Being Minister for maritime transport, and also for competitiveness, I believe that maritime transport and logistics have a major role to play in helping our industry to increase its competitiveness. I must say that in order to obtain competitive advantage from optimal supply chain management one must ensure efficiency in the transportation of goods.

The effects of globalisation has meant that every industry and business must face increasing competition from all over the world. I think that, as time goes by, Maltese entrepreneurs are realising that change and restructuring in our ports is essential if we are to compete in the global and European market.

The development of a more dynamic supply chain, where outsourcing decisions are being taken according to business strategy rather than solely on cost savings per unit, means that suppliers are becoming business partners. This shift in relationships means that enhanced communication and transport logistics have become essential in guaranteeing the smooth flow of goods among various supplier networks, which can be thousands of miles apart.

Today some of the most prosperous businesses have realised that the globalisation factor means that industries can no longer compete solely on price. The winners are those who are realising that supply chain management should focus on value to the customer.

In this respect, the supply chain should be managed in such as way as to provide the best service to consumers. Competitive advantage is being achieved by adding value to the supply chain.

Supply chain integration synchronises the efforts of all parties – suppliers, manufacturers, distributors and dealers – involved in meeting a customer’s needs. This approach relies heavily on good communication and an efficient flow of goods from one particular factory to another. Transport logistics and good port management are therefore essential to enable a seamless exchange of goods and services across organisational boundaries which may be thousands of miles apart.

In today’s global cut-throat competition we need people that are able to rise up to the challenges of the industry and forge much closer relationships among all links in the value chain. This will enable businesses to deliver the right products to the right place at the right time at the right price, and thus added value is created for the consumer. The goal is to establish such strong bonds of communication and trust among all parties that they can effectively function as one virtual corporation, fully aligned to streamline business processes and achieve total customer satisfaction.

I am convinced that education and training are vital to our determination to enhance our nation’s competitiveness. Such initiatives should be diverse and should offer a combination of educational aspects ranging from general education on the industry to specific job training. Unfortunately training has not always been ranking highly on the agenda of the local port industry and has often been limited to on-the-job training, which does not always produce the best results. Nevertheless the introduction of a diploma by the Chartered Institute for Logistics and Transport, and other initiatives such as the Certificate programme for port workers which was also organised by this institute, marks a significant step forward in providing formal training for to those working at all levels of this industry.

I put personal importance on human resource development. In fact, the Competitiveness and Communications Ministry is promoting the training of all workers in the maritime industry, with increasing emphasis on the ports.

I am ever more convinced that it is only through further professionalism and specialisation that the local maritime industry can guarantee its competitive edge over its competitors.

Censu Galea is Competitiveness and Communications Minister