Untitled Quiz

International Trade

• Countries trade to acquire goods and services unavailable domestically, specializing in products where they have a comparative advantage.
• Economies of scale are another motivator for trade.
• Increased competition from imports leads to lower prices for consumers.
• Trade fosters economic growth and development by creating jobs and boosting national economies.
• Cultural understanding and cooperation are positive results of international trade.
• Trade enables diversification of national economies and improves living standards.
• Economic activity, rather than population or land area, drives the demand for imports and the supply of exports.

Port and Terminal Operations Management

• Nigeria in 2018, with 923,768 square km and 200 million people, imported 43B and exported 62B.
• Norway in 2016, with 385,207 square km and 5.2 million people, imported $87.4B and exported $117B.
• Countries import products when they cannot produce them or produce insufficient quantities to meet local demand.
• Another reason for imports is to obtain products more efficiently, at a lower price, with increased variety and better quality.
• The U.S.A., a major oil producer, imports oil since the demand has outstripped the supply.
• China, in 2003, imported 60 mt of steel items because of surges in local demand ahead of local production.

What is a Port?

• A maritime facility to load and unload cargo and passengers from ships.
• Usually located on coasts or navigable rivers.
• Includes wharves, docks, and warehouses for storage.
• Also has facilities for passengers (customs, immigration, checkpoints, terminals with waiting areas, shops and restaurants).
• A port (or seaport) is a geographical area allowing transfer of cargo and passengers between waterways and shores to and from vessels.
• A port can be designed for cargo only, passengers only, or a combination of both.

Cargo Ports

• Port types are categorized by the type of cargo handled (e.g. container or breakbulk).
• A port provides a transfer service, not a manufacturing product.
• Throughput is a measure of the volume of cargo and passengers moving through the port.

What is a Port Authority?

• A state, municipal, public or private body responsible for port construction, administration, and, sometimes, operation.
• Some authorities may control several ports. 
• They also own and/or manage port facilities and services.
• Djibouti Port Authority, Doraleh Multipurpose Port(DMP), and Doraleh Container Terminal (DCT) are examples. Examples of ports with port authorities include ports in the UK, New Zealand, and Singapore which are the most prominent in larger and medium ports.

What is a Terminal?

• A section of a port designed for a particular type of cargo handling, like oil and gas, coal, or containers.
• Terminals frequently have primary operators, but can be owned by the Port Authority or a third party. 
•  Examples include DP World's Doraleh Container Terminal and APM Terminals at the port of Rotterdam.

Cargo handled by cargo ports

• General cargo, containerized, or break-bulk.
• Bulk cargo, such as dry or liquid bulk.

Port Functions

• Nautical operations, including harbor approach, mooring, and berthing, as well as vessel traffic management.
• Supporting services for cargo handling (such as pilotage and towing).
• Logistic operations—warehousing, sorting, shipping, distribution, and customs services.

Purpose of Ports

• Provide a safe and secure environment for ships to berth.
• Facilitate trade activities between traders and customers.
• Contribute importantly to national trade economies and prosperity.
• Optimized cargo handling involves substantial investments in shore-based infrastructure to support large ship capacities.

Importance of Ports

• Act as vital centers for trade and interaction between countries.
• A focal point for national transport infrastructure, connecting to road and rail systems.
• Generate significant economic activity by attracting other businesses such as banks, agencies, and industries.

Port Administration Models

• Service ports—publicly run, owning, maintaining, and operating all assets.
• Tool ports—Port authorities offer structure and equipment, while other companies handle operations.
• Landlord ports—Port authorities act only as landlords, while private companies manage infrastructure and operations.
• Fully privatized ports—private companies own and operate all port infrastructure and operations.

Port Generation and Development

• Stage 1 (Pre-1960s)—Ports were mainly cargo transfer locations.
• Stage 2 (1960-1980)—Ports became transport hubs between industrial, commercial areas and customers.
• Stage 3 (1980-1990s)—Internationalization, containerization, and intermodal transport.
• Stage 4 (1990s onwards)—Port development focuses on global trade activities, with high capacity and automation.

Dry Ports

• Inland locations connected to seaports by rail or road, functioning as centers for goods transshipment.
• Dry ports offer improved trade flows, reduced costs (clearing and forwarding, storage, and late fees), and often better door-to-door transit rates.
• Benefits extend to seaports involved in congestion reduction and increased predictability of arrival times.
• Dry ports minimize the need for cargo storage in seaports thus leading to easier capacity management.

Dry port Operations

• Receipt and dispatch of cargo.
• Truck operations and handling.
• Loading and unloading of goods.
• Customs clearances.
• Security monitoring.
• Record Keeping and Data storage.
• Cargo storage.

Dry Port Facilities (Minimum)

• Customs control and clearance.
• Temporary storage of imported/exported goods.
• Equipment for handling containers.
• Facilities for port operators.
• Security and fencing systems.
• Reliable communication systems.
• Cargo freight staging areas (with stuffing and unstuffing services).

Dry Port Facilities (Comprehensive)

• Cargo packing.
• Consignment consolidation services.
• Container cleaning services.
• Computerized cargo handling and tracking.
• Container repair.
• Refrigerated storage for cargo.
• Offices of shipping lines.

Dry Ports in Ethiopia

• Dry ports offer services for import/export processing, customs clearance, and intermodal transport in landlocked areas.
• Existing plans include those at Modjo, Woreta, and Moyale.
• A significant number of dry ports in Ethiopia are planned under the GTP (Growth and Transformation Plan)

Key Components of Port Development

• Infrastructure development (includes wharves, docks, and warehouses).
• Technological advancements (automation, logistics).
• Environmental considerations (sustainability).
• Legal and regulatory frameworks (safety concerns).

Key Trends in Port Development

• Container shipping growth.
• Megaships are getting larger and require enhanced infrastructure.
• Increased import and export volumes.
• Increased use of automation and technology.
• Port optimization to improve environmental standards

Challenges in Port Development

• High cost of development projects.
• Environmental concerns.
• Inter-stakeholder coordination.
• Infrastructure congestion.
• Labor and workforce challenges.
• Security risks and considerations.

Financing Port Development

• Public-private partnerships.
• Government funds.
• Private investment.

Best Practices in Port Development

•  Master planning (for long-term strategy).
• Stakeholder engagement (coordination among users and providers).
• Integrating technology (e.g., IT and process automation).
• Environmental sustainability (e.g., waste or energy optimization).
• Investing in infrastructure (such as roads, rail, and ports).
• Ensuring safety and security.

Future Trends and Outlook

• Green ports (sustainability).
• Smart ports (technology applications).
• Port-city integration and urban development.