Ba 7064 Port And Terminal Mgt Unit I-1 3u1q1k

BA 7064 PORT AND TERMINAL MANAGEMENT PROF.DR.T.MUTHU PANDIAN M.TECH.,MBA.,PhD.,FIE

COURSE OBJECTIVE • To enlighten the students about the major functions in the port and terminal management • To expose the students on the trends in port and terminal management • TOTAL: 45 PERIODS

UNIT - I 8 INTRODUCTION TO PORT AND TERMINAL • Role of ports in international trade and transport • Economic impact of ports on the regional economy • Multiplier effect • Location characteristics of ports • Different types of ports (natural, manmade, river, estuary)

UNIT - II PORT OPERATIONS

12

• Design features of facilities in ports for handling various cargoes • Organization structure in Ports • Delivery of port services and the relationship between various departments • Marine Department • Traffic Department • other departments

UNIT - III 8 PORT MARKETING AND SERVICES • • • • •

Marketing of Port services Pricing of Port services Components of port tariff Concept of hinterland Identifying the needs of ship owners and operators, ship agents, forwarders, truckers, rail and barge operators • Concept of Total Logistics cost.

UNIT - IV PORT PERFORMANCE

10

• Measurement of port performance • Vessel turn round time, cargo volume, speed of cargo handling • Information flow requirements of the port, statutory bodies and port s • Port community computer systems and EDI applications

UNIT - V PORT SECURITY AND ISSUES

7

• Environmental issues connected with Ports & Terminals • Health and safety issues • Port security issues • International Ships and Port facility security (ISPS) code • Role of national, regional and local governments in owning / operating / managing ports

COURSE OUTCOME • The students would be aware about skills pertaining to port and terminal management • The students should be able to understand the principles and applications for port and terminal management

REFERENCES • 1. Maria G. Burns, Port Management and Operations, CRC Press, 2014. • 2. Patrick Alderton, Port Management and Operations, Third Edition, Lloyd's Practical Shipping Guides, 2008. • 3. H. Ligteringen, H. Velsink, Ports and Terminals, VSSD Publishers, 2012.

UNIT - I 8 INTRODUCTION TO PORT AND TERMINAL • Seaports are areas where there are facilities for berthing or anchoring ships and where there is the equipment for the transfer of goods from ship to shore or ship to ship. • 3,500 to 9,000 ports in the world.

The Importance of Ports • A port is essentially a point where goods are transferred from one mode of transport to another.

• 95% of India‘s foreign trade by weight/volume and about 70% by value involve transportation by sea.

Port functions • Landlord for private entities offering a variety of services; • Regulator of economic activity and operations; • Planning for future operations and capital investments; • Operator of nautical services and facilities; • Marketer and promoter of port services and economic development; • Cargo-handler and stores; • Provider of ancillary activities.

The Main Functions and Features of a Port • • • • •

Civil engineering features Sea and land access. Infrastructures for ships berthing. Road and rail network. Industrial area management

• istrative functions • Control of vehicles, all modes, entering and leaving the port. • Environmental control. • Control of dangerous cargo. • Safety and security within the port area. • Immigration, health, customs and commercial documentary control.

• • • •

Operational functions Pilotage, tugging and mooring activities. Use of berths, sheds, etc. Loading, discharging, storage and distribution of cargo

Some Definitions • Port: A town with a harbour and facilities for a ship/shore interface and customs facilities. • Harbour: A shelter, either natural or artificial, for ships. • Dock: An artificially constructed shelter for shipping.

• Lock: In tidal waters the majority of docks have been maintained at a fixed depth of water by making the access to them through a lock, which allows the ship to be raised or lowered as it enters or leaves the dock • Advantages: • 1. A constant depth of water can be maintained. • 2. Cargo handling between ship and shore is easier. • 3. The ship’s mooring lines do not need constant attention. • Disadvantages: • 1. Increase in capital cost. It is also a constructional feature • difficult to alter if changes in ship design make it too short • or narrow. This has been a problem with many ageing • ports in tidal waters. • 2. Extra time and possible delays for the ship when arriving • and leaving.

• Breakwater or Mole. A long solid structure, built on the seaward side of the harbour, for protection against the weather, rough seas and swell. • Wharf. A structure built along the shore where vessels can berth alongside. Pier or Jetty. A structure built out from the shore or river bank on masonry, steel or wooden piles for berthing ships. It is not a solid structure and should not greatly impede the flow of tide or current. However both these are often used with considerable variations.

• Dolphin. An isolated islet of piles or masonry to assist in the berthing or manoeuvring of ships. • Stevedore. A person employed in moving the cargo on or off the ship. This is again a term with many local variations. For instance, in London it was the term for one of the skilled team who stowed the cargo on board the ship but after Lord Devlin’s report the many traditional functional used in this area were abandoned in favour of the all-embracing term “docker”.

• Tug. A small power-driven vessel used in ports and harbours • to: • — Tow barges and other unpowered craft between required locations within the harbour. In the early days of sail they were among the first steam vessels to be developed as they were very useful in helping sailing craft in and out of port. • — Help large vessels to manoeuvre in and out of locks and on and off their berths. • — Help in salvage and rescue situations. Many will be equipped with fire fighting and pollution control equipment. • A modern harbour tug will probably have a bollard pull of somewhere between 20 to 70 tons

Legal definitions • Port means an area within which ships are loaded with and/or discharged of cargo and includes the usual places where ships wait for their turn or are ordered or obliged to wait for their turn no matter the distance from that area. • Safe Port means a port which, during the relevant period of time, the ship can reach, enter, remain at and depart from without, in the absence of some abnormal occurrence, being exposed to danger which cannot be avoided by good navigation and seamanship.

• Berth means the specific place where the ship is to load and/or discharge. If the word berth is not used, but the specific place is (or is to be) identified by its name, this definition shall still apply. • Safe Berth means a berth which, during the relevant period of time, the ship can reach, remain at and depart from without, in the absence of some abnormal occurrence, being exposed to danger which cannot be avoided by good navigation and seamanship.

• 90 per cent of the world’s merchandize and commodity trade is transported by ship • ‘disintegration of production and the integration of world trade’- Feenstra • international barriers to trade have been lifted by the GATT/ WTO -agreements since the 1980s • ICT- ‘death of distance’ (Cairncross, 1997) or a ‘flat world’(Friedman, 2005)

• Both containerization and ICT that allowed the reduction of shipping costs and the rise in importance of logistics and supply chain management in the evolving global economy • HINDERLAND – Coverage area. A region lying inland from a coast. The land behind the coast or the banks of river or an area of a country that is far away from cities. • Mumbai port has a vast hinterland covering the whole of Maharashtra and large arts of Madhya Pradesh, Gujarat, Rajasthan, Delhi.

Four important functions of Ports 1. istrative (ensuring that the legal, sociopolitical and economic interests of the state and international maritime authorities are protected), 2. Development (ports are major promoters and instigators of a country’s or wider regional economy), 3. Industrial (major industries process the goods imported or exported in a port), and 4. Commercial (ports are international trade junction points where various modes of transport interchange; loading, discharging, transit of goods).

Port • A port is a facility for receiving ships and transferring cargo. • Situated at the edge of an ocean, sea, river, or lake. • Ports have cargo-handling equipment –cranes, forklifts for loading/unloading of ships • Canneries or other processing facilities nearby • Harbour pilots and tugboats are used to maneuver large ships • Customs facilities to handle international traffic

Port Terminals • Terminal refers to a complete port facility for accommodating, loading/ discharge of ships and for the storage, stacking and handling of cargo on shore • (e.g. bulk cargo terminal, oil terminal, livestock terminal, etc.). • A mole or breakwater is a massive port structure made of masonry or large stone blocks laid in the sea to protect the harbour from waves and current. jetty and pier are used to mean the same

Port accommodation • Port accommodation is divided into berthing and storage accommodation. • Berthing accommodation includes general cargo berths (wharves, quays, piers, docks), oil tanker jetties or terminals, bulk cargo facilities, container and rollon/roll-off terminals, liquefied gas terminals, etc. • Storage facilities include transitsheds (along the wharves or docks), back-up storage located away from the dock,warehouses, stockyards and stacking areas for containers, stockpiles for bulkcargo etc.

• "port" and “ seaport“ handle ocean-going vessels • "river port“ handle river traffic- barges, shallow draft vessels. • "inland ports”- ports on a lake, river, or canal have access to a sea or ocean • "fishing port“ for landing and distributing fish. • "dry port" is used to place containers or conventional bulk cargo, usually connected to a seaport by rail or road. • "warm water port“ does not freeze in winter. Petersburg and Valdez • "port of call" is an intermediate stop to collect supplies/ fuel.

• Cargo containers eliminate loading of smaller packages at each transportation point, and sealed • Standard containers loaded on a ship, train, truck, or airplane, simplifying intermodal transfers. • Cargo arrives by train and truck to be consolidated at a port and loaded onto a large container ship for international transport. • At the destination port, it is distributed by ground transport.

• No standardised means of evaluating port performance and traffic • The world's busiest port is claimed by both the Port of Rotterdam -cargo tonnage handled (total weight of goods loaded and discharged)and the Port of Singapore -shipping tonnage handled (total volume of ships handled). • Since 2005, the Port of Shanghai has exceeded both ports to take the title in of total cargo tonnage • largest world port: Port of Shanghai, Port of Singapore, Port of Rotterdam, Port of Hong Kong, Port of New York/New Jersey

Problems of Indian Port • Inefficient and non-optimal deployment of port equipments. • Lack of co-ordination in the entire logistic chain. • Lack of proper roads connecting the hinterland for speedy movement of cargo. • Frequent labour unrest. • Many major ports are affected by silting and requires frequent dredging. • Except for Bombay and Madras, other ports do not have the facility of night navigation and pilots. This hampers working round the clock. • Less competitive and attractive due to its poor productivity, inefficient process and procedures, less chances for hub status due to inadequate drafts and away from international sea routs, and high freight cost.

Indian major ports and hinderland

Hazardous/dangerous cargoes • Something that can cause significant harm. A condition or physical situation with a potential for an undesirable consequence, such as harm to life (or limb), environment or property • explosive, flammable, corrosive, noxious, poisonous, radioactive and irritative substances, commodities which emit poisonous vapour and are dangerous when wet, bio-medical material, substances liable to spontaneous combustion, pressurised gases and magnetised metal.

Shipper’s paper • The documents (such as a bill of lading, invoice, freight bill, or delivery receipt or in marine transportation a manifest export declaration or consular documents) employed between a shipper of goods and a common carrier

Fleet Management • Fleet Management is a function which allows companies which rely on transportation in business to remove or minimize the risks associated with vehicle investment, improving efficiency, productivity and reducing their overall transportation and staff costs, providing 100% compliance with government legislation

• Fleet management is the function that oversees, coordinates and facilitates various transport and transport related activities. • Covers vehicles involved in the movement of goods; the management of light vehicle fleets used in the transportation of people and light cargo; • Fleet management underpins and s transport related activities through the management of the assets that are used. • Effective fleet management aims at reducing and minimizing overall costs through maximum, cost effective utilization of resources such as vehicles, fuel, spare parts, etc.

The Top-10 Port Environmental Issues (ESPO Survey 2004) 1. Port Waste Management 2. Dredging 3. Dredging Disposal 4. Dust 5. Noise 6. Air Quality 7. Bunkering 8. Hazardous cargo 9. Port Development (land related) 10. Ship discharge (bilge)

DIFFERENT TYPES OF PORTS • Two: by function and by geographic type I. BY FUNCTION • 1. A cargo interface – • Hub or Centre port, also sometimes referred to as a mega port, direct-call port, hub and load centre port, megahub (greater than 4mn TEUs per annum where a TEU =Twenty-foot Equivalent Unit), superhub (greater than 1 million TEUs per annum), load centre port, pivot port, etc.

• In the past - large major ports, dealing with international trade and smaller local ports serving the needs of their own hinterland with mainly coastal or short-sea shipping. • As inland transport developed larger ports became larger and smaller ports smaller • (2) Feeder port—to feed and distribute cargo from 1. • (3) Entrepot or transit port. • (4) Domestic port, i.e. a natural outlet for surrounding hinterland.

(B) A MIDAS (Maritime Industrial Development Area) • also known in as Zones Industrielles Portuaires (ZIP)) • mid-1960s • petrochemicals, oil refineries, steel works saw the advantages of locating themselves in port areas • (5) Large industrial zone with its own marine transport terminal. • (6) Customs free port. • (7) Oil port.

• • • •

(C) Specific ship/shore interface (8) Naval port. (9) Fishing port. (10) Specific Commodity Export Port

II. BY GEOGRAPHIC TYPE • (1) Coastal submergence—New York and Southampton. • (2) Ryas (submerged estuaries)—Falmouth, Rio. • (3) Tidal estuaries—Bristol, London, Antwerp. • (4) Artificial harbours—Dover. • (5) Rivers (non-tidal)—Montreal

The Port of London

Other types of Ports by Martin Stopford • In his “Maritime Economics“ classified ports based on the location, cargo volume and nature trade and logistics function served by a port in the national and global economy • Four broad typologies• 1. Local Small Ports -small and of local significance (Type 1), • 2. Large Local Ports -large but not involved in global trade (Type 2), • 3. Large Regional Ports-large port but limited to region (Type 3) • 4. Redistribution or Transshipment Ports -large ports, wholly dependent on global trade

• Classification of ports in of major and minor ports has been largely derived from legal enactments, such as Indian Ports Act 1908 and the Major Ports Trusts Act 1963. • Major ports and minor ports are not purely based on its size. Not all Indian minor ports are not really minor either in size or traffic performance, nor all ―major ports are really major performers.

Economic impact of shipping industry across three channels

Three metrics

Multiplier Effect • In microeconomics, things are assumed to be constant; However, in macroeconomics, the after effects are also taken into . • The Multiplier Effect discusses the repercussions of initial changes in expenditures which amplify the initial effects. • A change in price level has the potential to affect many different parts of the economy either in positive or in adverse ways depending on how the effects happen. • The multiplier effect takes the initial wealth, international, and interest rate effects and amplifies these original effects. • For example, a Port locating in a city may create jobs, revenue, and knowledge spillovers. This can help to improve the local economy through the multiplier effect.

Methods of estimation of muliplier effect of investment • Founders of multiplier effect Richard Kahn (1931) and John Maynard Keynes (1936; 1973). • The result of investments in economy is socalled multiplier effect, which is expressed in much bigger increase of result in comparison with performed current investments that can lead to significant growth of economy and standard of living of population.

• Single Deep-Water System (SDWS) • The indicators of material expenses listed in the table and used for estimation of multiplier effect of realization of major investment projects on water transport are calculated on the assumption of share of material expenses in output defined with help of statistical analysis of data and with due consideration of its differentiation on water transport by types of activity (transportation of freights, engers, transshipment in ports) and other allied branches of economy.