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Global Analysis of Potential Risks On Operating Seaport

Presented By:Faziatul Amillia Mohamad BasirMohamad Shahreel SharunMohammad Hafiz Bin Amin Nordin


Introduction

• Risk management play a vital role since port industry is a business that have a very high level of risk and its one of the critical infrastructure that has a very adverse effect if the risk is not properly managed

• Risk Assessment of Port:– Location– Business Conditions– Machineries & Equipment Used– Surrounding Environment-exposed to terrorism,

environment erosion


POTENTIAL RISKS IN SEA PORT

•Political Risks

•Operational Risks

•Environment Risks


Political Risks

• Definition: Business unwanted consequences resulting from political changes or activities. (Tsai & Su, 2005)

• Business Environment : Port operations is normally under government supervision, thus have strong connection with any government structure and changes of policy, tariff, and rates.

• External foreign shipping companies-comply with their requirements in cargo handling.


Potential Political Risks

Adapted from: Tsai, M. C., & Su, C. H. (2005). Political risk assessment of five East Asian ports -the viewpoint of global carriers. Marine Policy , 291-298.


OPERATION RISKS

• It is estimated that at least 50 per cent of cargoes handled by port personnel are classified as “dangerous goods” because they have the potential to cause damage to human life, environment and/or property. (Roos, 2005)

• Marine safety means “a condition which is obtained by applying all reasonable measures minimizing potential dangers to men, objects and environment caused by operating vessels”. (Froese, 1995)


OPERATION CATEGORIES

• The “operation” field includes seven different categories, according to the activity that was being carried out when the accident occurred:• (1) approach (a ship approaching or leaving the port)• (2) manoeuvre (ships moving in port waters or mooring)• (3) loading/unloading (of ships)• (4) maintenance (of ships at docks)• (5) storage (of goods in land terminals and warehouses)• (6) process (in industrial plants located in the port area)• (7) transport (of goods by train, lorry or pipeline through the port area).


ASSETS CLAIMS

Source: TT Club Asset Claims,2006-2009


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Environmental Risk

• Ports all over the world differ in many aspects but they share some of the major environmental issues, such as the degradation of water and air quality, oil and heavy metals pollution, ship illegal discharge of ballast and bilge water, port physical expansion, and also natural disaster.

• There exists a long list of international conventions related to the protection of marine environment, which are important for seaports.


List of Potential Environmental Risk

• Pollution (water, air and gas)

• Coallition

• Waste Management

• Natural Disaster (eg earthquake, tsunami etc)

• Man-Made Disaster ( eg; Terrorist)


IMPLICATIONS OF POTENTIAL RISKS

•Political

•Economic

•Social

•Technology


Environment Impact AssesmentAli Mohamed Al-Damkhi, Sabah Ahmed Abdul-Wahab, and Bader Naser Al-Khalaf

and Abeer Sa’ad Al-Nafisi (2008)

Submit an initial environment

assessment report

Undertakes formal evaluation and review

Submit Environment Impact Statement

Oppose the project base on ecological

factors

Additional information is required for

adequate assessment

An environmental permit should be

given if no significant impact is anticipated


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