PORT OPERATIONS AND MANAGEMENT:

AN OVERVIEW

Vijay Hiranandani

INTRODUCTION

Sea ports are historic, commercial and infrastructural assets that form the backbone of national and regional economies.

OUTLINE:Main features and operations of portsImportance of portsEvolution of portsTypes of portsPort management

Grain Terminal, Tilbury docks, UK.

http://www.portcities.org.uk/london/server/show/conMediaFile.1821/Three-OCLcontainer-ships-at-Tilbury-during-the-August-1970-docks-strike.html

MAIN FEATURES & OPERATIONS OF PORTS:

Ports reflect national heritage, local commercial attitudes, practices, and laws that differ widely between nations.

Ports require long-term, expensive, and specialized investments and resources that represent a substantial chunk of national economy.

Ports are large civil engineering undertakings and a collection of activities entailing huge sunk costs.

Ports provide ship/shore intermodal interface.

The advent of intermodalism has caused ports to compete for cargoes. This has jolted businesses to increase port efficiency and value-added activities in recent years.

Value-added activities range from cargo loading and discharging, industrial services in ports, combining and separating cargoes, up-to-date information on inventory and cargo

movements, stuffing/de-stuffing containers, loading cargo in crates and crates on pallets,shrink-wrapping, labeling, weighing, repackaging.

Civil engineering features:Sea and land accessInfrastructures for ships berthing & unberthingRoad and rail networksIndustrial area management

Administrative functions: Control of all modes of vehicles entering and leaving the port

Environmental controlDangerous and hazardous cargo controlSafety and security within the port areaImmigration, health, customs, and commercial documentary control

Hong Kong Port Container Terminal

http://my.hktdc.com/photolib/showhk.asp?id=0700036

Operational functions:Facilitating arrival and departure of shipsProviding navigational aids and Vessel Traffic Separation (VTS) facilities

Pilotage, tugging and mooring activitiesUse of berths, sheds, etcLoading, discharging, storage and distribution of cargo

Facilitating supply chain logistics and management

WHY ARE SEAPORTS IMPORTANT?Seaports are a haven with facilities for berthing and anchoring ships and providing equipment for transfer of goods from ship-shore, shore-ship & ship-ship.

Ports function as distribution centers; industrial zones; energy supply bases; mercantile trading centers with banks, brokers,

and traders; urbanization and city redevelopment centers; life activity bases in rural ports; maritime leisure bases in cruise passenger ship

terminals; private yacht marinas; dockside recreation facilities; etc.

Genoa, Italy.

http://www.travel-mall.net/dbimg/location6.jpg

Ports form a vital aspect of the national transport infrastructure.

Ports form the main transport link with their international trading partners and are a focal point for national and regional motorways and railways.

Ports are a blessing for national prosperity – they provide a gateway for trade and attract commercial infrastructure such as banks, shipping agencies, freight forwarders, stevedores, etc.

Ports create a hustle and bustle of industrial activity.

Ports are places where foreign cultures and ideas influence a nation.

Ports are a focal point with shallow waters where ships converge thereby making them vulnerable to maritime accidents.

Ports are places where valuables are concentrated and where cargo can be damaged or stolen during handling.

Ports are places where repairs and/or planned maintenance is carried out on ships.

Ports are places where costly delays can occur, ships are surveyed, most shipping services – agents, brokers, etc are located, cargoes come from, and customs and government policies are implemented.

Hamburg Port, Germany

http://www.maritimemarket.ru/images/hamburg.jpg

EVOLUTION OF PORTS

Ports have evolved over time

Their development phases can be classified as follows:

First Generation Port: Existed before and until 1960s

Comprised of a basic cargo interface between land and sea transportIsolated from transport and trade activities

Resembled an independent kingdomIsolation between different port activities

Usually a bulk cargo port

Second Generation Port:During 1960s – 1980s

They were developed transport, industrial and commercial service centres

Offered various types of industrial and commercial activitiesThey reflected sophisticated port policies and development strategiesProvided industrial facilities within the port area Well developed network of transport infrastructureThey integrated different activities and zonal relationships

Third Generation Port:From 1980 onwards

Arose from global containerization, inter-modalism, and booming trade requirementsThey are hubs of international production and distribution

Combine traditional, specialized and integrated activities

Well-planned infrastructure and information processing facilities

Offer value-added servicesUser friendlyOffer simplified customs proceduresMore environmentally conscious

Nagoya Port, Japan

http://www.iaphworldports.org/gallery/img/Nagoya2_jpg.jpg

DIFFERENT TYPES OF PORTSHub, center or mega port – a major port dealing with international trade. Example: Rotterdam in The Netherlands.

Feeder port – to feed and distribute cargo from major ports. Example: Port Riga in Latvia provides feeder service to Hamburg in Germany.

Entrepot or transit port – serves as a transit port. Example: Batumi seaport in Georgia is a transit port for Kazakh and Azerbaijan.

Domestic port – provides a natural outlet for surrounding hinterland. Example: Jafarabad port in India.

An aerial view of Rotterdam Port in The Netherlands http://www.skyscrapercity.com/showthread.php?t=164137&page=4Rotterdam

Ports last longer than ships and this requires the port management to avoid any costly blunders.

Ports are classified according to their ownership or administration. Basic types are:State owned portsAutonomous portsMunicipal owned portsPrivate owned ports

There is an impetus to increase private ownership of ports.

PORT MANAGEMENT – A BRIEF

Ports are governed by various types of boards such as

Representative Board – consisting of persons representing interests concerned with port operation

Board of Experts – consisting of members with proven expertise

Two Tier Boards – consisting of one tier to run the port on day-to-day basis and other tier to plan and implement major policies

Port management aims to:Operate with overall cost-leadership

Minimize user payment by ensuring quick ship turnover in port

Minimize through-transport costsMinimize port costs

Maximize benefitsTo port ownersTo the town, region or nation

Generate employment

Hamburg Port, Germany

http://www.iaphworldports.org/gallery/img/mainporthamburg.jpg

CONCLUSION

Ports have historical, commercial and infrastructural significance.

They form the backbone of national and regional economies.

Supporting efficient port operations and management is vital for national prosperity.

References

Alderton P.M. (1999). Port Management & Operations. London: LLP

Grammenos Costas Th. (2002). The Handbook of Maritime Economics and Business. London: Informa Professional.