Endurance and the European and Spanish maritime-port sector: a story of resilience and patience

This year, I had the opportunity to attend World Maritime Week, after a couple of years of not attending this important event for the maritime and port sector. I thoroughly enjoyed the sessions I was able to participate in. However, this did not prevent me from leaving with a feeling of general unease, as the speakers seemed less enthusiastic and energetic compared to other events. And there are reasons for this.

Like all other sectors, the maritime-port sector (MPS) is affected by the triple transition (sustainable, digital and demographic), as well as other major global trends in the industry, such as growing protectionism and trade wars, new routes, market niches and value chains, among others.

It is a sector subject to high competitive pressure due to its inherently international nature and history. In recent years, China and Southeast Asia have gained significant importance, gradually pushing out other competitors, who have seen their influence reduced.

To improve competitiveness, according to the Orkestra Competitiveness Analysis Framework for Well-being, there are six dynamic levers that can be leveraged. Acting on these levers will improve economic, financial and well-being outcomes. These will be reviewed below, presenting how to boost the competitiveness of the MP sector with each one.

Natural capital and physical capital

Regarding this lever, the technical and operational efficiency of ships can be improved, which can lead to a reduction in energy consumption and greenhouse gas (GHG) emissions —a crucial issue, given that the sector is subject to the European Emissions Trading Scheme. Similarly, a transition to alternative energies with lower emission levels must be made.

At docks and terminals, progress can be made in just-in-time operations and reducing waiting times in the port. Promoting alternative energies, particularly renewables (e.g., energy communities), for use in port areas (such as cranes, vehicles, and lighting) and encouraging shore-side electricity supply (OPS or cold ironing) will also reduce energy needs. Making more efficient use of raw materials (essential or otherwise) and advancing the circular economy would help reduce the investment burden required to modernise and adapt the sector's fleet and infrastructure to lower emission levels.

Given the location of ports, developing strategies to adapt to climate change will be essential. Furthermore, as ports are a key link in logistics chains, their connectivity with other means of transport will improve the competitiveness of supply chains.

Source: own elaboration based on Larrea Basterra (2022).

Financial capital

There is a great need for infrastructure financing and fleet modernisation (which increased from 9.7 to 12.3 years in a decade). The Draghi report estimates that around €39 billion will be needed between 2031 and 2050 to decarbonise the sector. In addition, new technologies must also be adopted. This requires new financing models and risk distribution mechanisms, in which financial institutions and classification societies will play a key role, as they have historically.

Collaboration and strategic alliances must also be encouraged to address the sustainability issues facing the maritime sector (shipping companies, ports and governments) and to develop programmes to support innovation, such as the Research and Development Fund proposed by the International Chamber of Shipping, the Connecting Europe mechanism, Horizon Europe and the Puertos 4.0 programme for port innovation in Spain.

Knowledge

Given the breadth and complexity of the challenges to be addressed (sustainability and biodiversity, energy transition, logistical efficiency, safety and security, new business models, etc.), open innovation is essential, involving all possible stakeholders in the sector. Digitalisation and the resulting importance of data, AI, sensor placement, the development of digital twins, big data and cybersecurity are areas that can help optimise processes and, therefore, efficiency.

The automation of ships and port equipment can contribute to improving competitiveness, as can new technology (e.g., including robotisation or alternative energy propulsion systems), which in turn can facilitate better materials management.

Human capital

The maritime-port sector considers itself to be largely unknown. There is a general lack of vocations (in port activities, and especially at sea), which is attributed to the need for special training and skills, the potential complexity of working and safety conditions, and the likelihood that the activity will affect mental health and well-being.

In this area, the challenge is to train, attract and retain talent in a context where the younger population aims to become civil servants. The EU has created the European Maritime Skills Forum to promote training with a special focus on (i) the safe use of clean fuels, (ii) digital priorities such as cybersecurity and artificial intelligence, and (iii) the development of skills to improve diversity, resilience and inclusion in the sector.

Social and institutional capital

In this area, strong institutions are needed that know how to set a course aligned with other social and business actors, in particular.

The excessive regulation that is increasingly weighing down European businesses (as has been highlighted on numerous occasions throughout the WMW) has not been resolved by Mario Draghi's roadmap, which aims to facilitate and accelerate business activity to ensure Europe's prosperity by 2025-2026. The Compass outlines 47 actions, including 12 laws, 11 strategies, seven plans, three initiatives, and two deals. In other words, instead of simplifying and refocusing measures on the competitiveness of the European SME sector, as required in order not to continue on the path that Draghi himself has shown towards a decline in the European fleet's international share (which fell from 39.5% in 2020 to 35.4% in 2024), it increases regulatory complexity and uncertainty, given that it is not known what the final documents associated with the Compass will contain. All this in a context in which China (the major global player) also has a more favourable financial environment for shipowners.

Additionally, changes are occurring in global governance and port management models. Likewise, the port is a key logistics and industrial hub for supply chains at a time when prioritising projects must resolve port space constraints. In this area, the importance of social acceptance for many of the activities should not be overlooked.

What concerns did those who participated in the World Maritime Week have?

The various participants at the conference felt overwhelmed by the regulatory situation. There was not the same optimism that existed when offshore wind prices were so high as to be unviable. At that time, the challenge was to do it, learn and improve. Now the challenge is to wait for the circumstances that the authorities must create, and hope that when the time comes, it is not too late, although it may already be too late.

They wondered why European regulations are mainly punitive rather than incentive-based, since non-compliance with them puts European producers and agents at a disadvantage compared to those in third countries over which no control is exercised (similar to what farmers have been demanding). Similarly, they wondered what had prompted the EU to develop its own emissions trading system for shipping, rather than working hand in hand with the International Maritime Organisation, so that it affects all players rather than introducing distortions in the market (an international market) that only harm European ports and operators.

This is realism, not pessimism. It is coopetition, not competition.

I do not want to end this note with a message that should not be confused with pessimism, but rather with realism. This brings to mind a maritime ‘anecdote’ that is very relevant to the current scenario, the outcome of which will be fundamental to the success of our MP sector in advancing coopetition (yes, coopetition), which consists of collaboration between agents, but in competition between agents in the industry in different countries and related territories. Why not consider, for example, a case of coopetition between Spain and Central and South America?

Returning to the ‘anecdote’, in 1914, Ernest Shackleton, together with a crew of 27 men, embarked on an epic expedition, whose objective was to reach Antarctica and cross it on foot. To do so, he had a beautiful and strong ship named Endurance.

As luck would have it, that ship was stranded in the polar ice pack in February 1915, and the movements of the ice led to its sinking. Months passed (suffering blizzards, frostbite and the gradual depletion of supplies) until, in the spring of 1916, the entire crew made their way in lifeboats to Elephant Island. From there, Shackleton and a small group of five crew members reached the whaling station on South Georgia, from where they returned to Elephant Island to rescue the rest of the team. Everyone survived.

The team members who recently found the wreckage realised that the Captain of the Endurance to succeed and survive in that situation, needed the others, his entire crew. In other words, he said: ‘Your worth is the worth of the team around you’, and the fact is that the MP sector is made up of a great team of professionals who work, collaborate and have their sights set on the same goal. All that is needed is for the public administrations to reorient themselves.