In a mature port cluster, conflicting interests are usually accommodated in the sense of a settlement of differences. This approach suggests that the quality of cluster performance us a product of the bargaining society. The question is whether bargaining is effective for solving the highly complex challenges of today? It is certainly not the most constructive one. This presentation covers the paradoxes in the port landscape, the existing paradigms towards issue management as well as an alternative approach based on organisational learning, knowledge sharing and collaborative action.

1. The port paradoxes of our age
Sustainable competitive advantage through partnerships
Maurice Jansen
ORAM / STC-Amsterdam
Masterclass
2 juni 2015

2. Challenges
What are the challenges we are facing in port
development?
How can we create value ‘beyond horizons’
in such a way that societal (green, quality of
life, employment) can be strengthened at the
same time?

3. Ports with paradoxes
• The challenges of this century are unparalled in history. To
name a few:
– World population growth (poverty, migration)
– Energy transition (from fossil to renewables)
– Scarcity of resources (globalisation, protectionism?)
– Disruptive innovations (e.g. UberPop, AirBnB)
• Do you think it makes sense to make a vision while knowing
the future will be different?
• Do you think these challenges can be solved alone?
• Do you think it is a matter of either one or the other?
Welcome to the world of ambiguity !

4. Cluster governance results in trade-offs
Conflicts of interests for port development
• Environment protection vs port development
• Urban development vs port development
• Labour conditions vs port development
• Resident interests vs port development
• Overall economic development vs port development
Source: De Langen P.W., 2007
In a mature port cluster, conflicting interests are usually
accommodated in the sense of a settlement of differences
The lower the transaction costs and the better the coordination, the
higher the cluster performance
Question is whether bargaining is effective for solving the highly
complex challenges of today?

5. Paradoxes of port development
More cargo, less congestion
Photo: Havenbedrijf Rotterdam

6. Paradoxes of port development
More automation, more jobs

7. Paradoxes of port development
More port, more space for leisure
Photo: Haven van Amsterdam

8. Paradox of port development
More data, more to share

9. Paradoxes in port development
Photo: Stedenbouw Rijnboutt
More view, more tolerance
for noise, odeurs and pollution

10. Paradoxes in port development
More flexibility, more investing in talent
development

11. 4 ways of looking at these challenges
Puzzle
• Search for the
optimum
• Algorithms,
fomal logic
• Single loop
learning
• Thinking leads
to solution
Dilemma
• Problem is a
choice of
principle
• Choice
between
heart and
head
• Winner takes
all
• Debate
Trade-off
• Combination
of head and
heart
• Ratio vs
Emotion
• Cost-benefit
• Bargaining
Paradox
• Thinking in
reconciliation
of head,
heart and
hands
• Two
seemlingly
contradictory
[…] factors
appear to be
true at the
same time.
Dealing with paradoxes requires a participative,
integrative, creative and holistic thinking.
Source: Van Tulder, 2014 Education of the heart

12. Bargaining society hampers
innovation
Innovation is hampered by
a lack of openness,
relevance, reliable and
timely knowledge
exchange
The bargaining society:
“More and more assertive stakeholders are
willing and capable of bargaining over the
rules of the game and its outcome”
Forbes over the recent US Port strike:
“It’s time to get past the constant
power plays and adversarial
negotiating strategies each time a
shipping industry labor contract comes
up for renewal, no matter which coast
is involved. It’s never worked to
anyone’s satisfaction and clearly is
hurting the U.S. economy.”

13. Challenges
What are the challenges we are facing in
port development?
How can we create value ‘beyond horizons’
in such a way that societal (green, quality of
life, employment) can be strengthened at the
same time?

14. Port competitiveness based on connectivity,
clusters and partnering ports
Competitiveness of ports and logistics
clusters is determined by the connectivity
within and with other clusters
Source: Rotterdam School of Management, 2011
Port of Rotterdam
Port of Amsterdam
Lead firms as owner and carrier of (tacid)
knowledge and expertise play a crucial role
Hinterland
Foreland
Cluster

15. Managing the partnering space for
collaborative action
State
Market
Civil
Society
PARTNERING
SPACE
Institutional
context…
Source: Van Tulder, EUR, RSM
Role of a Port Authority is to
manage the conditions and
bring partners around the
table.
This is in line with the 3 roles
the Port of Amsterdam
distinguishes: Market Master,
Matchmaker and Co-creator

16. Knowledge sharing and trust is key for a cluster
Cluster competitiveness
• Trust: It is easier to develop a level of trust among
organisations and people with similar backgrounds.
• Tacit knowledge exchange supports easier, faster
and less expensive sharing of benchmark or market
information
• Collaboration; concentration of firms with similar
needs and concerns gives natural rise to joint
activities, such as lobbying, public relations and
trade and export promotion
• Research & Education; state-of-the-art research,
expertise used in education, leading to a steady
supply of educated employees
• Supply base: Strong supply base with multiple
suppliers brings competitive pricing yet cutting edge
supplier innovations, crucial for competitiveness
Source: Yossi Sheffi, MIT, 2010

17. Collaborative approach to port development
Role Landlord (lessor) Project developer Cluster manager Co-creator
Strategy
alignment
Firm Shareholder Cluster Society
Objectives Maximise
Throughput
Profit
Dividends
Return on
investment
Maximise revenue
and profit for
companies in the
port
Accessibility
Enable regional or
national societal and
economic development
Direct and indirect
employment
Resource
allocated to
Maximise
productivity
Grow the business Innovate products
and services
Develop new business
models
Knowledge
transfers
Within the firm With customers /
suppliers
Between business
community and
research and
education
institutes
Within clusters
overseas and within
port networks in the
foreland and
hinterland
Social
responsiveness
Inactive Reactive Active Pro-active
Partnership
model
No partnership,
individual
Contractual
agreements
Under cluster
management
In cross-sector
partnerships

18. Port competitiveness based on
connectivity, clusters and partnering ports
• The Dutch experience in building prosperous port is put in practice by the
PDP-combination.
• Providing a total package of expertise in advanced technology, the
environment, stakeholder and customer concern as well as governmental
relations
• The PDP is a unique collaboration between 17 Dutch companies and
knowledge institutes with expertise in the following three critical areas:
Management, Infrastructure and development, Transport and logistics
• Supported by Dutch government (Embassy of The Netherlands in Ghana)
Foreland strategy:
Connecting with ports overseas

19. • Need to have more
information on
intermodal services
and options
• To have better access
to intermodal options
• Inlandlinks maps out
the hinterland network
and provides
information on the
package of
intermodal services on
offer. and facilities.
Synchromodal transport - inlandlinks
Once platform exists, other companies see the shared value and add
content and connections to the network
Port competitiveness based on connectivity with
partner ports in the network (2)
Hinterland strategy: Connecting with hinterland ports

20. Discussion

21. Maurice Jansen
Sr Manager Innovation, Research
& Development
E. m.jansen@stc-r.nl /
T. +31 6 20283925
www.stc-group.nl
Contact details

22. Putting people first