Brexit and British ports: Implications and adaptation to the new context

Abstract

The UK is an island nation where the economy is heavily dependent on the large number of diverse ports developed at its coastline. In terms of volume, 95% of UK trade is transported through ports, with the EU trade counting just over 40% of the overall UK port traffic (DfT, 2020). UK ports and maritime supply chains are currently experiencing a “double” black swan event. Brexit (UK leave from the EU) has been a high-profile rare event altering the operational environment, with its implementation in unknown terms until the last moment beyond the realm of normal expectations by the port industry. The changing politico-economic setting has co-existed with the disproportionate hard-to-predict Covid-19 pandemic, in a juxtaposition having an enormous impact on the UK port sector. This research examines the direct and indirect implications of Brexit on British ports. The aim is to generate knowledge on the short and long-term positives and/or negatives of Brexit for ports in the UK, the way it has advanced or limited the various capacities of ports, and the efficiency of the related public policies in increasing port competitiveness. Replies to a conducted survey enable to examine industrial perspectives on Brexit and study the resulting risks and challenges for British ports strategies, management, and operations both in the short term (period between the decision and the actual Brexit) and the long-term (implementation of Brexit). Along with further qualitative research, they also allow exploring the processes of port adaptation in response to the changing politico-economic framework and the issues that remain to be addressed. With Freeports being a flagship initiative of the British government, partly in response to Brexit, the study expands further on its specifics and potential for British ports.