May 16, 2005
Training without borders | The associate dean of Maine Maritime Academy's business school on trade, outsourcing and the importance of the global economy
By Taylor Smith
When Shashi Kumar, 49, came to Maine in 1986, he figured he'd be in the state for just a year. That's how long it would take him to complete his graduate degree in maritime management at Maine Maritime Academy in Castine. After that, his plan was to ship off to Singapore, where a career in the shipping industry waited for him. Born in the Indian port city of Cochin, Kumar says he grew up admiring the massive cargo ships that populated the city's harbor. He enrolled in a maritime academy in Bombay as a teenager and left India when he was 17, moving to the United Kingdom where he earned a master mariner's rank and began his seafaring career in earnest.
But Kumar's plans took a detour at the end of the MMA program. Just half an hour after graduation, he was offered a job as assistant professor of marine transportation at MMA, and he hasn't looked back. "I never dreamed I would have been an academic," says Kumar. "When I was a child, I saw all those brightly lit ships tied up in the port and all these seamen having a wonderful time. I used to admire all of that."
But keeping his feet on dry land has been agreeable to Kumar. In fact, as the associate dean of MMA's Loeb Sullivan School of International Business and Logistics ˆ a graduate and undergraduate program he was instrumental in launching in the late 1990s ˆ Kumar's fascination with the shipping industry has been supplemented by his increasing interest in the world of international business. And as a naturalized U.S. citizen who has spent much of his life in various foreign locales, Kumar notes that many American businesses miss out on big opportunities by focusing solely on domestic trade.
As a result, Kumar last October held the first of what he says will be many international networking events held at MMA in Castine. The first event, a Maine-China Networking Conference, was a success, says Kumar. So just seven months later, Kumar is organizing another international networking event, this one focusing on Maine and India, scheduled for May 26.
Kumar found time amidst final exams and other year-end academic details to chat with Mainebiz about international trade, the need for foreign investment in the United States and the difference between the fast-growing Chinese and Indian markets. The following is an edited transcript of the conversation.
Mainebiz: What's the objective of the international networking conferences you've been organizing?
Kumar: As implied by the name, the objective of the Maine-China Networking Conference and the Maine-India event is to create a network of people that have similar interests or who can help each other out. At the first event, there was a guy ˆ a young person with some knowledge of China ˆ who was looking for a job and some connections. Through the event, he was able to get a job.
Another example was a major retailer who was looking for a supplier of polyethylene bags, which manufactured them in an environment that met all the human rights requirements without violating any labor rules. I just sent the request to all the members of the network and they were welcome to respond back. In that particular case, I got six or seven responses from various people who said they have connections in China and that they can supply polyethylene bags. Then it's up to the company to decide how to proceed.
What kind of people came to the event?
It was a very interesting mix of people. For example, one of the participants was the conductor of the Bangor Symphony Orchestra. So we have people like him, and on the other end we have businesses who are very active in China. We [also] had people participating in absentia from various companies like IneoChina, which is based in Shanghai and has a person from Maine running the operation there.
But we also had representatives from Maine-based companies, a rep from the U.S. Department of Commerce and a number of China consultants. We also had participation from the Maine International Trade Center, Formed Fiber Technologies, the Maine Manufacturing Extension Partnership and the University of Maine. Not every one of them are really business people; some are participating because they have a cultural interest in China or they want to build a network of people with similar interests in China.
Why did you think it was important to hold this type of event? Does it somehow smooth the path for U.S. businesses to wade into the waters of international trade?
China is far away, and it's somewhat daunting for Americans because many Americans are not used to trading outside the domestic areas. Unlike most European or Asian countries, we're not used to trading overseas. Especially when you're talking about a foreign culture and a foreign language; everything is different in China, so having a network of people in Maine who have those connections is a wonderful opportunity.
China seems like a natural choice for international trade because of all the headlines about its fast-growing economy. Is India in a similar position?
India is like an automatic second choice. Right now, it's the second fastest-growing emerging market, and it's got sustained economic growth of seven percent or more. But there are some very big differences between the Chinese and Indian economies: In China, there is pretty much a manufacturing-based economy, and the objective [for American companies] is to pursue low-cost manufacturing operations. In the Indian scenario, you're really looking at a different kettle of fish. It's a knowledge-based economy and it's a service economy. There's an educated workforce with language skills and so on and so forth. That makes it easier for American companies to participate.
And in terms of market attractiveness, India is the second most attractive market for foreign direct investment. China is number one, and [the United States] was number two, but we're being replaced. There's a lot of interest in India because it's got a huge population. I believe India will overtake China for the world's largest population by 2020. If I'm not mistaken, about 50% of the Indian population is less than 25 years old, so when you look at it, it's an economy that's bound to grow, regardless of what happens.
Has the difference between India and China changed the way you're pitching the event?
Well, yeah, it has. We do emphasize the strengths of India in that it's knowledge based. And, obviously, it's the world's largest democracy, so that might be of comfort to many Americans. Another big difference is that there is a rule of law which is still evolving in China. As a businessman, that's another area of comfort if you're looking at the Indian market. We try to stress all of that in our e-mail invitations. We're not trying to put down China ˆ it's obviously very important for us ˆ but we're trying to point out the key differences between the Indian market and the Chinese market.
How did a maritime academy come to offer these kinds of events?
The primary impetus comes from our mission statement. Maine Maritime Academy is obviously a state institution, and [the Loeb Sullivan School of International Business and Logistics] is the business school of Maine Maritime Academy. Part of our mission is to provide that kind of outreach to the community at large. What we're doing in holding these types of events ˆ the Maine-China conference and now the Maine-India conference ˆ is to be that agency in the state that can facilitate these kinds of networking events.
We're focused on international business ˆ our key areas are logistics and transportation. So we feel like we're living up to our own mission, meeting our goals and objectives, and providing service to the citizens of Maine and the community at large. The China event was the first one that we did, and it was a great success.
When did MMA set up its business programs?
At most universities, you start an undergraduate program and then you go start a graduate program. We kind of did it the other way around; we started with a graduate program [in maritime management] in the mid-80s.
In the late 80s, the maritime academies in this country were going through difficult times, with declining enrollment and so forth. Under the leadership of Ken Curtis and now, of course, Len Tyler, what we have done [at MMA] is to diversify our academic offerings. I'm not boasting at all in saying we're the most diversified maritime college in this country right now. We offer a variety of programs that are non-maritime oriented. As part of this, the undergraduate business program was established in 1997. We offer one undergraduate degree, which is a BS in international business and logistics.
How many students are signed up for the undergraduate program?
Right now, we have about 100 students. I would say it's one of the fastest growing programs on campus. This year, this particular program became the number one program on campus in terms of number of applications received. Most people don't think of Maine Maritime as a business school, but we're running a business program that's attracting a large number of applicants, both from in state as well as out of state. The students in the business program, they don't have to be in the regiment of midshipmen; they can be in civilian clothing like you or I. They may have nothing to do with ships at all other than the fact that international business is often transacted through ships. Many of them will probably never step on a ship other than a cruise ship.
What's the draw? What kind of work do they do after graduation?
We've got students working for shipping companies, railroads, trucking companies, logistics companies ˆ all over the country. With some companies like Hannaford Bros., if you look at their logistics division and go to their corporate offices in South Portland, virtually all of the people that they've hired in the last five years or so are MMA graduates. They are running the logistics divisions of these companies, and that's at the undergraduate level.
We have four graduate majors: a master's of science in global supply-chain management, maritime management, international business or defense logistics. Defense logistics, unfortunately, is not selling as well as we'd like it to. We might have to change to focus of that program, because we haven't been able to attract the kinds of students we anticipated. We thought it would be a good seller with the Navy, but that hasn't happened. But the other programs are doing well.
How big is the graduate program?
We aim for a target size of 15 students for the whole graduate school year. Fifteen is ideal, maybe up to 20 or so, but beyond that we're not able to offer that kind of small-college environment. This particular year was a bad year for us. Many of the students who we admitted could not get their visas because of the new regulations. As a result, we're changing our strategy: We're focusing more on domestic students. I'm fairly confident that we'll have 15 students when we start classes next year.
Where did your foreign students typically come from?
Mostly from China, India and Arab countries. Historically, our graduate program has always focused on foreign students, especially from China and India. We always seem to get at least 50% of our students from China and India. What's happening is that the Chinese now do not see the need to go to the U.S. to study because of the macroeconomic conditions; they can do well in China, so why spend $30,000 on a degree here? So now we have kind of lost the entire Chinese market. The Indian market, we still get a couple of students a year, and hopefully we'll be able to continue that.
With a lot of manufacturing jobs leaving Maine and headed overseas, some people have griped that foreign markets are stealing our jobs. So will exposing U.S. businesses to more foreign markets speed up that process?
It's a good question, but there are no easy answers. Obviously, globalization is here to stay ˆ we don't have a choice. It's going to happen whether we like it or not. Those who are directly affected by outsourcing a particular job or function, they are going to be upset. But, on the other side, the fact that something is being done somewhere else might open up some other kinds of opportunities here. There are going to be winners or losers; there are no easy solutions to that.
But Kumar's plans took a detour at the end of the MMA program. Just half an hour after graduation, he was offered a job as assistant professor of marine transportation at MMA, and he hasn't looked back. "I never dreamed I would have been an academic," says Kumar. "When I was a child, I saw all those brightly lit ships tied up in the port and all these seamen having a wonderful time. I used to admire all of that."
But keeping his feet on dry land has been agreeable to Kumar. In fact, as the associate dean of MMA's Loeb Sullivan School of International Business and Logistics ˆ a graduate and undergraduate program he was instrumental in launching in the late 1990s ˆ Kumar's fascination with the shipping industry has been supplemented by his increasing interest in the world of international business. And as a naturalized U.S. citizen who has spent much of his life in various foreign locales, Kumar notes that many American businesses miss out on big opportunities by focusing solely on domestic trade.
As a result, Kumar last October held the first of what he says will be many international networking events held at MMA in Castine. The first event, a Maine-China Networking Conference, was a success, says Kumar. So just seven months later, Kumar is organizing another international networking event, this one focusing on Maine and India, scheduled for May 26.
Kumar found time amidst final exams and other year-end academic details to chat with Mainebiz about international trade, the need for foreign investment in the United States and the difference between the fast-growing Chinese and Indian markets. The following is an edited transcript of the conversation.
Mainebiz: What's the objective of the international networking conferences you've been organizing?
Kumar: As implied by the name, the objective of the Maine-China Networking Conference and the Maine-India event is to create a network of people that have similar interests or who can help each other out. At the first event, there was a guy ˆ a young person with some knowledge of China ˆ who was looking for a job and some connections. Through the event, he was able to get a job.
Another example was a major retailer who was looking for a supplier of polyethylene bags, which manufactured them in an environment that met all the human rights requirements without violating any labor rules. I just sent the request to all the members of the network and they were welcome to respond back. In that particular case, I got six or seven responses from various people who said they have connections in China and that they can supply polyethylene bags. Then it's up to the company to decide how to proceed.
What kind of people came to the event?
It was a very interesting mix of people. For example, one of the participants was the conductor of the Bangor Symphony Orchestra. So we have people like him, and on the other end we have businesses who are very active in China. We [also] had people participating in absentia from various companies like IneoChina, which is based in Shanghai and has a person from Maine running the operation there.
But we also had representatives from Maine-based companies, a rep from the U.S. Department of Commerce and a number of China consultants. We also had participation from the Maine International Trade Center, Formed Fiber Technologies, the Maine Manufacturing Extension Partnership and the University of Maine. Not every one of them are really business people; some are participating because they have a cultural interest in China or they want to build a network of people with similar interests in China.
Why did you think it was important to hold this type of event? Does it somehow smooth the path for U.S. businesses to wade into the waters of international trade?
China is far away, and it's somewhat daunting for Americans because many Americans are not used to trading outside the domestic areas. Unlike most European or Asian countries, we're not used to trading overseas. Especially when you're talking about a foreign culture and a foreign language; everything is different in China, so having a network of people in Maine who have those connections is a wonderful opportunity.
China seems like a natural choice for international trade because of all the headlines about its fast-growing economy. Is India in a similar position?
India is like an automatic second choice. Right now, it's the second fastest-growing emerging market, and it's got sustained economic growth of seven percent or more. But there are some very big differences between the Chinese and Indian economies: In China, there is pretty much a manufacturing-based economy, and the objective [for American companies] is to pursue low-cost manufacturing operations. In the Indian scenario, you're really looking at a different kettle of fish. It's a knowledge-based economy and it's a service economy. There's an educated workforce with language skills and so on and so forth. That makes it easier for American companies to participate.
And in terms of market attractiveness, India is the second most attractive market for foreign direct investment. China is number one, and [the United States] was number two, but we're being replaced. There's a lot of interest in India because it's got a huge population. I believe India will overtake China for the world's largest population by 2020. If I'm not mistaken, about 50% of the Indian population is less than 25 years old, so when you look at it, it's an economy that's bound to grow, regardless of what happens.
Has the difference between India and China changed the way you're pitching the event?
Well, yeah, it has. We do emphasize the strengths of India in that it's knowledge based. And, obviously, it's the world's largest democracy, so that might be of comfort to many Americans. Another big difference is that there is a rule of law which is still evolving in China. As a businessman, that's another area of comfort if you're looking at the Indian market. We try to stress all of that in our e-mail invitations. We're not trying to put down China ˆ it's obviously very important for us ˆ but we're trying to point out the key differences between the Indian market and the Chinese market.
How did a maritime academy come to offer these kinds of events?
The primary impetus comes from our mission statement. Maine Maritime Academy is obviously a state institution, and [the Loeb Sullivan School of International Business and Logistics] is the business school of Maine Maritime Academy. Part of our mission is to provide that kind of outreach to the community at large. What we're doing in holding these types of events ˆ the Maine-China conference and now the Maine-India conference ˆ is to be that agency in the state that can facilitate these kinds of networking events.
We're focused on international business ˆ our key areas are logistics and transportation. So we feel like we're living up to our own mission, meeting our goals and objectives, and providing service to the citizens of Maine and the community at large. The China event was the first one that we did, and it was a great success.
When did MMA set up its business programs?
At most universities, you start an undergraduate program and then you go start a graduate program. We kind of did it the other way around; we started with a graduate program [in maritime management] in the mid-80s.
In the late 80s, the maritime academies in this country were going through difficult times, with declining enrollment and so forth. Under the leadership of Ken Curtis and now, of course, Len Tyler, what we have done [at MMA] is to diversify our academic offerings. I'm not boasting at all in saying we're the most diversified maritime college in this country right now. We offer a variety of programs that are non-maritime oriented. As part of this, the undergraduate business program was established in 1997. We offer one undergraduate degree, which is a BS in international business and logistics.
How many students are signed up for the undergraduate program?
Right now, we have about 100 students. I would say it's one of the fastest growing programs on campus. This year, this particular program became the number one program on campus in terms of number of applications received. Most people don't think of Maine Maritime as a business school, but we're running a business program that's attracting a large number of applicants, both from in state as well as out of state. The students in the business program, they don't have to be in the regiment of midshipmen; they can be in civilian clothing like you or I. They may have nothing to do with ships at all other than the fact that international business is often transacted through ships. Many of them will probably never step on a ship other than a cruise ship.
What's the draw? What kind of work do they do after graduation?
We've got students working for shipping companies, railroads, trucking companies, logistics companies ˆ all over the country. With some companies like Hannaford Bros., if you look at their logistics division and go to their corporate offices in South Portland, virtually all of the people that they've hired in the last five years or so are MMA graduates. They are running the logistics divisions of these companies, and that's at the undergraduate level.
We have four graduate majors: a master's of science in global supply-chain management, maritime management, international business or defense logistics. Defense logistics, unfortunately, is not selling as well as we'd like it to. We might have to change to focus of that program, because we haven't been able to attract the kinds of students we anticipated. We thought it would be a good seller with the Navy, but that hasn't happened. But the other programs are doing well.
How big is the graduate program?
We aim for a target size of 15 students for the whole graduate school year. Fifteen is ideal, maybe up to 20 or so, but beyond that we're not able to offer that kind of small-college environment. This particular year was a bad year for us. Many of the students who we admitted could not get their visas because of the new regulations. As a result, we're changing our strategy: We're focusing more on domestic students. I'm fairly confident that we'll have 15 students when we start classes next year.
Where did your foreign students typically come from?
Mostly from China, India and Arab countries. Historically, our graduate program has always focused on foreign students, especially from China and India. We always seem to get at least 50% of our students from China and India. What's happening is that the Chinese now do not see the need to go to the U.S. to study because of the macroeconomic conditions; they can do well in China, so why spend $30,000 on a degree here? So now we have kind of lost the entire Chinese market. The Indian market, we still get a couple of students a year, and hopefully we'll be able to continue that.
With a lot of manufacturing jobs leaving Maine and headed overseas, some people have griped that foreign markets are stealing our jobs. So will exposing U.S. businesses to more foreign markets speed up that process?
It's a good question, but there are no easy answers. Obviously, globalization is here to stay ˆ we don't have a choice. It's going to happen whether we like it or not. Those who are directly affected by outsourcing a particular job or function, they are going to be upset. But, on the other side, the fact that something is being done somewhere else might open up some other kinds of opportunities here. There are going to be winners or losers; there are no easy solutions to that.
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