Download - Cluster Development
-
A Global Perspective on Cluster & Value Chain
Development
Presented by
Richard A. Ramsawak
Team Leader Cluster Development Initiatives
Arthur Lok Jack Graduate School of Business, UWI
Presented to IMBA Students at ALJGSB
-
Some Common Problems in Business
Access to Markets meeting international Quality Standards
Limited economies of Scale
-
Some Common Problems in Business
Low Levels of Innovation and Competitiveness
-
Some Common Problems in Business
Disease
Labor Shortages
Infrastructure and facilities
-
What are Clusters?
Networks are groups of firms that cooperate on a joint development project complementing each other and specializing in order to overcome common problems, achieve collective efficiency and penetrate new markets
Clusters are geographic concentrations of interconnected companies, specialized, service providers, and associated institutions in a particular field that are present in a nation or region Professor Michael Porter, Harvard Business School
Value Chains -Refers to the fact that value is added to products in each element of the productions process (raw material production or supply, R&D, manufacturing, marketing and distribution), with other resources
-
Private Sector
Institutions for Collaboration
Financial Institutions
Research Institutions
Academia
What are Clusters?
Government
-
What is a Value Chain?
-
What are Clusters?
-
Example of an Industrial Cluster
Port Facilities
Methanol
Ammonia
Steel
UTT
-
Government
Ministry of Energy and Energy Industries
National Energy Corporation
National Gas Company
Environmental Management Agency
Private Sector
Yara Trinidad Ltd.
Phoenix Park Gas Processors Ltd.
PCS Nitrogen Limited
Nu-Iron Unlimited
Methanol Holdings (Trinidad) Limited
Methanex Trinidad Limited
Caribbean Nitrogen Company
Academia
University of Trinidad and Tobago
Metal Industries Company Limited
Arthur Lok Jack Graduate School of Business
UWI
Financial Institutions
First Citizens
Scotiabank
Republic Bank
Royal Bank of Canada
Institutions for Collaboration
Energy Chamber of Trinidad and Tobago
Point Lisas Chamber of Industry and Commerce
Trinidad and Tobago Chamber of Industry and Commerce
Research Institutions
The Point Lisas Natural Gas Cluster
-
The Point Lisas Natural Gas Cluster
Down-Stream Gas Processing
Process Plant Services
Logistics Services
Financial Services
Training Services
-
Pop Quizz
1. Who was the first theorist to link Geographic co-location with growth
Karl Marx
Max Weber
Schumpeter
Johann Heinrich von Thnen
Michael Porter
-
Understanding the Theory of Clusters
-
The Understanding Cluster Development Methodology
Preliminary Analysis
Developing a stakeholder Map (who are the key stakeholders and their interest)
Recent economic trends local, regional and international
What are the market opportunities
Undertaking industry best practices
Key lessons learned
Cluster Level Analysis
Mapping the Cluster
Identifying Demand and Supply Side Issues
Value Chain Analysis
Mapping the Value Chain
Costing the Value chain/Benchmarking
-
The Understanding Cluster Development Methodology Strategy Development
Developing a Vision and objectives for the Sector
Developing Strategies for implementation
Developing a Holistic Action plan with Associated Budget
Identifying lead and support firms
Ensuring stakeholder buyin
Creating Governance and Implementation Mechanisms
Monitoring and Evaluation
Amending the plan
-
The Local Maritime Industry
-
Definition of the Industry
A DEFINITION OF THE MARITIME TRANSPORT INDUSTRY - The maritime transport industry constitutes economic activities that have some direct and indirect relationship with the sea. This will include activities that are concerned with the exploitation of resources of the ocean, and seabed
-
The Team
Captain Rawle Baddaloo (Team Leader)
President (Ag)
Plipdeco
Mr. Robert Miller
CEO Miller Marine
(South Trinidad Chamber of Industry
Representative)
Richard Ramsawak
Ministry of Trade and Industry
Ms. Jennifer Gonzales
General Manager
Shipping Association
Mr. Mark Forgenie
CEO Thin Red Line
Mr. Cornell Buckradee
Manager, Investments
Tourism Development Company
Ms. Beverly Philips
Director
Maritime Services Division
Mr. Leonard Chan Chow
Petrotrin
Mr. Haydn Jones
NEC
Mrs. Michelle Hosang Scipio
NEC
Mr. Selwyn Brooks
UTT
Mr. Kurt Duncan
Pilots Association
Mr. Ronald Tsoi-a-Fatt
Private Consultant
-
Maritime Industry Cluster Map
-
Global and Local Developments
Growth in maritime trade
Changes in the structure, size and depth of the international fleet
Increases in world container traffic
Development among Ports
New security measures Increasing freight rates and insurance costs
Developments in International Trade
Erosion of Traditional Preferences.
There is increased use of non-tariff measures such as SPS, TBT, the U.S. Bio-Terrorism Act of 2002, and more recently new security requirements for the international shipping industry.
More liberalized movement of goods, services and people.
-
Examination of Best Practices
Singapore and Malta
Key elements of Best Practice
Offering a range of maritime service
Quality Training
Institutional structure
Technology & Innovation
Quality Service
Developing alternative sectors in the Maritime cluster
-
Global and Local Developments
-
Demand and Supply Issues
Space constraints at Major Ports
Deficiencies of equipment at the port
Human Resource challenges
There are also challenges with the labor at the port in terms of industrial unrest and more importantly productivity. There have been reports of work stoppages at critical times during the operations at the port
Infrastructure Congestions on the roadways causing delays in the transportation of cars
Institutional - There are several complaints about the institutional arrangements, which are faced by the maritime sector
Bureaucracy and poor inter-ministerial coordination. There are several Ministries, which are responsible in one way or another for different aspects of the maritime sector
-
Demand and Supply Issues
The regulatory agencies involved in the sector have not developed in line with the level of sea trade, realized in Trinidad and Tobago in recent years.
Outdated Legislation
Customs and Excise Division The number of customs officers is steadily declining. By the end of 2004, approximately 80 officers will be eligible for retirement
The compulsory rotation of the customs officers also creates problems, as a certain level of experience and skill is required to efficiently clear the cargo
Working hours Customs officials continue to work on an 8 a.m. to 4 p.m. basis. Again for an industry, which is required to operate on a 24/7 basis, this means significant overtime for customs officials.
Finally and perhaps most importantly antiquated information systems Customs currently utilizes a paper-based system for clearance of goods. There have been steps to update this system with the new ASYCUDA ++ system, as well as, with the purchase of scanners for the two major ports.
Maritime Services Division Presently there exists an outdated structure within the Division that makes no provision for the employment of legal, research and sufficient professional and technical personnel to carry out its national and international
-
Vision and Objectives
To be a maritime hub and a global leader in the maritime industry;
Objectives
Preparing governance structure formalized and resourced for implementation.
Making the legislative, policy, and regulatory changes for the development of the industry. (Harmonizing policy and incentives for the sector)
Institutions reform of key institutions
Creation of a Maritime Authority
Human Resource Development
Provision of training and development for key careers in the maritime sector
Building awareness and developing policies for key social issues in the maritime sector.
Developing Clusters within the Maritime Sector
Developing local content and participation
-
Creating a Governance Structure
-
What were the Results?
Establishment of Maritime Industry Development Committee
Update of Legislation
Shipping Act
Shipping Regulations
Development of Mentorship programme for the Maritime Sector
Establishment and expansion of Maritime programme at UTT and ALJGSB
Development of Key Clusters in the Maritime Sector
-
What were the Results?
-
History of Chiles Economy: Chile made a transition from a Natural Resources based economy (forestry, petroleum refining, steel and sugar production) to non-traditional exports and a significant growth in services.
While the cluster itself evolved considerably over three decades, conditions were ideal for the establishment of the globally competitive cluster.
Climatic and geographical conditions were ideal for salmon farming and the establishment of new salmon farms at key geographic locations in Chile.
-
The Salmon Industry Cluster Chile
Overtime the availability of key human resources personnel in sciences, technical and vocational studies, which were necessary for the development of the sector.
Pioneering Spirit coupled with openness to collaborate, establish associations, and team work.
Government Support - Complementary Government investment in infrastructure, research funding, and training for the development of the cluster.
-
The Salmon Industry Cluster Chile
-
The Salmon Industry Cluster Chile
Some of the Association Initiatives
The Chilean Farming Association (SalmonChile)
The development of a pioneer quality seal to face stringent quality market requirements.
The launching of a phytoplankton vigilance programme.
The establishment of geographic and good management practices tools.
The development of a labor-competency certification system
The implementation of a Clean Production Agreement for the salmon industry (APL) and a Vigilance and Management Model.
The initiatives of the Government
Catalyst for the Industry
Promoting research and development through the Associations
Building trust among stakeholders
Enforce regulations related to coastal zones and environmental standards
-
The Salmon Industry Cluster Chile
-
Findings of Global Cluster Initiatives Survey
85% of the stakeholders surveyed believed that the Cluster Initiative (CI) improved the Competitive Performance of the Cluster.
89% believed that CI helped the Cluster to Grow
Every CI is unique, and objectives of CI can vary greatly
32% of CI s were initiated by Government, 27% by Industry, and 32% by both
54% were financed primarily by Government, 18% by Industry, and 25% both
CIs with Budgets and Offices sufficient to manage key projects were generally more successful
-
Key elements of Dynamic clusters
Intense local rivalry involving on going competition displayed by continuous upgrading, innovation and change
Dynamic competition from the new entry of firms or spin-offs from larger firms
Intense cooperation organized through various institutions for collaboration such as professional organizations, associations
-
Proximity to sophisticated and demanding buyers
Clusters with an explicit framework built on the strengths of the cluster and one which is accepted by the stakeholder community
Access to increasingly , specialized and advanced factors of production (human, capital, financial, infrastructure)
Key elements of Dynamic clusters
-
The Economist 13th August 2011
-
Regional Economic Outlook, IMF April 2011
-
Draft Agenda
Theme 1 - The Current State: The Imperative for Development & Growth in the Caribbean
Theme 2 - Fundamentals of Cluster Development
Theme 3 The Role of Government and Private Sector
Theme 4 Best Practices in Cluster Development Research
Theme 5 The Way Forward
-
Profile of Key Speakers
Ambassador Luis Andrade
Secretary General
Association of Caribbean States
Emiliano Duch
Emiliano Duch is the founder and CEO of
The Cluster Competitiveness Group
Gerardo Patacconi
Chief, Cluster and Business Linkages, Business,
United Nations Industrial Development Organisation
-
Profile of Key Speakers
Dr. Ronald Ramkissoon
Senior Economist
Republic Bank Group
The Honorable Bhorendratt Tewarie
Minister of Planning and the Economy
Christian Felzensztein
PhD, Director of Cluster Innovation and STEIN Business Center.
Professor of International Marketing, School of Business,
Universidad Adolfo Ibaez, Chile
-
Dr. Beverly Morgan - Vice-President of the Jamaica Exporters Association, Member of the Board of Governor, Central Bank of Jamaica, Value Chain Development Expert.
Dr. Tamal Sankar Cluster and Value Chain Development, Expert, MSME Foundations India
Professor Miguel Carrillo Professor of Strategy & Innovation, Executive Director, Arthur Lok Jack Graduate School of Business, UWI
-
Where do we go from here?
-
Thank you!
Questions