost of production and labour

• Investing and stimulation for a future in the port become key

• Transparency and reliability are key

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Example: Port Vision 2030

Trends

Other factors

4. Scaling up in transport5. Integration logistic chains6. Climate change and sustainability7. ICT8. Changing EU energy and fuel mix

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Example: Port Vision 2030

Vision on port and industry

Key words

• Efficiency and sustainability• Connection with regional logistics hubs• Cooperation public sector, private sector and

knowledge institutes• High-quality labour market and environment,

accessibility• Cornerstone regional prosperity• Invest in economy and quality of life

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Example: Port Vision 2030

Vision on port and industry

Factors to succes1) Investment climate2) Land use3) Accessibilty4) Shipping5) Enviroment,safety & Quality of life.6) Work7) City & region8) Laws and regulations9) Innovation10) Europe

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Cluster thinking

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-Basic cluster theoryStructure

Energy sector

Construction industry

Logistics transport cluster

Food processing

industry

Defence

Leisure tourism industry

Ports

DredgingOffshore

Fishing

Navy

Maritime services

YachtingShipping

Inland shipping

Metal and machine working cluster

Marine equipment suppliers

Offshore suppliers

Ship-building

Maritime, Transport and

Logistics Cluster

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-ClustersHuman capital development

Energy sector

Construction industry

Logistics transport cluster

Food processing

industry

Defence

Leisure tourism industry

Ports

Dredging

Offshore

Fishing

Navy

Maritime services

Yachting

Shipping

Inland shipping

Metal and machine working cluster

Marine equipment suppliers

Offshore suppliers

Ship-building

Maritime, Transport and

Logistics Cluster

Education and Training

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A Knowdlegde institute

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Education, Training, Technical Assistance and Applied Research

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DistributionCentre

Customs Customs

TerminalOperator

TerminalOperator

–Inland Waterway

Operator

Factory Outlet

Integrated Service Provider

DistributionCentre

Transport chain vs training levels

Transport chain

HigherProfessionalEducation

VocationalEducation

Master

Pre-vocational Education

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• Clusters

Clusters

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Non-profit foundation

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STC-Group Advisory Board

- Damen Shipyards Gorinchem (Chair)

- Deltalinqs- Nautilus International- Mooy Logistics B.V.- Huntsman Holland B.V.- United Fish Auctions- Van den Herik-Sliedrecht- Interstream Barging- Koninklijk Nederlands Vervoer- Rotterdam The Hague Airport

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- Vroon B.V. (Chair)- Port of Rotterdam- Van Oord- Huntsman- Damen Shipyards

Gorinchem

STC-Group Supervisory Board

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Industry Branch Commissions

Advising about content, developments and need for education and training in the relevant industries.

Representing industries:- Ports- Air transport- Road transport - Logistics- Rail transport- Inland navigation- Shipbuilding- Dredging- Sea shipping- Sea fisheries- Process industries

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Why

Prior to organising transport and handling cargo, professionals must have obtained knowledge, understanding and skills from the best institute serving the maritime and transport (related) industries.

By Education & Training – Confucius.Hear and forget.See and remember.Do and Understand.

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How

• Lecturers and instructors

• Professionals from the industry, for (future) industry professionals

• Course material

• Execution

• On-the-job, in the regio or with an STC Centre of Excellence anywhere in the world

• Services

• Standard and tailor-made, B2B and B2G

• Infrastructure

• Modern and smart learning environments

• Simulators

• Vocational training centres

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How

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How

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How

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What

• (Simulated assisted) education, training and courses• Centres of Excellence; Management assistance,

training course for instructors; Refresher courses; Course development

• Technical assistance, not limited to:• IMO Whitelisting; Policy advice vocational

education; Port and terminal operations upgrade; Staff development programs; Recruitment, assessment, selection

• Innovation and (applied) research

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Key issues in the services provided

• Competency

• Rules and regulations

• Efficiency

• Safety and security

• Environment

What

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Aruba

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• Area: 180 km2

• Coastline: 70 km• GDP: USD 2.5 bln• Population: 102,000• Annual population growth rate: 1.3• Associate Member of the UN OHRLLS - UN Office of the

High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States

• Stable political climate• Airport with about 30 international connections• Cruise port• Tourism industry• Strong focus on the Latin America and USA (tourism

and pre-screening port)

Aruba

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Challenges:• Closure of Refinery.• Average age tourist getting higher.• Diversification of the economy.• Infrastructure development.• Growing older population• Education and training of the workforce

Potential:• Land available, existing port infrastructure• On the shipping route Panama Canal, North and East South

America, Southern Africa, Asia• Link to Latin-America, USA and Europe• Upcoming economies such as Colombia.• Modern International Airport with around 30 destinations.

Aruba

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Aruba

Demography

Source: CIA World Fact book

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Aruba

Old port situation

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Aruba

New port at Bacadera

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Aruba

New port at Bacadera

• Present container flow 20.000 to 30.000 TEU• Pre-screening Port USA.• Upcoming economies such as Colombia• En-route new Traffic flow by New Panama Canal.• ( Semi) Hub/transit port for US and Cariben. • Future container flow above 100.000 TEU.• Attracting new companies for the shipping & logistic industry• Green industry • Immediate job creation.

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Aruba

New cruiseport

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Aruba

New cruiseport

• Increase of calls , now around 300 ships• Now around 900.000 passengers.• Bahamas has 6 million passengers.• Demand for additional personel• Immediate job creation.

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Battle the Challenges and Future Aruba:• Vision 2020• Carbon free 2020• First Economic Pilar : Tourism• Second Economic Pilar : New Green industry by 2020• Dedicated cruise-terminal/ becoming major cruise

destination.• Dedicated Container terminal = Pre screening Port USA /

Semi Hub.

This is leading in creating and the need of:

a knowledge hub.

Aruba

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Aruba

Airport

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Aruba

Airport

• Modern International Airport• 30 destinations• Pre screening US- Airport• Possibilty to grow into a regional hub airport.• Transit passegners

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Aruba

Interlink airport

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Aruba

Interlink airport

• Create Cluster principal• Interlink airport between

• Tourism• Goods

• Creating extra additional jobs on top of port expension• Creating Green industry’s

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Aruba

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Battle the Challenges:

• To prepare for the future.• Create new economic pilar.• Create knowledge hub – Logisitcs.

• Other workforce needed.• Profession shift of skilled labor

force.• New education needed.• Can lead to a strong second Economic Pilar.

Aruba

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STC is the authority on education, training, technical assistance and research for the maritime and transport (related) industries

Thank you

Visiting address port number 230, Lloydstraat 300, 3024 EA Rotterdam

Postal address PO Box 63140, 3002 JC Rotterdam

Country The Netherlands

Director Capt. A. Bos

Telephone +31 (0)10 448 6000 x 6024

Email bos@stc-r.nl

Websites www.stc-bv.nl | www.stc-group.nl

www.portdevelopmentafrica.com | www.portandcorridor.org