: STRATEGY
Strong leadership and strategic thinking key for effective governance
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hen Don Krusel took over as President and CEO of the Prince Rupert Port Authority in the 1990s, the Port’s fortunes had, for over 75 years, been inextricably linked to the health of resource industries such as forestry, fisheries, coal, and grain. Downturns in those sectors and competitive disadvantages in supply chain logistics translated into slumps in the Port’s bulk and general cargo business. During a particularly difficult stretch in the late 1990s, Krusel even recalls discussions with the Board of Directors to declare bankruptcy. So, how did a port that was close to bankruptcy at the turn of the 21st century manage to become the fastest growing North American port by 2010? While timing, world markets and economic trends all played a role, strategy and leadership were at the heart of the transformation. Two attributes Krusel holds in spades. As this year’s keynote speaker for the Association of Pacific Ports Annual Conference, Krusel’s advice to Port Commissioners and Senior Executives on how to rise above routine business planning and develop a true strategic direction for the future of their port is something that will be of great interest. Krusel’s success in transforming the Port of Prince Rupert wasn’t just a oneoff lucky break. Following his retirement from the West Coast port, Krusel started receiving calls from a number of port and port-related executives looking for strategic advice. One of those calls came from Mario Girard, CEO at the Port of Quebec. “He was at the birth of a very interesting project,” said Krusel. “Similar to Prince Rupert, Quebec is mainly focused on bulk products and Mario had a vision of bringing containerization to the port. After a few initial consultations and a presentation to the 16 — PACIFIC PORTS — September 2021
...how did a port that was close to bankruptcy at the turn of the 21st century manage to become the fastest growing North American port by 2010? Board to describe the steps we took in Prince Rupert, I was brought on as Managing Director for the project.” Known as Project Laurentia, the development of a container terminal at the Port of Quebec was not just about putting in some concrete and gantry cranes. “This was so much more than that,” Krusel said. “It was about creating a whole new supply chain. That’s why we called it Project Laurentia rather than the ‘Port of Quebec Container Terminal Project’. We wanted to emphasize that this was a much bigger vision about more than just the port. That’s kind of the strategic thinking that ports need to practise.” Indeed, Krusel assisted in attracting an international operator and investor for the project — Hutchinson Ports — and additional necessary components for developing a new supply chain for the East Coast through the Port of Quebec. For inland transportation, CN Rail not only came in as a willing participant, but the project marked the first time they committed to become an investor in port infrastructure. They are now a joint venture partner with Hutchinson in the investment and development of the terminal. While the project has been held back because of environmental regulations, Krusel believes the concept and argument for a deep water, big ship container terminal on the St. Lawrence River is strong and it’s only a matter of time before a container terminal will be developed in Quebec City to satisfy trade demands on the East Coast of Canada.
As keynote speaker at this year’s APP Conference, Don Krusel will share his insights on successful strategic planning. Both the Port of Prince Rupert and the Port of Quebec stand as good examples of how strong leadership and effective governance can come together to develop strategies that can, quite literally, change the course of a port’s future. Krusel notes that understanding the difference between strategic planning and business planning is key. “All of us can easily get absorbed by the ‘busy-ness’ of day-to-day activities and we very quickly fall into the quicksand of being too busy to deliver a strategic plan,” he said. “You end up chopping down trees as quickly as you can to stack up the firewood, but you really don’t see the impact of what you’re doing on the forest. And then suddenly, you’ll get confronted with something like COVID-19 or a sudden surge or decline in traffic and before you know it, it’s time to get back into the strategic
