understanding ports and port authorities
Many heavy lift and transportation projects involve some or all phases of their operations being undertaken within a port or marine facility, therefore, understanding the port and the Port Authorities perspective is important to project success.
No two ports are the same. This may seem a rather blunt statement however in the UK alone there are over 300 ports of varying type, size and geographic location, each developed to service the specific requirements of their customers and stakeholders. This makes for a large and diverse industry when considered on a global scale.
The aim of this article is to highlight key considerations, and best practice when undertaking port based projects; given this, it is useful to first consider the types of ports and the purpose of Port Authorities.
What is a Port?
Notionally a port is a location where ships call to load or unload cargo or passengers. However, a port’s boundaries may often extend significantly beyond the port’s berths to include adjoining land, estuaries, navigable rivers, piers, jetties and anchorages in or at which sea-going ships can moor or anchor.
Wherever you go in the world, ports are generally established by national or local legislation that define the port, its boundaries, the regulation of the port and empower a Port Authority to operate, manage and regulate the port, be that a private entity or government body.
Marine projects may also be undertaken at berths, anchorages, terminals and jetties that are not within a port established by legislation. Therefore, we would generally consider ports to be either statutory or non-statutory in nature. In the UK ports are also further categorised into 4 types which relate to their commercial ownership and governance arrangements, independent of whether they also have statutory powers or not:
- Private: These ports have equity owners or share holders
- Municipal: Owned by Local Authorities
- Trust: Trust ports own themselves and can’t be owned by another body
- Dockyard Port: These are military ports operated by the Ministry of Defence(MoD)
Regulation of Statutory Ports
The Regulation of statutory ports will vary from country to country, however, the applicable legislation will grant the Ports owner/governing body the powers to:
- Ensure safe and efficient port operations.
- Charge dues/fees on ships and cargo,
- Appoint a harbour master,
- Regulate movement of vessels,
- Issue Harbour, special or general directions and by-laws
- Enforce port regulations, directions and by-laws.
The specific powers necessary to operate, maintain and regulate the port are tailored to suit the specific port. Ports may also hold specific duties under other legislation related to compliance with matters such as health and safety, environmental protection, merchant shipping legislation, etc.
The UK established a national standard to enhance safety in ports and to promulgate good industry practice. This standard is known as the Port Marine Safety Code (PMSC). The Code requires ports to ensure compliance with their duties and powers held under national and local legislation, and to implement a formal Safety Management System based on formal risk assessment.
This move to a risk based approach has had a significant influence on port’s approach to marine operations. The evaluation of the risks associated with any deviation from the port’s routine business and the associated justifications and mitigation measures will be a very important consideration for Port Authorities being asked to permit such activities.
Regulation of Non-Statutory Ports
Where a berth, terminal, jetty or facility operator does not hold statutory authority over the facility or adjoining waters they may still hold certain duties under other legislation in the same manner as a statutory port. In the UK the PMSC also recommends that such non-statutory marine facilities seek proportionate compliance with the code to ensure they align with applicable industry good practice.
Good Practice when Engaging with Ports
As we have seen, ports can be both commercial entities and regulators that align their infrastructure, services, resources and regulatory powers with their routine business. Therefore, if your project is within the scope of routine business then the appointment of a local agent, completion of routine notifications and reporting requirements may suffice.
However, once the scope creeps beyond routine business, the prior approval of the Port Authorities will be necessary. The following would be considered good practice when engaging with a Port or facility operator.
- Jurisdiction – Determine the jurisdiction of port authorities in relation to the project operations. It is not uncommon for projects to involve multiple port authorities; this is often due to the need to transit through the waters of an adjacent port. If the berth or facility is not owned by the port, you need to understand where the interface between port and facility operator responsibilities sits. Adjacent ports or facility operators often have agreements that outline the demarcation of responsibilities and areas of cooperation.
- Research – Port authorities’ websites should be visited to obtain information on local regulations, guidelines and operational arrangements to understand the nature and extent that intended operations may deviate from routine business.
- Engagement – The more the project deviates from routine business the earlier the engagement should be. Even if the response to initial engagement is not entirely positive, it will establish the ports appetite and their areas of concern. It will also indicate any additional work scope that might be necessary to satisfy the port (e.g. simulation of marine moves, dredging, additional bathymetry, etc.). Bringing the port onboard early allows them to feel part of the solution, presenting a fait accompli just prior to operations will do you no favours.
- Collaboration – Port authorities are a definitive authority on operations within their port. Encouraging the Port Authority to participate in Risk Assessment processes and giving them opportunity to review and comment on applicable technical documents will give them greater understanding of the operations and should assist in gaining their approval.
- Consultation – the port may need to consult with other stakeholders as part of their approval process. For example, disruption to other port operations may need to be raised with other port users in order to mitigate impact or additional temporary regulations may be required to facilitate operations (e.g. closing or restricting access to other berths/facilities for a defined period of time, etc.). Be prepared to support the port in this process.
So, as we see no two ports are indeed the same. An understanding of not only the ports physical attributes, but the stakeholders, normal business and governance of the port are important considerations during project planning and execution and ultimately, when we want to deviate from “business as usual” early proactive engagement and collaboration with stakeholders is key.