RECENT DEVELOPMENTS IN SEA TRANSPORT AND IMPLICATIONS FOR PORTS

Abstract

Before 1950s, ports could afford to wait patiently for the arrival of their customers and to adopt a passive attitude in attracting their clients. In addition, cargo handling methods used were generally labour intensive because of the small volume of cargoes transported. However, the explosion of world trade and containerization revolution changed all these and led to a need for larger ships and a switch to capital intensive cargo handling methods. Also, cargoes could now be transported via other alternative transport modes. The huge costs involved in engaging containerized transportation had set forth a series of changes in shipping lines' organizations like mergers. Competition intensified among the shipping lines for a lion's share of the huge volume of cargoes transacted and also among the ports for the shipping lines' patronage. A new phase of port's life has emerged. These developments in turn, have implications for ports especially the smaller ones, for example, containerships have given rise to a need for deeper water depth. To survive and compete, ports have to undertake various strategies to deal with these changing sea developments. Privatization and alliances are the two major strategies undertaken to solve the financing problem and sustain ports' competitiveness. However, certain criteria have to be available for the above strategies to have positive results. The commitment on the part of the government is a must for these strategies to take place; evidence of these strate ies undertaken is analyzed in the review of the Malaysian and Singapore port