Valenciaport Accredited Global Best-In-Class Port Community


VALENCIAPORT ACCREDITED GLOBAL BEST-IN-CLASS PORT COMMUNITY

The Role Of Container Ports In Global Logistics research program sought to identify a "benchmark" port community which others could emulate, a port committed to the ‘Relay’ rather than the ‘Delay’ of cargo. That benchmark was identified as Spain’s number one container port, Valenciaport which was accredited with “Best-in-Class” status.

Valenciaport comprises the ports managed by the Valencia Port Authority: Valencia, Sagunto and Gandía. This strong combination makes it Spain’s leading Mediterranean port in terms of commercial traffic, basically containerised cargo, particularly because of its dynamic area of influence and an extensive network connecting it to major ports around the world.

Valenciaport is a tightly knit Port Community due to innovative elements like the Seal of Quality Guarantee and the Community Information System (S.I.C.) and is formed by all economic agents who provide their services through the ports of Valencia, Sagunto and Gandía. Valenciaport is not only a key element in promoting the Valencian Community abroad but also the maritime gateway for production and consumer goods to and from the entire Iberian peninsula.

Globalization means that more and more goods flow between continents and subsequently the traditional role of ports in the wider supply chain context is being subject to a process of radical review. In broad terms, the traditional port system is being replaced by a model which focuses on logistics service quality which in turn has brought the performance of ports and their communities into sharp focus.

Port customers, whether they are shipping companies, importers/exporters, terminal operators or logistics service providers, judge a port not on the basis of any one port stakeholder’s individual service – but rather in a combined way, as after all logistics is a combination service. In essence, the port is only as strong as its weakest link, and therefore its reputation depends on the level of Coordination, Communication and Control amongst port stakeholders. Port logistics is delivered as a result of a combined effort by port stakeholders working in harmony supported by the Port Authority as the natural leader of the community. The Port Authority is the only agency independent and powerful enough to marshal these resources.

Across the world “First Mover” Port Authorities and their communities have devised and developed a myriad of strategies and programs designed to deliver a seamless integrated logistics product to their customers. The Institute established direct relationship with many of them as part of its "The Role of the Container Port in Global Logistics" research. The research identified the First Movers, Thought Leaders and Early Adopters of the logistics model of port development. The research considered ports at different levels of community maturity and with varied business streams – transhipment, import only, export only, and mixed.

The research sought to identify a "benchmark" port community which others could emulate, a port committed to the ‘Relay’ rather than the ‘Delay’ of cargo.That benchmark was identified as Spain’s number one container port, Valenciaport which was accredited with “Best-in-Class” status.

The criteria for the accreditation was that the port community identified demonstrated an exceptional level of maturity and a culture which indicated that stakeholders in the supply chain truly engaged in a collaborative process.


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GIL: NETWORKING THE GLOBAL LOGISTICS INDUSTRY

VALENCIA PORT ACCREDITED GLOBAL BEST-IN-CLASS PORT COMMUNITY

Over a fifteen year period between 1982 and 1997, Valenciaport strove to develop a culture of stakeholder inclusion. During this time, the port authority made a proactive effort to consider the other side of the logistics chain, outside of the natural port environs, actively considering its clients’ needs over its own.

Port management is characterized by multipart decisions with many stakeholders; therefore achieving a balance between the interests of all stakeholders is an important job for port managers. Those same relationships must also be correctly aligned, with the outcome that the proactive creation, development and maintenance of relationships between global supply chain partners will ultimately lead to a mutual exchange and fulfilment of promises at a profit. The Institute believes that the higher the level of collaboration achieved between the stakeholders in the global supply chain, the greater the level of operational logistics service quality improvements and as a consequence, the better the economic performance for all.

Early research undertaken by GIL on best practice and quality indicators for the entire supply chain nodes revealed that once outside of the port gates, there is little communication between supply chain stakeholders. This is despite the fact that performance of the port is inextricably linked with hinterland development and overall service levels.

Further, the Institute’s research revealed that public private sector leadership in communitying offered the best springboard for successful community development and relationship management.
While so many ports encountered by GIL on its two-year journey examining port community development failed to grasp the benefits that well-led collaborative port communitying could bring, GIL found that Valenciaport truly bucked that trend. So, after two years of research, the Valenciaport port community, represented by the Port Authority of Valencia, was identified as a port community at an exceptional level of maturity with stakeholders truly engaged in the collaborative process and duly accredited with the ‘Best-in-class’ Port Community designation.

The Institute’s criteria for “best-in-class” specifies, among other points, that the community demonstrates the spirit of collaboration, strikes the right note between public and private partnership, and has developed a model that is transferable. Valenciaport has proven the transferability of its model as its quality guarantee, the Marca de Garantía, has been adopted by five countries in South America, while there is a further agreement in place with the port of Callao positioning Valenciaport in a mentoring role with the Peruvian port.

The next section details the seven pillars around which Valencia Port have built their community.


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GIL: NETWORKING THE GLOBAL LOGISTICS INDUSTRY

THE SEVEN PILLARS WHICH SUPPORT THE VALENCIA PORT COMMUNITY

While changes in national legislation at key points in Valenciaport’s history opened doors for the port, the culture of inclusion instilled from the top down at Valenciaport gave these legal framework changes impetus. Testament to this is the fact that all autonomous Spanish ports were presented with the same opportunities from changes in law, but Valencia’s consistent increase in traffic at levels over and above growth levels at other Spanish ports illustrates the importance of a combination of community and opportunity.

INSTITUTIONAL FRAMEWORK

As a state-owned entity, Valenciaport benefits from a strong relationship with local and regional government. As such, the port is viewed as a partner in supply chain decisions, rather than simply a conduit for government to channel transport and logistics decisions through. One such example of joined-up thinking is the Valencian regional government’s decision to define a Territorial Strategy for the Valencian region, determining a set of strategic targets for the Valenican region to become the primary logistics hub in the Mediterranean arch. This will in essence develop a sustainable logistics and transport system respecting the environment. It is likely that this will include assigning more land for logistics use and the creation of logistics areas.


Institutional Framework Presentation
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COMMUNITY LEADERSHIP

Valenciaport also demonstrated clear leadership, with a top to bottom emphasis on instilling a culture of integration and co-operation throughout the Port Authority and its research arm Fundación Valenciaport, and with port stakeholders. Valenciaport established the 2002-2015 Strategic Plan in consultation with the port community, as well as institutions and economic and social agents from the Valencia region. The plan was designed to boost the development of the three ports, acting as an instrument to improve the level and quality of life for the whole community.


Community Leadership Presentation
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Valenciaport also demonstrated clear leadership, with a top to bottom emphasis on instilling a culture of integration and co-operation throughout the Port Authority and its research arm Fundación Valenciaport, and with port stakeholders.

The Valenciaport 2002-2015 Strategic plan focuses on three objectives:
1. to consolidate Valenciaport as the main deep sea entrance and exit port on the Iberian peninsular
2. to turn Valenciaport into the leading regional distributor and intermodal logistics platform in the Mediterranean
3. to have sufficient capacity to handle 68m tonnes of traffic and 4m teu by the year 2015.

The Institute asserts that the second objective detailed above confirms Valenciaport’s recognition that it is a facilitator of trade in partnership with the logistics supply chain. This cemented the foundations for community development and governance at Valenciaport.


COMMUNITY WIDE QUALITY

In 1995, early visionaries of Valenciaport saw a need for a quality guarantee to act as insurance for port users who had come to expect a certain high level of quality from operations at the Port of Valencia. The vision was to create a guarantee to attract more stakeholders inside the port environs to develop best practice, instigate an auditing procedure, and enforce compensation if a system failed. To develop this guarantee, Valenciaport in cooperation with the regional government, pulled together representatives from all port stakeholders to form a quality committee, known as the Fundacion Valenciana de la Calidad.


Community Wide Quality Presentation
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Marca de Garantía
The Port of Valencia is commonly regarded as the pioneer in the development of port wide quality systems, in Spanish it is called the Marca de Garantia.After three years of dialogue between those stakeholders and Valenciaport, the Marca de Garantía was launched in 1998 to provide compensation for anything less than the promised quality. Its basic aims are the improvement of the promotion of quality and competitiveness, as well as the safety and development of the environmental management of the services offered by the community ports. This is considered in the framework of development of the economy and the improvement of its commercial structures.
The seal’s services include:
1. authorization for the use of the port infrastructure by vessels calling at the port
2. port towage, mooring, and pilotage
3. customs facilities, healthy and phytosanitary inspections of cargo and quality
4. loading, unloading and stowage
5. vessel allocation
6. land transport from and to the port
7. container storage, maintenance and repairs
8. any other activity in the future approved by the quality committee.The Fundacion Valenciana de la Calidad, Port of Valencia is the holder of the Seal of Quality Guarantee, however the scheme is regulated through the regional government, Generalitat Valenciana, so that there is partisan ownership of the seal. Port stakeholders can apply for the Marca de Garantía, which can only be granted through official authorization following approval of an application, verification, a full audit, payment of fees, and the lodging of a deposit. To claim compensation under the guarantee, the beneficiary (cargo shipper, consignee or shipping line) may lodge a complaint with the Consumer Board as long as a contract has been signed with a company bearing the seal of guarantee. If the complaint is upheld, the Generalitat awards compensation taken from the deposit lodged by the Marca de Garantía member to the complainant.The Institute recognizes that Valenciaport was ahead of the curve when it first starting discussing the importance of a quality guarantee as early as 1995. The resultant Marca de Garantía represents a collaborative approach to setting and pursuing quality throughout the supply chain with the port at its nucleus. It is clear, however, that the introduction of a quality guarantee alone is not sufficient to drive port community. Valenciaport has sold its Marca de Garantía concept to international ports outside of Spain, but has found it challenging to attain the same level of success outside of Valenciaport due to an apparent lack of commitment to implement an innovative quality system on a long term basis, and to local cultural barriers.


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INTEGRATED IT SOLUTIONS

Recognizing a need for joined-up communications throughout the port stakeholder network, Valenciaport invested in a bespoke Port Community System (PCS) in 1994 to integrate the port authority, customs, cargo owners and carriers. That investment has continued through to the present day with a commitment to future funding. Described as an open ‘infostructure’ that enables a secure and efficient flow of information among all port stakeholders and public bodies, valenciaportpcs.net improved the quality of port activity and maximized resources through a tighter coordination of activities, sharing of information, control, security and safety of operations and, consequently, optimized planning and execution of operations.


Integrated IT Solutions Presentation
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The early success of the system in facilitating trade led agents and forwarders to request inclusion in the IT community, which Valenciaport achieved through add-ons to the original software. To better manage the involvement of the stakeholders in the IT process, Valenciaport set up a subsidiary company, Infoport in 1998. This simple concept evolved into an integrated supply chain resource in 2000, which became accessible worldwide through GT Nexus and e-commerce specialist Inttra. As a proven PCS, Valenciaport’s IT system is available for sale and installation worldwide, and has been taken up by a number of ports, including Australia’s Port of Melbourne. Using its IT system as a connector, Valenciaport has encouraged the involvement of the entire port community, which has in turn increased competitiveness, removed commercial barriers and improved transparency.

CORPORATE UNIVERSITY

Fundación Valenciaport: Conceived as a support to Valenciaport to expand the reach of the logistics-ports community as a research, training and cooperation centre of excellence, Fundación Valenciaport is active in numerous projects in well over twenty countries. It also works extensively with the Spanish logistics chain providing both research and training services.


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The objectives of Fundación Valenciaport are:
1. spread the best practices of the Port of Valencia and, by extension, of the Spanish port system to different domains
2. reinforce the competitiveness of the Spanish economy, and particularly that of its transport chain, in light of its increasing internationalization and globalization
3. promote knowledge management and ensure suitable training for human resources in port communities, thus providing them with the most appropriate tools
4. to bring closer together and foster dialogue between the logistics-ports community and the society that supports it.
With a staff of almost 50 employees, 15 of which are directors, the Fundación is a not-for-profit organization that develops different activities related to investigation, training, international cooperation, economic, social and cultural encouragement. Further, it seeks to be a reference in those same areas, delivering innovative quality services linked to transportation, logistics and ports. The Fundación has published a number of reports, including one on Calculation and Strategic Management of Port Costs (2009) and China: Logistic and Port Report (2008). Each year the Fundación also awards prizes to support and disseminate best practices and initiatives among members. The prize categories cover training, environmental management, technological innovation, research, quality, professional development and business initiative.Cementing its inclusion in the Valencian community, the Fundación Valenciaport Board comprises of nineteen trustees from sixteen different organizations, including Valenciaport, Marítima Valenciana, TCV Stevedoring, and Ayuntamiento de Valencia.This unique entity lends Valenciaport a skilled research arm that complements the practical nature of port operations.The Institute recognizes that the value-add of the Fundación has been critical to the success of Valenciaports’ understanding of the significance of port community to successful supply chain relationship management.

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INFRASTRUCTURE PLANNING

Valencia Port has developed functions regarding regulation, port areas management and operation. Their functions as port areas managers are planning and, as its name points out, managing port areas, supplying infrastructures, maintenance and preservation of those infrastructures, boosting land accessibility and marketing.


Infrastructure Planning Presentation
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The Port planning exercise is the process of identifying the future demand and necessities of port services with the objective of defining the configuration of a service supply which is feasible and sustainable. Due to the amount of relationships affected it is a complex and multidisciplinary activity, which has to simultaneously mitigate environmental challenges.

PORT ENVIRONMENTAL MANAGEMENT SYSTEMS

The environmental strategy defined by the Port of Valencia comprises the development of a management model based on the surveillance and control of all the environmental aspects which take place within the port area. This integral model is built through a governance model based on a cycle which main engine is continuous improvement.


Port Environmental Management Systems Presentation
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In 1998, the Port Authority of Valencia started the European project ECOPORT as an innovative initiative of port environmental management and protection. ECOPORT had as main objective satisfying the requirements of the European policy of sustainable development of transport and safety of the environment, being a reference for other port communities which may consider the implantation of environmental management models. The project was developed with the initial participation of the Port Authority of Valencia and six port companies which were the first pilot cases for the voluntary implantation of an EMS within the Port Community of Valencia.
The development of the model initiated by ECOPORT has allowed the extension of the sustainable commitment to a great number of companies of the Port Community of Valencia which have adopted it as an essential part of its business strategy. In this sense, the APV has become international reference in relation with environmental port governance.

THE STORY OF VALENCIA'S ACCREDITATION : CARLY FIELDS RESEARCH EDITOR

Valenciaport will lead through example as it presents its best practice models on collaboration, engaging stakeholders, quality control and successful city-port integration to ports around the world over the coming two years.

With a cityscape that successfully juxtaposes the old with the new, Valencia held the gaze of GIL from an early stage in its search of collaborative port communities. Gleaming medieval church cupolas sit alongside the Gehry-esque architecture of the city’s magnificent Ciutat de les Arts i les Ciències, demonstrating that this is a city that is forward-looking – but not to the detriment of the past. Pair this with a vibrancy that most cities can only dream of, GIL’s first visit to Valencia was made with high expectations that the port of such a dynamic city would mirror that vitality.

We were not disappointed; GIL discovered that Valenciaport was the jewel in the city’s crown. GIL’s visit to Valenciaport was the result of five years of research on best practice relationship orientation and marked the start of a new phase of study on best practice port community governance and maturity at worldwide ports.

In 2004, at the beginning of the Institute’s research on best practice relationship orientation, GIL identified the need for greater transparency in the global terminal operating industry and began an evaluation of terminal operating standards among the world’s leading container terminals.

Preliminary findings published the following year led to an accreditation for Yantian International Container Terminal in Shenzhen Southern China, a member of the Hutchison Port Holdings group of terminals, as ‘Best-in-class’ Container Terminal. This accreditation opened up an exchange where Yantian agreed to share its best practices with the industry through GIL. This two-way channel proved profitable for Yantian with anecdotal evidence that the accreditation provided a means for Yantian to not only distinguish itself in the Pearl River, but to also attract a premium per box handled.

Crucially, in the research process, the Institute found that ports and terminals were the weakest and least transparent link in the supply chain, and that the introduction of a reliable benchmark to measure container terminal efficiency and port performance was essential to improve port/terminal-led best practice and relationship management.

To help bridge that gap, in 2006 GIL partnered classification society Germanischer Lloyd to take on the challenge of developing a standard, leading to the establishment of the Hamburg Committee. That Committee was immediately tasked with the development of the Container Terminal Quality Indicator (CTQI), and after two years of industry dialogue to establish appropriate key performance indicators, CTQI was launched in 2008. Hamburg immediately stepped up to the CTQI challenge and became the first port to receive the accreditation.

To further understand the varying levels of relationship management at global ports and terminals uncovered by a review of the primary research for CTQI, the Institute launched the Global Maritime Logistics Council (GMLC) as a platform to standardize quality and service levels. Operating under GIL’s shaping belief that relationships will carry the industry into the future, the Institute initiated a port community research program through its GMLC in 2007, which was the catalyst for GIL’s interest in Valenciaport. The port played a key role in CTQI from an early stage, with Rafael Sapiña, FV Director of Liner Shipping and Port Operators, actively involved as a committee member.

Much credit for the ensuing events has to go to Mr Sapiña - his enthusiastic positioning of Valencia with CTQI committee members around the world generated much interest in the port.
Embarking on its port community research program, the GMLC clocked up in excess of 100,000 air miles in its search for a ‘Best-in-class’ port community that would form the benchmark for the next phase of the program.

That search took in ports from around the world, from large conglomerates to niche operators and much in between. While undertaking that research, the Institute discovered that where successful port communities existed these were supported by visionary and inspirational leadership, coupled with constancy of purpose. Those leaders established and communicated a clear direction for all port stakeholders,

instilling a code of ethics, a culture of collaboration, and a governance structure for the port stakeholders.

Further, the Institute’s research revealed that public private sector leadership in communitying offered the best springboard for successful community development and relationship management.
While so many ports encountered by GIL on its two-year journey examining port community development failed to grasp the benefits that well-led collaborative port communitying could bring, GIL found that Valenciaport truly bucked that trend. So, after two years of research, the Valenciaport port community, represented by the Port Authority of Valencia, was identified as a port community at an exceptional level of maturity with stakeholders truly engaged in the collaborative process and duly accredited with the ‘Best-in-class’ Port Community designation.

The Institute’s criteria for “best-in-class” specifies, among other points, that the community demonstrates the spirit of collaboration, strikes the right note between public and private partnership, and has developed a model that is transferable. Valenciaport has proven the transferability of its model as its quality guarantee, the Marca de Garantía, has been adopted by five countries in South America, while there is a further agreement in place with the port of Callao positioning Valenciaport in a mentoring role with the Peruvian port.

The designation of ‘Best-in-class’ port community has led Valenciaport, through the Valenciaport Foundation, to enter into a two-year cooperation with GIL to formalize the findings of the port community study with a view to producing a guide to best practice Port Community Governance in 2011. This next stage of the journey will combine theoretical and practical knowledge on best practice port community governance to ascertain best in- class community maturity.

Further, it will examine how to find the champion to lead a culture of collaboration, and how to develop an efficient port community under that champion’s leadership. The resultant maturity model and best practice findings will be globalized, allowing ports to apply the knowledge learned at the end of the program to improve community cohesion and governance and ultimately quality service levels at ports.

Valenciaport will lead through example as it presents its best practice models on collaboration, engaging stakeholders, quality control and successful city-port integration to ports around the world over the coming two years.

Impressed first by its city, and subsequently its port, GIL has no doubt that Valenciaport and its Foundation will be the perfect partners for culmination of the Institute’s global port community research program in 2011.

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Press Information> Presse-Information

Dossier Presse > Communicato Stampa >新闻稿


VALENCIA JUNE 2009

VALENCIAPORT ACCREDITED BEST-IN-CLASS PORT COMMUNITY

Spain’s number one container port, Valenciaport has been honored with a global “best-in-class” designation following a review of operating standards within global maritime port communities undertaken by the Global Institute of Logistics.

Across the world “First Mover” Port Authorities and their communities have devised and developed a myriad of strategies and programs designed to deliver a seamless integrated logistics product to their customers. The Institute established direct relationship with many of them as part of its “The Role of the Container Port in Global Logistics” research. The research identified the First Movers, Thought Leaders and Early Adopters of the logistics model of port development. The research considered ports at different levels of community maturity and with varied business streams – transhipment, import only, export only, and mixed.

The research sought to identify a “benchmark” port community which others could emulate, a port committed to the ‘Relay’ rather than the ‘Delay’ of cargo.That benchmark was identified as Spain’s number one container port, Valenciaport which was accredited with “Best-in-Class” status. The criteria for the accreditation was that the port community identified demonstrated an exceptional level of maturity and a culture which indicated that stakeholders in the supply chain truly engaged in a collaborative process.

Valenciaport  demonstrate clear leadership, with a top to bottom emphasis on instilling a culture of integration and co-operation throughout the Port Authority and its research arm Fundación Valenciaport, and with port stakeholders.It established the 2002-2015 Strategic Plan in consultation with the port community, as well as institutions and economic and social agents from the Valencia region. The plan was designed to boost the development of the three ports, acting as an instrument to improve the level and quality of life for the whole community. The plan focuses on three objectives:

1. to consolidate Valenciaport as the main deep sea entrance and exit port on the Iberian peninsular
2. to turn Valenciaport into the leading regional distributor and intermodal logistics platform in the Mediterranean
3. to have sufficient capacity to handle 68m tonnes of traffic and 4m teu by the year 2015.

The Institute asserts that the second objective detailed above confirms Valenciaport’s recognition that it is a facilitator of trade in partnership with the logistics supply chain. This cemented the foundations for port community  development and governance at Valenciaport.

NOTES TO EDITORS

ABOUT GLOBAL INSTITUTE OF LOGISTICS

The Global Institute of Logistics (GIL) was established in 2003 under the Chairmanship of renowned US logistician and author Robert V. Delaney in response to the logistics industry’s call for “joined up thinking” amongst stakeholders in the global supply chain. GIL looks to resolve the challenges facing the global logistics chain of managing single transport modes, modal systems and targets which are set on stand-alone operations to create a seamless global logistics system.
A Think Tank, GIL brings together thought-leaders and thought-followers as part of a global knowledge network committed to building up the information base, best practices and standards. This, in turn, creates a platform through which knowledge is shared, best practice is adopted and trade developed. Today the Institute is a community of organizations and professionals from across the world that share a commitment to collaborating on global logistics solutions.
The Institute’s mission is to ‘Network the Global Logistics Community’

For further information, visit www.globeinst.org

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