The shipping and logistics industry is a driving force of the global economy. The ever-growing supply chain management remains the world’s premier global means of connecting markets, people and businesses. The Shipping Industry is well known for being “lethargic” and slow to change and has yet to leap into the fourth industrial revolution; that is the internet of things, use of robotics, induction of virtual reality (VR) and artificial intelligence (AI). So, the need for fundamental change and drastic improvement in our industry is ultimately inevitable. By substituting the self-serving business practices and erroneous outlook of the past with modern interconnected logistics platforms and optimized freight solutions we can generate numerous employment opportunities for this sector. But is the current workforce ready to take up the challenge?
Creation of entrepreneurial opportunities and agreeable business prospects have brought long-lasting effects over the past few decades and is expected to remain strong for the foreseeable future. The rising capabilities of E-commerce has played a major role in transforming the very fabric of most industries, and this piece will steer through these changes and their impact on the shipping and logistics industry. Digitalization and other advanced technologies have led us to change our attitude by reviewing our strategies on subjects such as entrepreneurship, job creation, training, selection and recruitment of highly skilled workforce in order to optimize end-to-end supply chain operations.
Pursuing entrepreneurial and job creation opportunities is essential for growth and survival of a highly dynamic shipping industry especially during the current regional and global economic downturn. Innovative technologies, new market entrants, growing customer expectations, and the advanced business models, create an environment of uncertainty and ambiguity. Deglobalisation, protectionism, climate calamity, economic cycles, renewable energy, and Corona Virus have had profound effects on seaborne trade and economics of sea transport. The sector seems to be under growing pressure to deliver a better service at a lower cost and it can only hope to do so by making maximum and intelligent use of entrepreneurial opportunities.
Let us define an entrepreneurial opportunity as those situations that involve the discovery, evaluation, and exploitation of opportunities to new goods and services, and ways of organizing, marketing and the process to create value. Entrepreneurial opportunities are ever-expanding and we must explore these opportunities in our region with particular attention to Iran. There are two major areas that present vast potential for development and investment:
- The highly skilled Iranian seafarer, who can be trained, empowered, and repositioned as a deck officer or a licensed mariner on the International Seafarer’s Market.
- The tech-savvy Iranian graduate fresh out of college, who can be trained, empowered, recruited and repositioned in the shipping and logistics workplace of Iran and the Middle East.
By looking favorably on the potential of these two distinct workforces, we can lead and create a highly advanced platform of active and skilled Iranian human resources. The growing demand for capable talent will lead shipping industries to search for potential employees who meet the required skillset and hold fast to the changing entrepreneurial needs. We therefore need to start benefiting from the vast opportunities ahead and create a platform attractive enough to that kind of specialist talent.
Today, the Iranian shipping industry takes less than 1 percent[1] of the nation’s GDP output and this presents a minuscule share compared to almost 7 percent of the average G7 countries. Luckily as per 1404 vision plan (20-year Perspective Document of Iran), by 2025 Iran projects to reach a 7 percent share of national GDP. In order to seize this opportunity, along with the much needed investment in the infrastructure, we need to actively engage and equip our young Iranian graduates and sea personnel with state of the art formal education and professional development endorsements such as:
- The Institute of Chartered Shipbrokers (ICS),
- STCW Convention and CoC Certificates
- Certificate of Equivalent Competency Verification
- Bilateral Flag State Endorsement
- EMSA, Licensed by a EU/EEA Member State
Fortunately, the Shipping Association of Iran in collaboration with the Islamic Azad University have committed to start advanced and specialized Masters and PhD degrees in Ship Engineering, Commercial Shipping, and professional training courses in Marine Radio and Chartplotter among other career-based courses. In addition, today the association offers complementary programs all year round to all interested parties from various industries and sectors, helping to prepare the Iranian Shipping and Logistics Industry to meet the rising demands for efficient and more technologically advanced operations.
Enhancement in vocational academic maritime training and shipping education results in the increased employability of highly qualified Iranian workforce on the international spectrum and betterment of our industry’s best practice. We hope the Shipping Association of Iran’s endeavors will ultimately broaden the understanding of the importance of seaborne trade and its relevance to the fast changing business and work environments that our region and the global economy is experiencing.
[1] The Strategic Document of Maritime Industries, Ministry of Industry, Mine and Trade, 2016, p.32
