Seaports Magazine - Winter 2017 - 10

» FEATURE

ANTICIPATING
CHANGE ...

PROGRESS THROUGH
PORT DIVERSIFICATION
By Lori Musser

port with all its eggs in one basket is unlikely to succeed in the
long run. But just how does one
attract a fresh line of business,
such as cruise for a cargo port, LNG for a
breakbulk port, or international trade for
a domestic port?
As commodity or economic cycles wax
and wane, so too will a port's level of success. However, as regulations, asset utilization, resource availability, technologies
and competition evolve, so too can a port's
opportunities. Cyclicality isn't usually a
problem on the upswing, but when a line of
business declines, a port needs alternatives.
A port whose leadership anticipates
change and proactively seeks opportunities
to diversify profit centers will stand a better
chance of prospering. Shaun Stevenson,
vice president of trade development and
public affairs at the Prince Rupert Port
Authority, said a critical leadership role is
to look at opportunities through a strategic lens. Paraphrasing hockey great Wayne
Gretzky, Stevenson said ports must skate to
where the puck is going to be, not where it
has been. He explained that the hallmark of
leadership, at least in Prince Rupert's port
experience, is recognizing where trade is
heading - a truly complex task.

PLANNING FOR PROGRESS
Port planners employ strategic master
plans to provide a road map for growth.
Such plans typically address diversification
potential, such as expanding on established
port business streams.
The Port of Pensacola, for example, has
developed an intermittent vessel lay-up
business, as an offshoot to vessel upgradetesting-maintenance work performed by
an existing tenant. Clark Merritt, the port's
10

AAPA SEAPORTS MAGAZINE

economic development executive, said,
although lay-ups are highly cyclical and
the business is difficult to develop because
vessels don't make money sitting still, lay
ups do provide an extra revenue stream.
Perhaps more importantly, the business is
welcomed as value-added for an existing
tenant, who may later be on the receiving
end of vessel re-mobilization work.
Some ports are able to diversify within
an established line of business, by trade
lane. Although it has long been a successful container port, JAXPORT moved only
a nominal volume of Asian containers ten
years ago. It targeted the trade and this
year moved a record 400,000 Asian containers, accounting for 39 percent of its
boxes, up from 24 percent just four years
ago. The port's Asian container count has
grown 21 percent, on average, each of the
last five years.
Other ports tap new opportunities
generated by emerging cargoes, markets,
community needs or trades. The Oregon
International Port of Coos Bay, once the
largest exporter of timber in the world,
is anticipating a remarkable renaissance
through export LNG cargoes. Port CEO
John Burns said, "Jordan Cove [Energy
Project] will be a game changer for the
International Port of Coos Bay. Having
more diversity in the cargo mix, which is
still predominantly in the timber arena,
is important." He anticipates as many as
7.8-million LNG tons per year, shattering
current annual statistics at 1.8-million tons
of mixed cargo.

TRANSITIONING LAND USE
Luis Ajamil is president and CEO
of Miami-based design firm and EPC
Bermello Ajamil & Partners, Inc. He said

that, over the long term, diversification
is critical to a port. "Like any other business, diversification is a great strategy to
maintain financial health and ability to
raise capital. It provides an opportunity for
ports to transition land uses," said Ajamil,
adding that sometimes non-maritime
uses need to be considered due to related
revenue opportunities.
That is because, Ajamil said, "Being
on the waterfront, [port] properties have
inherent value; to let the properties sit
underutilized or empty waiting for nonexistent maritime markets is a huge
lost opportunity."
For major waterfront cities that grew
up around their ports, Ajamil suggested



Table of Contents for the Digital Edition of Seaports Magazine - Winter 2017

Latin American Ports Debate Globalization and Protectionism in Punta del Este
AAPA Headquarters
From the President’s Desk
Anticipating Change … Progress Through Port Diversification
Creative Financing
Workforce Diversity
Preparing for Growth Through Multiple Modes
Highlights from the 2017 AAPA Annual Convention
Third Edition of the CMTS Federal Funding Handbook Now Online
Port Management in the Great Barrier Reef
Index of Advertisers
Seaports Magazine - Winter 2017 - Intro
Seaports Magazine - Winter 2017 - bellyband1
Seaports Magazine - Winter 2017 - bellyband2
Seaports Magazine - Winter 2017 - cover1
Seaports Magazine - Winter 2017 - cover2
Seaports Magazine - Winter 2017 - 3
Seaports Magazine - Winter 2017 - 4
Seaports Magazine - Winter 2017 - 5
Seaports Magazine - Winter 2017 - AAPA Headquarters
Seaports Magazine - Winter 2017 - 7
Seaports Magazine - Winter 2017 - From the President’s Desk
Seaports Magazine - Winter 2017 - 9
Seaports Magazine - Winter 2017 - Anticipating Change … Progress Through Port Diversification
Seaports Magazine - Winter 2017 - 11
Seaports Magazine - Winter 2017 - 12
Seaports Magazine - Winter 2017 - 13
Seaports Magazine - Winter 2017 - 14
Seaports Magazine - Winter 2017 - Creative Financing
Seaports Magazine - Winter 2017 - 16
Seaports Magazine - Winter 2017 - 17
Seaports Magazine - Winter 2017 - 18
Seaports Magazine - Winter 2017 - 19
Seaports Magazine - Winter 2017 - Workforce Diversity
Seaports Magazine - Winter 2017 - 21
Seaports Magazine - Winter 2017 - 22
Seaports Magazine - Winter 2017 - 23
Seaports Magazine - Winter 2017 - Preparing for Growth Through Multiple Modes
Seaports Magazine - Winter 2017 - 25
Seaports Magazine - Winter 2017 - 26
Seaports Magazine - Winter 2017 - 27
Seaports Magazine - Winter 2017 - Highlights from the 2017 AAPA Annual Convention
Seaports Magazine - Winter 2017 - 29
Seaports Magazine - Winter 2017 - Third Edition of the CMTS Federal Funding Handbook Now Online
Seaports Magazine - Winter 2017 - 31
Seaports Magazine - Winter 2017 - Port Management in the Great Barrier Reef
Seaports Magazine - Winter 2017 - 33
Seaports Magazine - Winter 2017 - Index of Advertisers
Seaports Magazine - Winter 2017 - cover3
Seaports Magazine - Winter 2017 - cover4
Seaports Magazine - Winter 2017 - divider1
Seaports Magazine - Winter 2017 - divider2
Seaports Magazine - Winter 2017 - 42
Seaports Magazine - Winter 2017 - 43
Seaports Magazine - Winter 2017 - 44
Seaports Magazine - Winter 2017 - 45
Seaports Magazine - Winter 2017 - 46
Seaports Magazine - Winter 2017 - 47
Seaports Magazine - Winter 2017 - 48
Seaports Magazine - Winter 2017 - 49
Seaports Magazine - Winter 2017 - 50
Seaports Magazine - Winter 2017 - 51
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