Issue 14

HOT SEAT: 

Interview with Mr. Minas Papadakis, CEO of Port of Heraklion

Insights on Heraklion Port, and the Future of Crete’s Maritime Industry 

• • You have recently hosted the seminar on island ports. Can you please tell us what was the main outcome of the seminar?

The seminar successfully highlighted the importance of collaboration among island ports in the Mediterranean. One of the key outcomes was the establishment of a framework for sharing best practices related to sustainable operations and innovative port management. Participants engaged in fruitful discussions on optimizing logistics, enhancing service quality, and boosting regional economic growth, ultimately fostering stronger partnerships among the ports.

• • We have seen during the seminar several huge cruise vessels in your port. What is the main benefit of the cruise industry for Crete and Heraklion? 

The cruise industry serves as a vital economic engine for Crete and Heraklion. Beyond the immediate financial impact, such as port fees and passenger spending, it significantly boosts local businesses in tourism, hospitality, and retail sectors. The influx of visitors helps to diversify our economy, creating job opportunities and promoting cultural exchange. Moreover, the enhanced visibility from hosting major cruise lines strengthens Crete’s reputation as a premier tourist destination.

• • Crete is a big island, the third biggest in the Mediterranean, how important is the port of Heraklion for the island prosperity? 

Heraklion port is pivotal for the economic stability and growth of Crete. It acts as a critical gateway for goods, facilitating trade and commerce not only with the mainland but also with international markets. The port’s strategic location enables us to support both passenger and freight transportation, thus enhancing connectivity. This connectivity is essential for attracting investment and fostering tourism, contributing directly to the island’s overall prosperity.

• • You previous background is from the financial sector. How has this helped you in the management of the Port of Heraklion? 

My background in the financial sector has equipped me with a robust understanding of financial management, risk assessment, and strategic planning. These skills are invaluable in navigating the complex financial landscape of port operations. They enable me to implement cost-effective measures, optimize resource allocation, and identify growth opportunities. By applying financial principles, we can ensure that the port operates sustainably while maximizing its economic impact on the region.

• • Grimaldi became recently the main shareholder of the port of Heraklion. What do you expect from the Italian company? 

With Grimaldi as the main shareholder of the port, I anticipate a collaborative approach that emphasizes green development and sustainability. Grimaldi’s commitment to eco-friendly practices aligns with our vision for a sustainable port. I expect this partnership to drive significant investments in green technologies and initiatives, such as reducing emissions, improving energy efficiency, and enhancing waste management practices. Together, we can position Heraklion as a model for sustainable port operations in the Mediterranean, contributing to a greener future for our community and the environment.

For more information, contact the MEDPorts Technical coordinator at fajrwahbaa@yahoo.com

Issue 13

HOT SEAT: 

Interview with Catalan Ports Agency – Member Port

The Challenge of Managing Almost 50 Small and Very Diverse Ports

• How many ports does the Catalan agency of ports manage? 

The public company Ports de la Generalitat manages 45 ports owned by the Generalitat of Catalonia, along the 580 kilometers of the coast. Of these 45, five ports host commercial activity, two are industrial, Alcanar and Vallcarca, and the other three are directly managed, Palamós, Vilanova and la Geltrú and la Ràpita. These ports mainly operate general cargo, which is not transported in containers, bulk and project cargo pieces. In 2023 these five ports moved a total of 1,175,000 tonnes of goods.

• Which are the main challenges your ports face? 

One of the main challenges is the consolidation of goods activity and the services offered by the five ports to economically energize the territory and generate jobs. Strategic lines have been created to publicize these ports, their characteristics and their potential to the local industrial fabric and its hinterland, with the aim of capturing new traffic and increasing export and import lines to boost the whole of the territory.

• How is the relation with the main ports in your region, Barcelona & Tarragona? 

The five commercial ports under the jurisdiction of the Generalitat and the ports of Barcelona and Tarragona are part of the Catalan port system. Work is underway on a new port front to look for road, sea, air and rail access that favors the transport of goods all over the Catalan coast. We work to find synergies to carry forward joint projects that benefit the ports of general interest and the ports of the Generalitat. They are seven ports that complement each other.

• What do you expect from your membership in MEDPorts? 

The consolidation of commercial activity in these five ports is linked to promotion and dissemination. Being part of this great family that is MEDPorts gives us the opportunity to make ourselves more known in this great sector and, at the same time, seek collaborations, coalitions and synergies of common interest with other ports to enhance the channels of transport of goods.

Issue 12

HOT SEAT (2): 

Interview with Eduard Rodés – Director of the Escola Europea – Intermodal Transport

and president of the Port Logistics International Knowledge Academy (PLIKA)

Creating a Collaborative Network for Port Logistics through PLIKA

• The inaugural meeting of the PLIKA Academy at the SIL Barcelona fair brought together participants from across the region, spanning from the Netherlands to South Africa. Can you explain what PLIKA is and its core purpose? 

PLIKA, which stands for the Port Logistics International Knowledge Academy, is a transformative initiative designed to unite training centres, port authorities, and professionals in logistics and international trade on a collaborative platform. The core purpose of PLIKA is to foster connections, share knowledge, and collaborate to enhance the future of the port and logistics sectors. This network emerged from the need for a common space for work, similar to what we experienced during our highly successful European-funded project YEP MED (https://www.enicbcmed.eu/projects/yep-med). In the conception of YEP MED, significant members of MEDports were involved, embedding the spirit of this association into PLIKA’s very DNA.

Currently, PLIKA is configured as a virtual campus where logistics-port communities can learn together. It provides a space where each group can express themselves freely, share and find information, and access resources that can be applied in learning processes, transitions, development of new procedures, and innovation. We envision PLIKA as a meeting point where international relationships and alliances can be established to improve procedures associated with international trade, transportation, and distribution operations. Our multimodal vision involves collaboration across all modes of transportation to brainstorm and create more sustainable logistics chains.

Within these logistics-port communities, training centres, companies, and related public administrations play a pivotal role. The focus is on personal growth for the individuals working within these organizations. Ultimately, our goal is to cultivate a generation of wise individuals who can serve as reference points and exemplars of the transformation processes that societies must face in the years to come. 

• Who is the intended audience for PLIKA, and how do you plan to engage them? 

The primary audience for PLIKA includes training centres linked to ports, port authorities, and technology providers aiming to enhance training and development within the port and logistics sectors. Additionally, anyone who believes they can gain value from this collaborative network is welcome. Our engagement strategy involves creating opportunities for meaningful interactions and collaborations among these groups, promoting innovative training programmes, and facilitating the exchange of best practices and knowledge.

It is evident that the current members of the network have strong allies in the port authorities, which themselves belong to extensive networks of ports with significant influence. Word of mouth will undoubtedly play a crucial role in expanding our reach, however a key element is our collaborators. They are the driving force behind the network, and their activity on social media will not go unnoticed. Their passion for collaboration and their determination to drive change will ensure the network’s growth and will help attract new members.

These individuals share many commonalities: they work in a sector they love, they are curious and ambitious in their understanding of the modern world, and they believe deeply in what they do. We are committed to supporting them, enabling them to excel through a network that belongs to everyone. This collective ownership is where its strength and appeal lie. As illustrated in the famous movie “The Spanish Apartment,” you get what you bring. This metaphor beautifully captures the spirit we expect from the individuals and centres that are in the network.

• Can you tell us about the founding entities of PLIKA and their roles in the network? 

The founding entities of PLIKA include key players from the YEP MED project, who have been instrumental in the initial development of our collaborative initiative. Educational centres are the main protagonists, as they play a crucial role in fostering innovation and collaboration within the international port communities. We have prioritised current key issues to ensure PLIKA develops effectively.

The governing body of PLIKA is responsible for making decisions that shape the direction and operations of the organization. Its members are:

• President: Eduard Rodés, Director at the Escola Europea Intermodal Transport and leader of the YEP MED project.
• Vice President: Alaa Morsy, Dean of the Port Training Institute from the Arab Academy for Science, Technology and Maritime Transport.
• Vice President: Ana Rumbeu, Director of the Training Department of Fundación Valenciaport
• Treasurer: Rabih Sabra, Director at Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon

These leaders provide strategic direction, contribute resources, and actively participate in PLIKA’s activities and committees. Their main priorities include:

• Fostering Innovation: Promoting creativity and technological advancement through structured plans and collaborations.
• Building Connections: Facilitating the establishment of new bilateral and multilateral relations between training centers, ports, and other organizations in the transportation and logistics industry.
• Supporting Development: Developing new transport services through innovative technologies and approaches, promoting sustainability and efficiency in the transport and logistics sector.
• Enhancing Education: Managing and promoting exchange and collaboration relationships between academic institutions to enhance PLIKA’s visibility and knowledge-sharing capabilities.

By focusing on these priorities, PLIKA aims to create a robust and dynamic platform that addresses the current and future needs of the international port and logistics community.

• Who are the current members of PLIKA, and what key activities and initiatives are planned for the network? 

The founding members of PLIKA are the Escola Europea – Intermodal Transport, Port de Barcelona, Autorità di Sistema Portuale del Mar Tirreno Centro Settentrionale, Port of Valencia, Fundación Valenciaport, Arab Academy for Science, Technology and Maritime Transport, Office de la Marine Marchande et des Ports (OMMP), L’Institut Méditerranéen de Formation aux Métiers Maritimes (IMFMM), Aqaba Development Corporation, Chamber of Commerce, Industry and Agriculture of Beirut and Mount-Lebanon and MEDports Association.

We are proud to announce that internationally renowned centres such as STC of Rotterdam and the Saudi Logistics Academy from Saudi Arabia have applied and been admitted to PLIKA. Additionally, other training centres, including the Instituto de Logística de Barcelona and ECAT Lluisa Cura of Barcelona, have also joined.

This initial group of members represents a significant and impactful start, bringing together prestigious institutions ready to collaborate. Their ambition and belief in the timely launch of this initiative provide immense energy for all involved.

Our planned initiatives include workshops, collaborative projects, and the development of new educational programmes and technologies aimed at enhancing the port and logistics sectors. Among the initial activities, we aim to foster student and teacher exchanges and conduct joint activities through telematic tools, similar to what was done with YEP MED. We are committed to applying everything we have learned to develop a new way of teaching, where students and teachers are the main protagonists – always focusing on the job market.

These activities are designed to promote continuous learning, innovation, and professional development among our members.

By facilitating the exchange of knowledge and best practices, we aim to create a dynamic and supportive environment that drives the advancement of our industry.

• Finally, can you tell us what was the driving force was behind your decision to launch PLIKA and embark on this ambitious initiative? 

The driving force behind launching PLIKA was the belief that port communities can be the spearhead of the social transformation our planet urgently needs. We face numerous transitions—energy, environmental, digital, and governance, to name a few. These transitions require collective effort, which is where the concept of Ubuntu comes into play. Ubuntu, a South African philosophy, emphasises caring for others and is based on the belief in a universal human bond. It suggests that humans can overcome challenges because they are fundamentally connected to one another. This interconnectedness fosters mutual support and collective resilience, making it possible to achieve significant and sustainable progress.

Ports are uniquely positioned for such a transformation because they already function as a global network. They share crucial elements such as English as the lingua franca, ships, maritime business practices, and international associations that regulate their activities. Networks of professionals like shipping agents, freight forwarders, customs brokers, and customs authorities work collaboratively in ways that are not common in other sectors. This existing framework facilitates the development of collective knowledge, which can be transformed into collective intelligence aimed at positive change.

At PLIKA, we believe that this collective intelligence should be guided by strong values, comprehensive knowledge, and scientific and technical progress. These elements are the fundamental basis on which to build a better future. Inspired by Ubuntu, PLIKA aims to create a network based on trust, creativity, and the shared goal of making a positive impact.

It would be great to see if any members of the MED Mosaic community would be interested in becoming PLIKERS. The Escola, and PLIKA, values fresh voices, and as such we are enthusiastic about the unique insights and contributions that new members can offer.

This initiative is about uniting efforts to achieve greater, sustainable progress, embodying the spirit of “Wish it, dream it, do it.” Together, we are here to make it happen.

Issue 12

HOT SEAT (1): 

Interview with Johan-Paul Verschuure – Director of Rebel Ports and Logistics

An InDepth Analysis of the Impact of the Red Sea Crisis in MEDPorts 

• Rebel is a 300 consultants large global financial-strategic advisory firm across infrastructure sectors based in Rotterdam. The port team works in the global port and shipping domain for major terminal operators, port authorities, investors and IFIs. How do you see the future of the port sector in the region?? 

The port sector in the West-Med has a bright future being on a junction of the major shipping routes – connecting Asia, Europe and the Americas. The vulnerability of the Suez Canal passage will make the region a popular point for transshipment activity, even if the situation stabilizes. In addition, liners will consider their options of securing strategic capacity in the region – in particular those without a good foothold in the region. It is noted that there are several capacity additions planned which could – if running out of sync with the demand growth – could lead to more competition if demand shifts back. 

• Now that we are approaching the end of the year’s first semester? can you please summarize for us which has been the main changes in terms of container port calls in the Mediterranean due to the crisis in the Red Sea? 

Mainline vessels from liners without a foothold in one the major hubs in the West Med needed to look for spare capacity at other West Med ports, with Algeciras and Tanger Med already highly utilized before the disruptions starting. At Algeciras growth was modest, and Tanger Med saw growth due to increased parcel sizes. Some major lines could divert to Valencia and Sines where these liners had an equity stake and capacity was available. Other liners without stakes there turned their eyes to Barcelona where capacity was available. Less fortunate liners even had to feeder cargoes back into the Med from more remote hubs in North West Europe in some instances. Cosco to Piraeus was an example of this. Central Med hubs are struggling with dropping transshipment volumes as well.

• The Red Sea Crisis and the diversion of ships through the Cape of Good Hope has shifted some volumes from Eastern to Western Mediterranean ports. Which have been the main winners and losers so far? 

Overall the market has been strong in the last two months seeing growth across markets in general vis-à-vis 2023 due to a recovery of gateway demand, as well as seemingly frontloaded demand – partly due to rushing to avoid import tariffs, strikes and rapidly increasing congestion levels. Sines and Barcelona are key winners with absorbing rerouted services, but also Valencia and Tanger Med saw above market growth rates. Pireaus saw a strong decline in volumes in recent months with Cosco reshuffling their services into the Med.

• The Red Sea Crisis has been provoked by the war in Gaza, one of the worst tragedies of the century and  we all hope it will end soon.  If and whenever it happens, do you think shipping lines will go back to the pre-war situation or some changes might remain? 

The shipping industry has a strong focus on cost competitiveness. When passage would be safe again, the Suez canal will be a favourable option again as the alternative is too expensive to be competitive – depending on the pricing strategy of the Suez Canal authority. Also from a perspective of reducing global emissions the route via Suez would be preferred. However, the second major disruption in the global supply chains driving up freight rates in a short space of time, must have further underlined the importance of resilient supply chains. As such the case of operating at lower utilization rates at terminals, securing strategic port capacity and perhaps operating with a system with interchangeable hubs will be more defendable. For these considerations the West Med is ideally positioned having multiple connection possibilities.

Issue 11

HOT SEAT: 

Interview with David Magro – CEO of Malta Freeport Corportation

The Future of Malta Freeport and Its Community Initiatives

• In the context of Malta Freeport’s location within the city, what are the primary challenges that Malta Freeport faces in its relationship with the local community? 

Basically, the challenges that Malta freeport faces are mainly:

• Noise being generated by the vessels that berth along the Terminals,
• The noise generated by handling of containers and stevedores,
• Emissions generated by Vessels during their 30 hours stay,
• Adour’s that come out from Bunkering fuel tanks,
• The Squaring off project of Terminal two.

Malta Freeport is just a few meters away from the village of Birzebbuga. Challenges to mitigate and maintain harmony/balance is constant. The Authority must act as a regulator and watchdog to see that relationships between the main operators of the Freeport are healthy. During the past 6 years the Corporation has issued two Double glazing schemes for the residents of the village These schemes amounted to Eur750k and were taken up in a short period. These schemes were issued to minimize the noise being generated by vessels berthed along the terminals.

MFC and MFTL are represented in the Environmental Monitoring Committee. This committee has also representatives from Transport Malta, ERA, Birzebbuga Local council, and other NGO’s coming from the village.  On a monthly basis, this committee meet to discuss complaints raised by the local community, the operator keeps all represented parties updated on projects that will affect the locality.

Part of the contractual obligation oblige the main operator to allocate a sum on a yearly basis which is the distributed to the local community after consultation with Malta Freeport Corporation. This pot is administered between the operator and the Authority and is fairly distributed between Local Council, sports associations and NGO’s of locality of Birzebbuga.

To minimize noise and emissions, MFC has ventured for the Onshore Power Supply Project. Works on the OPS tender are underway. This project is being Co-funded by the EU under the “Just Transition Fund”. This project will see the installations of points on the North Quays of Terminal 1 & 2 so that Containers vessels would be able to plug with the National Grid once they berth. According to the CBA conducted by MFC, by means of the OPS, about 4k metric tones of CO2 dust would be eliminated from air. This project will cost about Eur12.5m and it is expected that by end of this year it will be commissioned for testing.

Last year an agreement was reached between MFC and MFTL so that Terminal 2 could be squared off. This would see land reclamation adjacent to Terminal 2 so that vessels over 400 meters could berth. In return following discussions between GoM, MFC and MFTL it was agreed that the cost of this project amounting to Eur55m would be shared between them. Moreover, as a goodwill, the operator renounced the option to install Quay Cranes on South Quay of Terminal 1 which is meters away from the residents of the village. The Operator also agreed that works along the South Quay of terminals 1 would be done between 6:00 and 22:00 thus residents would not be affected during the night by noise being generated from this area.

Last February Malta Freeport Corporation donated a new constructed Multi Story car part to the Local Council and main operator. A total of 450 car spaces were created.  MFC funded the project, which cost amounted to Eur3m and once it was completed a three-party agreement was concluded so that the Local Council and MFTL would administer and manage the car park. The residents of the community will be entitled to certain benefits when using this car park. One can state that this is the largest ever CSR project done in the Island.

• Can you explain how the Red Sea crisis and the implementation of new Emissions Trading System (ETS) directive are affecting Malta Freeport? 

The impact of the Red Sea crisis left its mark on the operations within the Freeport. Delays were witnessed and the operator noticed shifting of schedules to other Med ports.  Up to end march, six Malta-flagged ships were subject of attacks in the wider region, including a result of piracy which has increased because of the instability. Malta welcomed the swift launch of EUNAVFOR SPIDES with a mandate to protect commercial shipping transiting through the Red Sea.

The Operator has made a study and certain moves by Shipping lines are being noticed. Such moves are being made to Mediterranean ports that do not fall under the ETS directive. As for the ETS, as Authority, we are in favour of the Climate regulations being adopted, however equal playing grounds should be maintained for all Mediterranean ports. In view of the thresholds set by the Commission in identifying neighbouring ports (the share of transhipment of containers exceeding 65% of the total container traffic), the same criteria could be utilised for the exclusion of EU transhipment hubs from the application of ETS. Therefore, EU transhipment hubs with a share of transhipment exceeding 65% of the total traffic would be excluded from applying the provisions of ETS. As Authority we believe that common sense will prevail at the end.

• With the MEDPorts forum around the corner, what are your expectations from the event and how do you envision it contributing to port development in the Mediterranean region? 

We would like to welcome all participants to our Island. Winston Churchill used to refer to Malta as the “Aircraft Carrier” in the centre of the Mediterranean during the second world war. Nowadays, Malta has adopted an economy based on Services and the Freeport falls under this category. My expectation is to market our Freeport and the ongoing projects being implemented. During 2023 Malta Freeport Terminals saw a turnover of over 2.8 TEU’s, a total of 1900 container vessels that called in, a throughput of 1,946,340 metric tons of fuel/oil from EVOS Malta Ltd. In 2023 Lloyds list Malta Freeport is placed as the 73 busiest ports in the world and the 11 in Europe. The Operator offers 33 Service Calling at Malta. Our Freeport contributes 2.5 to the GDP of Malta. It contributes as a HUB to port development in the Med region.

Shipments from Asia makes their first stop at Freeport and feeder vessels distribute to various Mediterranean ports. We hope that the event of Medports being held in Malta leads to sharing of best practice and enhance work (such in the case of the ETS).

• With MEDPorts having several members that are located on Islands such as yours, what do you consider to be the challenges of being an island port, and how does Malta Freeport address these challenges to maintain competitiveness and operational efficiency within the global maritime industry? 

The Shipping Market is a continuous changing market. The challenge of the Pandemic was a case in point. Being an Island, the only source of connectivity was through Sea since the airport closed for more then a year. Malta Freeport raised to the occasion and after a month closure the recovery was instant and the Island was 100% dependent on the ports of Malta, mainly the Freeport and Valletta Grand Harbour. Apart for the local economy, Malta Freeport also contributed as a HUB for other ports from Europe, American continents, Maghreb countries and Asia as well. The fact that we are an Island is a disadvantage because there is no land connectivity which would enable us to transport via hinterland to other countries, however the Freeport has a strategic position in the centre of the Mediterranean Sea. Malta has maximised this potential since the colonization by the Phoenicians.

The Operator has a solid structure, and their IT system is efficient. The JIT concept is renowned to be a pivotal plus for MFTL. The waiting time is very low and planning of quay occupancy is well planned. MFTL stands in the 11^th place in Europe and 73^rd amongst the top 100 ports worldwide as per 2023 results. I am quoting the “Top 100 Container Ports” published by Lloyds List.

As for connectivity, Malta Freeport offers regular connections with over 100 ports worldwide around 50 of which are in the Mediterranean. This has been recognised through the UNCTAD Annual Statistics on the Global Liner Shipping Network as measured by the Liner Shipping Connectivity Index (LCSI).

Based on the UNCTAD study for 2023, Malta Freeport ranked in the 36th place amongst 1,328 ports worldwide.