Source: Adapted from Parola, F., Pallis, A.A., Risitano, M. & Ferretti, M. (2018). Marketing strategies of port authorities: A multi-dimensional theorisation, Transportation Research Policy and Practice Part A, 111, 199-212.
Attracting investments
Nearly three-quarters of European Port Authorities are responsible for proceeding autonomously in identifying investors and managing the related concessions. Despite the progressive privatization of port terminals that accelerated the commitment of private firms in commercial operations and attracted considerable (inward) investments from overseas, additional investments are essential to better integrate the services provided by individual entities and facilitate clustering or provide auxiliary infrastructures. Such investments reinforce port performance, reputation, and, ultimately, competitiveness.
Demand seeking
For example, Mediterranean port authorities work collectively to generate demand from source markets for cruising. Notably, port authorities are leaders in such marketing activities even in ports that have concessioned terminal operations (i.e. Naples, Malta, Barcelona, Cyprus). In the case of cargo ports, the port authorities of the three largest European ports (Rotterdam, Antwerp, and Hamburg) are active in overseas markets, aiming to attract cargo traffic to the ports they govern.
For instance, meetings organized by cruise ports in Europe, held twice a year through their associations, MedCruise and Cruise Europe, aim to secure the favorable deployment of cruise vessels.
The presence of dedicated terminals, such as those operated by a single ocean carrier (or an alliance), provides a distinct setting that requires targeted marketing refinement. Once the demand for operating one such terminal is secured (operator and user are in place), the port authority marketing is rather landside-oriented, aiming to create demand for the operation.
Exploring business opportunities
Enhancing additional demand and securing suitable endowments are two strongly interdependent marketing objectives that may produce synergies. A successful attraction of investments and resources creates the preconditions for a competitive port, with a solid market reputation and the capabilities to deliver reliable services. In turn, a seaport that generates growing traffic volumes is considered attractive by port operators and draws the attention of business and financial players seeking investment opportunities in logistics facilities.
The objectives of marketing activities by port authorities include capturing new business opportunities in areas beyond their core objectives, which are the handling and serving of cargoes/passengers in the port and adjacent areas. Here, the reference encompasses not only logistics and supply chain integration but also activities such as ship repair or hotel management. Such emerging initiatives are strategically related to the more traditional port authority marketing objectives (Objectives 1 and 2). Still, they take place through comparatively uncommon strategies that leverage the resources and capabilities accumulated in mainstream activities.
This exploitation may occur by leveraging in-house expertise, capabilities, and resources. For instance, the capabilities developed with (foreign) bidders in tendering procedures stimulate the accumulation of managerial and relational skills, which might be monetized by providing consultancy services to other port authorities. In this perspective, port authorities perform a process of internationalization grounded on the deployment of managerial and financial resources, to sell the port worldwide (customers-seeking principle), keep control over the international logistics networks that a given port is part of (efficiency and effectiveness principle), and gain benefits for the organization, such as revenue streams, incremental knowledge, cutting-edge technologies, and attractive business opportunities (competitive advantage principle). The port of Antwerp has developed strategies of this nature with ports in America (Montreal, Panama Canal Authority), Africa (San Pedro), and Asia (Jawaharlal Nehru Port Trust; Essar Ports, in India), while in Europe, Rotterdam is also active in different continents, Hamburg is working towards this end in the US, and Bremerhaven does so within Europe. This way, port authorities gain visibility and economic benefits, as well as support core marketing objectives.
Community liaison
A notable example is the establishment of the annual award for societal integration by the European Sea Ports Organisation (ESPO) in the 2000s. Ports from all over the world have also established AIVP, the International Association of Ports and Cities, aiming to promote such marketing activities collectively. This includes establishing, among other initiatives, port centers to facilitate effective communication with the local community.
Institutional dialogue
They do so working either alone, collectively via local initiatives, or their associations at the national level (e.g. American Association of Port Authorities – AAPA in the US; Assoporti in Italy; Hellenic Association of Ports-ELIME in Greece; Cruise Norway), regionally (e.g. European Sea Ports Organisation-ESPO; Cruise Europe; MedCruise in Europe) or internationally (e.g. International Ports & Harbors Association-IAPH).