Issue 2001/ 5

Strategic partnership and creation of the confederation of Eastern Baltic Seaports

Probably it’s enough to make it look as if nothing special is happening and the development of transport in this part of the world goes along more or less normal guidelines in accordance with the laws of the market and free competition which as we all know or say that we know are the prerequisite of progress and will in the final count serve the interests of the customer, in our case the cargo owner.
Indeed, in our sphere of activity the situation as we see it today is drastically different from the one ten years ago. The world has changed and a lot has changed for the better. However, today the smooth and consistent development of the ports and the transport infrastructure as a whole is facing the well known but none the less serious danger which is state interference and national protectionism.
We do not really want to refer to historical parallels but there is one which comes to the mind. Let’s consider the comparison which follows as polemical means, no more.
The choice facing the countries of the Eastern Baltic reminds the year of 1938 in Europe.
Then some countries hoped to stay aside. Others chose to try and pacify Germany and find compromises. As a result all countries of Europe were involved in the war and suffered. Germany was damaged most of all.
The conclusion can be made that in order to avoid the war of competitors, tariffs, barriers, dumping prices, general destabilization and in the final count loss of incomes as well as to make a foundation of long-term and predictable development of logistics and transport in the whole huge region from the Baltic Sea eastwards we must take each other’s hands, sit down at the table, smoke the pipe of peace, say a toast to good understanding, embrace, sing a song and tell each other how we all love our neighbours.
Jokes aside, there is no other more productive way to overcome the mutual suspicions and come to the positive end than to sit at one table and work in one organization.
You will tell me that there are already too many organizations why bother to create one more. I do not want to agree. It is good when there are many good organizations around. Good people must join and bring positive thinking along.
Those who doubt or hesitate I want to ask if they have any other positive and constructive proposals. Are there any other alternatives to cooperation?
Probably it is better to start a business with a 50% chance of success than not to start any business at all.
Moreover so because the participants in the proposed Confederation of Eastern Baltic ports are not going to lose anything at all. Neither their national identity, not their customers, investments or personnel.
The Eastern Baltic has an exceptional character in the Baltic different from other regions therefore we do not see a contradiction in our wish to establish a regional confederation. Not to oppose BPO or any other international bodies. The ports on he eastern coast of the Baltic Sea have an immense continent as their hinterland. This continent is at the beginning of its way to market economy and to the participation in the global international division of labour. Significant changes are in store for the continent among them those which bear directly on the transport sector. In its turn the successful development of the continent will largely depend on the effective work of transport and especially transit through the Baltic region.
Forecasts differ: from the optimistic ones promising the doubling of the cargo flows every 5 years and sufficient work for all ports down to the pessimistic ones.
Most probably, the future of the ports and the transport sector as whole depends to a considerable extent on our efforts.
I think we should make up the group which in the shortest time will work out proposals for Statutes and schedule of the Confederation and prepare for the calling of the constituent congress.
The working group can be made from the well known personalities.
Alternatively, each country - Lithuania, Latvia, Estonia, Russia and Finland form their national unit which will then enter the group.
The proposed main activities of the Confederation, starting with the easiest ones:
Navigation safety. Salvage and rescue. Fighting spills. Technical cooperation.
Projects and studies of ecological safety in transport activities.
Coordination of national and regional transport exhibitions and conferences. Joint participation in exhibitions and conferences in remote parts of the world such as South East Asia, Central Asia, China, America.
As connected to it: joint participation in informational and advertising campaigns in mass media.
It should be not too difficult to arrange programmes for upgrading professionals and exchange of personnel.
In the framework of the new organization the work on simplifying customs and border crossing procedures between member-countries will no doubt be more productive.
Based on the experience of neighbours we will be able to prepare law initiatives to be submitted to our respective parliaments and governments.
Common marketing and sourcing activity in the far away regions might prove very successful as well as participating in international transport corridors and projects like the TransSiberian landbridge.
Why not engage in common lobbyism (within lawful framework of course) on national and international level?
And finally the main thing. It will certainly be more difficult to coordinate the research and studies of the prospects for the development of the region and separate countries. But we will first of all enjoy economies of scale on consultants and project makers to say nothing about having in front of our eyes the clear picture of what lies in store for each and every and which variant of transport sector growth is objectively the rational one, what can be expected of the neighbours and colleagues-competitors, which investments will pay back and when, which ports are to be built and which re-structured or gradually closed down.
At this period of time this is the crucial issue, as we all know that the ports overcapacity in the region goes worse and ever more funds can be buried in concrete and frozen.