Port and Terminal Operations Management PDF

Port and Terminal Operations Management  International Trade Why Countries Trade?  Why do countries trade? To specialize in the To obtain goods and production of goods and services that a countr...

Port and Terminal Operations Management  International Trade Why Countries Trade?  Why do countries trade? To specialize in the To obtain goods and production of goods and services that a country is To take advantage of services that are not good at producing. economies of scale. available domestically. comparative advantage. To promote economic growth and development. To promote cultural To increase competition understanding and and lower prices for Trade can help countries to grow their economies and cooperation between consumers. create jobs. countries. To diversify their To improve their standard To access new markets. economies. of living.  International Trade Economic activities creates the demand for imports and the supply of exports, not numbers of people, or land area, though both have some influence. Example Country Year Geography Population Import Export Nigeria 2018 923,768 sq. km 200 million 43 B 62 B Norway 2016 385,207 sq. km 5.2 million $87.4 B $117 B  International Trade There are two basic reasons for trade: A country will import products from other countries when the country cannot produce it or can produce the product but not enough to satisfy local demand. A country import products in which the country had the efficacy of producing those products, but with an aim of getting a lower price, greater variety of products and better quality.  International Trade The USA, a major oil producer, imports oil because demand has outstripped supply. Similarly, China suddenly imported 60 mt of steel products in 2003 because local demand surged ahead of local steel production.  International Trade The starting point is that trade takes place because someone makes a profit from it. TR between regions i and j depends on; Price in country i (pi), Price in country j (pj), Tariffs between the two areas (Tij) The cost of freight (Fij)  International Trade Three fundamental reasons for trade: Differences in manufacturing costs. If one country can manufacture a product cheaper than another, for whatever reason, Differences in natural resources. Natural resources are not spread evenly around the world, Temporary imbalances: example, shortages of chemicals, petroleum products or steel products  Ports and Maritime transport Port refers to seaport, Today, ports are not In addition to For the purposes of airport, sometimes only a transfer point traditional commercial this course, we will inter-modal facilities between sea and land cargo-ship activities, restrict most of our such as railway and but also serve as Ports can also serve discussion to the road connections, dry distribution, logistics leisure, fishing and/or seaport, hereafter port, and production military ships, simply called the port centers.  What is Port? A maritime facility for loading and unloading cargo and passengers from ships. Ports are typically located on the coast or on a navigable river. They have wharves, docks, and warehouses for storing cargo. Ports also have facilities for passengers, such as customs and immigration checkpoints, and terminal buildings with waiting areas, shops, and restaurants.  What is Port? A port (or seaport) is a place at which the transfer of cargo and passengers to and from waterways and shores occurs. The transfers are made to and from vessels. The port may be a cargo port (handling only the transfer of cargo), a passenger port (handling only the transfer of passengers), or a combination cargo/passenger port (handling the transfer of both cargo and passengers)  What is Port? Cargo ports are described by the prominent type of cargo handled. If a port, for example, handles mostly container (breakbulk) cargo, it will be described as a container (breakbulk) port. A port provides a transfer service as opposed to producing a product as for a manufacturing firm. The amount of this transfer service is often referred to as the port’s throughput, i.e., the number of containers (or tons of cargo) and passengers moved through the port. … What is the difference between the following terms? ‘port’, ‘port authority’ and ‘terminal’  Sea Port A port is a geographical area where ships are brought alongside land to load and discharge cargo – usually a sheltered deep- water area such as a sea, lake, or river mouth.  Port authority Port Authority: A state or Ports may be public bodies, local governm ent that government organizations or owns, operates, or private companies. otherwise provides various maritime services i.e., berthing, loading and One port authority may control discharging cargoes and several ports (e.g. Saudi Ports other terminal investments Authority). at ports.  Djibouti Port Authority Doraleh Container Terminal (DCT) Doraleh Multipurpose Port (DMP) DP World  Terminal Example: Oil and Gas Terminal Terminal is a section of the port consisting of one or more berths devoted to a particular type of cargo handling. Thus we have coal terminals, container terminals, etc.  Terminal Each terminal usually has a primary operator, but may also be a common user facility under the control of the Port Authority or third party. Example: DP World … Doraleh Container Terminal APM Terminal ….At Rotterdam Port  …. Cargo ports handle different type of cargoes; General cargo Containerized Break-bulk Bulk cargoes Dry bulk cargo Liquid bulk cargo Port functions Port functions  Purpose of Ports Their main purpose is to provide a secure location where ships can berth. Ports have several important functions that are crucial to the efficiency of the ships which trade between them. Improved cargo handling requires investment in shore-based facilities. If bigger ships are to be used, ports must be built with; deep water in the approach channels and at the berths, large cargo handling and storage facilities  Purpose and Organization of Ports In 1977 a Commission of the European Union defined a Port Authority as a "State, Municipal, public or private body, which is largely responsible for the tasks of construction, administration and sometimes the operation of port facilities and, in certain circumstances, Importance of Ports in International Trade Ports should be considered as one of the most vital aspects of a national transport infrastructure. For most trading nations ports are: ✓ The main transport link with their trading partners and thus a focal point for motorways and railway systems. ✓ A major economic multiplier for the nation’s prosperity. Not only is a port a gateway for trade but most ports attract commercial infrastructure in the form of banks, agencies, etc., as well as industrial activity.  Port Administration Models Four main models of port administration have emerged overtime: Service Port Public Interest Tool Port Landlord Port; and Mixed character: public-private Fully Privatized Port or Private Private/shareholders interest A. Service Port Service ports have a predominantly public character The port owns, maintains and operates every available asset Port Authority offers the complete range of services i.e., cargo- handling Service ports are usually controlled by the Ministry of Transport  B. Tool Port The Port Authority owns, develops and maintains the port infrastructure as well as the superstructure Port Authority staff usually operates all Port Authority owned equipment. Port Authority makes land and superstructures available to cargo handling companies Private cargo -handling firms provide cargo handling services i.e., cargo- handling on board vessels  C. Landlord Port The Port Authority acts as regulatory body and as landlord Port operations (i.e., cargo-handling) are carried out by private companies. Examples of landlord ports are; Rotterdam, Antwerp, New York and, since 1997, Singapore. Today the landlord port is the dominant port model in larger and medium sized ports. C. Landlord Port In the landlord port model, infrastructure is leased to private operating companies and/or to industries such as refineries, tank terminals and chemical plants. The private port operators provide and maintain their own superstructure including buildings (e.g., offices, warehouses, Container Freight Stations, workshops). They also purchase and install their own equipment on the terminal grounds (e.g., quay cranes, conveyor belts) D. Fully Privatized Port or Private Fully privatized ports (which often In the absence of a port regulator in take the form of a private service the UK, for example, privatized port) are few in number, and can be ports are essentially self-regulating found mainly in the UK and New Zealand. The risk in this type of arrangement The State no longer has any is that port land can be sold or re- meaningful involvement sold for non-port activities, Port land is privately owned Summary  Port Management Development: From a Transport Centre to a Logistic Platform First generation port Second generation port Third generation port Fourth generation port First generation port ( Up to 1960) Up to 1960 a port was merely the cargo interface location First generation Ports are recognized by; ✓ Its function for cargo transfer from ship to shore ✓ It has little or no co-operation with local authorities ✓ The different port activities are isolated from each other operations ✓ It is usually either a breakbulk or bulk port Second generation port (1960 – 1980) Ports are developed as a transport, industrial and commercial service center. Second generation port can be recognized by: ✓ It undertakes and offers industrial and commercial services to its users ✓ Industrial facilities are set up within the port area. ✓ It enjoys a closer relationship with transport and trade ✓ It develops a closer relationship with the locality. ✓ Different activities become more integrated within the port organization. Third generation port (1980 – 90) This emerged in the 1980s principally due to world-wide containerization and intermodalism combined with the growing requirements of international trade. This port type can be recognized by the following features: ✓ The port is seen as the hub of the international production and distribution network. ✓ Management is proactive rather than reactive. ✓ Port infrastructure is planned with equal consideration to information processing facilities. ✓ The port adds value to the primary product ✓ The port works towards environmental protection ✓ It tries to simplify customs’ procedures.  Fourth generation port A development that appeared in the 1990s Its focus is on globalization, especially among the large international operating companies. There is standardization of information and procedures More sophisticated use of automation.  Alternative Sea ports for Ethiopia ▪ Djibouti ▪Assab port (Eretria) ▪ Massawa port (Eretria) ▪ Berbera port (Somali-land) ▪ Port of Mombasa (Somali-land) ▪Lamu port (Kenya) ▪ Mombasa (Kenya) ▪ Port Suda Overview of Ports and Terminals Sea Ports Airports Sea ports handle the majority of global trade and Airports play a vital role in international cargo provide the primary link between land and sea cargo movements and facilitate time-sensitive transportation. sensitive shipments. Inland Ports Dry Ports Inland ports connect waterways and railways, Dry ports act as intermediaries between seaports railways, providing a cost-effective alternative for seaports and inland destinations, facilitating alternative for cargo transportation. facilitating seamless cargo movement. Key Stakeholders in Port and Terminal Management Shipping Lines Port Operators Shipping lines are responsible for transporting goods Port operators manage and maintain the transporting goods between ports using their infrastructure, handle cargo operations, and ensure vessels. ensure efficient port services. Customs Authorities Freight Forwarders Challenges and Opportunities in Port and Terminal Management 1 Infrastructure Congestion 2 Environmental Sustainability Growing trade volumes and vessel sizes pose challenges in Ports and terminals face managing congestion and increasing pressure to reduce ensuring efficient operations. reduce emissions, conserve energy, and adopt sustainable sustainable practices. 3 Digital Transformation Technological advancements offer opportunities to streamline operations, operations, enhance efficiency, and improve customer experience. Operational and Strategic Considerations 1 Optimizing Terminal Layout Efficient layout design, including berth berth allocation and container stacking, Enhancing Security Measures 2 stacking, ensures smooth cargo flows. Advanced surveillance systems, access flows. access control, and cybersecurity protocols safeguard port operations. 3 Implementing Port Automation Automation technologies, such as automated cranes and container handling handling systems, enhance operational operational efficiency. Technologies Used in Port and Terminal Management Internet of Things Artificial Intelligence Blockchain (IoT) (AI) Technology IoT sensors enable real-time AI-powered algorithms optimize Blockchain facilitates secure and tracking of cargo, monitoring of port operations, predict and transparent transactions, monitoring of infrastructure, congestion, and enhance transactions, improves supply infrastructure, and predictive resource allocation. supply chain visibility, and predictive maintenance. reduces fraud. Future Trends and Outlook Trend Description Green Ports Ports adopting sustainable practices, utilizing utilizing renewable energy, and reducing carbon carbon footprint. Smart Ports Ports leveraging IoT, AI, and automation to optimize operations, improve efficiency, and enhance security. Port-City Integration Closer collaboration between ports and cities to cities to enhance logistics, connectivity, and urban urban development.  Value-added services in port Warehousing Packaging and Labeling and Sorting and and storage repackaging barcoding picking Quality Assembly and Customs Freight control and disassembly clearance forwarding inspection Information Financial Transportation Insurance technology services services  is improving and expanding port facilities and Port Development infrastructure to meet the growing demand for trade and transportation Types of port development Dredging Land reclamation Construction of new quays and terminals Upgrading of existing Development of new facilities technologies  Why is port development important? To increase trade and economic growth To reduce transportation costs To improve port efficiency To make ports more competitive  Types of port development Dredging: This process involves deepening and widening the shipping channels and harbor basins to accommodate larger and deeper-draft vessels. Land reclamation: This process involves creating new land from the sea to expand the port area. Construction of new quays and terminals: This involves building new facilities for handling different types of cargo, such as containers, bulk liquids, and dry bulk commodities. Upgrading of existing facilities: This involves modernizing and improving existing port infrastructure, such as cranes, conveyor belts, and warehouses. Development of new technologies: This involves investing in new technologies to improve the efficiency and safety of port operations.  Types of port development Dredging: This process involves deepening and widening the shipping channels and harbor basins to accommodate larger and deeper-draft vessels. Land reclamation: This process involves creating new land from the sea to expand the port area. Construction of new quays and terminals: This involves building new facilities for handling different types of cargo, such as containers, bulk liquids, and dry bulk commodities. Upgrading of existing facilities: This involves modernizing and improving existing port infrastructure, such as cranes, conveyor belts, and warehouses. Development of new technologies: This involves investing in new technologies to improve the efficiency and safety of port operations. Key Components of Port Development Infrastructure Technological Development Advancements Environmental Legal and Regulatory Considerations Framework  The growth of containerized shipping Key trends in The rise of megaships port development The importance of automation and technology The need for sustainable port development  The high cost of port development projects The environmental impact of port development Challenges in The need for coordination between different stakeholders port development Infrastructure Congestion Labor and Workforce Management Security and Safety  Financing Port Development Public-private Government funding Private investment partnerships (PPPs) Best Practices in Port Development Stakeholder Infrastructure Master Planning Engagement Investment Technology Environmental Safety and Integration Stewardship Security Dry port operations What is a dry port? also known as an inland port is a port that is located away from the sea is typically connected to a seaport by road or rail, and it serves as a center for the transshipment of sea cargo to inland destinations  What is a dry port? is an inland intermodal terminal directly connected to a seaport, with high capacity traffic modes, preferably rail, where customers can leave and/or collect their goods in intermodal loading units, as if directly to the seaport Services such as trans-shipment, consolidation, depot, track and trace, maintenance of containers, and customs clearance should be available at dry ports  What is a dry port? A dry port refers to an inland location as a Dry Ports can be considered as an essential part of an logistics center connected to one or more modes inland trade distribution system. of transport for the handling, storage and Dry ports may be developed for the handling of all regulatory inspection of goods moving in types of cargoes, i.e. international trade and the execution of applicable customs control and formalities. containerized, non-containerized break-bulk and bulk cargoes – not just for containerized cargoes  What is a dry port? Dry ports are specific sites to which imports and exports can be consigned for inspection by customs and which can be specified as the origin or destination of goods in transit accompanied by documentation such as a combined bill of lading or multi-modal transport document, Multimodal transport document will be issued. Export from the dry port of a landlocked country to a seaport or dry port of the importing country Dry ports can be located on land from sea ports but are linked directly to the seaport (s). Dry ports may be used whether a country has a sea port or is landlocked.  What is a dry port? Transfer between transport modes takes place at dry ports (from road to rail or vice-versa). Dry ports are also likely to be the places where large consignments are assembled or separated into smaller loads for onward transit. Stuffing and unstuffing of containers as well as short-term storage of containers. Dry ports are important for the implementation of the door-to-door transport concept. What are the facilities required for dry port operations ?  Customs control and clearance Temporary storage Container handling equipment Dry Port Facilities …. Office for operators Minimum Facilities Security and fencing system Reliable and efficient communication facilities Container freight station with stuffing and unstuffing service  Cargo packing services Consignment consolidation services Dry Port Facilities Container cleaning services …. Comprehensive Computerized cargo tracking services Facilities Container repair facilities Refer refrigeration points Offices of shipping lines What is the benefit of dry port?  The benefit of dry port Increased trade flows Avoidance of clearing and forwarding fees at seaports Avoidance of storage, demurrage, and late documentation fees Optimal use of rail and road transport Better utilization of capacity Lower door-to-door freight rates as a result of Consolidation of consignments Containerization Lower transportation cost per distance  Benefits to sea ports Lowering congestion Reduce cargo handling operations Reduce demand for storage space Potential Inventory saving benefits of Dry ports seed up movement Increase predictability of arrival dry ports Improved communications Dry ports enable greater national control over transit operators Reduce paperwork What are the basic functions of Dry ports?  Basic functions of dry ports Receipt and Loading/unloading Truck operations dispatch of cargo of cargo Storage of cargo Customs clearance Security and containers Information flow Record keeping and and communication data storage What cost components shall be included in multimodal B/L or door-to-door service?  Ocean freight rate The door-to-door freight rate must Rail freight rate include the following; Road transport Container lifting Storage of containers Consolidation and organization of cargo Storage of cargo Customs inspection and duties  Where to locate dry ports? What are important factors that should be considered in site selection?  Traffic flows between the inland center of production and consumption and the ports (commodities, containerized cargoes, future growth ….. Modes of transport available and network capabilities Possible reduction in tons per kilometer with the introduction of dry port The actual function of the dry port (unpacking, reception, delivery Dry ports Transport infrastructures Location Scope for future site development or expansion  Dry Port Facility Dry port facility design shall be considered; The initial volumes of business to be handled An estimated volume of cargo to be handled by the facility with a 10-year time horizon The type of facilities and equipment that customers will require  Dry Port Equipment Storage system Heavy fork-lift trucks (Carrying capacity up to 45 tons Fork-lift trucks lifting capacity of 3 tones for CFS Straddle carriers Side loaders Mobile cranes Reach stackers Tractors, trailers and chassis Special equipment for CFS Dry Ports in Ethiopia  Modjo Port and Terminal Kality Port and Terminal Gelan RoRo Terminal Dry Ports Semara Port and Terminal in Dire Dawa Port and Terminal Ethiopia Kombolcha Port and Terminal Mekelle Port and Terminal Hawassa Port and Terminal Woreta Port and Terminal Dry Ports in Ethiopia  Dry Ports in Ethiopia The development of dry ports is for a land-locked country evident. At the moment Modjo Dry Port is the most important one. While plans exist for dry ports at Woreta, 620km northwest of Addis Ababa to serve the Sudan region, and Moyle, 770 km south of Addis Ababa to serve the Kenya region. The importance of dry ports is also emphasized in the GTP plan with set up of 35 dry ports throughout the country. ? Thank you!