MARICO Marine NZ Limited WELLINGTON HARBOUR PORT AND ...

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Report No: 05NZ104 WELLINGTON HARBOUR Issue: Issue 1.1 Operational Risk Assessment 13 DISCUSSION 13.1 INTRODUCTION This section of the report is intended to provide feedback from the Authors’ professional observations and findings and to complement the previous section, which summarises risk control. It is partly opinion based and draws on Authors understanding of the harbour system from the considerable work and liaison needed to complete the Wellington risk assessment. The section aims to provide both constructive input into the strategic thinking\safety management in Wellington Harbour and provide explanation supporting some of the risk control options as summarised in section 12. It is intended to be constructive instead of posing challenge. 13.2 CENTREPORT ORGANISATION As part of this risk assessment we have considered the Port Company risk management system for pilot training and the movement of piloted vessels and found it to be comprehensive and effective. This is in part due to the long service of Pilots, Pilot Manager and the Harbourmaster. This partnership provides a well oiled safety management system, which only requires attention in traditional areas such as communication and common understanding of standards. However, the system is vulnerable to the classic situation of one or more key players retiring, whose knowledge base and capacity to deliver a safe system may presently be overlooked at a strategic decision-making level of the organisation39. This may be partly because of a diverse domain of personnel backgrounds within the organisation, but the same observation is perhaps also relevant to the management behind the Harbourmaster system. 13.2.1 Strategy of CentrePort Fifteen years ago, ports in many parts of the world were regarded as passive links in the global supply chain, valued more for the property they owned than their commercial activities. In Europe they were better known for being hotbeds of labour unrest than industrial jewels. This has changed radically in Europe and this change is happening in many other parts of the world. 39 It is noted that within 5 years 75% of the combined pilotage knowledge is likely to retire, exposing the port to a potentially severe shortage of institutional knowledge (i.e. see the position Timaru is in today) Greater Wellington Regional Council / CentrePort Ltd Page 85 of 102
Report No: 05NZ104 WELLINGTON HARBOUR Issue: Issue 1.1 Operational Risk Assessment Authors gently suggest that CentrePort is to ride this same wave in the future and like many, many ports worldwide has the traditional problem that its operations are situated on land with high value as a City waterfront. If the potential for land development outweighs the potential for the port business in the eyes of commercial stakeholders, Board and senior management, the attention will focus on quality decision-making for land asset development, with lesser quality decision-making for the old core business and waterbased assets. In such a system, when an incumbent, experienced and competent marine skillbase retires or moves on, vulnerability of the system increases significantly. The port has a large property development portfolio, something Authors have seen in a number of ports; this can lead to a new attention focus to the executive. However, curiously, the senior management system does not appear to have a clear split between property development and the business of running and developing the port. From past experience, Authors remain of the opinion that the organisational design would benefit from review against functional analysis of the needs of the port business and the needs of the property development business40. The large vessel marine expertise for CentrePort is found at a lower level of the management structure, yet this advice is vital for project cargo advice, fendering standards, safety management, operational advice, berth development and upgrading and vessel capacity at berths. The design of all organisations is difficult to get 100% right, but under present arrangements, Authors suggest it may help to look at how the large vessel experience can be better connected within the structure and the level at which it reports. Authors found a naivety about the true liability that could arise from a serious marine event (but found that the Regional Council was carrying appropriate Harbourmaster insurance cover). It is very relevant to the Marine Manager function. Symptoms the Port Company Board should consider in association with this are whether or not it has direct access to appropriate marine expertise to assist with its strategic decision-making. If the Board has limited access to maritime advice, but has property development advice, then its structure to both develop an integrated marine logistics company and support a safety management system under the Port and Harbour Marine Safety Code needs to be reviewed. It is the intent of the P&HSC for the port company’s designated person to have direct links to the highest levels of management in 40 Authors have experience of a port experiencing a serious grounding (and 7 year legal battle) after key personnel retired. Senior management and Board were at the time involved in large scale development of the land portfolio. Greater Wellington Regional Council / CentrePort Ltd Page 86 of 102
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