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Enhancing Exports at the Port of Beirut Through Seaport Development

Mohammad Almoghabat, PhD Candidate in International Constitutionalization, Vrije Universiteit Brussels; Non-Resident Fellow at the Institute for Social Justice and Conflict Resolution, Lebanese American University

Global trade plays a significant role in conferring economic and social benefits, given that the development of high-quality port infrastructure is crucial for enhancing exports and trade facilitation.

The UN Centre for Trade Facilitation and Electronic Business (UN/CEFAT) of The United Nations Economic Commission for Europe (UNECE) considers trade facilitation as “the simplification, standardization and harmonization of procedures and associated information flows required to move goods from seller to buyer and to make payment.”

Trade facilitation can be supported through seaport institutional development, streamlining operations, increasing transparency and efficiency, and lowering transaction costs; in return, that will attract more traders and exporters, ultimately contributing to the economic prosperity of a specific country and/or region.

Lebanon: The Port of Beirut

On August 4, 2020, a devastating explosion pulverized the Port of Beirut—the vital hub of international trade in Lebanon—directly impacting its infrastructure and trade movement (imports and exports), and affecting its economic, social, humanitarian and trade levels.

The latest statistics on activity at the port show an annual decrease of 3.38% in the revenues of the port to $9 million by February 2022, compared to 2021 when it reached $9.31 million. Additionally, according to statistics published by the Lebanese Customs Administration, Lebanon’s balance of trade deficit narrowed by $1.78 billion on an annual basis to nearly $8.58 billion during the first eight months of 2023, a decrease from around $10.36 billion during the same period as the prior year, which is an improvement but still not ideal.

With the Lebanese government planning the reconstruction of the port, it should take into consideration that port operations should consider cost-effectiveness to reestablish export competitiveness and minimize import costs, with the need to adapt pivotal requirements within the rebuilding process to improve resilience and promote efficiency and transparency.

Enhancing Exports at the Port of Beirut

The need for enhancing exports through the port is now pressing more than ever, with the importance of rebuilding the port’s operations cost-effectively and efficiently to restore its export competitiveness.

This can be achieved by adopting certain strategies and proper implementation, whereby the port can enhance its competitiveness, increase export volumes, and contribute to the overall economic development of Lebanon. These strategies include, but are not limited to, the following:

  • Simplifying processes.
  • Enhancing digitization.
  • Fee optimization.
  • Promotion and marketing.

Simplifying Export Processes

As traders usually need to comply with various formalities and requirements (submitting documents, completing administrative procedures, exchanging information, among others), all of which require an excessive amount of time and high compliance costs, the need for simplified and accessible documents and formalities to facilitate transactions is vital. This can be achieved by adopting some of the following measures:

  • Reviewing and streamlining regulations and procedures to eliminate unnecessary steps to finalize export processes.
  • Working with competent authorities to eliminate unnecessary bureaucracy and providing stakeholder training sessions.
  • Establishing a focal point of contact to assist and support traders through their exporting processes and to save time (navigate them through complex regulations, answering questions, providing advice, etc.)

Digitization of Export Processes

In an ever-evolving landscape of global trade, the need to implement information and communication technologies (ICT) and digital solutions is crucial to the streamlining of export processes and a practical method of reducing trade costs. It can also enhance transparency, efficiency and predictability in trade operations.

  • Digital Trade Facilitation measures may include, but are not limited to, the following:
  • Paperless trade through installing an automated customs system, electronic single windows system, electronic submission of customs declarations, e-payments, and electronic applications of permits/refunds/cargo and air manifest.
  • Cross-border paperless trade by adapting e-transactions for laws and regulations/certificate of origin/customs declaration/sanitary certificates.

Fee Optimization

Fee optimization is one of the most essential strategies for boosting export performance and attracting more traders and exporters to the port. Initially, the port pricing strategy should have a fee structure aligned with market conditions and the port’s cost structure, which can be achieved through the following:

Formulating pricing and establishing tariffs by incorporating pricing objectives.

Implementing port cost-effective technologies to automate and streamline operations by eliminating manual processes between trade parties.

Strategic Promotion and Marketing

As an internationally well-known business strategy, the effective promotion of products in different foreign markets can enhance their visibility and recognition, ultimately increasing their demand and sales.

With the nature of ports operating in an increasingly competitive environment, marketing is essential to promoting exports. In a digital age, marketing online has proven to be widely effective, and it would be easier to monitor and evaluate digital marketing performance.

  • Export promotion through digital marketing can be adapted by implementing several measures, including but not limited to, the following:
  • Utilizing video conferencing and project management tools.
  • Establishing an online platform to communicate with clients.
  • Initiating email campaigns and content marketing tailored to the target audience.

Moving Forward

By implementing key strategies such as simplifying processes, embracing digitization, optimizing fees, and fostering collaboration with stakeholders, the port can overcome challenges, rebuild its operations, and regain its competitiveness in the global market.

The resilience and adaptability of the port in the face of adversity demonstrate its potential to become a thriving hub once again for international trade and economic growth in Lebanon.