HØGSKOLEN I VESTFOLD How can cooperation between neighbouring ports within the Oslofjord area become reality? A study of two neighbouring ports and the opportunities of future collaboration for mutual benefits Øivind Berg November 2013 In partial fulfilment of the degree Master in Maritime Management, Department of Maritime Technology and Innovation, Vestfold University College, Horten, Norway Acknowledgement This thesis would not have arisen without the kind contribution from Finn Flogstad, Port Director, Port of Grenland, Jan Fredrik Jonas, Port Director, Port of Larvik, Jan Einar Skarding, Marketing and Logistics Manager, Port of Grenland, Per Kvaale Caspersen, Project Manager at Vestfold Municipal County, and Olav Risholt, Project Manager Telemark Municipal County. I must also thank advisors and colleagues at Vestfold University College; Halvor Schøyen, PhD, Kjell Ivar Øvergård Dr. Professor, Jørn Kragh Project Manager and Tine Viveka Westerberg for valuable information and good advice. And, not at least: the one at home Halldis, who has not seen me for a good while. Contents Introduction ................................................................................................................................ 1 Background ............................................................................................................................. 1 Research question ................................................................................................................... 2 Relation to other work in the area .......................................................................................... 3 Cooperation ......................................................................................................................... 3 Theoretical framework ............................................................................................................... 5 Competition ............................................................................................................................ 5 Levels of competition ......................................................................................................... 5 Co-evolution through competition ...................................................................................... 6 Opportunities of cooperation .............................................................................................. 7 Complementarity and substitutability ................................................................................. 8 Areas of cooperation ........................................................................................................... 9 Strategic development and chronology .................................................................................. 9 Methodology ............................................................................................................................ 10 Data collection ...................................................................................................................... 11 Primary data collection ..................................................................................................... 12 Seven stages of an interview ............................................................................................. 14 Presentation of data ........................................................................................................... 15 Participants for interviews ................................................................................................ 16 National strategic documents ............................................................................................ 18 Secondary data collection ................................................................................................. 18 Validity ................................................................................................................................. 18 Reliability ............................................................................................................................. 20 Literature review ...................................................................................................................... 21 Strategic documents .............................................................................................................. 21 Reports .................................................................................................................................. 29 NewFreight, ports and goods flows .................................................................................. 30 Efficient terminals (Effektive terminaler) ......................................................................... 31 How to strengthen sea transport’s competitiveness .......................................................... 34 StratMoS WP C ................................................................................................................. 36 Case study of competition between ports of Grenland and Larvik .......................................... 38 The Oslofjord ports ............................................................................................................... 38 The ports of Grenland and Larvik ........................................................................................ 39 Summary of political strategies......................................................................................... 40 Summary of the reports ..................................................................................................... 41 Interviews with the actors ..................................................................................................... 42 Interview with Port of Grenland ....................................................................................... 42 Summary ....................................................................................................................... 45 Port of Larvik .................................................................................................................... 45 Summary ....................................................................................................................... 48 Vestfold County Municipality .......................................................................................... 49 Summary ....................................................................................................................... 52 Telemark County Municipality ......................................................................................... 52 Summary ....................................................................................................................... 55 Discussion ................................................................................................................................ 55 Efficiency drivers and liner operator choice ......................................................................... 55 Competition and co-evolution .............................................................................................. 58 Evidence of the interviews ................................................................................................... 60 Port management - Competition between the two ports ................................................... 61 Port management - The authorities’ impact on port operations ........................................ 62 Port management - New government, flows and investments .......................................... 64 Mutual response ................................................................................................................ 65 Regional authority ............................................................................................................. 66 SWOT analysis ..................................................................................................................... 67 Strengths ........................................................................................................................... 67 Weaknesses ....................................................................................................................... 68 Opportunities ..................................................................................................................... 68 Threats ............................................................................................................................... 69 Conclusion ................................................................................................................................ 69 References ................................................................................................................................ 70 Tables Table 1 Levels of competition 8 Table 2 Table of statements 15 Table 3 Table of participants 16 Table 4 Ports in the Oslofjord 38 Table 5 Terminals in the region 39 Table 6 Similarities of evidence 61 Table 7 A typology of cooperative activities 66 Table 8 SWOT analysis 67 Figures Fig. 1 Factors constraining development 10 Fig. 2 Map: Terminals in the Grenland-Larvik region 40 Fig. 3 Terminal’s opportunity of influence 56 Fig. 4 Line operator’s sellection model 57 Fig. 5 Co-evolution through competition 60 Appendix No.1 Guiding questions for interviews Norewegian and English 74-77 Abstract This thesis analyses the competitive environment of two neighbouring ports: they are currently competing but future