Peterhead Port Authority (PPA) is investigating the potential for the introduction of an electronic auction within its fish market, the biggest and busiest in the UK.
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The move was prompted by a steady increase in landings to harbours that operate such e-auctions, as they are known.
In accordance with the Modern Trust Ports for Scotland “Guide to Good Governance” document, the Board and Executive team at the Port is charged with operating for the benefit of all stakeholders, and continuously reviews risks, potential threats and opportunities, much like any other commercial organisation.
But rather than rush into a decision, time is being taken to consult all stakeholders, identify and address concerns raised and maximise knowledge and understanding of the best way forward.
PPA chief executive Graeme Reid said: “At the Board’s meeting in March, it was identified that, due to recent fish landing placement toward harbours with electronic auctions, there was a significant threat to landings at Peterhead Fish Market.
“Electronic auctions are now commonplace in many markets and are in the process of being implemented in others. The board also recognises potential opportunities to maximise supply and improve demand by allowing purchases without being physically present.”
Consultation a huge success
The board commissioned a detailed review of the wide-ranging and significant factors requiring consideration and a term of reference was developed.
The consultation that commenced in April this year was extremely successful. It generated a high level of responses from different stakeholders of the fish market including skippers, sales agents, fish processors, equipment and service suppliers, end clients and several other ports where e-auction has already been installed.
Subsequently, PPA met a large number of these stakeholders to understand their views on opportunities and threats for e-auction at Peterhead Fish Market.
Mr Reid says: “The majority of those responding by consultation were positive about e-auction, many offering assistance and support for which we are extremely grateful. Those less positive about it provided areas of concern and it is those areas of concern that we have subsequently spent our effort focusing on since May.
“Our early analysis confirmed that many of the concerns were a function of lack of information or detail. Looking back, it now seems obvious that, in the absence of detail, individuals and organisations would fill in the blanks themselves. Despite this, we feel that consultation was an important first step.”
Peterhead Port addressing concerns
A number of consultees stated, “the auction will take longer”, “we must meet our transport deadlines and cannot afford a delay”. PPA believes this is a valid concern and one it is acutely aware of. An assumption was made that a future auction may result in fish being sold by one auction system (or clock in e-auction terms). This is not how fish are sold at present and would not be how fish are sold in a future e-auction.
Another common theme was, “we will have to weigh all our fish”, “weighing all our fish will take too long and be costly”. Again, a valid concern and one based on the experience of some other e-auctions in the UK or EU. At present, Peterhead Fish Market operates from a weighing perspective in accordance with the rules laid down by the Scottish Government’s marine directorate. So there would be no change implemented as a result of e-auction.
These are just two examples and the port continues to work through all concerns or threats raised by consultation.
Mr Reid adds: “Our analysis from consultation and research will be used should we proceed to implementation, and we will communicate back out to our stakeholders accordingly. We are not in a rush and would rather take the time and effort to make sure that we are considering all aspects of such a change.
“The underlying desire remains unchanged and it is very much part of a Trust port ethos – the board of PPA wants to ensure that the port and fish market within it is fit for purpose for the future and that we continue to attract more landings which in turn creates more opportunities and jobs for the processing and supply chain communities.”
Find out more about Peterhead Port Authority.