Port and shipping are derivatives of international trade flows which
heavily depend on multimodal transport system to cater to the customer
requirements. They are by nature unstable industries and hence crisis is
inevitable. Port crises could occur due to various physical or business originated
causes. The challenge is to identify the crisis and manage it in the first place;
often this judgment in the face of an emergency is what could lead a port to
success or failure.
1.
Port industry Crises: Major causes
of crises are:
1.1.
External or Environmental reasons: Phenomena’s
like Hurricanes, earth quakes, tsunami , floods , terrorist attacks , cyber
attacks etc
1.2.
Accidents: Collisions, oil spills, structural
damages, hazardous cargo handling issues- explosions and gas leakages, man
equipment interface issues – crane failure, vehicle accidents within and
outside port premises.
1.3.
Political & Economy related causes: Trade issues, Chokepoints / blockades and increased tensions in a
region cause business loss and market share. Similarly emergence of new
economies cause shift in global trade routes which force some sea ports out of
business and increased business cause congestion in some other ports.
1.4.
Business related issues: inter port &
inter terminal competitions, increasing container ship sizes demand for costly
investments; merger/takeover/alliances of shipping lines – leave one hub port
and select another one.
2.
Crisis management: the process of identifying the
source and addressing it effectively is a challenge and such a situation is indeed
a testing field for managerial and leadership talents within the organization.
2.1.
Take measures to prevent the crisis: Consider all possible threatening situations,
events or processes and formulate a contingency plan. Introduce a 'signal' detecting mechanism which would ring a warning bell to alert a possible crisis.
2.2.
Be ready with a crisis management team to provide a holistic view of the vulnerabilities of the organization
and to address the tactical issues of the crisis. The team need to be refreshed
periodically to bring in new employees into the system. Also, a public opinion
tracking system would be useful to identify concerns outside the port premises.
2.3.
Identify and accept the crisis: Due to the “crisis proof” mentality often the
crisis signals get ignored. Constituting a consulting team with inside and
outside personals would help to get multiple perspectives on warning signals and
identify crisis at an early stage itself.
2.4.
Ensure honest and quick information flow across the organization and to the concerned stake holders. This will
help to build trust and confidence among all.
2.5.
Resolve the crisis: take immediate decisions to turn around the
intensity and also to prevent expansion to other unaffected sections.
3.
Crisis accelerate changes: Give up
outdated perceptions and processes, re-asses the needs, listen to employees and
other stakeholders, organise proper training/education/mock drills and formulate a simple and uptodate crisis management process which clearly defining the roles and responsibilities of all concerned.A
well-managed crisis generally develops a sense of togetherness among the employees
which normally last for a longer period.
