Latvian Maritime Cluster Competitiveness analysis

THE NATIONAL CONSULTATION DAY ON LATVIAN MARITIMECLUSTER COMPETITIVENESS AND FUTURE PROSPECTSSmartComp- Smart Competitiveness for the Central Baltic RegionLatvian Maritime ClusterCompetitiveness analysisMaris KatranziLatvian MaritimeAcademy (partner forLatvian LogisticsCluster), Cmart CompProject manager, RigaContainer terminalboard memberRIGA, 2013., 10th. May,AVALON HOTEL

CONTENT• Latvian Maritime Cluster• Latest research on maritime clustering• Clustering theory• Latvian Logistics Cluster case analysis• EU funded projects avalable for better clustering

LATVIAN MARITIME CLUSTER• Contribution of transport industry to Latvian GDP has been 13% in 2011(Ministry of Economics, 2012).• In 2010 contribution of international freight transit to Latvian GDP was 6,6%,where contribution of seaports – 3,7% or 677 Million EUR (Bulis, Orlovs,Skapars, 2012).• In 2012 these three seaports handled more than 70 million tons cargo (Riga –36,052 million tons, Ventspils – 30,346 million tons, Liepaja – 7,431 milliontons), but 7 other seaport handled 1,364 million tons (the Central StatisticalBureau of the Republic of Latvia).• Approximately 20 000 people are employed in the companies operating in theterritory of the Freeport of Riga. Contribution of the Freeport of Riga to LatvianGDP has been more than 400 Million EUR in 2012.

CONSULTATIONS• „SmartComp - Smart competitiveness for the Central Baltic Region”• The changing operating environment is creating challenges for the CentralBaltic Sea region maritime clusters. National cluster competitivenessamongst other maritime clusters in region.• The aim of the consultation day is to strengthen the collaboration amongtriple helix actors and stimulate discussion regarding co-operationprospects, developments and business opportunities between the Latvianbased maritime cluster actors and share experience on national maritimecluster strengthening in the region.

RESEARCHES SHOW• NETWORKING IN LATVIAN MARITIME CLUSTER- SMART COMP RESEARCHdone 2013 April, jointly LLA, LMA and involved organizations• Operational challenges and conclusions:• Promotion on Geographical location , Business competence infreight transportation between the European Union and Russia/CIS,multifunctional seaport• trading activities (to meet new partners), joint marketing activities,existing tools for networking should be used better, cooperationwith universities doing innovations and specialists with good skillsand understanding of market to be available in the labour market,sharing information and best practices, cluster-based networking,new projects and development of innovations• lack of technical specialists in the shipyard sector• a great potential for R&D and joint innovation activities withacademic and research institutions in the shipyard sector• Studies of marine engineering should be developed in Latvia• Shipping companies develop cooperatoon with academicinstitutions and develop their staff

RESEARCHES SHOW• NETWORKING IN LATVIAN MARITIME CLUSTER- SMART COMP RESEARCHdone 2013 April, jointly LLA, LMA and involved organizations• Strategic challanges:• links among transport research, business and transport policyshould be improved.• one of the most important issues for peripheral regionsdevelopment is the development of logistics and distributioncentres focused on attracting freight from Asia and the Far East.• the expansion and improvement of sea-based mobility of goods andsupporting infrastructure should be emphasized in initiatives ofspatial planning within the Baltic Sea Region.

CLUSTERING IN MARITIMECluster is a merchant, research, education and other institutions networkthat:•operating in a specific region or economic sector or inter-relatedindustries;•uses related technology and a similar labor resources;•consists of legally independent companies that are competing witheach other, and at the same time implements mutual cooperationInterdisciplinary Collaboration → contributes significantly to competitivenessand innovation in the sector at the national level• Shinohara (2010), analysing Japan’s Maritime cluster, has concludedthat business networking, especially long-term relationship betweenfirms, and the long-term co-working spirit are vital for developmentof successful cluster in maritime sector.• Participants from private sector in maritime cluster are companiesoperating in shipping, shipbuilding, shipping equipment, marineequipment, freight forwarding, technical and maritime low services,financial services, investors, ports, stevedovie companies, fishing,dredging, inland shipping, yachting and navy (Morrissey andO’Donoghue 2013; Wijnolst et al. 2003).

CLUSTER AIMTo provide a common platform for the industry toincrease exports through:• related companies in the sector and theinstitutional cooperation;• implementation of joint projects to promotelogistics enterprise competitivenessenhancement,• innovation and new products, which areproduced in collaboration• To strengthen the industry in the internationalmarket through the national transport companiesand institutions of horizontal and verticalcooperation (eg LR Maritime industry cluster)

CLUSTERING ACTIVITIES• Development of new products and technologies (ajoint research requirement on the various forms ofcooperation with scientific institutions)• Cooperation in education and human resources(youth atracting to a sector)• Joint marketing, export market expansion (commonbrand development and promotion, market research,marketing strategy development / implementation)• Measures to promote the commercial cooperation(joint acquisition of resources, participation inprocurement, supply chain engagement)• Cluster expansion and promotion of internationalcooperation (participation in international projects,exchange of experience with other clusters, newplayers)

LLA LOGISTICS CLUSTER CASE-PARTNERING ORGANIZATIONS• Ports and shipping• The trucking industry merchants• Marine industry merchants• Railway merchants• Transportation companies• Warehouse logistics companies• Policy-makers• State and local government• Support activities merchants• Educational and researchinstitutions• Non-governmental organizations

CLUSTER STRUCTUREAn independent organization withthe aim to combine theindustry:• specialists• companies• authorities• NGOs• State and local government• academic staff• research institutions to join forcesin the industry competition, raiseindustry awareness at thenational and international levelRunning as an independent, nonprofitnon-governmentalorganization on the principlesof open type associations(Association)

CLUSTER SERVICES• Short-sea shipping and development of ports;• «Rail Baltica» railway line, development of inlandintermodal terminals (shift from railway lines ofwide gauge (1520 mm) to the EU standard(1435 mm);• Development of North-South corridor.• Integration of the BSR transport system in toglobal freight transport networks (especiallyEurope-China)• Green logistics, green corridors, green seaports(reduction of negative effects of shipping andseaports on the ecosystem of the Baltic Sea).

PROJECTS AVAILABLE FOR BETTER CLUSTERINGNational Projects:• Clusters' development support program managed by www.em.gov.lv• LLA members 'and partners' employees training support programmanaged by www.liaa.gov.lv.• Unemployed persons training support program managed bywww.lm.gov.lvInternational Projects:• LLA is active in co-operation with European Logistics Association andCONFIAD Pan European network.• LLA as a local partner participated into international LogOn Baltic EU-Project in 2007-2008.• LLA Supply Chain Cluster is a Partner for The Star Dust Strategic Projecton Trans-national Commercial Activities in Research & Innovation,Clusters and in SME Networks Project Application for BSR Programme2007 - 2013.• Star dust MARCHAIN BSR, BSR Programme 2007-2013,http://www.bsrstars.se/stardust. 34 partners from 12 Countries BSR.• Nordic-Baltic Mobility and Network Programme for Business andIndustry 2011-2012. Project "Experience Exchanges on best practices ofmaritime clusters BSR cooperation". Project partners: Swedish MarineTechnology Forum, University of Turku, Centre for Maritime Studies• Germany Amber Coast LogisticsMulti-modal freight transportconnections in the southern Baltic Sea Region. BSR Programme 2007-2013

Māris Katranži – Riga Container Terminal,maris.katranzi@rto.lv0037125945467http://www.lla.lv/http://www.lscc.lvhttp://www.bsrstars.se/stardust/http://www.ambercoastlogistics.eu/http://www.cb-smartcomp.eu/index.php/cbsc:project