Port development: from gateways to logistics hubs

Since the UNCTAD three generation port development model was proposed in 1990, changes in technology, working practices and the commercial environment have led to tighter and more sophisticated linkages between service providers, facilitators, operators and end customers. This was explored in more detail in the WORKPORT model which highlighted the way in which ports and the services they provide develop in an evolutionary rather than a revolutionary way. The political dimension can also play a lead role in port evolutionary paths, as the port is often seen both as a vital part of the supply chain and as a natural focus for regional development and employment initiatives. Depending on the type and form of cargo, customer requirements and other factors such as the degree to which ports are tied to a particular distribution channel varies. Ports remain convenient stockholding locations but where they have been made more responsive is in tailoring services to individual customers’ needs, thus becoming more agile. The role of ports within the supply chain has taken several different forms and development paths. In the UK the early expression of port logistics was in the form of intermodal facilities linked to the railway network and with emphasis on transport rather than value addition. Inland Container Depots (ICDs) and P&O Roadways Container Logistics Containerbases are examples of these traditional and conservative forms of activity. European approaches have been somewhat different building on their advantage of high volumes and proximity to very large ports. The development of Distriparks and company specific facilities such as Districenters (Nedlloyd) are classic examples of landlord-tenant solutions often seen in continental Europe. Most recently there has been evidence of convergence between the UK and continental models. Associated British Ports (ABP), for example, launched their ABP Connect Division in 2001 aimed at offering Fourth Party Logistics services tailored to individual port customers’ needs. The prospective development of large distripark-style facilities in the UK, e.g. at Hull and London Gateway, represents the latest stage in the evolutionary role of ports in the logistics chain.