MEDports Association

FACILITATING TRADING PORT LINKS IN THE MEDITERRANEAN

MEDITERRANEAN PORTS AND LOGISTICS SPOTLIGHT

As a powerful force in world history, Mediterranean maritime trade has deeply impacted global traffic for millennia. We follow the ebb and flow of today’s industry with MEDports Association

Writer: Rachel Carr | Project Manager: Deane Anderton

The Mediterranean Sea translates from Latin as centre of the Earth, which is no coincidence as the waterway unites three quarters of the globe and has been an integral part of world history.

Logistically, this places Mediterranean ports in a prime position, and having served some of the past’s most powerful traders, the sea continues to be one of the busiest networks on the planet.

Presently known as the sea between the lands, and bordering 22 different countries, the Mediterranean Sea is landlocked and therefore has fewer tides. Although it is technically a “closed” sea, the Strait of Gibraltar grants traders access to the Atlantic Ocean, with an estimated 20 percent of the world’s traffic passing through annually.

The Mediterranean seaports are an important component of the global shipping network, connecting the Middle East with Asia, North Europe, Africa and the Americas, as evidenced by trading activity throughout history.

From the ancient Phoenician civilisation, which occupied the coast of the Levant and established one of the most notable maritime routes in history, to the Roman Empire and onward to the modern age, the Mediterranean has enjoyed thousands of years of sea trading.

Indeed, the Mediterranean Sea facilitated one of the most important globalisation movements in the world. The three main commodities traded were foods (olives, wine, wheat), textiles (clothes, carpets), and raw materials (copper, iron, glass), expanding the economic system of

the Mediterranean area.

Unlike the square-sailed ships with oars that were the most common historic mode of transportation, modern cargo vessels are reliant on fossil fuels. Consequently, the industry is looking to take advantage of new technologies that will help reduce carbon emissions.

In the next few years, the plan for hybrid and electric ships, advanced propulsion systems, and more efficient hull designs, will minimise the one billion tonnes of CO2 produced by the shipping industry every year.

Although container shipping is the most carbon efficient form of transporting goods, as it is less damaging than road and air, environmental concerns are not the only challenge the sector is facing.

Seaborne trade has sailed through choppy waters recently with the COVID-19 pandemic affecting the global supply chain. Home to 87 ports, the Mediterranean Sea has a crucial role in the transportation industry and has managed to remain viable for the global market.

Today, the Mediterranean is at the heart of commerce as its vast network provides a corridor for many different types of cargo and the distribution of freight, but as with other industries, advancing technology will continue to impact shipping and ports.

Optimising operations, tracking fuel consumption, minimising errors, and improving safety are some of the ways digitisation is changing the future of an industry which has been steadily progressing since the 3rd century BCE.

The Leading Container Port in the Mediterranean and Africa

Tanger Med Port Complex ranks as one of the world’s best port complexes, and is viewed as one of the Mediterranean’s most essential hubs

Tanger Med Port Complex aims to develop an efficient and truly integrated port platform around the complementary activities of trans-shipment, importexport, and value-added logistics.

The complex consists of:

• Tanger Med 1 Port, which includes two container terminals, a rail terminal, a hydrocarbon terminal, a general cargo terminal, and a new vehicles terminal.

• Tanger Med 2 Port, which includes two container terminals.

• The Passenger and Ro-Ro Port, which includes the access and border inspection zones, the passenger and truck loading docks, the regulation zones, and the ferry terminal.

• The Logistics Zone.

• Tanger Med Port Centre.

In January 2010, Tanger Med Port Authority was transferred by decree-law all the missions and public prerogatives related to the management and development of Tanger Med Port Complex.

The Tanger Med Port Authority focuses its missions on the management and development of infrastructures, the coordination and animation of the port community, and guarantees the reliability and performance of services provided to the port platform’s clients.

• Construction and maintenance of the port infrastructure (dikes, dredging and docking works).

• Development of the port complex’s activities and capacities.

• Licensing authority or leading the live operation of port terminals and activities of public service nature.

• Organisation and regulation of relations and exchanges between the actors of the port community.

• Promotion of the Tanger Med Port Complex as a whole.

• A port police function through the captaincy in charge of the safety and security of the complex.

Apart from the Passenger and Ro-Ro port, the main activities of Tanger Med Port Complex are entrusted to renowned national and international private operators who, under concession contracts, invest in the superstructures and equipment of the port and provide services that meet the international standards of quality, safety and security.

Please introduce Tanger Med Port Complex, its activities, and its key figures during 2022?

Tanger Med Port Complex is a global logistics hub located on the Strait of Gibraltar, connected to over 180 worldwide ports, providing handling capacities for nine million containers, seven million passengers, 700,000 trucks, and one million vehicles.

The port enjoys a strategic geographic location, on the main East-West and North-South maritime routes, with a distribution of trans-shipment traffic for Africa, Europe, and the US. Hence, this unique position allows maritime liners to trans-ship their vessels with zero deviation and offer them competitive options to optimise transit times.

On the Mediterranean and on the Strait of Gibraltar, Tanger Med Port Complex plays a crucial role as a major container

trans-shipment platform.

Tanger Med Port Complex also serves as a maritime bridge, connecting Africa and Europe, separated with only 14 kilometres (km).

In 2022, Tanger Med Port Complex consolidated its position as the leading container port in the Mediterranean and in Africa, with 7.6 million TEUs of containers handled, an increase of six percent compared to 2021, and nearly 108 million tonnes of goods handled, an increase of six percent compared to 2021. Concurrently, we recorded close to 14,000 calls from the main maritime alliances, including 961 mega ships corresponding to an increase of 14 percent compared to last year.

What is it that makes Tanger Med Port Complex a leading port complex in Africa and the Mediterranean?

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• A strategic location: The port is located on the Strait of Gibraltar, the second busiest global trade route after the Strait of Malacca, with zero deviation. The strait witnesses the annual passage of 100,000 vessels, making it a crucial nodal point for global trade on maritime routes connecting East to West and North to South.

Mr Hassan Abkari, Managing Director of Tanger Med Port Authority

• State of the art port facilities: The port offers state of the art infrastructure, a draft that can accommodate the world’s largest ships, and is capable of handling large capacities for container traffic, trucking, hydrocarbons, vehicles, and passengers.

• Operators’ confidence: Tanger Med Port Complex manages to develop and maintain a strong ecosystem, bringing together all stakeholders to ensure smooth and efficient port operations: harbourmaster, pilotage, terminal operations, etc. This ecosystem allows us to build trust among its clients by strengthening its partnerships with its customers, by meeting their expectations and needs daily, and continually offering high standards of productivity and competitiveness.

• Level of productivity achieved: Port terminals operate at very high levels of productivity by achieving international handling records, which is explained by a continuous increase in the skills of the teams who work daily. The digitisation initiated by the port to ensure optimised maritime calls, paperless import-export operations, efficient management of the flow of goods inside the port, the continuous traceability of operations are so many assets that make it possible to further support those achievements. Recent rankings published by World Bank and S&P Global Market Intelligence within their Container Port Performance Index report have placed Tanger Med Port Complex as the highest ranked port in the Africa/Europe region. This assessment of port efficiency is based on the number of port hours per call, starting from the time a vessel reaches the port up until it unberths and leaves the port.

• A port complex integrated with an industrial platform: Tanger Med Industrial Platform constitutes an industrial hub for more than 1,200 companies representing major industrial players from China, Japan, Europe, and America with a business volume of USD$13 billion in 2022 in various sectors such as automotive, aeronautics, logistics, textiles and trade. Backed onto the port complex, the industrial platform comprises six Activity Zones and a network of industrial and logistics parks planned according to the best international standards and benchmarks, offering competitiveness for operators, a one stop shops and world-class infrastructure.

What is the strategic part the port plays in North African trade?

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Tanger Med Port Complex has emerged as a global maritime and logistics hub, boasting a strategic location at the crossroads of major maritime routes for the world’s largest maritime alliances: M2, OCEAN ALLIANCE, and The Alliance. Since its inception, Tanger Med Port Complex has positioned itself as a major trans-shipment platform for intercontinental flows and distribution to Africa, which accounts for 40 percent of the container traffic handled.

The presence of major global players in the maritime, logistics, and industrial sectors is a testament to the significance of Tanger Med’s choice. Large maritime players such as Maersk, CMA-CGM, major logistics players such as DHL, CEVA Logistics, Nippon Express, DECAHTLON, and major industrial players such as Varroc, Hands Corporation, Valeo, and Marelli are in the Tanger Med industrial and port complex.

Looking ahead, what are your key priorities and ambitions for the coming year?

Commitment to strengthening its partnerships and pursuing productivity and competitiveness objectives.

Tanger Med Port Complex confirms again its leadership in the Mediterranean and Africa and consolidates its position as a key hub for global maritime alliances led respectively by Maersk Line, CMA CGM and Hapag Lloyd. With a capacity of more than nine million containers, Tanger Med Port Complex aims to integrate into the top ranking of the top 20 platforms worldwide.

Tanger Med Port Complex will keep offering excellent services to maritime lines: comprehensive infrastructure and technology, ships calling in the best conditions, excellent productivity of terminals and operators, world-class services to ships, solutions adapted to their needs (bunkering services, ship handling services etc., port call optimisation...), and finally, highly qualified harbourmaster and pilotage teams. Tanger Med Port Complex is also committed to enhancing its import-export solutions by launching dedicated zones for freight handling. This initiative aims to support the anticipated growth in freight volumes in the coming years and provide greater logistics competitiveness to operators.

At the same time, it will continue to develop as a major logistics hub, strengthening world to world flows and attracting new global operators and logisticians, particularly in Africa.

Tanger Med Port Complex will also enhance the attractiveness of the port-backed logistics area. This area developed over two hundred hectares, is home to worldrenowned logisticians and multinationals such as DHL, DACHSER, Nippon Express, Ceva Logistics, GEFCO, Adidas, TE Connectivity, Decathlon, Texla, Emirates Logistics, etc. These operators benefit from the area’s competitive advantages, its proximity to the port and its maritime connections to more than 180 ports worldwide.

As we move to a post-COVID-19 world, Tanger Med Port Complex will bolster its competitive strategic positioning in the reconfiguring of global value chains by integrating Morocco into the logistics corridors of the EuroMediterranean area.

www.tangermedport.com

INTERVIEW:

MEDPORTS ASSOCIATION

MEDports Association is improving trading infrastructure by connecting the Mediterranean’s 25 port authorities. Its President, Pino Musolino, tells us how the industry is navigating the turn of the tide

EME Outlook (EO): Can you tell us about the origins of the association, its inception, and initial vision?

Pino Musolino, President (PM): MEDports Association was created by the intuition and will of the President of the Grand Port of Marseille at the time, Madame Cabau, who thought in 2017 that it was about time to give a voice and a forum to the ports of the Mediterranean.

I was President of the Ports of Venice and joined this endeavour at the beginning. In fact, on the day when the association was formally moving into its first steps at the House of the Chamber of Commerce in Marseille, I had the privilege of being the first signing party of the chart in

2018 and became Vice President of the association at its inception.

EO: How has the association developed and progressed since, and what has it achieved?

PM: Although we had to live through the COVID-19 pandemic and a year of war and instability in our first five years, it is incredible to see what has been achieved so far. We have more than 24 members, additional associated members, and the engagement of international institutions such as the Union of the Mediterranean, the EU, and the Arab League, for example, who are all a key part of the association. Moreover, there are the continuous efforts of several permanent committees - spanning different topics that have been instrumental to the association’s progression.

I would like to point out the extremely important educational value created, allowing managers and experts from all association members to exchange knowledge, best practices, and establish a strong, fruitful bond.

EO: Which successes are you most proud of?

PM: The most significant success so far is the creation of a forum for Mediterranean ports that goes beyond political aggregations or regional institutions. In fact, we comprise ports from Europe, North Africa, and the Middle East.

We also aim to expand our presence within the next few years.

This string-free forum provides us with a dynamic and proactive space where we can discuss, analyse, assess and propose solutions to problems and issues that are common to all members, notwithstanding their geographical location.

EO: What are the greatest challenges facing the industry?

PM: Ports are facing several challenges, from purely economic to more complex issues related to climate change, the energy transition, and the two revolutions –sustainability and digital.

All ports are aware that we are at the forefront of a major shift in business models and geopolitical changes, and ports can play a significant role in helping territories and countries get ahead with the aforementioned challenges.

In order to do so, working together, sharing experiences, assessing eventual steps back and moving together in a shared direction is fundamental. The association is the ideal place where this intellectual exchange can happen and provide significant results.

Entrusted with the role of port authority, the National Ports Agency “ANP” is responsible for ensuring the regulation of port activities and operators, in order to provide the Moroccan economy with high-performing, competitive, secure and environmentally-responsible ports.

Thanks to its strong regional anchoring and its organisational resilience, the ANP has managed to federate the entire port community around common goals. It also oversees the execution of community initiatives for the improvement and modernisation of Moroccan ports’ governance structures and processes for international commerce.

“REGULATION IS OUR MISSION... FEDERATION IS OUR AMBITION”

Our Vision

the “anp” is the national regulator, the port ecosystem federator, the catalyst for port development and the guarantor of port sustainability

3 Main Missions

regulation of port activities and operators

development and preservation of port heritage

port policing, safety, security and environmental protection

The Ports Managed by the ANP

The ANP’s Social and Environmental Responsibility

Aware of the SER challenges, and placing itself in the framework of the national environmental charter and Morocco’s adherence to a sustainable development logic, the ANP has decided to commit itself to the design and implementation of a structured SER approach, which has resulted in the signature of its SER Policy.

Aiming to ensure a long-term balanced consideration of economic, environmental, social and societal issues, this SER approach reflects the ANP’s desire to go beyond strict compliance with regulatory and contractual obligations and to pursue continuous improvement in its environmental and societal performance.

The ANP Innovation Approach

The ANP recognises the importance of innovation for the growth of the port sector and other stakeholders, which is why it has developed a “SMART PORT

plan, in partnership with the port community and the Global Alliance for Trade Facilitation.

Through this innovative approach, the ANP strives to solve the various challenges facing the port sector through the development of creative and innovative solutions, leveraging the collective intelligence of the port ecosystem.

Region head port Main port Secondary port

Lamhiriz

Dakhla

Boujdour

Laayoune

Tarfaya Tan-Tan

Sidi Ifni

Agadir Imessouane

Essaouira

Safi New Port Safi Jorf Lasfar El Jadida Casablanca Mohammedia

Kenitra Sable d’Or

Larache Asillah Tanger

EO: Could you tell us about the owners, operators, and service providers within your membership?

PM: Owners, operators, and service providers are the major ‘customers’ of ports, and the main stakeholders of a port’s governing bodies. Although the goal of developing trades and exchanges is the same, the way to achieve these goals can be seen differently by economic players and governing bodies.

The role of the latter is to find a way to guarantee solid economic returns, wise master planning and the development of infrastructures, while at the same time maintaining a healthy and productive relationship with cities and regional governments. Finally, granting the best use of the port areas without compromising the quality of life of the citizens living nearby or around ports is extremely important.

The so-called port-city relationship is essential to grant the success of any port development in the future. In this particular historical moment, being a port President or Director implies the capacity to deal with the interests and aims of several different stakeholders, both public and private, and being able to define a positive and productive summary of all the instances involved.

EO: What role does the association play in the growth of the region’s port and logistics sector?

PM: It does not directly enter into the prerogatives and duties of any single member. On the other hand, as a forum of discussion, the association helps to foster long-term relationships, common and shared planning and develop new forms of cooperation among its members. This sustains and allows growth and development.

Moreover, by assuring an even and consistent representation of the instances and needs of the regions of our members, we aim to place the spotlight back on the needs and dreams of Mediterranean coastal regions, which haven’t been central to the discussion in the recent past.

EO: Have you noticed any changes in the industry, particularly since the COVID-19 pandemic?

PM: It has disrupted our everyday lives and routines as individuals, and clearly COVID-19 has brought several changes in the industry. Some of the most notable examples include the incredible acceleration in the introduction of more innovations, the ‘greenisation’ of ports, and the introduction of more automatised processes.

At the same time, the disruption of global value chains caused by the COVID-19 pandemic - and to a different extent, the war in Ukraine - has brought everybody ‘back to Earth’ in regard to overstretched, and often unfeasible, supply chains. This in turn has brought some significant phenomena, such as re-shoring (the reintroduction on a national basis of parts or all of the production of certain goods), near-shoring (the shortening of supply chains to nearer regions) or friend-shoring (the location of productions or supply chain management in countries or areas where geopolitical instability can be less felt).

All of the above have an impact on our industry, the effects of which cannot be easily assessed at the moment, and neither can the long-term consequences. It must be said that now, more than in the last 40 years, port managers have to be resilient, and quick to adapt and embrace significant changes in the way we work and conceive our roles as developers and managers of areas.

EO: Which key aspects of the industry and its subsectors across the Mediterranean would you like to highlight?

PM: To quote Mr Tim Marshall, “geography matters”. Being the sea that connects Europe, Africa, the Black Sea region, and represents the trait-d’union with the Far East implies that the association is central to any process that supports the sustainable growth of several different regions of the planet.

After more than 500 years of dominating oceanic routes, this status is not yet well perceived by Mediterraneans themselves. We need to acquire an awareness of this new status, in order to accompany and sustain all the efforts that are put in place by entrepreneurs, national governments and international bodies. We need to narrow the scope of what we are doing selectively while broadening our vision and temporal perspective. We need to be surgical in the short-term solutions while long-term in the achievable goals.

EO: How do you see the industry developing over the next five years?

PM: The technological innovations that will be brought to

the industry in the next five to 10 years will change it more than those we have seen in the last 100 years. Artificial intelligence (AI), 5G, and 6G, augmented reality, the metaverse, hyperloop technology, alternative fuels, green energy production and development, and circularity in our economic models will completely change the way we make, move, and conceive goods in the world.

Ports are at the forefront of these historic turning points, and we need to be ready to face changes and handle them properly. The association, with its large numbers from different countries, can help to confront, exchange best practices, learn from different experiences and provide better tools to national and international bodies, to formulate better and more efficient policies in our fields.

EO: Are there any plans or projects in the pipeline for the association?

PM: The main aim for this first period is to provide reasons for members to join the association. In other words, to motivate and create enthusiasm around our association. We are trying to do so by creating contacts and increasing our visibility which has gone through a period of lesser activity in recent years.

The second point is to expand the number of members. Beyond the north and south bank of the Mediterranean, we need to expand to the Near East shores and, wherever possible, to the Black Sea, which is a natural extension of the Mediterranean. The association, with its non-political, technical role, can be the ideal place to discuss, develop and formulate ideas that can significantly support the creation of valuable policies across the industry.

It is an ambitious path, but also a realistic one. I am positive that with the help and support of the association and its members, expansion will be achieved. On my side, I can guarantee my unconditional and unwavering commitment.

“THE TECHNOLOGICAL INNOVATIONS THAT WILL BE BROUGHT TO THE INDUSTRY IN THE NEXT FIVE TO 10 YEARS WILL CHANGE IT MORE THAN THOSE WE HAVE SEEN IN THE LAST 100 YEARS”

– PINO MUSOLINO, PRESIDENT, MEDPORTS ASSOCIATION