I have begun to notice a theme emerging from most of our business trips. The importance of collaboration. Every company we have met with has partnerships with other companies to improve the efficiency of the supply chain and today’s meetings demonstrated that on a massive scale.
In 2017, the Republic of Cyprus made Limassol Port concession agreements with three companies: Dubai Ports World (DPW), Eurogate, and The Peninsular and Oriental Steam Navigation Company (P&O). This process is known as port commercialization because the government transferred its operating rights to private enterprises which then engage in activities contingent on government approval. We first met with DPW which manages general cargo and passenger vessels. They emphasized the importance of their partnership with P&O. P&O undertook the full range of marine services of the Limassol Port. For instance, they provide tugboats and pilots that ensure safety during the berthing operation of a ship.
We then met with the company that manages container cargo, Eurogate. Eurogate has 5 gantry cranes and an 800 meter key, allowing for a maximum capacity of 4 vessels. They also have 26 straddle cranes and 11 terminal tractors for its truck operation, container storage, and reefer services. Eurogate has a high level of technical expertise to establish efficiency and an electronic customs clearance process which has reduced the amount of time it takes for Eurogate to clear a shipping container from 48 hours to 15 minutes. This benefits the supply chain because more can be transported throughout the supply chain in less time, reducing costs to the producer and consumer.
We ended our day by meeting with Cyprus Port Authority, the Cyprus Shipping Agents Association, and the Limassol Chamber of Commerce. They emphasized that ports are the main connections in the supply chain. This is especially relevant because Cyprus is at the cross roads of 3 continents (Europe, Asia, and Africa). They believe that expanding electricity in Cyprus will better support supply chains for a growing world as they plan to implement more solar power. The UN Developmental Goals are relevant as they aim to protect marine life, strive for decarbonization, and provide back to the Limassol community. The Cyprus Port Authority regulates the port services offered in all port installations because the government still owns the land upon which the different companies operate. I learned that the government decided to commercialize the ports because specialization among the different roles required to manage a port improves the efficiency of the supply chain benefiting the economy.