ࡱ> '`{bjbjh\mHHH"j $ wwwP&xz  s2|^|.|||*~D~ P~bdddddd$!h &~*~||h-WWW| |bWbWWPt |&| {ww^C0s"r1  1 1   X~0~"W~~X~X~X~X~X~X~s 9CD4 C  STRATEGIC PLANNING FOR DEVELOPMENT OF THE PORT OF VUKOVAR Ivan `uker, B.Eng. Port Authority Vukovar Dunavski prilaz 15, 32000 Vukovar E-mail:  HYPERLINK "mailto:ivan.suker@port-authority-vukovar.hr" ivan.suker@port-authority-vukovar.hr Iva Oluji, M.Sc. Port Authority Vukovar Dunavski prilaz 15, 32000 Vukovar E-mail:  HYPERLINK "mailto:iva.olujic@port-authority-vukovar.hr" iva.olujic@port-authority-vukovar.hr Davor Sumpor, M.Eng.Mech. University in Zagreb Faculty of Transport and Traffic Engineering Vukelieva 4, 10 000 Zagreb E-mail:  HYPERLINK "mailto:dsumpor@fpz.hr" dsumpor@fpz.hr ABSTRACT Since the foundation of port authorities, significant funds have been invested in planning and development of the Port of Vukovar. Comparing the amount and structure of transshipped cargo through years with the condition of the port infrastructure and superstructure indicates the degree of systematic quality in planning and management of the port development. The trend of making investments in infrastructure, superstructure and equipment of the Port of Vukovar can be compared and functionally related to the trend of change in the total volume and structure of the traffic, and it also allows projection of future trends. The level of utilization of transhipment capacity makes investment into these capacities justifiable. Strategic development of traffic is guided by legislation, and Port Authorities founded by the state govern inland waterway ports through development and realization of development plans, and they supervise construction and maintenance of port infrastructure. The activities of the port operators in ports are regulated by concession contracts which they obtained based on their work programs. Analysis of the port operator work programs points to potential causes of their incomplete realization. The other factor indicating lack of systematic strategic planning and management of port development is a politically conditioned change in the way of financing of development at the moment when significant funds have been invested in making of development plans and studies according to international lending standards. KEYWORDS strategic planning for development, legislation, ways of financing development, impact on traffic volume and structure, projection of future trends 1. INTRODUCTION The main hypothesis researched by the authors of this paper is the cause-and-effect relationship between strategic planning for development and planned investments into the port development, and real development indicators, one of which, although not the only one, is the annual volume of cargo transhipment. This research attempted to find out to which extent the development of the Port of Vukovar can be strategically planned at the level of the port itself, and independently from the industry [1] or general [3] strategy of traffic development of the Republic of Croatia. The trend of change in the traffic of all sorts of cargo in the Port of Vukovar was analyzed as well as the trend of investments in infrastructure, superstructure and transhipment capacities of the port made by the Republic of Croatia. Presence or absence of the correlation between the mentioned trends will make the analysis of the cause-and-effect relationship possible, and it will confirm or disprove the hypothesis about possible independent strategic planning of the Port of Vukovar. It should be noted that investments in the Port of Vukovar as well as all other investments can be planned for the two main reasons: for the need for extension of the current capacity which does not meet the current needs of the traffic market for port services in the targeted gravitational area, or for envisaged future demand on the narrower or wider gravitational area of the traffic market. Both ways of investment planning require projections of the future situation and management of implementation based on strictly defined parameters. A very important factor was also analyzed in this paper legal framework for governance and development of inland waterway ports, for the purpose of having insight in the model developed by the regulator (the state), so that differences between the legally prescribed model and the real situation on field could be compared to more details in the following papers. Although formally, in the legislation, the regulator is separated from the operator, in practice the operating element (port operator) in the Port of Vukovar has not been fully separated from the regulatory system yet. This allows the operator to influence the regulator, which ultimately results in lack of objectivity in the process of planning, adopting and implementing strategic planning documents, which has an inconsistent development policy of the port traffic system as a result. Direct consequences of this way of strategic planning are reduced resources (time and money) that should have been used for efficient adjustment of the port infrastructure to the market demands in a defined targeted gravitational area of the port. In addition to this, there is no organized and methodological way of monitoring the market demands through research of the needs of potential users of services provided by port operator. The way of doing business in which potential clients were expected to come and request a service from the port operator now belongs to the past. Modern companies in the recent global environment establish special departments and undertake measures in order to manage the portfolio of the users of services and to manage risk. There are two main objectives of managing the portfolio of users of services: expanding the portfolio with new users of services provided by the port operator and keeping the existing user portfolio, all in accordance with the current technical capacity of the port. Risk management implies that regulatory system has been designed in such a way as to encourage port operators to achieve a positive growth of traffic and revenues, but also to obligate them to a reasonable portfolio diversification in relation to the percentage of share of a particular type of cargo in the total annual transhipment of all types of cargo in the port, and in relation to the percentage of share of dominant users of services provided by port operators in the total user portfolio. Strategy for development of the river traffic in the Republic of Croatia from 2008 [1] is actually implementation of the EU action plan [2] from 2006, and it envisages a coordinated and sustainable development of the river traffic, and formally, for the river traffic segment, it pursues the general traffic strategy of the Republic of Croatia [3], a much older document from 1999, which does not sufficiently recognize the recent demands and needs of the overall traffic market of the Republic of Croatia and the EU. Intention of the authors of this paper was to explore to which extent the desired result of coordinated and sustainable development of the Port of Vukovar can be achieved only by making inconsistent partial investments into the port itself. 2. LEGAL FRAMEWORK FOR MANAGEMENT AND development OF INLAND WATERWAY portS A more serious development of inland waterway ports started in 1998, when the Act on Inland Waterway Ports (hereinafter: AIWP) was adopted [4]. It can freely be said that until then the river ports were marginalized in relation to the sea ports. Based on AIWP, Port Authorities were established public institutions for management and development of the four most important river ports in the Republic of Croatia in Vukovar, Osijek, Slavonski Brod and Sisak. It should be noted that the legislator defined all these river ports as having importance for the Republic of Croatia, which automatically implied an obligation to make equal investments into development of all of the listed ports, regardless of their development perspective, which is, in the first place, conditioned by natural factors (river navigability) as well as by other technical predispositions. Bringing in line the needed investments into port infrastructure and financial capacity of the state, and, accordingly, investing in the projects having priority and showing better economic results from the cost-benefit analysis, was envisaged only in the development plans that were adopted later [5]. AIWP from 1998 introduces a new model of river port governance which is based on distribution between the public and the private sector, where port infrastructure should be owned by the state, and port superstructure should be in private ownership, while operative work should be performed by private companies. At the end of 2007 a new Act on Inland Waterway Navigation and Ports (hereinafter: AIWNP) entered into force. The same Act [6] for the first time united legal regulation pertaining to navigation with regulation pertaining to port governance. Such law is expected to provide better connection among parts of the system (navigable waterways-port-port companies-ship owners-others). AIWNP also regulates adoption of a range of by-laws, the following of which are relevant for port management: Regulation on Business Operation and Management by Inland Waterway Port Authorities (Narodne novine 100/2008), Regulation on Inland Waterway Docks (Narodne novine 134/2008) and Regulation on Technical Conditions for Ports and Safety Conditions for Navigation in Ports and Docks on Inland Waterways (Narodne novine 32/2009). Article 119 of the AIWNP provides the possibility for distinguishing among the river ports in the following categories: the port of importance to the state, the port of importance to the county, and the private port. By opening and categorizing a particular port or dock by the relevant Ministry, it is actually defined who governs ports and docks and it is also defined who is in charge of financing construction and maintenance of the port buildings. According to the Article 140 of the AIWNP, construction and modernization of port buildings is financed by funds from the state and county budget and budget of local and regional self-government. Participation of the Republic of Croatia in investments into docks is limited only to that part of the port infrastructure which is necessary to provide safe access and mooring of vessels (Article 128 of the AIWNP). 3. StrategiC planning FOR development OF THE Port of Vukovar Documents for strategic planning at the port level do not at the same time imply that strategic planning is actually implemented. The main document for strategic planning of development of the Port of Vukovar [7] is Port of Vukovar Master plan developed in 2004. This plan forecasts annual cargo traffic in the Port of Vukovar of about 7 million tons in 2010 according to the optimistic scenario and about 3,5 million tons of cargo traffic in the pessimistic scenario. The traffic in 2008 amounted to about 485.000 tons, while in the first five months of 2009 it amounted to about 47.000 tons of cargo, which indicates the low possibility for realization of such a plan. For this reason it is necessary to conduct a detailed analysis of projections on which such plans were based and to undertake measures to mitigate or slow down the further negative trend by determining the dominant factors that influenced such condition to a great extent by means of a serious analysis. In order to conduct such an analysis, it is necessary to statistically monitor certain parameters that will point to the dominant factors of a negative trend, which requires organized and educated employees, logically, within the port authorities, who will explore the market needs and gather data in a targeted way according to the strictly defined methodology. At the same time, related to investments, at the level of independent strategic planning of the port authority itself it is necessary to organize the department for mitigation of negative trends and to foresee the following measures: Analysis of the past business operation of port operators, including users of services by cargo types; analysis of the percentage share of individual users of services provided by port operators in the total port traffic; increased flexibility in foreseeing the stimulation measures for port operators with the aim of encouraging them to retain the users of services, Encouraging risk diversification by cargo structure through stimulation of existing and/or new users of port services to use particular types of cargo for which there are unutilized transhipping capacities at certain port operators; this often does not require any large investments, except for good will, accelerated procedure, coordination and better cooperation among two or more traffic entities operating on a particular traffic route, Encouraging risk diversification by the share of individual users of services provided by port operators in the total port traffic for a certain type of cargo. Namely, if one user of services provided by a port operator has more than 50% of share in the total port traffic for a certain type of cargo, a strong relationship is established implying dependence of the port operator in question and the total port traffic on this user, so it is necessary to encourage and foresee alternative scenarios in case that the user stops using services, and this should be done by attracting other users of services handling the same type of cargo in the narrow gravitational area, Explore the traffic market on the narrow gravitational area of the port by analysing the needs of legal entities who still do not use services provided by port operators, Attracting new users of services provided by port operators by providing discount prices in arrangements for combined traffic from the river to the sea ports in the traffic corridors Vb and Vc, including the service of cargo transhipment in the ports, or including the services provided by port operators in the Port of Vukovar in the already existing forms of such an integrated cooperation. This measure implies operational coordination among several associated and mutually coordinated interested legal entities from several traffic branches, with establishment of cooperation and coordination between operators in the river and sea ports, and with active support of the relevant port authorities. At the beginning of 2006 a development of the document for strategic planning was completed a feasibility study for expansion of the Port of Vukovar [8], in which the Port development master plan was revised and new forecasts were made based on the data from that time. This study forecasts cargo traffic of about 1,7 million tons in 2010 in its basic scenario and about 820.000 tons in the pessimistic scenario. Unfortunately, these forecasts were also too optimistic, and the main question is what projections and what data were used as a base for development of these documents, and what has been done in the operational segment to reach these projections. Furthermore, the largest theoretical transhipment capacity of the Port of Vukovar in 2009 is about 1,2 million tons, so that even if there were demand, the forecast traffic (from the basic scenario) could not be reached. In order to determine future measures, it is necessary to explore the market demand and the needs of potential users of port services. These measures can be basically divided in the fast short-term measures of operational nature at the port level toward port operators, and the long-term measures implying strategic general planning and targeted and timed investments at the level of the Republic of Croatia going beyond the traffic industry. User portfolio and/or risk are successfully managed by insurance and telecommunication companies. If information is goods, then there are no hindrances that port operators apply the same measures to the classic cargo traffic. Waiting for the situation to change on its own will not change the negative trend, and existing capacities of port operators should be actively offered in a narrower or wider gravitational area of the river port, but to a targeted group of users for a targeted cargo type. 4. TRAFFIC AND investmentS IN THE Port of Vukovar Following the peaceful reintegration of the Croatian Danube region, the port started to operate again in 1998, although most of the infrastructure and equipment was destroyed or stolen. Table 1 Cargo transhipment in the Port of Vukovar 20012008 No.YearBulk cargoGeneral and packed cargoLiquid cargoTotalt%t%t%t1200130.51340,944.10159,100,074.6142200258.59253,151.21746,54010,4110.21032003181.91571,469.72427,43.1051,2254.74442004400.03074,7127.27823,88.3541,5535.66252005649.59580,9146.97318,36.6810,8803.24962006695.89075,2219.90823,79.7361,1925.53472007671.15976,7197.68322,66.2830,7875.12582008189.10641,0247.05353,625.1895,4461.348Source: Annual activity report [9] After the initial reconstruction of basic infrastructure, annual volume of cargo transhipped in the Port of Vukovar was negligible. A more significant growth of the traffic volume started in 2001. Technical equipment of the port can be observed through transshipping capacities of the Port of Vukovar, which include: Multipurpose terminal 16/25-ton gantry crane, 63-ton mobile crane, two smaller 5/6-ton wharf cranes, 7 x 2-5-ton forklifts, one 20-ton forklift, and two wheel loaders. The current capacity of this terminal is annual cargo transhipment of 800.000 tons, working in one shift. The current loading capacity is 150 t/h for bulk cargo, 200 t/h for general cargo, and 6 TEU/h for containers. Cargo accommodation area includes about 7.000 m2 of organized open storage space and about 2.850 m2 of covered storage space. Liquid cargo terminal includes facilities for pipeline transport and storage of diesel fuel, annual transhipping capacity is about 260.000 tons (working in one shift) and there is a storage capacity of 12.000 m3. Ship supply terminal includes facilities for supplying ships with fuel; annual capacity of 50.000 tons. Terminal for grain and oilseed processing plants including loading/unloading equipment, annual capacity is about 100.000 tons (working in one shift). Statistical data on cargo transhipment in the Port of Vukovar have been categorized by year and cargo type in the total annual transhipment. Investments of the Republic of Croatia have been divided to investments into port infrastructure, superstructure and transhipment capacity. The objective of such analysis is to find a correlation between the financial investments made by the Republic of Croatia and the total volume of cargo transhipment. The Table 1 and the Chart 1 show a visible continuous upward trend for transhipment of liquid cargo and general and packed cargo given in tons from year to year, but there is also a decline in transhipment volume of bulk cargo in 2008 to the level from 2003, or to the percentage share in the total cargo transhipment from 2001. It is evident that initial growth period was followed by intense decline in the total traffic volume of the port in 2007 and 2008. It is significant that the decline started in 2007, before the beginning of the global financial crisis, the effects of which started to occur in Croatia not sooner than in the last quarter of 2008. Almost linear steady growth in all years can be observed in the Chart 1, with strong correlation for the liquid cargo (R=0,82), and the general and packed cargo (R=0,97). Identical chart shape for all cargo types and for the bulk cargo points to the conclusion that disturbance of the total cargo traffic was caused by disturbance in the bulk cargo category on the narrower gravitational area of the Port of Vukovar, because the percentage share of the bulk cargo transhipment in all cargo transhipment fell from the maximum 80,9% in 2005 to minimum 41,0% in 2008, which is almost equal to the percentage of 40,9% in 2001. As the effects of the global financial crisis started to impact the Croatian economy, decrease in the total traffic in the Port of Vukovar for all cargo types had already amounted to almost 50% of the transhipment volume in 2006, due to a great decline of the bulk cargo transhipment. This also indicates a total absence of active management of user portfolio of the port and user portfolio in the category of bulk cargo as well as absence of risk management, i.e. lack of risk diversification due to the percentage share of particular or individual large users of the bulk cargo transhipment service in the total annual volume of bulk cargo transhipment. Additional detailed analysis of portfolio of users of bulk cargo transhipment services provided by the port operator of the Port of Vukovar is required in order to establish whether this situation was caused by a single lost user who had a large percentage share in the total annual volume of bulk cargo transhipment, or the volume of bulk cargo transhipment decreased for all users, although such large and intensive fall points to the first cause. General conclusion arising from this analysis is that in the years of the largest traffic volume, from 2005 to 2007, the port was intensely dependent on bulk cargo transhipment with a very uneven share of particular cargo types, and additional analysis should be conducted in order to establish whether there was a single or multiple large users with large percentage shares. Chart 1 Cargo transhipment in the Port of Vukovar  Although the leaving of important user(s) of services provided by port operators in the Port of Vukovar probably could not have been prevented, this possibility should have been foreseen when making an estimation of future traffic and development of the port. This estimation should be made, based on monitoring of certain parameters, for the purpose of decision making about the amounts, priorities and ways of future investments financing in the Port of Vukovar. In the process of providing financing through a non-profit public institution, Port Authority, as a representative of the regulator, and through the Port of Vukovar Ltd. as an operator in 100% ownership of the Republic of Croatia, according to the mid term plan for development of waterways and inland ports in the Republic of Croatia [5], economic results from the cost-benefit analysis must also be considered. The last column in the Table 2, HRK/t, shows the ratio between annual investments in HRK made by the investor, the Republic of Croatia, and tons of the total annual volume of cargo transhipment by all port operators shown in the Table 1 (without investments of two private port operators for the liquid cargo category only). From the Table 2, a growth of investments in HRK/t can be observed in 2008 and 2007, in the circumstances of intense fall of the total annual volume of cargo transhipment in the port showed in the Table 1, which is an undesired and unsustainable situation. Table 2 - Investments in Port of Vukovar 2001-2008, investments of private port operators not included Year Investment in:%Amount in HRK HRK/t 2001Infrastructure100,07.112.328,457.112.328,45 95,32 Superstructure0,00,00Transshipping capacity0,00,002002Infrastructure63,0879.895,541.395.639,40 12,66 Superstructure37,0515.743,86Transshipping capacity0,00,002003Infrastructure99,93.819.001,003.821.192,12 15,00 Superstructure0,12.191,12Transshipping capacity0,00,002004Infrastructure93,17.286.665,607.829.865,54 14,62 Superstructure6,9543.199,94Transshipping capacity0,00,002005 Infrastructure93,010.307.755,7211.082.087,28 13,80 Superstructure7,0774.331,56Transshipping capacity0,00,002006 Infrastructure36,12.028.604,005.619.534,00 6,07 Superstructure1,796.444,00Transshipping capacity62,23.494.486,002007 Infrastructure1,1179.504,0015.715.969,00 17,96 Superstructure2,5386.499,00Transshipping capacity96,415.149.966,002008 Infrastructure97,311.791.144,3212.121.024,89 26,27 Superstructure2,7329.880,57Transshipping capacity0,00,00TOTAL: 64.697.640,68Source: Annual financial reports [10] and annual activity reports [9] of the Vukovar Port Authority. Data completed by the author. Additional analysis should be conducted for the liquid cargo category in order to analyze the investment of two private investors, that is, port operators for liquid cargo, based on concession contracts for the period of 12 years. Port operators pay annual concession fees in two parts a fixed part of the concession fee and a variable part of the concession fee, percentage of which depends on the total invoiced revenues. It can be observed from the Chart 2 that the total annual investment in the Port of Vukovar has had an upward trend in the past ten years, with medium correlation (R=0,72), if functional dependency should be shown as linear. Chart 2 Investment in the development of the Port of Vukovar  From the Chart 3 it can be observed that the correlation degree between the variable Annual port traffic and the variable Annual port investment is only R=0.59, if the same functional dependency should be shown as linear. This means that between these two variables there is a medium correlation [11] and that the cause-and-effect relationship is the same, causes of which should be explored in future researches, both at the general level and in the total traffic environment of the Port of Vukovar in the disintegrated traffic network of the Republic of Croatia. Absence of a strong correlation in the Chart 3 is a clear proof that there is no strategic planning for the development of the Port of Vukovar, but it does not provide information about the share of insufficient strategic planning in the Port of Vukovar itself in relation to the share of insufficient general strategic planning at the level of the Republic of Croatia. Chart 3 Correlation between annual investments into development of the port and annual cargo traffic  Regardless of the necessary level of strategic planning, the cause-and-effect relationship from the Chart 3 is not strong enough to conclude that partial short-term and/or long-term investments in infrastructure, superstructure or transhipment capacity of the port is sufficient to increase the transhipment volume of the port. In spite of these increased investments into the Port of Vukovar, cargo has started to bypass the port. Why? 5. cORRECTIONS TO THE MANAGEMENT METHODOLOGY Science and politics publicly advocate combined transport routes between Danube region and the Adriatic Sea through the Corridors Vc and Vb, as a prerequisite for a successful competitive access to the international transit traffic market. These corridors are known, however, it is necessary to analyse to what extent it has become a reality, considering the existing condition of the disintegrated traffic system of the Republic of Croatia. For strategic planning for development and operational management of the Port of Vukovar it is important to find out to what extent the current traffic volume of the sea ports Plo e and Rijeka impacts the traffic volume of the river port Vukovar and through which corridors this influence is realized. For this reason cargo transhipment in the Port of Vukovar according to the Table 1 should be additionally analysed in future papers for each cargo group as follows: Which percentage of cargo comes to or leaves from the sea ports Plo e and Rijeka, by cargo types. What means of transport were used and what was the price for the transport from the river to the sea ports, including cargo transhipment in the ports that was carried out by port operators, in order to determine the total price of traffic per individual transport route. What is the percentage of participation in overall price of the legal entities (companies, institutions) from particular branches of the traffic industry in such combined traffic by cargo types. In future papers research should be expanded to finding functional correlations between investments and revenues, and investments and profit, instead of the correlation shown here between the port traffic and the port investments, which only confirms insufficient strategic planning for development. The functional dependency between investments and revenues, that is, investments and profit, shall be significantly influenced by the factor of price variation of transhipment per ton of a certain type of transshipped cargo through years. With the current disintegration of the traffic network in the corridors Vc and Vb and with unsatisfactory traffic connection of Danube region with the sea ports at the Adriatic coast as well as with expected disturbances in the further financing of the development of the overall traffic system of the Republic of Croatia due to the present disturbances in the global financial market during 2009, more favourable services for potential users using these routes for traffic of certain cargo types can be partially realized in two basic ways or by combining both of them: To reduce the time interval in which the traffic between the river and the sea ports will take place, at the current price level, To necessarily offer a better price for the same service offered within the package, in the same time interval in which the traffic between the river and the sea ports will take place. Both ways require close cooperation of all legal entities from several branches of the traffic industry organizing traffic for the purpose of cargo transport in the corridors Vb and Vc as well as cooperation and coordination among port operators and relevant port regulators in the sea ports Rijeka and Plo e and the river port Vukovar. The most important task here for the Port Authority and port operators in the Port of Vukovar is to detect the target cargo group (which port services should be offered to new users), the target traffic routes, and toward which sea port the service for targeted cargo will be offered. However, large and important steps should be envisaged and stimulated by a new general strategy of traffic development at the level of the Republic of Croatia, which will ultimately result in mitigation of the current disintegration of the traffic network between Danube region and the Adriatic sea which was determined in the Strategy for the traffic development of the Republic of Croatia [3] from 1999. This process should be governed by the logic of a good entrepreneur [5]. This includes a union of control procedures, monitoring the work of port operators, establishment of a unique system of administration and management of port processes as well as ensuring flexibility in defining port dues and terms for granting approval to entities to carry out port activities in the area of a public port, where private investors are interested in investing into port buildings and equipment. 6. CONCLUSION Analysis of correlation between the annual traffic volume and the annual investments made by the investor, the Republic of Croatia, in the river port Vukovar, even without additional analysis of possible correlation between the traffic volume and revenues, i.e. traffic volume and profit, clearly indicates some large systematic problems. Systematic strategic planning for development of the river ports and its implementation by the regulator is non existent, with a high degree of discrepancy with regulations of the Republic of Croatia. The regulator does have formal development plans, but these are not fully followed in practice. Lack of and insufficient implementation of the prescribed governance model for inland waterway ports results in ad hoc decisions made by the port operators and by the regulator. The same decisions have direct impact on investments into port infrastructure and they define the future direction of the port development. The current negative trend of traffic volume of the Port of Vukovar makes the decision of changing the way of financing the investments into the port infrastructure reasonable, because this is necessary in the current situation. However, the decision to shift from credit financing of investments which requires credit rating and profit realization to the so-called non-profit way of financing by funds is in itself a proof of absence of strategic planning. The decision to change the way of financing after significant funds had already been invested in the planning documentation adjusted to international banking institutions will have a several years of delay as a result. This period should be used for two important actions in the field of strategic planning. First and foremost, for the new evaluation of priorities and investments time frame based on a new general traffic strategy of the Republic of Croatia [3], which to a good extent is no longer up-to-date in relation to the real environment. It is necessary to conduct a detailed analysis of the current and future traffic supply and demand in the narrower and wider gravitational area of the Port of Vukovar. Special emphasis should be put on combined traffic connection with sea ports on the Adriatic Sea, where corridors Vb and Vc end. This also leads to the conclusion that fully independent strategic development planning of the Port of Vukovar from the relevant port authority is not possible, and that it is impossible to manage the port independently without actively monitoring and analysing the trends and external influences from the related traffic environment. At the same time, due to the change in ways of investments financing by the regulator, measures should be undertaken in the Port itself, and these do not require large investments. For example, establishing a unique department for the purpose of management of the portfolio of users of services provided by port operators, and for risk management, while at the same time exploring the needs of the market for port services. Also, measures are needed to encourage association and coordination of two or more traffic entities and port operators on a certain traffic routes, in order to achieve lower prices for traffic of specific cargo type in service package from port to port. However, for such actions to be implemented in a planned way, it is necessary to organize and educate employees who will really have the opportunity to implement these measures, best as a part of the relevant port authority. Lack of such measures in the management of the Port of Vukovar indicates a high level of absence of strategic planning in the development of the Port of Vukovar in the past ten years, from the point of view of independent management of the port by regulator (relevant port authority). REFERENCES: [1] River Transport Development Strategy in Republic of Croatia (2008-2018), NN 65/08, 2008 [2] Commissionofthe European Communities:NAIADES An Integrated European Action Programme for Inland Waterway Transport, Communication from the Commission on the Promotion of Inland Waterway Transport - 52006DC0006,  HYPERLINK "http://eur-lex.europa.eu" http://eur-lex.europa.eu, 2006 [3] Traffic Development Strategy of Republic of Croatia, NN 139/99, 1999 [4] Inland Ports Act, NN 142/98, 1998 [5] Midterm Inland Ports and Waterways Development Plan of Republic of Croatia (2009-2016),  HYPERLINK "http://www.mmpi.hr" http://www.mmpi.hr, 2008 [6] Act on Navigation and Inland Ports, NN 109/07, 2007 [7] Material Handling Consulting Gmbh: Port of Vukovar Development Concept, Port Authority Vukovar, Vukovar, 2004 [8] tx " ȲfM,f@jh-YhFB*CJOJQJU^JaJmH phsH 1h-YhFB*CJOJQJ^JaJmH phsH :jh-YhFB*CJOJQJU^JaJmH phsH (h-YhFCJOJQJ^JaJmH sH 1h-YhB*CJOJQJ^JaJmH phsH +h-YhF5CJOJQJ^JaJmH sH 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Article 124, Paragraph 3 of the Act on Inland Waterway Navigation and Ports: infrastructure comprises operational shore and other port areas, piers, port roads and railways and ancillary railway equipment, water supply, sewage, energy and communication networks, lighting, fences, and other buildings and equipment intended to provide safe access and mooring of vessels. Superstructure comprises buildings in the port area (administrative buildings, warehouses, silos, tanks, etc.)  This governance model is known as the Landlord model. In addition to this model there are also pure public and private ports, and the so-called New Port, where infrastructure and superstructure are owned by the state and business operations are performed by private companies.  Source Port Authority Vukovar  Does not include investments by private investors  @PVXfxːՐ `ĒڒBDFx./0>FGSTXabrstǿϴ{rrrrhZ?6mH sH h76mH sH hhZ?6mH sH h]mH sH hhZ?mH sH !jhhZ?0JUmH sH h-YhmH sH hmH sH h |mH sH h-Yh.mH sH h-Yh.6mH sH h-Yh.0J6mH sH h |0J6mH sH )tx}ÔŔ۔ĕŕ$%*+.UVܖ!*2;<?EHINORhohZ?mH sH !jhohZ?0JUmH sH h]mH sH !jhhZ?0JUmH sH h]6mH sH hZ?6mH sH hhZ?6mH sH hhZ?mH sH hZ?mH sH ;ɗʗ˗ܗ  #PQRSYZ[]^defghjɿɵ͝͵{h(0JmHnHuheh@h@6>*CJOJQJ^J"hE3h@6>*CJOJQJ^J hZ?0JjhZ?0JUUjh.PUh.PhZ?!jhohZ?0JUmH sH hwEmH sH hohZ?mH sH hohomH sH 0    PAGE  International Conference on Ports and Waterways POWA 2009 PAGE  PAGE 9   QR[\]hijklmnopqrstuv &`#$gd_h]hgdHY &`#$gdHYjkntyz{h-YhmH sH hz+h h6b|hZ?h.Pvwxyz{gd.21h:pb. A!"#$% 21h:p. 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