Port of Brisbane - Strategic Objectives and Opportunities - Case Study Example

Port of Brisbane Purpose & External Environment Situated along the eastern coast of Australia, the Port of Brisbane is a shipping port located in the reclaimed lands of once named Fisherman Island on the lower reaches of the Brisbane River at its mouth. The third busiest fastest growing container port of the country spans the shipping channel across the Moreton Bay extending 90 Km north to Mooloolaba while being dredged to maintain fourteen metres depth at the lowest tide. While the port facilitates more than 2, 600 ships each year the Port of Brisbane Corporation (PBC) manages it. Possessing nine deep-water container berths and three deep-water bulk berths along with seventeen general cargo and bulk berths, the Port of Brisbane transports more than 28 million tones of cargo each year. Out of the two international standard wharves at Brisbane meant for cruise liners viz. the Portside Wharf, built in 2006, and having facilities like coffee shops, restaurants, gift shops etc, and the industrial standard Pinkenba Wharf for larger, higher cruise liners located further up the river, the latter is the wharf managed by the Port of Brisbane authority. A short road which links the Port of Brisbane to the Gateway Motorway is the Port of Brisbane Motorway. While in 1980 a narrow gauge (about 1067 mm) railway line was opened between the port and the junction near Lindum on the Cleveland Line it was later converted in 1997 to a dual (1435 / 1067 mm) gauge line under the One Nation program of Keating Government. Currently under an expansion program the Port of Brisbane is undergoing a large upgrade and extension spending AUS $ 50 million on infrastructure and another AUS $ 100 million on equipment which includes more than 25 straddle carriers owned by Patrick Corporation. Strategic Objectives The primary role of Port of Brisbane, which was corporatized in 1994 under the GOC Act 1993 and then changed into a company from a statutory on 1st July, 1997, enlisted immediately in the Australian Securities and Investment Commission, is to be responsible for managing the third busiest container port of Australia, facilitating trade growth through the commercial management of an efficient and customer-focused port. It also provides and maintains port infrastructure and facilities. It operates the Brisbane Multimodal Terminal, the rail head for containers moving in and out of the port. They also lease and manage land for port-related purposes. It acts as an assessment manager for assessing and approving developments on strategic port land. Maintains navigable access to the port for commercial shipping. It manages four boat harbours and operates the Visitors Centre. Port of Brisbane does not provide stevedoring services, towage services and vessel traffic services. The vision of PBC is to be Australia’s leading port: here for the future and the strategic mission is to maintain a sustainable growth in trade thru the port which maximizes stakeholder satisfaction and shareholder returns. Measures towards this include optimizing efficiency of the port, promoting investments of strategic nature stimulating competitive environment, adopting planning principles and management systems of the highest order, ensuring through co-operative working a safe and secure port environment, providing infrastructure that is truly world class and finally adhering to corporate values at all times in behavior and attitude. Strengths and Opportunities of Port of Brisbane Corporation Strength of the organization stems from its core values such as safety first, valuing people, operating as a team, promoting mutual trust, respect and integrity amongst each other. The opportunities arising out of the above strengths in the organization include a worry free work environment for the workers facilitating further easier recruitment when required and ample scope for their professional and personal growth as well as development retaining their complete loyalty towards the organization. Other core values such as focus on internal and external customers to provide the highest levels of service will entail the opportunity of gaining more new customers and an unwavering loyalty and commitment from them. By the strength of managing business risks and a strong focus on maximizing shareholder returns the organization creates opportunity for free, fair and unlimited investment opportunities. By the strength of fostering a fatherly societal figure through its various activities benefitting the economy of Queensland, conserving the natural environment and serving a wider community, the organization has created plenty of scope and opportunities towards achieving its envisaged corporate vision. Through its strength of commitment to sharing and managing knowledge, innovation and persistent learning dedicated towards bettering its activities thereby realizing continuous improvement, the organization has the opportunity to play the role of a guiding leader in worldwide container port management in this post modern era of knowledge based economy. The strength in being a member of the strategic Australian Trade Coast initiative which includes Brisbane Airport Corporation Limited, Department of State Development and Velocity Brisbane creates opportunities in plenty for collaborative interests and activities. The strength of shareholding interest amounting to 37.86% in the Brisbane Airport Corporation, through PBC’s 100% subsidiary, Gateway Investment Corporation paves the way for ample opportunities in leveraging its financial holding. By instituting and managing the Integrated Management System (IMS) which ensures the systems at PBC are maintained or surpass national and international benchmarks the organization has created an opportunity to spearhead and spur quality backed innovation in its operations. The numerous other advantages besides quality obtained by the implementation of the Integrated Management System including risk management, safety, damage control, injury prevention, precautions, health protection, response to oil pollutions, emergency plans and other environmental safeguards augments the status of the already strong organization and creates opportunities for exploring, enhancing and the ability to manage comfortably increased business prospects. Weaknesses and Threats to Port of Brisbane Corporation The weaknesses and threat perception are concealed in the following stunning facts that impact the activities at the Port of Brisbane. Approximately 99 per cent of Australia’s merchandise trade is moved by sea. Australia has the fifth largest shipping task in the world, in terms of tonnage and kilometers travelled. Our international maritime trade has increased significantly over the past decade, increasing from 408 million tonnes in 1994/95 to 681 million tonnes in 2004/05. Over the next twenty years, containerized trade is forecast to almost triple from 5.2 million Twenty-Foot Equivalent Units (teus) in 2004-05 to 14.9 million teus in 2024-25. Total non-containerized trade is forecast to more than double over the next twenty years, from 0.6 billion tonnes in 2004-05 to 1.4 billion tonnes in 2024-25. About 30 thousand visits were made by all ships at all Australian ports in 2004-05. The number of ship visits is forecast to increase to around 54,800 in 2024-25 i.e. ship visits will nearly double over the next 20 years. Security and Terrorist threats are the major vulnerabilities and the resulting threats to the Port of Brisbane Corporation as it is to other ports too. This ever looming threat to PBC can in turn weaken the economy of the whole nation should something nasty happen. Conclusion Though the weakness and threat perception are rather very alarming should an exposed vulnerability be maliciously exploited and endangered the strength and opportunities that lie ahead of the Port of Brisbane Corporation far outweigh them. With proper support and arrangement from the Government for adequate security measures and precautionary steps being undertaken to protect the Port from succumbing to any materialization of terrorist or security threats can help foster its unflinching advancement and growth. Appendix – SWOT Chart Strengths Opportunities Core Values: Safety First, Valuing People, Customer service, Teamwork, Managing Business Risks, Service to national economy, Community and Environment, Innovation through Knowledge Sharing, Learning and continuous improvement, Shareholding. Safe work environment for employees, Retention of Employee Loyalty, Facilitation of Recruitment when required, Increased customer satisfaction and loyalty towards organization, Leadership in Knowledge economy. Free Investment Opportunities, Financial Leverage, Weaknesses Threats Over 99% of Sea Trade, Fifth Largest Shipping Task, Envisaged increase in maritime trade involving passengers and goods, Increasing numbers in visits of ships to the port both currently and into the future. Security vulnerabilities if exposed and national and international terrorist threat perceptions if materialized which is hidden in all the mentioned activities are perhaps the biggest and looming threats for the Port’s future health and safety. References DSTO > News > Harbour Security a Priority For New Defence Research, January 16, 2009, Foreign Trade, 1993, Defense & Diplomacy, Inc., Item notes: 1993 no.1-6, Original from the University of California, Digitized May 9, 2008 Home | Port of Brisbane, January 16, 2009, Port of Brisbane, Australia, January 16, 2009, Read More