Strategic Issues surrounding the port of Tauranga in the last five years
Added on 2023-04-04
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Running Head: STRATEGIC LOOK AT THE PORT OF TAURANGA
Running Head: STRATEGIC LOOK AT THE PORT OF TAURANGA
Strategic Issues surrounding the port of Tauranga in the last five years
Tauranga port of New Zealand has earned its current status of being one of the leading ports
after a long journey of more than 7 decades. As a management strategist when we have a look
at this property then we find that until the year 2013 this port achieved milestones of
efficiency in various department of freight management. However, after the year 2013, the
internal and external factors started bothering the efficiency of this place; here we are
mentioning some of the strategic problems that this port is facing.
Issues related to the carrying capacity of the port
Tauranga port is enabled with some of the best facilities that can facilitate queues, handle
inventory and logistics in accordance with best demands of the customers. This port
successfully met with the supply and demand related needs in accordance with the demands
of the market. They developed a fast lane to handle the problem of the perishability of the
goods. In the year 2013, they increased dairy imports by 28 percent. However, in the year
2018, they started feeling the pressure when core sector of the country felt a shortage of port
space to ensure a timely delivery of certain goods that has greater economic importance for
the economy.
A change in the economic portfolio of the country
Tauranga port along with the Auckland port has become an important port for the arrival and
dispatch of the goods that are important for the economy. According to an estimate, three
main ports of New Zealand are accommodating more than 40 percent of the import and
export operations of the country. This huge traffic of imports and exports has created a strong
infrastructure of the ancillary services around these ports. The cluster of these unorganized
Strategic Issues surrounding the port of Tauranga in the last five years
Tauranga port of New Zealand has earned its current status of being one of the leading ports
after a long journey of more than 7 decades. As a management strategist when we have a look
at this property then we find that until the year 2013 this port achieved milestones of
efficiency in various department of freight management. However, after the year 2013, the
internal and external factors started bothering the efficiency of this place; here we are
mentioning some of the strategic problems that this port is facing.
Issues related to the carrying capacity of the port
Tauranga port is enabled with some of the best facilities that can facilitate queues, handle
inventory and logistics in accordance with best demands of the customers. This port
successfully met with the supply and demand related needs in accordance with the demands
of the market. They developed a fast lane to handle the problem of the perishability of the
goods. In the year 2013, they increased dairy imports by 28 percent. However, in the year
2018, they started feeling the pressure when core sector of the country felt a shortage of port
space to ensure a timely delivery of certain goods that has greater economic importance for
the economy.
A change in the economic portfolio of the country
Tauranga port along with the Auckland port has become an important port for the arrival and
dispatch of the goods that are important for the economy. According to an estimate, three
main ports of New Zealand are accommodating more than 40 percent of the import and
export operations of the country. This huge traffic of imports and exports has created a strong
infrastructure of the ancillary services around these ports. The cluster of these unorganized
Running Head: STRATEGIC LOOK AT THE PORT OF TAURANGA
services is helping industry sectors to keep control over the prices of the goods
(Langen,2014).
A natural increase in the population of the area is forcing the industries to scale up and ports
are bound to play a crucial role in the process. Ports like Tauranga and Auckland shares
double responsibility. They are accountable for the import and export of the local goods
along with the national goods. Congestion on these ports can force many other operations of
the economy (Langen, 2014).
Rationalization of the ownership is creating gaps under a neo-liberalism system
In the recent past, the demand for Rationalization of ownership of the ports has created an
uproar. This indicates that a competitive tension among the business that is dependent on the
freight corridors are prevailing, as a strategist, it is important for an individual to understand
this competitive tension and strike a balance between the commercial and social utility of the
port. A profit-driven port can change the equations of the business in the market and create a
monopoly like situation for certain players. The fixation of a balanced pipeline for the
delivery and release of the goods is the need of the hour that can solve many problems for
this port.
These three issues are the most important issues at this point of the time. The issue of the
carrying capacity deals with the internal functionality of the port. It can guide us in terms of
coming up with the best management practices (Hollen, 2013).
The worth of a port as a national property is another issue; organizations like Tauranga port
are a national asset. The history of this port gives us an idea that it acted as a public good.
Now when the pressure in the pipeline is increasing, it is very important to come up with a
services is helping industry sectors to keep control over the prices of the goods
(Langen,2014).
A natural increase in the population of the area is forcing the industries to scale up and ports
are bound to play a crucial role in the process. Ports like Tauranga and Auckland shares
double responsibility. They are accountable for the import and export of the local goods
along with the national goods. Congestion on these ports can force many other operations of
the economy (Langen, 2014).
Rationalization of the ownership is creating gaps under a neo-liberalism system
In the recent past, the demand for Rationalization of ownership of the ports has created an
uproar. This indicates that a competitive tension among the business that is dependent on the
freight corridors are prevailing, as a strategist, it is important for an individual to understand
this competitive tension and strike a balance between the commercial and social utility of the
port. A profit-driven port can change the equations of the business in the market and create a
monopoly like situation for certain players. The fixation of a balanced pipeline for the
delivery and release of the goods is the need of the hour that can solve many problems for
this port.
These three issues are the most important issues at this point of the time. The issue of the
carrying capacity deals with the internal functionality of the port. It can guide us in terms of
coming up with the best management practices (Hollen, 2013).
The worth of a port as a national property is another issue; organizations like Tauranga port
are a national asset. The history of this port gives us an idea that it acted as a public good.
Now when the pressure in the pipeline is increasing, it is very important to come up with a
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