Future Ports… How can Kuwait maximize the competitiveness of its ports?

Alhekma Center For Studies& Research And Consulting

Introduction

In the post-World War II period, the shipping sector remained one of the lowest in the world in terms of technological development. The cargo handling of the ship was carried out in a slow manual manner. The ship was forced to maintain long distances at each port in order to ship and unload its cargoes Of the goods, they spend on average about 60% of their time in ports and 40% on sailing, so it was not possible to use larger ships with faster speeds and stronger machines to benefit from economies of scale, and this caused the weakness of the global fleet, Globalization has led to a new division of international labor. The productive process under one factory has now been divided among the world’s nations, and the world has become a world-class factory; this has increased the role of logistics, which is a significant part of the final cost of the commodity.

An efficient logistics system allows global trade to benefit from the fact that the land and the people who occupy it are unequally productive; Logistics activities represent the bridge between production and consumption processes, Separated because of distance and time.

There is a clear positive relationship between seaports and double the growth rates of international trade and the high-level logistics industry. This effective mix is the primary responsibility for the growth of the modern ports of international trade.

Therefore, the development of the Kuwaiti commercial ports is one of the pillars of the development of the project “New Kuwait 2035”, and contributes to the achievement of revenues outside the scope of oil revenues, which contribute 92% of the revenues of the general state budget.

Firstly. LOGISTICS… CONCEPT AND DEVELOPMENT

The logistics industry does not know Geographic Localization because it is a non-national industry, the industry is characterized by:

– That their core products are methods that lead to the efficient operation of international trade-related service systems at various locations.

– An industry that is interested in highlighting the positive aspects of the economics of globalization, which means extending the geographical limits of international trade to every corner of the globe.

– One of its objectives is to manage the economy and international trade in modern and sophisticated methods that are subject to general standards and rules that reduce the administrative and mental costs, and the time and effort losses.

– Is an industry despite its growing distribution in many areas and locations in the world, but its nature tends to focus on administrative and organizational power in certain regions and centers (the capitals of major economic blocs), but it will not be so focused as to allow others to take part?

– It is an industry that depends on constant development and its main priority is to work as a team.

– The industry is characterized by a more intensive technological component than many other industries, and the interdependence of other sources, which have comparative advantages, is a solution that avoids the influx of intermediaries and contractors.

It is clear that logistics is not an economic industrial activity that allows for uneven performance at the global level and does not allow it at any location. The level of logistics performance in China must be balanced, time-matched and performed with logistics performance in the United States, Canada and South America, This is known as the parallels of quality and synchronization of achievement and the convergence of implementation rates, and hence derives the planetary industry characteristics of globalization ([1]).

The twenty-first century is the century of prosperity of the logistics industry, which is the backbone of global trade, which requires the rise of international companies to provide a variety of integrated services, and the trend is now the global companies is to get inputs from the production process from foreign markets at the lowest cost, With the same limitations and the same quality, which reduces the final cost of the product. To realize this concept, it requires a “global” supply chain aims to:

– Reduce the final cost of the product.

– Reduce Lead Time, and increase quality.

Therefore, competition among international companies has become a skill in applying logistics concepts, so Re-Thinking Logistics is the dominant concept in maximizing global gains ([2]).

1- Evolution of the concept of Logistics

Logistics has been in our lives since ancient times, and the word “logistics” came from the Greek word “Logistikos”, which means calculation and conclusion from the mathematical perspective. The first appearance of that word was in France in 1670, when one of the advisers to King Louis XIV proposed a solution to the increasing administrative problems Which appeared to the army in this period, was the proposal to create a new rank called “Marshall General” Logis “and was responsible for the planning and selection of sites and the organization of movement and logistics, but the implementation of the concept of logistics was earlier, since the ancient Egyptians When building pyramids ([3]).

In the 19th century, Logistics began to emerge again in 1836, when the Army was divided into five sectors: Strategic, Tactical, Logistics, Logistics, and Small Tactics. At that time, the definition of logistics was the art of mobilizing armies. In the 20th century, the concept of logistics in the French army began to be used in 1905 to secure the arrival of supplies and ammunition on time and in the best possible manner. It was used extensively during the Second World War. It was one of the victors of Allied armies. Some of the military units of the Egyptian army in an unorganized manner were characterized by chaos, confusion and the violation of all the principles and principles of tactical sound, unlike the October war glorious, in 18 hours only through the channel, one hundred thousand officers and soldiers, and 800 tanks, and more than 13000 vehicles of different types, a record did not achieve No practical Cross in the history of mankind ([4]).

In 1991, the United States Logistics Board defined logistics as “the planning, implementation and control of efficient and efficient flow and storage of raw materials, finished goods and related information from the place of production to the place of consumption in order to meet customer requirements” ([5]).

Logistics also means demand derived from the globalization of supply and demand sides, creating highly complex global distribution chains and requiring specialized logistics expertise to enable producers to cover their markets efficiently and systematically with minimal costs.

Another definition of logistics is the art of controlling supply chains that cover the world by aggregating the management of transport, storage, distribution, and IT activities under one control. It eliminates bottlenecks throughout the chain, minimizes documentary cycles and bureaucratic obstacles, uses and redistributes the most appropriate equipment, ensuring the fastest flow of supply at the lowest cost and highest efficiency.

We conclude from this that there are three types of supply chains:

– The supply chain of raw materials and semi-finished materials to the factory.

– Supply chain within the manufacturing process itself between production, distribution and storage centers.

– A supply chain that transfers finished products to wholesale, then to retailers, then to the consumer, and then to recycling ([6]).

2- Functions of global logistic hubs

The term “logistics hubs” is used to describe centers that perform a wide range of logistics and business operations, a term that combines “logistics” that refer to all operations required to deliver goods or services except for the production of goods or the performance of services ([7]).

The concept of the logistics centers also reflects many activities that create added value. These activities depend on the size of the port, its geographic location from the global trade map, and the extent of its deviation from the global shipping routes. The center’s logistics activities also depend on the relationship between the port and the economic port of the port. Ports, whose activities are mainly, based on low-value-added logistics activities such as freight, unloading, warehousing, and distribution, as with Dublin, Ireland. Alternatively, the logistics center activities may be related to value-added activities, Etc.), such as in ports such as Antwerp or Osaka; that means that logistics activities are at the level of port efficiency, starting with low value-added activities, such as loading and unloading, to high value-added activities such as : Legal and technical consultations, the levels of which are characterized by the availability of good transport services and attractive land, labor and energy prices ([8]).

Logistics centers are defined as centers located in a specific area in which all activities related to logistics and distribution of goods, both at the national or international transit level, are carried out by various operators on a commercial basis. Operators can either be owners or tenants of buildings and facilities: warehouses, distribution centers, storage areas, truck services, etc ([9]).

The figure below shows a thumbnail of the value-added life cycle of the logistics provided at the port.

Figure (1)

Value Added Life Cycle for Logistics Services Provided at Harbor ([10])

From the previous format, the business cycle starts from the supply chain of raw materials from the supplier to the factory, and then the manufacturing processes to the temporary storage area (the logistics center), where the value-added operations are carried out by assembling and placing the labels and packaging, Finished products to wholesale, then to retailers, then to the hands of the consumer, then the recycling process.

3. Economic conditions and objectives of the establishment of the World logistic hubs

The establishment of a successful logistics h “Zhuzhou” in 2004 proposed a three-step road map for South Korea, its:

  1. Expansion of logistics capacity, including transit capacity and transit cargo.
  2. Create value-added logistics services, such as assembly, packaging, and labeling.
  3. Create a global logistics and business center, such as regional headquarters and regional distribution centers for multinational companies.

“Jiang Xin” identified the contributing factors that make Hong Kong a successful logistic center and a hub for trade and logistics, namely: strategic location, free port status with the freer economy, pivotal role between Mainland China and the world, low and simple tax system, Excellent infrastructure combining different means of transportation.

“Tongzon” identified in his study on Singapore, some vital factors necessary for the Center to become a successful logistics center; first, it should be strategically located along major shipping and air routes; secondly, its enamel should be a focal point at the shipping lines, Third, should have good storage capabilities and related services, in addition to these facilities there must be sufficient and very effective infrastructure ([11]).

The main criteria for establishing an integrated logistics center are:

  1. A. A strategic location along the main freight lines and air routes.
  2. B. The availability of world-class maritime and airports.
  3. C. Provide a world-class logistics infrastructure.
  4. D. Ability to deliver high value-added services.
  5. E. Availability of a diverse, cost-effective multimodal transport.
  6. F. limited government intervention and without any bureaucratic methods.
  7. While the economic objectives of the establishment of logistics hubs can be summarized as follows:
  8. a. Reduce the total cost of the product.
  9. B. The speed of execution of customer orders (Decrease Lead Time.(
  10. C. Increase Quality.
  11. D. Creating an area to attract foreign capital and revive the state economy.
  12. E. Introducing modern ICT systems.
  13. F. Contribute to the creation of advanced technical and administrative expertise as a result of friction with international expertise.
  14. G. Contribution to increasing national income.
  15. H. Link the local economy to global changes and developments.
  16. I. Support opportunities for competition in foreign markets and stimulate the movement of domestic markets.
  17. J. Support the competitiveness of the port.

The logistics hubs have an effective impact on the port’s activity and prosperity, as well as the flourishing of the joint transport (sea-land), which necessitated the existence of an airport to serve the logistics center. The logistics center has also had a significant impact on the development of the road network linking the cities and countries surrounding the center.

4- The positive association between the logistics and the economic progress of the countries

The logistics concept is linked to the elements of economic progress through its ability to reduce production costs by reducing transport, storage and distribution costs, improving the product provided to the customer, so this leads to export competitiveness and lower import prices; thus achieving the highest objective of logistics management is customer satisfaction. Studies in this area show that about 40% (average) of the cost of producing any commodity in developed countries can be returned to logistics activities ([12]).

In Australia, low-cost logistics provides to Australian exporters with convenient access to key markets and helps Australian manufacturers maintain cost competitiveness in the face of cheap imports. Companies in Australia can compete for more space, leading to lower prices and greater choice for consumers. , It is estimated that a 1% improvement in the efficiency of this industry generates $ 2 billion of gains for the economy each year, While relatively high logistics costs affect the industrial structure and spatial distribution of the country’s economy, and its sustainable development is largely restricted ([13]).

Secondly… Logistics integration International multimodal transport

There are many direct and indirect linkages between transport and the logistics sector, which is reflected in the fact that more than 80% of countries participating in the OECD / WTO survey on aid for trade facilitation have agreed that Transport is a very important source of economic growth, and there is no other sector recognized by this consensus; it is 100% responsible for increasing exports and imports, for export diversification, for increasing economic growth, and for reducing unemployment and reducing poverty([14]).

The importance of the use of international multimodal transport is attributed to its contribution to reducing logistics costs, as it assists in the flow of trade from the supply center to the demand center in a single, continuous and unhindered flow through the use of a continuum between modes of transport: maritime, land, air, river , Which interact and integrate in spatial and temporal consistency that are not hindered by geographical distances or time differences between countries.

Multimodal Transport is one of the basic components of the concept of modern logistics management, As the activity that links the productive project and the markets it deals with (raw material markets, commodity markets or the service produced by the project), Except for the cost of raw materials, transport accounts for up to 50% of the total cost of logistics activities. The MTM is economically based on two main pillars:

– Application of the rules of “management logistics” – Use containers in transport

If we consider that maritime transport is a common denominator in most international trade goods flows from their final destination, as well as the creation of integrated transport rings for goods from their sources by means of a multimodal transport system, there are two types of mating between means for obtaining a multimodal transport loop:

– Combining the means in a sequential manner where the goods are transported from one way to the other, respectively, in an integrated transport chain and a unified transport contract.

– The use of two modes of transport at the same time at least in an integrated transport chain and a unified transport contract which is called combined transport, Here, the use of two means of transport at the same time with the aim of speed distribution of the low total cost of the transferred unit, and provide a service to the customer from door to door with one transfer contract, If the cargo is not handled, it is called Intermodal Transport. If more than one mode of transport is used separately and each has a single contract or transport document, this is not considered a multimodal transport. It is called a “Unimodal Transport” ([15]).

Maritime transport has lost its independence as a separate activity and has become a link in an integrated multimodal transport chain. Next, multimodal transport itself becomes part of the integrated Global Logistics Services Provider.

The United Nations Conference on Trade and Development (UNCTAD) has established rules and bases for such a regime through the 1980 United Nations Convention on International Multimodal Transport, which was recognized in January 1992 as “carriage operations by at least two means of transport across international borders, with the carriage of goods under a single transport contract that includes one liability for the carrier” ([16] ).

A number of elements that need to be available for a highly efficient multimodal transport: The development of global container standards, the facilities required for reception, international treaties and conventions to regulate the movement of goods across international borders, developments in communications, linking them to an advanced and integrated system of information exchange, customs procedures, administrative arrangements, rapid document extraction, efficiency of inland transport networks and the efficiency of their processing([17]).

International multimodal transport is affected by the technology used, in two respects:

– Multimodal transport is a stand-alone economic activity that seeks to achieve ACE.

– The technology used in the transport component affects the level and quality of technology used in the industries served by transport.

1. The role of multimodal transport in the marine transport system

The importance of multimodal transport comes from the many advantages that accrue to both the cargo owner (Shipper, Carrier) and the national economy. Using more than one means of transport in an integrated form of cargo transport would inevitably benefit from the advantages of each means in terms of cost, speed and security; thus, the end result is a lower cost and higher quality transport service with optimal use of the means of transport, which would positively affect the national economy, with a 10% increase in transport costs that would reduce trade by more than 20% ([18] ), among other advantages:

A) Arrives on time by reducing transit time at transit points.

B) Dealing with a single document reduces the burden of documentation ([19]).

C) Streamlining logistics supply chains and reducing the handling time of the goods.

D) Dealing with one operator to achieve savings in the total cost of transporting the goods.

E) Door-to-door delivery achieves delivery and delivery of goods on time (JIT).

F) To control the movement of container transport throughout the duration of its journey through the different modes of transport through electronic data exchange systems and electronic identification of the site.

G) Ensuring the highest efficiency in the carriage of goods, whether by choosing the best means or means of traffic, or the most appropriate means of transport for carrying them ([20]).

Transport of goods is carried out by the five known means of transport: Railways, roads (freight forwarders), water transport, air transport and pipelines (tubular transport). Goods may be transported from one place to another depending solely on one of these means, or by using more than one means of transport of the same goods. The choice of different methods is based on a set of criteria, the most important of which is the cost element and the time it takes to transport the commodity, as well as the damage or loss that can occur during transport.

The following table shows the different cost and operational characteristics of transport modes in the area of cargo transport.

([21]) Different characteristics of means of transport

transport time in different

transport time

The cost

transportation

4

3

3

railway

3

2

2

road transport

5

5

5

Water transport

2

4

4

Pipe transport

1

1

1

Air transport

1= Highest cost 1 = less time 1 = the least change in time

From the above table, it is clear that water transport is the most cost-effective and energy-efficient means of transport, while air transport is the least time-consuming, with the most rapid transport and the most variable means of transport for goods. In terms of damage and loss of goods during transport, pipeline transport is the best means of transport.

So we can say that the characteristics and value of the goods transported determine the quality of the economically viable means of transport for the transport of such goods, and that logistical efficiency is achieved through improving the efficiency of each means of transport, coordination and easy exchange of the various means of transport.

The most important condition for achieving multimodal transport efficiency is the coordination between all parties involved in the transport process, directly or indirectly, and all of them are subject to a single system that ensures the smooth flow and flow of containers along the road from the start-up source to the end point, thus increasing the efficiency of each link of the transport chain, resulting in a lower overall cost of transporting goods, when the volume of the cargo increases ([22]).

2. Challenges of international multimodal transport

Despite the economic and financial benefits of the international multimodal transport system, most developing and Arab countries have not implemented this concept, and the transfer of foreign trade in some countries continues to take place under the unilateral transport arrangements of a number of carriers because of many problems that limit the possibility of developing such a system, including the following:

A) The weak and inadequate infrastructure of the multimodal transport system, which applies to transport systems, some ports and the necessary equipment of moving railway carriage units of types suitable for the roll over.

B) Lack of strong road transport entities or companies and reliance primarily on the individual carrier owner of one vehicle or a few vehicles.

C) Reduced financial allocations for infrastructure requirements updates, such as intermodal terminals, container terminals (Container Freight station), as well as weak allocations for maintenance of existing infrastructure.

D) Depreciation of special handling equipment related to railways, river ports and some seaports.

E) In the countries that have railways, the focus is still on passenger traffic, and the movement of cargo is considered a secondary activity rather than a basic one.

F) The weakness of accurate statistics on the transport market in developing countries, which hinders the existence of a good market between supply and demand for service.

G) The imbalance between exports and imports, which causes empty containers to return, increases the cost of transportation; this reduces the dependence on containers and the use of traditional transport systems.

H) Non-development of legislation conforming to the requirements of the multimodal transport system.

I) Customs regulations constitute one of the main obstacles to the spread of the Multimodal transport system, where local customs authorities require that the container be opened to reveal its contents and then closed again.

J) Lack of interest in information technology and the incomplete application of electronic data exchange systems, although some countries have already begun (Electronic Data Interchange EDI) ([23]).

The cost of transportation in Africa remains the highest in the world. The cost of shipping to Africa exceeds the cost of shipping to developed countries by an average of 10.6% of the final commodity price for Africa, compared with an average of 6.4% for developed countries ([24]).

3. International applications of international multimodal transport systems

The Double Containers are the most important international applications of international multimodal transport systems. Most of the maritime trade from the Far East to North America and Europe takes the Panama Canal route. With the development of international multimodal transport and the emergence of Land Bridge, Trade is heading to the west coast of the United States, and the land bridge is used by the double-container train to the east coast of the United States for the temporal and spatial benefit of its products before the recent expansion of the Panama Canal, P planned residence in Israel to establish a railway line allows the passage of goods from the Red Sea to the Mediterranean, thus providing an alternative route to the Suez Canal.

Thirdly – Future ports.. Logistics networks

Maritime ports are a strategic link between land and sea transport to facilitate the flow of goods on the international scene as part of the supply chains. World trade can not be carried out without the presence of these ports; the port is part of the transport centers (shipping, unloading, transit, storage) Of the distribution centers, with ports dealing with 80% of the world trade in volume, and more than 70% in terms of value; The shipping industry has evolved since the early 1960s, both for the ship and the port. The Containerization Revolution was the first spark that triggered this series of development, relying on it and on logistics concepts in the evolution of the concept of transport beyond that simple concept of transport Cargo “from port to port”, Into integrated operations “door-to-door” integrated operations ([25]).

A modern marine transport reference identified the major factors with the ability to change the shape of the port, as follows ([26]):

Changes in the internal transport infrastructure.

Change in trade patterns.

Change Ship Size.

Development in logistics thinking.

1- Major changes in port functions during the 20 century

The commercial success of the port stems from the high productivity of the traditional cargo handling service, the value added service, or the combination of both, and the productivity benefits come mainly from economies of scale, indicating that more productive ports will be those equipped to handle large cargo volumes or significantly reduce unit costs through efficient management.

Although new technology during the 1970s has sometimes provided a window for improving productivity, it is often the same technology as competitors. It is no longer possible to compete effectively on the basis of the ground rules; hence ports need to look for new ways of obtaining a competitive advantage.

While the late 1980s saw significant changes in the provision of a wider range of services, providing value-added services is a powerful means of building a sustainable competitive advantage, customers tend to consider value-added logistics as an integral part of their supply chain. As a result, ports must try to meet these needs and provide differentiated services, which pose a particular challenge to port management ([27]).

In a World Bank survey of 800 logistics managers around the world, its results indicated that trade and transport facilitation depends not only on traditional elements, such as port costs, customs efficiency in the release of goods, but the modern trading system added to these traditional elements a new element, namely logistics activities in the port along with logistics, and important logistics activities include providing transport links between the sea and the port back-end port, avoiding congestion at the same ports when trucks accumulate on a certain route([28]) .

The logistic hubs became one of the main components in the third generation of ports. Through the concepts of the third generation of ports, all the main features of all port operations and activities, whether traditional, industrial, environmental, administrative or commercial, have been integrated and combined and serve as a logistics center of the port’s major tasks; that is, to abolish the warehouse concept of many companies, and to introduce the value added concept of its impact on maximizing port productivity and reducing the time spent on shipping operations, thus providing additional job opportunities for the State. This concept undoubtedly has its basic requirements without which this activity cannot be introduced. These can be summarized as follows:

A) Provide an integrated internal transport network with the main hubs within the port, through road, rail and river channels equipped for internal navigation, with a high degree of efficiency.

B) presence of sophisticated information systems, which are the main engine of the multimodal transport system, is fluid and highly efficient, especially electronic data interchange EDI

C) Providing a logistical system that makes port facilities attractive and effective in transporting goods to any location.

D) Investing in ports distributed around the world, and collaborating with other port communities ([29])

Dubai Ports Company, Take the opportunities particularly in the African continent, with the concession rights of several major ports around the continent, such as the Ain Sokhna port in the north-east of the continent, the port of Doralje (Djibouti) in the south, the port of Maputo (Mozambique) (Senegal) West Africa.

The development of port management and handling on the basis of an economic productivity unit is the most important characteristic of the ports of the third generation, as many countries have taken it as an essential source of public revenue, and it is common for the revenue associated with port operations to weaken the traditional services of port activities, with a return rate of 20:1 in favor of associated activities ([30]).

there are so-called fourth and fifth generation ports, which are logistics platforms with high-tech security and communications systems, also called network ports, are capable of integrating into the multimedia transport network and have a strategy for growth and expansion with other ports that are similar to internationalization As well as the integration of logistics chains for international transport with other operators in many geographically close ports, as well as attention to the environment and pollution issues, the use of modern technological applications in operation, and greater emphasis on container activity ([31]).

2- pivotal ports .. continuous competitiveness

The pivotal ports face significant changes in the role they play. They have been largely dependent on their geographical location for the back-end area they serve, so they have been almost monopolistic. Today, the ports are increasingly competitive as a result of technological changes, In the region to become a central port, including the neighboring ports to become harbors of ports of the pivotal port in the region on the one hand, and on the other does not necessarily have a privileged position to achieve an advanced logistical position, but can be sought (in the absence of the people (BOT). For example, China, represented by Cusco Pacific, acquired the port of Piraeus in Greece in exchange for a 35-year right of use, which supports Greece’s economy and reduces the time it takes for Chinese exports to reach the Union 7 to 11 days ([32]).

The temptations of establishing a pivotal port are very strong in terms of the large movement of cargo flows and frequencies of various vessels from giant ships, riders and various means of land, river and rail transportation. It will create a large movement in production, distribution and storage and increase the demand for many specialties, Activities that create added value. The “multiplier effect” principle will double the economic activity and investments rapidly in the area around the pivot port.

A) Definition of the pivot port

The pivotal port is a huge deep port, located on the international shipping lines, linked inside the country through an integrated logistics network. It has a large industrial logistic backbone that can be expanded. It is geographically connected to a world region with several countries and not only its own state. Containers, fuel and its products, liquid casting of all kinds, cars, some types of casting and general goods, accepted by the global network in the system of watering. , And Action by several lines of two tributaries and operators to its stations to the principle of public service and without a monopoly, and preferably not occur by disturbances or fluctuations affect the timings inevitable global supply chain ([33]).

The pivotal port concept is due to the containerization revolution and the consequent increase in recharging practices, which in turn led to the division of ports into Hub ports and feeder ports and to competition between ports globally to try to become a central port ([34]).

The following figure summarizes the central port functions:

Figure (2)

Standards and specifications of the pivotal port in light of the development of international trade ([35])

The previous figure shows that the appearance of giant container vessels was a natural consequence of the evolution of growth rates in the volume of world trade, as well as of the evolution of container ship economies, which led to the fact that the number of pivotal ports capable of handling container vessels up to the cargo of 15,000 containers (TEU) must be reduced, and that the sea distance between the chosen global hub port and the next global hub port must be at least 3,000 nautical miles.

In order to become a pivotal port, it is necessary to deepen its navigational corridors, increase the number of berths, lengths and depths, and provide the equipment and cranes necessary for the reception of additional and sophisticated numbers of ships and the circulation of additional volumes of movement of goods and containers. It is also necessary to train the workers to increase their efficiency in proportion to the additional quantities of movement of ships, goods and containers. These investments are high cost for the port, due to the rapid and high fluctuations in the movement of goods, and the consequent emergence of surplus capacity in these ports ([36]).

B) Competitiveness of the pivotal port

In order for the port to gain competitive advantage as a pivotal port, it must have three main elements that are complementary:

– The role of management in the competitiveness of the pivotal port: It will deal with giant shipping companies, therefore it needs to be at the same level of efficiency as these shipping companies, it must be quick to match the market requirements, use highly advanced management systems, and develop its strategic plan to help them make optimal use of the available resources to achieve their specific marketing and financial targets for obtaining a specific market share, and excellence in the various activities they undertake.

– The location of competitive elements of the pivotal port, which is a key factor for the acquisition of the port competitive advantage compared to the neighboring ports, but the concession location geographically is not enough alone, but must be supported by an advanced management working to exploit the potential of this site spatially and temporally, and derives the site importance depending on the nature of the role The main port is confined to the Transshipment Center, where the giant container ships on the Main Line Haul only enter, its geographic importance then depends on how close it is to the main navigation route in the district W cause less deviation of the vessel from its itinerary for the distance traveled, the time it takes to enter the port, unload the incoming transshipment containers, and pick up the containers issued from the area, so that the cost of entry is the main element.

International efforts were based on the development of the regional hub port link to the port’s back-end port, where a modern concept of “Port Regionalization” was introduced, which indicates that port development is linked to the integrated transport chain and the expansion and deepening of the back-end port to facilitate trade, so the pivotal ports are improving their infrastructure and promoting the network of various road, rail and river transport modes, as well as establishing a dry logistics center for assembling and offering value-added services ([37]).

The pivotal ports are to reduce the time of vessels that rely on the performance of express services, in order to limit their handling with a few ports that are qualified to deal with advanced container ships (models) which are managed on the basis of economic calculations governed by trends and reduce losses and achieve the greatest amount of For example, the port of Rotterdam takes the slogan “Rotterdam Gate Europe”, which expresses a vision that emits a complete strategy for the Port of Rotterdam to continue to be the main transit point for Europe. The rest of the ports in northwestern Europe.

The volume of goods traffic is the main factor in attracting shipping companies. For the volume of container vessels that are increasing their capacity, the volume of goods flow in both directions (exported and exported) throughout the year will be necessary. Therefore, the main role of the national plan of the state and port management is to concentrate the movement of goods , Whether directly going from or to the rear back of the port or transit cargo goods. The efficiency and modernity of the port and the modernity of its equipment and the high rates of container circulation lead to maximize the productivity of its services to reach the level of global rates, and the continuous work round the clock throughout the year without interruption, all of which increase the flow of large volumes of goods, and the complex customs procedures as a tracer for the passage of goods ([38]).

The following table shows the top 10 international ports in container handling during the period 2010 to 2017.

Figure (2)

Ranking of top 10 pivotal ports in container handling during 2010- 2017 ([39])

Million containers

Ranking

2010

2011

2012

2013

2014

2015

2016

2017

Growth rate during 10 years

1

Shanghai
(China
)

29069

Shanghai

(China)

31739

Shanghai

(China)

32529

Shanghai

(China)

33617

Shanghai

(China)

35285

Shanghai

(China)

36537

Shanghai

(China)

37133

Shanghai

(China)

40233

144%

2

Singapore

28431

Singapore

29938

Singapore

31649

Singapore

32579

Singapore

33869

Singapore

30922

Singapore

30904

Singapore

33666

113%

3

Hong Kong (China)

23699

Hong Kong (China)

24384

Hong Kong (China)

23117

Shenzhen

(China)

23278

Shenzhen

(China)

24037

Shenzhen

(China)

24205

Shenzhen

(China)

23979

Shenzhen

(China)

25208

118%

4

Shenzhen

(China)

22510

Shenzhen

(China)

22571

Shenzhen

(China)

22941

Hong Kong (China)

22352

Hong Kong (China)

22226

Ningbo Zhou Shan
(China)

20627

Ningbo Zhou Shan
(China)

21561

Ningbo Zhou Shan
(China)

24607

219%

5

Busan

(Korea)

17046

Busan

(Korea)

17046

Busan

(Korea)

17046

Busan

(Korea)

17046

Ningbo Zhou Shan

(China)

19450

Hong Kong (China)

20073

Hong Kong (China)

19813

Hong Kong (China)

20770

85%

6

Ningbo Zhou Shan
(China)

13147

Ningbo Zhou Shan

(China)

14719

Ningbo Zhou Shan

(China)

16175

Ningbo Zhou Shan

(China)

17351

Busan

(Korea)

18683

Busan

(Korea)

19469

Busan

(Korea)

19456

Busan

(Korea)

20493

152%

7

Guangzhou
(China)


12546

Guangzhou
(China)


14250

Guangzhou
(China)


14547

Guangzhou
(China)


15522

Guangzhou
(China)


16580

Guangzhou
(China)


17625

Guangzhou
(China)


18850

Guangzhou
(China)


20370

185%

8

Qingdao
(China)


12010

Dubai
(Emirates)


13031

Guangzhou

(China)


14503

Guangzhou

(China)


15311

Guangzhou

(China)

16389

Guangzhou

(China)


17436

Guangzhou

(China)

18050

Guangzhou

(China)

18262

177%

9

Dubai

(Emirates)


11600

Qingdao

(China)


13020

Dubai

(Emirates)


13280

Dubai

(Emirates)


13641

Dubai

(Emirates)


15249

Dubai

(Emirates)


15592

Dubai

(Emirates)


14772

Dubai

(Emirates)


15368

130%

10

Rotterdam
(Holland(

11148

Rotterdam

(Holland)

11877

Tianjin
(China)


12303

Tianjin

(China)


13021

Tianjin

(China)


14061

Tianjin

(China)


14111

Tianjin

(China)


14519

Tianjin

(China)


15040

177%

Note from the previous table:

There is a major shift in World Trade Centers: In 2004 there were 7 ports from Asia, 2 from Europe, 1 from North America on the list of 10 major ports, then in 2010 one continued from continental Europe, and in 2016 the list of 10 major ports from Asia became undisputed.

– Shanghai has achieved a world record in the number of containers for the first time in 2010, exceeding Singapore, becoming the richest Chinese city in the world with the expansion of Chinese export trade, the noticeable growth in the number of containers and tradables is due to a steady rise in the local economy, a rise in the European and American markets, and the economies of the Chinese economy.

– China has the highest share of total container traffic in 6 ports within the top 10 ports except Hong Kong Special Administrative Region and 9 ports in the top 20 ports with a total container traffic of 155 million containers, indicating that China has become the world’s factory, Said that the world’s top 10 container ports are from Asia. This shows the extent of the positive relationship between export-oriented economies and the development of container growth.

– In 2010, Shanghai Port achieved, for the first time, the title of the world’s largest container port movement from the port of Singapore with a total traffic of 29.2 million units equivalent to 20 feet. This represented a growth of 16% over 2009 and Singapore’s 9.72% performance. The port of Shanghai surpassed Singapore in 2005, becoming the largest port in the world in terms of volume handled by various modes of transport.

– The port of Dubai is the only Arab port, located outside the East Asia region, although it has been arranged for more than 10 years.

3. The impact of technology in maximizing port competitiveness

In the face of intense competition, both in foreign and domestic markets, under the influence of the spread of global trade liberalization policies, the idea of ​​competitive advantage has become essential, and it has become necessary for each economic unit to have a competitive strategy in order to achieve the competitive advantage of its products in the markets. Technological change is one of the most important factors leading to competitive excellence. It plays a major role in changing the structure of the industry itself, as well as in creating new industries, but technological change is not required for itself, but it is important when it leads to competitive excellence, achieved through the value it can Economic unity to achieve for its customers, through two ways:

– Achieve lower prices than its competitors for similar products, by achieving a reduction in total production costs.

– Improving the quality of production rather than reducing the price of “Differentiation of product” ([40]).

The port’s competitiveness is to provide more efficient and quality services than its competitors in logistics operations, and the logistics port competitiveness has shown 6 aspects: port handling capacity, infrastructure, logistics efficiency and service level, port development environment, port logistics level and sustainable development capacity ([41] ).

The chart below illustrates the evolution of port productivity from traditional core activities to integrative and high productivity activities to a well-served port.

Figure (3)

Port Competitive Advantage Matrix ( [42])

From the previous figure, we note that the ports providing traditional services in the left corner of the matrix are indistinguishable from their competitors. The only option for such ports is to move to the right side of the matrix, to provide a productivity advantage, or to move up to provide value-added services. And that “pivot ports” dominate the provision of superior services that combine the productive advantage with value added service, located at the far right of the matrix.

The competitiveness of seaports is based on the procedures and capabilities that control the operation and security of operations within the port and the ability to meet the requirements of ship-owners and port operators through the system of logistics of shipping services, which is one of the main phenomena in the governance at the performance level Within the maritime ports; and thus their ability to withstand competition and global shipping blocs. The decline in the global trade movement has been a new impetus to the need of ports and logistics companies to invest in ICTs; Is one of the main sources of productivity improvement and increased competitiveness through five specific technologies that have demonstrated the spread of logistics services, including:

– Electronic Data Interchange (EDI).

– Personal computers.

– Artificial Intelligence / Expert Systems.

– Telecommunications.

– Bar coding and scanning ([43]).

The mechanism levels vary considerably between ports, for example Shanghai Port, one of the largest container ports, which manually implements all its operations, while there is no human presence in the container handling section at Terminal 2 of the Port of Macfalakt in Rotterdam, which was inaugurated in April 2015, thus enhancing efficiency and reducing the risk of accidents, and it is easy to apply the mechanism at sites constructed in empty areas, which may partially or completely modify the plant in advance.

The mechanism process is logical in ports where labor and land costs are high, with a competitive need for more efficient handling of larger vessels, and the emergence of large vessels has led to this mechanism, especially with more than 120 container vessels with a capacity of 13-20 feet standard container capacity, which is expected to continue due to the cost-effectiveness of such vessels.

Examples of the growth of the mechanism include the highlight of the “trapac” Los Angeles Station, the first stop in the United States in terms of ship-to-shore operations and ground operations, and expectations of a 50% reduction in labor costs have stimulated work in this sector, where the number of motor ports will continue to increase, given its ability to differentiate in a way It is clear to its regional competitors about the largest and most efficient loading and discharge capabilities ([44]).

Also for logistics, sensors can monitor the temperature of goods as well as other major variables, as well as send and receive data when equipped with radio wave identification devices (RFID), where things become uniquely identifiable, and Pure Fresh Company uses this technology to improve the transport of perishable foodstuffs, gathering real-time data on air within a refrigerated container, and sending automatic alerts if the temperature increases or decreases outside the required range, allowing logistics managers to take action away from it ([45]).

Fourth: Kuwaiti pivotal ports. Reality and target

Kuwait has grown as a country around the old port of Kuwait, and has been blessed for a long period of its journey to what was brought to it through that port of goods. The most important step in the life of the port was at the beginning of the twentieth century by one of Kuwait’s most prominent leaders, Which made the old port of Kuwait the most important port in the Arabian Gulf, which resulted in Kuwait becoming a trade site among the countries of the region for many years([46]).

  1. Historical background to Kuwaiti ports

All shipping companies in that period confirmed that their cargo was unloaded quickly at the port of Kuwait compared to any other ports in the Gulf. The port of Kuwait was well advised by the vessels that came to it. In addition to the lighthouse in Ras al-Ard, It is located at a distance of 29 feet and can be seen at 11 miles. These developments have confirmed the importance of Kuwait as a main port in the Gulf, which the state relied on to supply it with a large part of its food needs. By the end of the 1960s it became the main supplier of many major commodities (Saudi Arabia, Iraq, Iran, Bahrain and the United Arab Emirates ([47]).

Today, the Kuwaiti ports are classified as primitive ports because of their infrastructure and infrastructure capabilities. These ports are now classified as harbors by virtue of the volume of ships coming to these ports. This decline in commercial ports may explain the prosperity of oil ports.

The economic plan Kuwait 2035 is based on its ports. It has 6 ports divided into commercial ports: Shuwaikh Port, Shuaiba Port, Doha Port its management byf the Kuwait Ports Authority, and oil ports: Mina Al Ahmadi, Abdullah Port, Mubarak Al Kabeer Port (a port under construction is located on the eastern island of Boubyan, the largest Kuwaiti island and the second largest island in the Arabian Gulf after the island of Qeshm).

2- Describing the possibilities available to Kuwaiti ports

The technical specifications of the port, whether the infrastructure (the depth and width of the port and the length of the pavement) or the superstructure (the availability of cranes, gantry lifts, ease of transport and storage) are the actual determinants of the ships on which it is anchored and thus the quality and sizes of the goods. Kuwaiti Business.

Table 3 Technical Specifications of Kuwaiti Commercial Ports ([48])

Doha port

Shuaiba port

Shuwaikh Port

Statement

1960

Manufacture year

South of Kuwait

West of Kuwait

Geographical location

29 degree, 23 minute north- 47 degree, 48 minute east

29 dergree,2 minutes & 36 second north- 47 degree, 56 minute& 56 second east

29 degree,21 minute north-47 degree
56 minute east

Photogrammetry area

4.4 million m2

Total area

2600m

1.2 million m2

Aquarium area

3.2 million m2

Land area

20 Anchor

21 Anchor

Anchors number

4068m

4055m

Anchors length

4.3m

14m

9.5m

Maximum Draught

15

26

Warehouses number

12200 m2

170323 m2

Warehouses area

3250 m2

485718 m2

Storage field

(-): No data.

From the previous table we note the weakness of the infrastructure of these ports, which led to the displacement of international companies from the Kuwaiti ports, and directed their operations to the ports of some Gulf countries, such as Dubai or Bahrain, to avoid those problems, which caused weak demand for the ports of Kuwait, Of the Kuwaiti ports, similar to the ports of the Gulf Cooperation Council countries according to the index of global competitiveness, which is through 137 countries.

According to the following table, the ranking of Kuwait’s ports is ranked 78th in the world.

Table

Kuwait Ports Infrastructure Compared to GCC Countries (49[49])

Oman

Qatar

Bahrain

Emirates

Saudi

Kuwait

Status/country

48

12

30

4

42

78

Ports Infrastructure quality

From the previous table, we note:

– Despite all the material resources possessed by the State of Kuwait, it came in last place in terms of infrastructure compared to the GCC countries. Here is the lack of ambitious human resources that did not live in the Kuwaiti ports to become the best ports in the world, In Dubai, the largest seaport in the Middle East for 20 consecutive years, and the flagship facility of DP World’s portfolio of more than 65 seaports and seaports spread across the six continents, and has been ranked as the world’s ninth largest container port; Asia.

– The weakness of the capabilities possessed by the Kuwaiti ports, especially in terms of technology and the rapid discharge of cargo, and the lack of modern and digital systems in the areas of management and operation and the lack of keeping abreast of the global developments in this field; resulting in the high time of ships in ports and increase their congestion; Shuaiba port has been flooded with more than 54 vessels without unloading in 2015 ([50]), while one of the most important logistics activities is to provide transportation linking the sea to the back of the port and to avoid congestion within the same ports when the trucks are congested in a certain way inside the port .

– The maximum submerged item in the infrastructure index is the distinguishing mark in determining the quality and load of vessels coming to the port as well as its generation. Therefore, the lack of development of the Kuwaiti ports led to a halt in the third generation of vessels: “Panamax” ships with a load of 3000-3400 TEUs, Width 32 m deep 12.5, while the global

trend towards the use of ships is large because of the operating expenses that lead to the possibility of reducing looms to achieve the ability to compete in the shipping market. This type of vessel is an important element in reducing its expenses. It is the time factor in the sea voyage and its stopping in ports. It is preferable to deal with the port with a distinctive location and equipped with the latest high and high loading and unloading equipment with the quality of the goods. For foreign exchange services, as well as job creation for citizens.

– The lack of infrastructure and the infrastructure of the Kuwaiti ports has led to a decrease in the container handling rates compared to the container traffic in the GCC ports, as shown in the following table:

Table 5
Container Handling in the GCC Countries during 2012-2017 ([51])

The value provided by the logistics center.

Containers log
TEU

Emirates ports

Bahrain ports

Kuwait ports

Oman ports

Qatar ports

Saudi ports

2012

18,120,112

269,331

950,000

4,330,000

420,001

7,949,000

2013

18,693,112

269,331

950,000

4,024,400

420,001

7,811,139

2014

20,223,612

269,331

1,050,000

3,886,000

462,000

7,446,762

2015

21,233,200

269,331

1,035,000

3,569,000

568,000

7,567,862

2016

20,613,200

269,331

1,262,174

4,075,000

568,000

7,578,862

2017

21,280,900

296,331

1,317,707

4,784,712

1,267,000

8,404,000

It is noticeable from the data of the previous table that the container movement in the Kuwaiti ports compared with the ports in the UAE and Saudi Arabia is due to the lack of some necessary facilities such as container terminals, deep berths, equipment efficiency, container loading and unloading, More importantly, poor logistics.

3- Classification of Kuwaiti ports according to international indicators

Classifying maritime trade by the nature of cargo carried by cargo vessels to:

A) Dry Bulk: such as (salt, grain, cement/gypsum, coal derivatives).

B) Liquid bulk: such as (crude oil, benzene, chemicals, liquefied natural gas).

C) Break Bulk: such as (wood, steel, heavy machinery).

D) Cars.

E) Containers that contain finished or semi-finished goods ([52]).

The general cargo transported by ship is returned to the ports in different shapes and sizes. The goods are traded and loaded and then stored according to the shipping map, which takes a long time to complete these operations. The cost increases and the number of workers required to carry them are increased. Damage or loss, so this type of cargo is filled in standardized containers shapes and sizes to facilitate circulation.

Containers are the Ideal model in loading model because they are large rectangular boxes that are waterproof, stored in and transported, can be sealed for security purposes, separated from transportation, use of delivery equipment for transport, and can be transported by different means of transport ([53] ).

Economist magazine was published that containers have an important role in the liberalization of trade it was not possible without containers. In a study of 157 countries during the period 1962-1990, practical evidence was provided that container transport was the nerve of economic globalization in the twentieth century. In 22 industrialized countries, The study showed that the increase of 320% in bilateral trade during the first five years after the adoption of the agreements and 790% over 20 years was the result of the use of container transport ([54]).

The port can be classified according to the type of cargo that handled in the port, so the port can be classified if it is second-generation if it deals with goods, whether dry casting of liquid casting, whereas the port is mostly used by cars and containers, as it is classified within generations after the second generation, depending on the value-added offered in the logistic center.

The Kuwaiti ports can be classified into the second generation of ports, especially since the mechanism of operation is still primitive and needs to be organized and technical, as well as for the control of dry and liquid loading and unloading operations on the performance of commercial ports, especially Shuaiba port.

Table 6 ([55] )

The total movement of ships, goods, and containers in the ports of the Corporation during the period 2011-2015

Status

2011

2012

2013

2014

2015

Number of Ships coming to the ports of Shuwaikh and Shuaiba

3,732

3,390

4,025

4,107

4,798

The number of small ships coming to Doha port

6,301

4,577

8,117

8,924

6,006

General incoming goods – ton

1,879,251

1,602,498

2,113,213

1,866,271

1,966,236

Incoming Bulk goods-ton

18,063,675

24,058,575

22,710,825

23,759,729

28,232,845

Incoming living Cattles- ton

48,882

32,036

39,625

42,230

33,203

Incoming containers goods – ton

5,322,526

5,344,195

5,489,610

5,937,681

6,602,734

Total imports-ton

25,314,334

31,037,304

30,353,273

31,605,911

36,835,018

General exporting goods – ton

198,151

259,506

68,585

108,138

104,963

Exporting Bulk goods – ton

2,537,092

2,598,099

2,742,213

2,808,804

2,605,673

Exporting containers goods – ton

1,926,102

2,041,590

2,020,499

1,859,012

1,725,516

Total exports – ton

4,661,345

4,899,195

4,931,297

4,775,954

4,436,152

Total imports & Exports – ton

29,975,679

35,936,499

35,184,570

36,381,865

41,271,170

Incoming Equivalence containers number

403,692

410,695

417,379

452,938

496,416

Exporting Equivalence containers numbers

406,556

413,501

422,770

451,111

488,399

Exporting & Importing Equivalence containers number

810,248

824,196

840,149

904,049

984,815

Note from the previous table:

– The decrease in the number of cargo ships coming to Shuwaikh and Shuaiba ports during the period 2011-2015, indicating that these ports lack the necessary attractiveness to attract these vessels.

– The number of incoming containers is approaching the number of containers issued during the period from 2011 to 2015, and if these containers are exported empty, they represent a large burden on the prices of raw materials received.

– We can call the port of Shuwaikh the first container port in Kuwait, accounting for 72% of the volume of handled containers for 2015, and the port of Shuaiba by 28%.

– In view of the logistics provided to ships, they are limited to revenues from services in the sale of water and cleaning services, which are low value-added activities, while targeted high-value logistics activities, such as packaging, packaging, and packaging, despite the control of logistics revenues On the total revenues of ports by 75% for the estimated revenues for the year 2015-2016, amounting to 71,152,000 Kuwaiti Dinar, as shown in the following table.

Table 7
describing the revenues of Kuwaiti ports and their contribution to total revenues ( [56])

Series

Status

Shuwaikh Port

Shuaiba port

Doha port

Total

1

Load revenue
logistics revenue

39.60%

34.38%

50.71%

74.70%

2

Marine revenue

4.67%

4.43%

50.40%

9.50%

3

Services revenue

7.06%

3.03%

1.14%

11.22%

4

Variety revenue

4.30%

50.28%

50.00%

4.59%

 

Total

55.63%

42.12%

2.25%

100.00%

From the previous table, we note the following:
– Port revenue is classified into 4 types: Logistics (transport and storage), with a contribution of 74.7% of the total revenue of 53,150,544 Kuwaiti Dinar.

– Then the revenues of services, such as Rents – Cleaning wages – selling water, 11.22% of its contribution was 7,983,254 Kuwaiti Dinar.

– Navigation revenues, such as port fees, lighting fees, berthing fees, departure permits, 9.5% at 6,759,440 Kuwaiti Dinar, and finally miscellaneous income came in the final position at 3.272,992 Kuwaiti Dinar ([57]).

4- Interpretation of the weakness of the productivity of Kuwaiti ports

Competitiveness in ports requires higher levels of performance that exceed the criteria of maximum operational efficiency, cost reduction, time efficiency, and trade promotion. Ports are increasingly expected to improve their performance in other areas such as security, environmental protection, social integration, And these factors are closely related to the objectives of sustainable development and the promotion of ports from generation to other.

A- Weakness of logistical performance

The high logistics costs in Kuwaiti ports caused the poor efficiency of customs clearance and customs checks, the low quality of transport and trade infrastructure, and the difficulty of arranging shipments at competitive prices, so there are 6 key elements of the most important logistics environment requirement:

– Efficient customs clearance and inspection; speed and simplicity by border control bodies, including customs.

– Quality of transport and trade-related infrastructures, such as ports, railways, roads and information technology.

– Easy to arrange shipments at competitive prices.

– Efficiency and quality of logistics services, such as Customs specialists.

– The percentage of shipments received in time or expected as a result of the performance of transport operators, customs clearance, middlemen and freight forwarders.

– Ability to track shipments such as “Fed-Ex” and “UPS” company, which contributed to providing customer information about the presence of their packages at any point Delivery and receipt points ([58]).

When comparing the situation of Kuwait with the GCC countries according to the logistics performance index of 2018, we find what is stated in the following table:

Table 8

Analysis of the 2018 logistics performance indicators for the GCC countries ([59])

State

General Classification
160 State

Degree

customs clearance and inspections Efficiency

Quality of Infrastructure of transportation & trade

Easiness of arranging shipments with competitive prices

Efficiency & quality of logistics & competitiveness

Ability to track shipments

Percentage of shipments that reach the recipient on time or expected

Saudi Arabia Kingdom

55

3.01

66

34

56

57

46

67

United Arab Emirates

11

3.96

15

10

5

13

13

4

Qatar

30

3.47

38

27

9

31

30

36

Kuwait

63

2.86

56

45

98

67

96

59

Bahrain

59

2.93

63

68

55

58

60

68

Oman

43

3.2

44

39

36

49

66

29

In the previous table, the World Bank’s performance indicator for 2018 shows that Kuwait is ranked the last place in comparison to GCC countries. and there are many indicators where Kuwait has been inefficient, with the latter ranking: An indicator of ease of arranging shipments at competitive prices, efficiency and quality of logistics, as well as an indicator of ability to track and track shipments.

In the “Agility” Logistics Emerging Markets Index 2019, despite Kuwait’s progress in the 18th international position and its rise to 10 points compared to 2018, it came in the last place in the Gulf in the logistic competition ([60]).

B- Analysis of the Global Competitiveness Index for the State of Kuwait

Despite the potential of the State of Kuwait, according to the Global Competitiveness Index issued by the World Economic Forum 2017/2018, it is in a state of continuous deterioration, having been ranked 34 globally according to the index of 2015/2016 within 140 countries, To 38th in 138 countries in 2016/2017. The decline reached 52th in 137 countries in 2017/2018. In comparing this situation with the GCC countries, it ranked second to last (Sultanate of Oman, 62th globally ), The UAE ranked 17th in the world, followed by Qatar 25 and the world DIA 30 worldwide, and Bahrain 44 worldwide.

When analyzing the sub-indices of the Global Competitiveness Index as compared to the GCC countries, according to the following table:

Table 9

The Kuwaiti economy in light of the results of the Global Competitiveness Report 2017/2018 compared to the GCC countries

Status / State

Kuwait

Saudi

Emirates

Bahrain

Qatar

Oman

General indicator

52

30

17

44

25

62

A- Basic requirements

50

32

7

40

12

38

1- Institutions

57

26

5

23

10

28

2- Infrastructure

64

29

5

33

13

36

3- Macroeconomic climate

30

58

28

108

20

66

4- Health and basic education

83

51

33

37

34

63

B- Efficiency Catalysts

73

33

17

36

25

66

1- High education & training

95

43

36

39

37

71

2- Efficient commodity market

89

42

3

23

15

47

3- Efficiency of the labor market

119

80

11

37

19

122

4- The development of the money market

62

56

24

46

25

54

5- Prepare for the adoption of modern technology & its application

68

44

24

30

34

59

6- Market size

50

15

29

90

51

62

C- Business development factors

86

40

20

43

22

70

1- Business development

70

34

13

36

22

72

2- Innovation

103

40

25

45

21

76

In most of the sub-indicators, Kuwait is in the last place, especially in the indices of institutions, infrastructure, health, and education, as well as in the index of the efficiency of the commodity market, the development of the capital market, and in the innovation index.

(C) The cross-border trade enabling index

The indicator measures the time and cost associated with the logistics operation for the export and import of goods. The indicator takes into account the comparative advantage of each economy when measuring export procedures while focusing on import procedures on one common product and plant.

Therefore, when analyzing the cross-border trade enabling index, we find that it is a sub-index of the Business Ease Index, which includes 190 countries.

And when comparing the situation of the State of Kuwait with the GCC countries according to Table No (10).

– Kuwait is ranked 159th out of 190 countries. It is ranked last in comparison to the GCC countries. Oman is ranked 72nd, followed by Bahrain 77, Qatar 97, Emirates 98, and Saudi Arabia 158.

– Total time to export, whether compliance with border procedures, conditions, and documentary requirements, Kuwait needs 7 days to complete the export, while UAE and Qatar need 1.5 days, Amman two and a half days, Bahrain 4 days and Saudi Arabia 4 and a half days.

– Total export cost is $ 793, while Bahrain is $ 147, Oman is $ 368, Saudi Arabia is $ 467, Qatar is $ 532, and the UAE is $ 640.

– For the time it takes to import, Saudi Arabia needs about 13 days to import, while Kuwait needs about 8 days, while the rest of the countries need 2 to 5 days for import.

– The highest cost of importation was Saudi Arabia at $ 1169, followed by UAE $ 961, Qatar, Kuwait for $ 823, and Amman ranked first at the lowest cost of imports at $ 518.

Table 10

Kuwait according to the cross-border trade index and its components for 2019 compared to the GCC countries ([61])

Indictor

Cross Border Trade indicator
(Ranking)
2019

Export: time

Total Export time (Day)

Export: Cost

Total Export cost
(US $)

Import: Time

Total import time (day)

Import: cost

Total import cost (US $)

Countries

Time to export: compliance with border procedures (hours)

Time to export:
Compliance with documentary conditions (hours)

Export cost:
Compliance with border procedures (US $)

Export cost:
Compliance with Documentary Terms (US $)

Time to import: compliance with border procedures (hours

Time to import: Compliance with documentary conditions (hours)

Import cost: In compliance with border procedures (US $)

Import Cost: Compliance with Documentary Terms (US $)

 

Bahrain

77

71

24

4.0

47

100

147

42

60

4.3

397

130

527

Kuwait

159

96

72

7.0

602

191

793

89

96

707

491

332

823

Oman

72

52

7

2.5

261

107

368

70

7

302

394

124

518

Qatar

97

25

10

105

382

150

532

48

72

5.0

558

290

848

Saudi

158

50

60

4.6

362

105

467

228

90

13.3

779

390

1169

Emirates

98

27

6

1.4

462

178

640

45

12

2.8

678

283

961

– We note from the previous table that most of them over time and cost is due to the borders, especially in Kuwait, and hence the importance of developing border outlets, especially customs and customs clearance, we can consider the “signal window” program within Kuwait’s vision 2035 is the way out of this dilemma.

5- The negative effects of the low performance of the Kuwaiti ports

The efficiency of port operations affects directly to the entire logistics chain along domestic and international shipping corridors, and hence the cost of transport. A 0.1% increase in port efficiency reduces shipping costs by 0.9-3.8% ([62] ).

There are many negative effects of the decline in the performance of Kuwaiti ports:

A – Decline in the revenues of the country from maritime fees, due to the decrease in the number and types of vessels due to poor infrastructure.

B- Low capacity to create more jobs in ports.

C- The difficulty of competing for domestic products in export markets due to the high costs of imported raw materials, as well as the high costs of transportation and shipping of exported products.

D- High prices of imported goods compared to neighboring countries due to the low efficiency of customs clearance devices.

E- The “Unctad” report of 2015 indicates that developing countries pay more for international transport of their imports and exports than the developed countries. This is due to the failure to implement port, customs and logistics reforms in these countries, apart from the causes of imbalance in the trade of these regions. The reduction of its external trade costs in general, including improving port infrastructure and supporting its competitiveness by increasing the effectiveness of logistics chains and trade facilitation measures ([63])

6. Lack of logistical services provided by Kuwaiti ports

The various value-added statistics have shown the importance of logistics activities in achieving high returns and creating employment. Traditional ports can no longer cope with the country’s economic development and create new employment opportunities. Countries such as Denmark, Finland, and Italy have contributed to the added value of the sector Logistics in GDP is 14.38.14.18.14.63% 2009 ([64]).

Rotterdam port, which achieved more than 22.5 billion Euros in 2014 from value-added operations carried out by the logistics hubs adjacent to the port, as well as the resettlement of globally integrated projects to bring modern technological systems contribute to the creation of technical expertise and management developed as a result of friction with global expertise lead To increase GDP, and to link the local economy to the global economy ([65]).

The most important logistics services that Kuwaiti ports can offer are:

Carry out all maritime services for marine units, including ship supply, repair and maintenance, and other work-related to navigation and maritime transport.

– To carry out all works of maritime works, as well as the work of storage and warehouses, taking into account the provisions of laws and regulations and obtaining the necessary licenses for the exercise of these activities.

– The establishment of dry ports and customs warehouses full or fragmented, processing, operation, ownership, and lease.

– Buying, renting, maintaining and cleaning containers of all kinds.

– Establishment of service stations and the supply, ownership, operation, and rental of ships, as well as maintenance and repair services.

– Carrying out all value-added activities necessary for the movement of local and international trade (sea, land, air, international, storage, packaging, labeling, handling of goods, insurance services for persons, goods, and equipment).

– Import, storage, and supply of spare parts for ships.

– Building hotels, restaurants, tourist shops, and a supermarket so can rent or sell it ([66]).

The most important features to be provided in the Kuwaiti commercial ports for the establishment of logistics centers are as follows:

– Be highly technical and provide the needs of port users.

– Completion of various works with flexibility and cost-effectiveness.

– Achieve a strong integration between all around the port ([67]).

– Deployment of the value-added system.

– Increase efficiency of Kuwaiti pivotal ports Network ([68]).

For example, the first dry bulk “Chinamax” ships delivered to “Vale” in Brazil faced the challenge of finding frequency ports. In 2011, China had not yet authorized the ships to enter China’s ports with their full capacity. So Vale thought of landing at a port in Malaysia and then transferring iron stakes in other ships from that port to China, “Kingdom” with a load less than its full load ([69]).

There are several studies – approximately 150 studies – on the impact of the port on GDP, with the result that one third of the ports achieve an added value of $100 per ton of port productivity, and that two thirds of the ports in the sample achieved between $50 and $250 value-added per ton, including direct and indirect value ([70]).

Fifth: the extent to which Kuwaiti ports can benefit from international experiences

1- Dubai Ports’ strategies to reach the top ten list in container handling
Dubai has used three strategies to enter the global supply chain, and today it has become one of the top ten container handling companies in the world:

A- Strategy for the Insertion of logistics areas into global supply chains
To insert the port within global supply chains in an attempt to obtain other sources of income other than the export of raw materials, which enabled them to access vital resources, such as technology, markets, knowledge and experience, by listing the port in one or more Supply chain, listing may be obtained by obtaining concession contracts, or alliance with a shipping line.
Dubai has implemented this strategy by establishing and developing the Jebel Ali Port, The first phase was completed in 1979 and a free zone was established in 1985. The free zone is one of the most important steps that have confirmed Dubai’s ability to carry out transport operations and value-added operations. Nearly two-thirds of Dubai’s activity relies on re-exports, The goods are being produced in India and China, the fastest-growing economies in the world. This allows for the constant sharing of knowledge between them and the UAE. These products are re-exported to the world. The Free Zone hosts offices for global consumer product developers such as Nokia, GE, Wears, Honda, Pepsi; so that they can distribute their brand efficiently and faster growth in the markets, and in this way Dubai was able to incorporate itself into more of the supply chain and to engage in a global production network ([71]).

Development of Free Zones in Dubai

The Dubai government has been keen on investing in a series of free zones of various disciplines including health, information technology, information technology, education, financial services, and other fields, and today the total number of free zones in the emirate of Dubai is 23, including 10 major free zones, with some 19,000 companies operating. It has been established for various sectors and industries, including information and communication technology, information, finance, gold, jewelry and health care ([72]).

The country ranked first place with the largest number of free economic zones in 19 countries, with the goal of reaching two billion consumer markets across the Middle East, South and West Asia and Africa ([73]).

Dubai’s free zones offer a number of benefits that have contributed to attracting foreign companies, including the right to own foreigners by up to 100%, long-term tax exemptions, customs exemptions, lack of restrictions on hiring and guarantee, and no restrictions on capital or profit exit, as well as no restrictions on trade diversion, Dubai’s free zones have a minimum of bureaucracy, as well as the ease and speed of establishing companies ([74] ).

We note that these incentives are of two types: The first involves the provision of infrastructure and services for industries within these areas: Roads, electricity, transport… and the second type includes exemptions, discriminatory trade transactions, and capital goods from customs.

We note that these benefits are of two types: The first involves the provision of infrastructure and services for industries within these areas: Roads, electricity, transport… and the second type includes exemptions, discriminatory trade transactions, and capital goods from customs ([75]).

Jebel Ali Free Zone Model for insertion Strategy

The Jebel Ali Free Zone (JAFZA), established in February 1985, is the first free zone in the United Arab Emirates to be the most prominent area within Dubai World’s World Economic Zones Group with an area of ​​approximately 57 square kilometers stretching south of Dubai. , One of the largest and fastest-growing free zones in the world, assisted by two important logistics entities: Jebel Ali Port (one of the world’s 10 largest seaports) and Al Maktoum International Airport (the world’s largest cargo airport). Attracting international companies and brands seeking to benefit from this strategic location To facilitate and accelerate the transfer of their goods and services to the various parts of the world; it is ideal as a hub for the neighborhood trade, storage and distribution of the market up to two billion customers; which allowed to be seen as an ideal base for multinationals.

As one of the fastest-growing free zones in the world, Jebel Ali Free Zone has achieved the following achievements:

  •  – Growth of its customer base by more than 60%.
  •  – Increase its revenues by an average of 34% year on year.
  • – Increase its contribution to the GDP of Dubai by 25% year on year.
  • – Established more than 160,000 jobs in the UAE.
  • – Acquired more than 50% of Dubai’s total exports.
  •  – Acquired 25% of all containers passing through Jebel Ali Port.
  • – accounted for 12% of total air cargo at Dubai International Airport.
  •   – Attracted 20% of all direct investment flows to the UAE ([76]).

B- Strategy for Integrating and Improving Dubai Ports Logistics

The integration strategy is to support economic and service activities by integrating them into other economic activities through vertical and horizontal integration.

Vertical integration: The integration of two institutions engaged in complementary economic activities to reduce transport and contracting costs.

Horizontal integration: The integration of two organizations working in the same economic activity to achieve economies of scale.

Dubai implemented this strategy on its ports by merging the two best ports in Dubai in 1991, namely Jebel Ali Port and Al Rashid Port, and established a body called Dubai Ports. Both ports before the merger operated as separate entities, thus reducing customs duties. Linking them to help provide information to consumers and the work of a network linking the government with investors and customers to facilitate the conduct of operations between the government and investors, and between investors and between investors and customers, as well as the unification of customs, banks, transport and public security; to avoid parallel long driving, The organization of the administrative system in Dubai port is based on the following diagram ([77]):

The internal organizational structure of Dubai Port([78] )

Development of AL Rashid Port

In February 1976, a new phase began to develop the port, with 20 new container docks added to accommodate the largest vessels, and the storage area expanded to 30,000 square meters, including the exclusive storage requirements area of 400 refrigerators, Port Rashid enabled Dubai to enhance its position as a commercial center in the Gulf region, easily located near commercial banks and offices, as well as a highly efficient operating system without administrative operations, and the import of merchants ([79]).

Establishment of Jebel Ali Port

In 1976, Sheikh Rashid Bin Saeed Al Maktoum ordered the implementation of the Jabal Ali port and succeeded shortly after attracting large industrial projects, such as aluminum, gas, and cement. The establishment of a free zone around the port has also helped to make the site a center for international companies looking to take advantage of the best facilities, competitive costs and free labor in the maritime sector ([80] ).

The Jebel Ali Port was built on 25,000 acres of desert sands; it is the world’s largest port. The project, along with the Great Wall of China and the Hoover Dam, is also among the three man-made projects visible from outer space ([81]).

In 1991, Jebel Ali Port was merged with Port Rashid to form the Dubai Ports Authority. For the first time, the two ports were able to handle more than one million TEUs. Port Rashid and Jebel Ali Port are integrated systems for a high-efficiency port. Port Said has a good international reputation, and container traffic at Jebel Ali Port has increased by more than 50% for its proximity to Dubai Airport and at Port Rashid by more than 10% ([82]).

The Jebel Ali Port is divided into two parts: the first is the Free Zone, and is managed by the Government of Dubai. The Jebel Ali Port Authority administers the daily business in the region on behalf of the Free Zone Authority. The second section includes the special customs clearance area, In 2001, Dubai Ports Authority, Jebel Ali Free Zone Authority and Customs were merged to establish the Ports, Customs and Free Zone Corporation. In 2005 DPA was merged with DP World as “ports” The world’s largest container port ([83]).

In early 2000, Dubai ports decision-makers realized the magnitude of potential business operations lost as a result of unconnected and inefficient administrative procedures in Dubai. These efforts eventually led to the formation of an independent “one-window” network to manage business operations that would allow traders to provide Documents and requirements for import/export operations through a single window for multiple agencies using one Internet access procedure; accordingly, for the completion of an integrated business network and the development of a unified business process, two conditions must be met

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– Integrating trade-related bodies and institutions with their procedures and databases.

– Setting up an information technology platform aimed at supporting cooperation, updating data and strengthening digital government services.

The “E-Token” service provided by Dubai Trade, for example, is an online network system developed to eliminate the need for personal attendance and hand-delivered paper documents upon receipt and delivery of containers in the port area. By 2011, the proportion of E-Token system users (E-Token) reached more than 93%, from the total containers coming and departing from Jebel Ali Port ([84] ).

The following diagram illustrates the impact of the merger of Jebel Ali Port with Port Rashid in 1991, and the merger of Dubai Ports Authority with DP World in 2005.

The number of containers in Dubai World Ports increased during the period 1991-2006 ([85])

The previous figure shows that the number of containers handled in Jebel Ali port in 1991 was 1.3 million containers, While 3.5 million containers were handled in 2001 and continued to increase in 2002 and 2003 respectively to 4.2 and 5.2 million TEUs. By 2005, 7.6 million TEUs were handled, an increase of 19% over 2004. The number of containers handled In 2006, it is estimated that 8.4 million TEUs, as indicated in the previous diagram, is expected to reach 300% during the period from 1995 to 2006.” Jafz ” includes some of the facilities of the Port Authority. Therefore, its customers can make full use of these services. Including container handling, cold storage and storage, as well as the possibility of transporting containers between Port R, And Jebel Ali Port.

C- Dubai ports and the World

This strategy is considered one of the most important and difficult strategies that help to operate a regional and global network of provisions, and is an integral part of other ports, helping Dubai to enter into global production networks for other ports in other countries, and through this strategy the port can achieve added value, thus enabling Dubai to make network provisions, which are achieved through stable relations with companies and also with governments in different places.

Model of Dubai Ports Company in the application of control strategy

The expansion of Dubai Ports World is characterized by the geographical diversity that allows it to direct more container traffic through Dubai Port, in addition to enabling partners and suppliers in Dubai ports to reach new regional markets that will create new cluster logistics chains that promote overall growth in Dubai.

After 1990, Dubai ports aspired to achieve a global port management network. For this purpose, Dubai established in 1998 the Dubai International Ports Authority (DPA), which later changed to DP World, to cooperate rather than compete with Jebel Ali Port, through which it started the phase of exiting the region to the world by establishing and developing its container terminals to serve its vessels first; and then serving the other ships. This is undoubtedly one of the operational strengths of these stations so that it is considered part of the volume of content. Competition and engagement framework of competing for regional stations ([86]).

Dubai ports World is a model of a logistics service provider that is expanding its operations abroad. DP World has started to acquire foreign ports franchises shortly after its main competitors. Part of its growth was achieved by the acquisition of P & O from the United Kingdom in 2006, which was the fourth port operator in the world, with a deal of 9.3 billion pounds about $ 7 billion ([87]).

DP World has 77 land and sea stations supported by more than 50 related activities in 40 countries across the six continents, reflecting a strong presence in both emerging markets with high growth rates and developed markets ([88]).

One of the main reasons for the company’s resilience to economic turmoil is its balanced geographic distribution across all continents with a focus on the Middle East. DP World grew faster than the market during the economic recovery that began in 2009, increasing its market share by an estimated 10% Of the world’s container ports, from 8.9% in 2008.

Container handling is the company’s main activity, contributing more than three quarters of its revenues, and Dubai Ports World in 2015, delivered 61.7 million standard containers of 20 feet, and with work in eight new development projects, the total capacity of 79.6 million modular containers is expected to grow to more than 100 million modular containers by 2020 in line with market need ([89] ).

Container handling is the company’s main activity, and Dubai Ports World in 2015, handled 61.7 million containers 20 feet, and with work in 8 new development projects, the total capacity of 79.6 million modular containers is expected to grow to more than 100 million modular containers by 2020 in line with market need ( [90]).

Acquisition of the port of Dakar Senegal

Dubai Ports World undertook the management of the Port of Dakar in 2008, dramatically developing the port in terms of capacity and making it the largest and most modern naval station in West Africa, providing fast transit times for goods destined for Guinea-Bissau, Mauritania, and The Gambia.

The port of Dakar is located at the crossroads of a major trade route: North America and Africa – Europe and Africa – Europe and South America. This expansion has increased the capacity of less than 300,000 standard 20-foot container containers to more than 600,000 modular containers, thus enhancing their capacity to handle larger volumes of cargo, positively reflecting on Senegalese trade and economy by creating more than 200 job opportunities for Senegalese ([91] ).

Acquisition of Yarimsha port

“The Dubai International Ports – Yaremcha” in Turkey was inaugurated on 14/5/2016, the new station, one of the largest naval stations in Turkey, has a capacity of 1.3 million modular containers, covering an area of 460,000 square meters, thus enhancing Turkey’s connection to Europe and Asia, and enabling trade in Izmit Bay, one of its most important industrial zones.

This first infrastructure project in Gulf of “Izmit is managed by a global operator, and the first in the country to use giant remote-controlled winches with automated gates control systems featuring fixed vehicle timings that ensure fast procedures. The station also has the first X-ray fast areas of its kind in Turkey, which allow 120 containers to be scanned every hour, and the station has two 465 meters and 430 meters that enable it to handle two ships at the same time. Six giant unloading cranes were installed in addition to 18 bridge cranes equipped with RTL rubber tires used to stack and weigh containers ([92] ).

2- The experience of Chinese ports (Shanghai port) in the growing volume of goods

Its strategy is based on the transit trade. The Chinese experience, which relies on its manufacturing strategy, continues.

East Asia controls the largest volume of goods in the world container market in terms of container exports and imports, and Asia occupies 61.42% of world exports, followed by Europe at 15.59%, North America at 8.64%, in January 2016 ([93] ).

Since 1978, there has been a significant change in the composition of Chinese import and export products. For imports, the proportion of manufactured products was very low. In 2008, imports of manufactured materials totaled 770 billion and 310 million dollars, accounting for 68 percent of total imports. As for the export products, the industrial products increased significantly, reaching in 2008, 1 trillion and 350 billion and 700 million dollars, which amounted to 95% of the total exports, an increase of 50% over 1985, and China’s trade exports show a large increase in total exports In 1953, China’s trade exports accounted for 1.2% of the world’s total exports. By 2003, this ratio had changed to 5.9%. In 2007, it increased to reach 8.9% and became the second-largest exporter in the world([94]). 2014 China’s total exports accounted for 12.33% of total world exports Germany is the largest exporter in the world, and for Chinese imports in 2014, it accounted for 10.26% of the world’s total imports, following America’s 13% ([95]).

The Yangtze River became an open economic zone in 1985. Like the Special Economic Zones already existing throughout China, liberal policies focused on attracting foreign investment and trade through preferential tax treatment, tariff reduction, robust infrastructure and reduced government intervention ([96]).

The port of Shanghai is the main export port of other neighboring cities other than Shanghai, such as Zhejiang, Fujian, Jiangxi, Anhui, and the Northern provinces which are close to the border with Shanghai have more economic and export zones than in the south and east. Shanghai accounts for 5% of total national income, and its contribution to industry accounts for 8% of GNI. Shanghai exports one-quarter of China’s exports ([97]).

The container ratio represents about 78% of the port movement for 2011, in addition to 12% for dry casting, and the rest for liquid casting, compared to Singapore port, which represents 35% container traffic, liquid casting 40%, and dry casting 25% ([98]).

We also note that the term “Made in China” is still popular in the world, according to the report of the US consulting firm AT Kearney that “Made in China” monopolizes the world by owning the first share in a market that is more than 100 products in container, home appliances, electronic games, and other fields, examined from 90% containers, 80% DVD players, 75% toys, 70% gifts, 65% sports products, 60% cycling, 50% microwave, 30% televisions and refrigerators ([99]).

Chinese brands have developed in the 2016 Olympic Games, which began in the Brazilian city of Rio de Janeiro, which has been brought to the forefront this time from small goods to infrastructure, electrical appliances, and other high value-added products. For example, the construction of the fourth line of metro RIO DE JANEIRO (Reuters) – Rio de Janeiro, China’s biggest project for the Rio Olympics, was built by a railway company specializing in the production of railway vehicles in the northern Chinese city of Changchun and signed a 10 billion yuan For the export of 600 pieces of metro vehicles and electric vehicles to Brazil, and the transfer of this direct line linking the Olympic Village and the Olympic Park and the city center 300 thousand people a day, in addition to the participation of many Chinese mechanical engineering companies in the construction projects Olympic Stadium ([100]).

From the above, it is clear that the diversification of production in companies and move their operations to low-cost places of employment and access to low-cost shipping also made Asia the “global production center” or the “factory of the world” led by China’s economic boom, which grew at an annual rate of 25% The last decade, more than double the growth of world trade, making China the largest trader in the world in 2013, and China’s exports were large to its ports on the eastern border (Shanghai Port), an area mostly produced by the industrial sector; Its eastern ports are crowded and stacked ([101]).

This contributed to be one of the main reasons for China becoming the world’s first container carrier with 181.6 million containers, a change of 6.3% over 2013, and Singapore’s 146.8 million containers ([102]).

3- The Egyptian experience in maximizing the utilization of the Suez Canal axis

Due to the location of the Suez Canal and the size of the Egyptian market, which according to the World Competitiveness Report ranked 19th in the world in 2018, the two strategies can be combined: transit and local manufacturing.

A-Strategy based on transit trade

The Suez Canal ports are unloaded in all types of goods and transported to the logistics and industrial areas for manufacturing and re-exporting. Egypt’s cross-border route to international trade between Europe, the Middle East, Asia, and Africa makes it one of the major global logistics hubs that businesses are constantly seeking to establish in Egypt. To Europe and regional markets.

The port of East and West Port Said focuses on Europe, the Black Sea, and the American Eastern Coast, and the ports of the north-west of the Gulf of Suez concentrate on Africa, the Levant, and even the Gulf. Southeast Asia, the first market for each pole is the secondary market of the other pole.

But without relying on this strategy in the first place, as did the port of Dubai for the handling of transit containers in general and the movement of passengers in particular, which made it under the influence of global trade fluctuations, as happened during the global crisis in 2008.

B. Strategy based on Manufacturing

A manufacturing-based economy cannot be built without a modern integrated transport chain similar to the levels of integrated transport in the developed world, to create a unique and competitive global logistics chain, and to effectively and efficiently pull and distribute containers to and from the back area.

We have already mentioned that one of the elements of attracting shipping lines is the volume of trade or the size of the market, in which Egypt occupies an advanced position by ranking 19th in the world in 2018.

As China has done, the main condition of the Egyptian government is to negotiate with multinational companies that want to enjoy this strategic location at the Suez Canal axis and to work in partnership with Egyptian companies to enable the transfer of advanced technology and benefit from the size of the large market.

Egyptian clusters or clusters are also important. Egypt has many important industrial conglomerates. It would be good to draw an atlas for these communities, which include: Mahalla Al Kubra Textile Complex, Damietta Furniture Group, Sharm El Sheikh Tourist and Leather Industry Group. The Smart Village in Cairo is an important operational technology conglomerate. These clusters can create linkages across the supply chains and complimentary service industries, as well as relationships with relevant government authorities and research centers. However, these linkages are very weak in Egypt at present.

C – Cooperation between the Kuwaiti ports and Egyptian ports

There are many projects and opportunities that the port authority of Kuwait can cooperate with the Egyptian government, which is to benefit from the experience of the economic authority of the Suez Canal region in the following:

– Increasing the subsidence and expansion of the commercial ports in the State of Kuwait, in particular, the ports of Shuwaikh and Shuaiba, through benefiting from the Egyptian experience in expanding and deepening the new canal in the Suez Canal.

– Training of Kuwaiti technical personnel at the Arab Academy for Maritime Transport in Alexandria.

Do not rely on one product

Kuwait’s economy relies on one product, oil and its derivatives, while the political administration in Egypt has exploited the Suez Canal better. This is in line with the revolution of global change that the world is now undergoing economically, politically and technologically.

Implementing the concept of security for development

The Suez Canal Axis project represents Egypt’s strategic project to protect its national security in the most sensitive areas of the Egyptian presence with a developed thought that differs from the traditional methods, which the countries used to protect their borders with military forces and plans, so that the international interests become the main part of achieving national security according to the interest countries’ desire to preserve their interests.

The State of Kuwait is also developing its commercial ports to become international hub ports, as it needs a world with a kind of balance of power that allows small countries to survive, not to be swept away or absorbed by the larger countries (Iran)

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  2. 2- Ali Bassiouni, Training Lectures at the General Authority for Land and Dry Ports during the period 2013-2014, unpublished

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  5. 5- International Logistic Management (no published date), Rai Technology University, Bangalore, India, p6.

  6. 6- Sumaya Badawi, Economics of the Establishment, Development and Operation of Ports in the Context of Global Competition (Without Publishing House, 2003) p. 325.

  7. 7- Farook R. Hamzeh, Logistics Centers to Support Project-Based Production in the Construction Industry, Proceedings IGLC, Michigan, USA, 2007, P182.

  8. 8- Olaf Merk, The Competitiveness of Global Port-Cities: Synthesis Report, OECD Port-Cities Programme, 2014,p 82.

  9. 9– Jarosław Kłosowski, The project of the international logistics center in the free economics zone Sughd – Tajikistan, Research Journal ISSN 1643-7772 I Vol. 15 I No. 1, 2014, p.p122-123.

  10. 10- United Nations Website (ESCAP): http://bit.ly/2YxF8mH

  11. 11- Cedwyn Fernandes, Dubai‟s Potential As An Integrated Logistics Hub, The Journal of Applied Business Research, Volume 25, Number 3, 2009., P79.

  12. 12- Mona Abdel-Al Sayed, Exploring Growth Opportunities through Logistics Services in Egyptian Ports, Planning and Development Issues Series (National Planning Institute, Cairo, No. 255, 2014) p46.

  13. 13- The Economic Significance of the Australian Logistics Industry, Australian Logistics Council 2014, Australia, p4.

  14. 14- Ben Shepherd, Aid for Trade and Value Chains in Transport and Logistics, AID For Trade and Value Chains in Transport and Logistics, 2013,p16.

  15. 15– “Multimodal Transport Law and Operations”, Human Resource Development in Logistic Services for the ASEAN Member States with the support from Japan-ASEAN Integration Fund (JAIF), Southeast Asian Nations (ASEAN), 2014, p7.

  16. 16- “Multimodal Transport Law and Operations” ,Human Resource Development in Logistic Services for ASEAN Member States with the support from Japan-ASEAN Integration Fund (JAIF), Southeast Asian Nations (ASEAN), 2014, p7.

  17. 17- International Logistic Management, Op. Cit, p56.

  18. 18- Sumaya Badawi, Economics of the Establishment, Development and Operation of Ports in the Context of Global Competition, Ibid., P. 259.

  19. 19- Matías Herrera Dappe, How Does Port Efficiency Affect Maritime Transport Costs and Trade?, Policy Research Working Paper 8204, World Bank, 2017, p2.

  20. 20- Farouk Malsh, Seminar on Egypt’s accession to the Agreement on Multimodal Transport of Goods between Arab Countries, Marluj II Conference for Transport and Logistics, Alexandria (2013).

  21. 21- Abdul Qader Lashin et al., Modern Concepts in Transport and Logistics Management (Cairo: Arab Organization for Administrative Development Research and Studies, 2009) p. 64.

  22. 22- Ibrahim M. Ibrahim, Transport Planning and Policies (Without Publishing House, 2010) p137.

  23. 23- Ibrahim Mohamed, Transport Planning and Policies (Without Publishing House, 2010) P137 .

  24. 24-Fathi Al-Tuni, Multimodal Transport Applications and Benefits, unpublished paper, (National Planning Institute: 2007) p17..

  25. 25- United Nations Conference on Trade and Development UNCTAD, Review of Maritime Transport, United Nations (New York: 2011), p17.

  26. 26- Abdul Qader Lashin et al., Modern Concepts in the Management of Transport and Logistics Services. P166

  27. 27- United Nations Website (ESCAP): http://bit.ly/2YxF8mH ..

  28. 28- Ayman Al-Nahrawi, Planning, Management and Economics of Sea Ports, Ibid., Pp. 26-27.

  29. 29- The evolution of sea transport: 4th generation ports, Summary of sector trends: Sea Transport, Barcelona Treball, Barcelona, 2012,p3.

  30. 30- Salah Ismail Hassan, Pricing of Marine Ports Services (Cairo: Center for Professional Experiences of Management, BMIC, 2006) p34..

  31. 31- The evolution of sea transport: 4th generation ports, Op.Cit, p3..

  32. 32- Al – Wasat Newspaper in Bahrain Website: http://bit.ly/2S2l5L3

  33. 33- Osama Fawzi al-Bayoumi, Seminar entitled Suez Canal and the new transit, reference mentioned above.

  34. 34- Center for Information, Documentation and Decision Support, Damietta Port Authority Magazine, Issue 16 (Damietta, 2015) p. 21.

  35. 35- Sharif Maher, Logistics and Maritime Ports for Change (Alexandria: Al Wafaa Legal Library, 2015) p. 107.

    * – Goods, vehicles or vehicles that are received on the ship and are not entitled to the port of Truckee, stored for a specified period until re-shipment by the agent to the destination by sea.

  36. 36- Smya Badawi, Economics of the Establishment, Development and Operation of Ports in the Context of Global Competition, Ibid., Pp. 224-225.

  37. 37- Ibid., p. 22.

  38. 38-Ayman Al-Nahrawi, International Trade Logistics, p. 200- 204.

  39. 39- Site of the organization (YAFA): http://bit.ly/2XLLsd7 .

  40. 40- United Nations Website (ESCAP): http://bit.ly/2YxF8mH

  41. 41- Geng yong, Evaluation and Strategic Thinking of Port Logistics Competitiveness in China: logistics infrastructure network’ perspectives, Central University of Finance and Economics, China, 2013, p3.

  42. 42- United Nations Website (ESCAP): http://bit.ly/2YxF8mH .

  43. 43- nternational Logistic Management, Op. Cit, p179. .

  44. 44- Chung-Yee Lee, Handbook of Ocean Container Transport Logistics, Op, Cit, P 184.

  45. 45-Dubai Ports Report by the Economist Intelligence Unit, Turning Point: The Potential Role of ICT Innovation in the Ports and Logistics Sector (Dubai: 2015) p. 7.

  46. 46- Mohammed Abdul Hadi, Kuwaiti Ports between Yesterday and Today, (Kuwait: Kuwait Ports Corporation, 2002) p14.

  47. 47- Ibid., P. 46..

  48. 48- Kuwait newspaper website: http://bit.ly/2LJJAvp .

  49. 49- Klaus Schwab (2017),The Global Competitiveness Report 2017–2018, World Economic Forum, Geneva, p57.171.229.245.253.299.

  50. 50- Kuwait newspaper website: http://bit.ly/2LJJAvp .

  51. 51- World Bank website: http://bit.ly/2LxMrXU .

  52. 52- Matthew E. H. Petering(2011), INTRODUCTION TO THE CONTAINER SHIPPING Industry, National Center for Freight & Infrastructure Research & Education College of Engineering Department of Civil and Environmental Engineering University of Wisconsin, Madison, P. 5.

  53. 53- INTERNATIONAL LOGISTIC MANAGEMENT, Op. Cit, p104.

  54. 54- United Nations Conference on Trade and Development UNCTAD, Review of Maritime Transport, op. Cit., P26.

  55. 55- Kuwait Ports Authority, Annual Statistical Report (Kuwait: 2015(

  56. 56- Prepared by the researcher based on the estimated budget data for the fiscal year 2015/2016, Kuwait Ports Corporation, Financial Management, p42.

  57. 57- Kuwait Ports authority: Financial Management, Budget Budget for 2015/2016, p42.

  58. 58- Nasser Saidi, Dubai World Central and the Evolution of Dubai Logistic Cluster, Dubai International Financial Centre, Dubai, 2010, page 15.

  59. 59- Connecting to Compete, Trade Logistics in the Global Economy The Logistics Performance Index and Its Indicators, The International Bank for Reconstruction and Development/The World Bank,2018, p.p 45-46.

  60. 60- – https://bit.ly/2HbdnLR.

  61. 61- DOING BUSINESS 2019, Training for Reform, World Bank, Washington, p156-211.

  62. 62- Matías Herrera Dappe, How Does Port Efficiency Affect Maritime Transport Costs and Trade?, Op. Cit, 2017,p2.

  63. 63- Unctad(2015), Review of Maritime Transport. P62.

  64. 64- Ben shepherd, Logistics Cost, and Competitiveness: Measurement and Trade Policy Applications, The International Bank for Reconstruction and Development / The World Bank, 2011,p 21.

  65. 65- The Egyptian Newspaper Al-Ahram website http://digital.ahram.org.eg/articles.aspx?Serial=1105064&eid=4638

  66. 66- Symposium on Suez Canal, the New Transit, Marluj II Conference for Transport and Logistics (Alexandria: 2013‏. (

  67. 67- Ben shepherd, Logistics Cost, and Competitiveness, Op. Cit, p 21.

  68. 68- Ayman Al-Nahrawi, International Trade Logistics, p. 122.

  69. 69- United Nations Conference on Trade and Development UNCTAD, Review of Maritime Transport, p45.

  70. 70- Olaf Merk, The Competitiveness of Global Port-Cities, Op. Cit, p. p 21-22.

  71. 71- Fatma Kamal, Towards Achieving Global Supply Chains in the New Suez Canal Ports “The Dubai Ports Experience”, First Scientific Forum (Benha University, Cairo, 2014) p55.

  72. 72- Dubai Economic Council, Dubai Economic Report (Dubai: 2013) p86.

  73. 73- Al Bayan Newspaper Website: http://bit.ly/2xsz57b

  74. 74- Dubai Economic Council, Dubai Economic Report, p. 86.

  75. 75- Farid Ahmed, The Impact of Industrial Zones on the Development of Egyptian Governorates, Planning and Development Issues Series (National Planning Institute, Cairo, No. 244, 2013) p28.

  76. 76- Foreign Investment Office, Department of Economic Development (Dubai: 2013) p14.

  77. 77- Fatma Kamal, Towards Achieving Global Supply Chains in the Ports of the New Suez Canal, P56.

  78. 78- Li Jing, The Successful Operation of Dubai JEBEL Ali FTZ on Shanghai FTZ Development Enlightenment, Shanghai University of Engineering Science, China,2014, p 249.

  79. 79- Zaid Ashai (2007), The Transport and Logistics Cluster in the United Arab Emirates, Op,Cit,p15.

  80. 80- Dubai ports World: https://bit.ly/2IClIaU.

  81. 81-Karima Khaled Mansour, Development of Egyptian ports investigated and targeted, (2000-2008) Case Study – East Port Said Container Port (unpublished Master Thesis, Faculty of Economics and Political Science, Cairo University, 2011) p71.

  82. 82- DP World, Emirate Region, Promoting Trade to Drive Growth (Dubai: 2015) p12.

  83. 83- https://bit.ly/2X2azsP.

  84. 84- UAE Competitiveness Council, Competitiveness Report Dubai Trade Policies and Practices: Towards Global Logistics Services (Dubai: 2012) p9.

  85. 85- H. Ligteringen, Masterplan of Jebel Ali Port, delft university of technology, Netherlands, 2008, p 30.

  86. 86- Research and Consultation Center for the Maritime Transport Sector, Maritime Transport Study in the Middle East and Egypt’s pivotal role (Arab Academy for Maritime Transport Science and Technology: Alexandria, 2005) p63.

  87. 87- DP World website: http://bit.ly/309MfCj .

  88. 88- DP World ports http://bit.ly/309MfCj .

  89. 89- DP World website https://bit.ly/2X6ivJK .

  90. 90- DP World website http://bit.ly/2XvI2ME .

  91. 91- https://bit.ly/2X6ivJK

  92. 92- http://bit.ly/2KXKODC.

  93. 93- http://bit.ly/2xyaNZi .

  94. 94- Wu De Li, Chinese Economy, (Chinese Transcontinental Publishing House, 2010) p. 121- 122.

  95. 95- https://bit.ly/2KwjSKT

  96. 96- Alexander Mckinnon (2011), Hong Kong and Shanghai Ports, Op, Cit, p5.

  97. 97- John L. Graham, China Now – Doing business and business in the world’s most vibrant, vibrant and vibrant markets (Saudi Arabia: Obeikan, 2009) p. 326.

  98. 98- Merk, O, Li, J., The Competitiveness of Global Port-Cities: the case of Hong Kong – China, OECD Regional Development Working Papers, 2013, p9.

  99. 99-

  100. 100- China network location: https://on.china.cn/2J9JXxn.

  101. 101- Hiba Hussein, New Silk Road, and the New Suez Canal and its axis, Marloug 5 Transport and Logistics Conference (Alexandria 2015) p. 8.

  102. 102- Review of Maritime Transport(2015), Op, cit, p 67

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