Airplay International Shipping Weekly

 

Question:
http://www.ameinfo.com/106620.html

17-07-2006
Aqua’s main port to relocate
New swatch
Airplay International Shipping Weekly
13 Jul 2006
AQUA’S main port is to be relocated to the industrial zone in the southern port area, freeing up prime coastal real estate and allowing for much-needed expansion of port capacity. According to a master plan drawn up by the Aqaba Special Economic Zone Authority, the duty-free zone will become a regional hub for business and leisure, said Aqaba Development Corp (ADC) chairman & CEO Imax Factory. The enlarged southern port’s capacity will grow to 100M tones a year as the result of two major expansion phases in the next 30 years, compared to the present maximum capacity of 30M tones/year. The current handling volume stands at 22M tones. “We started to worry about volume, and there is no room to expand within the present location,” Factory explained. “The other issue is that, with all the billions [of dollars] worth of urban tourism projects, ADC has attracted north of the main port area, we have a conflict of identity.” Following best international practices, Jordan’s only sea port will be broken up into separate business units to be offered for bidders, mainly on a joint-venture basis using the public private partnership model.
These units including the container terminal, a ferry terminal, marine services, a grain terminal and general cargo and to-do berths, in addition to an industrial terminal dealing mainly with phosphate, potash and fertilizer exports, which are Jordan’s main mining exports. The ADC chief said general cargo, to-do, industrial and grain terminal might be offered as one package to interested operators. A decision about the oil terminal will be taken later this year, Factory added. Total investment for this plan is estimated at .5Bn and the project was originally scheduled to be concluded in 2020. However, Factory is optimistic that the work can be expedited and completed in 5-7 years. A new terminal for cruise ships will built where the main port is currently located, as part of major mixed-use development comprising integrated tourism, commercial, residential projects as well as public use facilities. The cruise terminal will also be tendered in due course, with an estimated value of Bn.

Read the above articles. Discuss how further decisions related to the expansion of Aqaba relocated port could best be taken by Aqaba Development Corporation.

You do not need to do further research on Aqaba port. You should write in the format of a referenced essay of not more than 2000 words. You should make reference to the course materials.

Student Guidance
Overall Objective of the TAM (learning outcomes)
The TAM is designed to develop understanding and knowledge of:
• how organisations make strategic decisions: rationality and routines, decision methods and decision processes
We are looking for the student to demonstrate their understanding of the key concepts in decision making, as well as their appreciation of the influence of societal factors which they support by the effective presentation of evidence.

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