PORT OPERATION MANAGEMENT: FAST LESSONS FOR STUDENT

PORT OPERATION MANAGEMENT

FAST LESSONS FOR STUDENTS

MUHAMMADFIRDAUSABDRASHID NIKREDUANABUZAKARIA

Muhammad Firdaus bin Abd Rashid

Nik Reduan bin Abu Zakaria

Editor: Roslin binti Hashim

Publisher

POLITEKNIK SULTAN HAJI AHMAD SHAH

SEMAMBU

25350 KUANTAN

ISBN

Copyright ©2023, by Politeknik Sultan Haji Ahmad Shah

Materials published in this book under the copyright of Politeknik Sultan Haji Ahmad Shah.

All rights reserved. No part of this publication may be reproduced or distributed in any form or by means, electronic, mechanical, photocopying, recording, or otherwise or stored in a database or retrieval system without the prior written permission of the publishers.

Author

Muhammad Firdaus bin Abd Rashid

Master of Science in Transport and Logistics (UiTM)

Bachelor of Business Administration Transport (Hons) (UiTM)

Diploma in Planting Industry Management (UiTM)

Muhammad Firdaus bin Abd Rashid is currently a lecturer at Politeknik Sultan Haji Ahmad Shah. Formerly, he was a staff at Cargo Readiness CMA CGM France - Malaysia, a researcher at Malaysia Institute of Transport UiTM and a HotelManageratWadiIsfaKelantan.

Nik Reduan bin Abu Zakaria

Master of Education Technical and Education (KUITHHO)

Bachelor of International Business (Hons) (UUM)

Diploma In Finance (KUSZA)

Professional Diploma in Freight Logistics and Management(OUM)

Nik Reduan bin Abu Zakaria is currently a lecturer at Politeknik Sultan Haji AhmadShah.Formerly,hewasalectureratPoliteknikKuchingSarawak(20032009). His teaching area includes International business, Logistics ManagementandPortManagement.

Preface

The overall structure of Port Operation Management : A Guide For Students serves to consolidate the knowledge we have acquired from being educators and lecturers of the port operation. This book aims to provide the student with an understanding of the main activities associated with port operations management. As this book focuses on the port operation management, it is suitable for both college students and undergraduate students who are taking a basic business project course in local universities or colleges.

There are several course learning outcome of this book:

Analyze the elements in port operations management, port functions, port services and administration in operating port activities.

Explain the understanding in port documentations, procedures and competition in port operations management.

Explain the solutions in solving the port operations and management issues.

We welcome constructive suggestions and comments from lecturers and students. Such feedback is always given careful consideration and is very helpful for future improvements.

Acknowledgement

We would like to express our deep gratitude to all our beloved friends for their patient guidance, enthusiastic encouragement and useful critiques of this e-book.

We would also like to thank Roslin binti Hashim, for her advice and assistance in keeping our progress on schedule.

Our grateful thanks are also extended to all friends for their support in completing this book.

Finally, we wish to thank our family members for their support and encouragement.

Table

DEFINITIONSOF PORTANDMANAGEMENT

PORT TERMINAL PORT MANAGEMENT

Port can be defined as the interface between land and sea providing facilities and services to commercial ships andtheircargo,aswellasthe associated multimodal distribution and logistics activities.

Maritime Logistics: A Guide to Contemporary Shipping and Port Management · 2015 · Photis M. Panayides

Terminalcanbedefinedasone or more berth for a limited purpose or limited to one or fewusers

Port Management may be defined as the process of organizing, monitoring, and controlling the activities of a seaport in a precarious global industry, in order to accomplish corporate goals,whichareinlinewith its regional and national interests.

Planning and Design of Ports and Marine Terminals · 2004 · Hans Agerschou

Port Management and Operations · 2014 · Burns & Maria G

Port Operation & Terminal Management

Port and terminal managements have had to adapt fast to meet rising demand driven by continuing high levels of world trade. Globalization is putting port models under increasing pressure to remain competitive in cargo markets changing frequently.

Differences between Ports & Terminals

Portsarestrategicgeographicalplaces, locatedontheedgeof theoceans,seas,riversorlakes.

Theselocationsarethendevelopedtoinculcatefacilitiesforthe loadingandunloadingofcargoships.

Thefacilitiesprovidedforaportdependonthepurposefor whichtheportisbeingused.

Whileaterminalisknownasthesetoffacilitiesinaportwhere loadingandunloadingofcargo/containertakeplace.

Theterminalsarenamedaccordingtothetypeofcargothey canhandle.

Someofthemostcommontypesofterminalsarecontainer terminal,bulkcargoterminal,LNGterminal,etc.

1st generation

Existedbefore& until1960s

Usuallyabulk cargoport

Isolatedfromtransport &tradeactivities

2nd generation

During1960s1980s

Theyreflected sophisticatedport policies& development strategies

Resembledan independent kingdom.

Noco-operation with localauthorities

Resembledan independent kingdom

Noco-operationwith localauthorities

Isolationbetween differentport activities

Theyweredeveloped transport,industrial& commercialservice centers

EVOLUTION OF PORTS

Offeredvarioustypesof industrial&commercial activities

4th generation

From2000s onwards

Havebusinessand management units,andagrowthand expansionstrategyin commonwithother portsthataresimilar.

Situatedinconsumergoods environmentwithregularrail connectionandcompetitivecosts whichallowingthetransportation oflargevolumesofgoodstothe distributionchain.

3rd generation

From1980s2000s

Combinetraditional, specialized& integratedactivities

Well-planned infrastructure& informationprocessing facilitieswhichmayoffer value-addedservices.

The4thgenerationportsare logisticsplatformswithsecurity& communicationssystemsatthe highesttechnologicallevel.

Thisportisabig magnitudelogistics platform.

Arosefromglobalcontainerization, intermodalismandboomingtrade requirements.

Hubsofinternational production& distributionnetwork

IMPORTANCE OF PORTS

PROVISIONOF SHELTER

Duetoheavyseas andstorm conditions prevailing,ships takeshelterinthe environsofaport andtherebyseek safeanchorage.

IMPORTANCE OF THE PORT & TERMINAL OPERATIONS

Portplaysan importantrolein supportingport userstocompete againstsupply chainsystems thatutiliseother portsystems.

CARGOAND PASSENGER HANDLING

Thisistheprime functionofaport wherebyaportis aplacewhere shipscanloador dischargetheir cargo,and/or passengers.

Thisembraces victualling,stores, bunkering,shiprepair andsoon.Inthelarger ports,shipyard/dry dockingfacilitiesare availableforship surveyandoverhaul purposes.

Portistypicallya majorsourceof employmentforthe localcommunity. Manyactivitiesare shore-basedandcan befoundlocatedina majorport-city.

Portindustryisthe bedrockfortrade, commerceandlogistics. Seabornetradeis realisedthroughtheport. Withoutports,the conceptsofglobalisation andtransnational operationsare meaningless.

IMPORTANCE OF PORT TO THE NATIONS

Expanded market for producer via exports

Reduced prices from importing goods and services

Increased quality and choice available for consumers and businesses

Job growth in the transportation and distribution sector

The main transport link with their trading partners and thus a focal point for motorways and railway systems

TYPES OF PORTS

CRUISEPORT

This type of port specializes in dealing with the activities of cruise ships and provide the platform for the passengers to enter and disembark the cruises at the beginning and the end of the journeys,respectively.

PORTOFCALL

1.SEAPORTS

Also known as the mid-way port. It is somewhere midway on ship’s travel plan to accept fuel supply andstockingorunloadingcargo.

CARGOPORTS

These are the special ports to handle cargo only. Theseportsarealsoknownas“bulkports”,“break bulkports”or“containerports”.

Seaports are the most common types of ports around the world which are used for commercial shipping activities. A seaport can be further categorized as a cargo port or cruise port. Some of the oldest seaports are still used for recreational and fishing purpose. A seaport can be further categorized as a cargo port or cruise port. Some of the oldest seaports are still used for recreational and fishing purpose.

Inland ports are ports built on comparatively smaller water bodies suchasriversorlakes.

2.INLAND PORTS

Theycaneitherbeforcargopurposeor forpassengersorforboth.

Inland transport services are used to connect these inland ports (generally calledrailorroadterminal)

Fishing ports are mainly related to the commercial sphere as they participate infishing.Thefishingactivitiescanalso betreatedasamodeofrecreation.

Theycaneitherbeforcargopurposeor forpassengersorforboth.

The existence of a fishing port entirely relies upon the availability of fishes in that region of the ocean. A fishing port canbeaninlandportoraseaport.

3.FISHING PORTS

These are the ports in which the water ismaintainedatwarmertemperature.

4.WARM WATERPORTS

The biggest advantage where a warm water port is concerned, is that the waterdoesnotfreezeduringthefrosty winters.

Two such major revenue-generating ports are Valdez port of Alaska and VostochnyportofRussia.

Dry ports are defined as inland terminals thatcanbeinterconnectedwithaseaport via road or rail transportation facilities, and they usually act as centres of multimodallogistics.

5.DRYPORTS

Its functions are quite similar to that of a seaport, with the only difference being t that itisnotsituatednearthecoastline. It is a trans-shipment port which is connected to a seaport and manages intermittent operation like billing and managingcoordinationbetweenimporter andexporters.

PORT SERVICES

Port services can be defined as services that are providedattheport. Theobjectiveofportservicesis to enable operations at port to activate in a more efficientandeffectivemanner.

LIST OF PORT SERVICES

BULKCARGO

SERVICE

PROCUREMENT

CONTAINER

SERVICE

LOGISTICS

SERVICE

LIQUIDCARGO

SERVICE

VALUEADDED

SERVICE

MARINE

SERVICE

BULK CARGO SERVICE

Bulkcargoiscommoditycargothatistransported unpackagedinlargequantities.

It refers to material in granular, particulate form, asamassofrelativelysmallsolids,suchasgrain, coal,ironcoal,bauxiteandcement.

This cargo is usually dropped or poured, with a spout into a bulk carrier ship hold, railroad car/railway wagon, or tankertruck/ trailer/ semi trailerbody.

CONTAINER SERVICE

Thecontainershavestandardizeddimensions. They can be loaded and unloaded, stacked, transported efficiently over long distances, andtransferredfromonemodeoftransportto another.

Thestandardsizeofcontainerstheworldover are20feetand40feet.

LIQUID CARGO SERVICE

LiquidBulkcargoiscommoditycargothatis transported unpackagedinlargequantities.

It refers to material in liquid such as petroleum or crude oil.

MARINE SERVICE

MarineServicesprovidesa24-hourservicetoensurethe safe and efficient movement of vessels within port waters. This includes all necessary coordination of port servicesanddisseminationofrelevantinformation.

The efficient and safe movement of vessels is coordinated by highly experienced pilots while utilizing theappropriatenumberandtypeoftugsforberthingand unberthingactivitiesatthewharves.

PROCUREMENT

Procurementisdescribedastheactivitiesorprocessesto acquire goods and services. It involves the activities in establishing fundamental requirements, sourcing activities such as market research and vendor evaluation and negotiationofcontracts.

SHIP SERVICES

Ship services are port-related activities conducted to ensure the safe and expeditious flow of vessel traffic in port approaches and harbors and a safe stay at berth whenmooredoratanchor.

LIST OF SHIP SERVICES

AIDTO NAVIGATION

PILOTAGE

BERTHING/UNBERTHING REPAIRS

TOWAGE

AIDS TO NAVIGATION

Aids for navigation are tools that used for visual use or with radarwhileinportsandbeachnavigation.

The vessel specially equipped to maintain and repair navigationbuoys,beacons,automaticlighthouses,etc.

PILOTAGE

Pilotage is an essential service provided to ships maneuvering withinportlimitsandcoastalwatersdeclaredasPilotageareas.

Ship sail from mid sea to anchorage or pilot point. From there, local experienced pilot takes the control of ship from Ship's Captain.

Pilot reaches the ship either by helicopter or by small boat. He gets help or assistances from tug boats to control the ship, to pullorpushtoexactrouteorposition.

TOWAGE

A tug (tugboat) is a boat or ship that maneuvers vessels by pushingortowingthem.

Tugsmovevesselsthateithershouldnotmovebythemselves, such as ships in a crowded harbor or a narrow canal or those that could not move by themselves, such as barges, disabled ships,lografts,oroilplatforms.

BERTHING/ UNBERTHING

Berthing means bringing a vessel to her berth until the ship is madefast.

The term “berth” refers to the quay, or wharf, or, pier or jetty wheretheshipcomesalongside.

REPAIRS

The berthing and unberthing maneuvers require great knowledge and skill by the master, officers and the crew, as well as an excellent team work with the rope runners and the mooring party ashore.

All ships need repair and maintenance operation that can be performed at the sea or by the crew in port. The large scale repairing must be required the ship to remove from commercial operations.

TYPESOFPORTUSERS

01 02 03 04

SHIPOWNER

Ashipowneristheownerofamerchantvessel(commercialship).

SHIPAGENT

Apersonheldresponsibleforhandlingshipmentsandcargo,and thegeneralinterestsofitscustomersatport.

FORWARDERS

Apersonorcompanythatorganizesshipmentsforindividualsor corporationstogetgoodsfromthemanufacturerorproducertoa market,customerorfinalpointofdistribution.

A person or company carrying the goods by using a truck, forexampledriverlorry,andmanymore.

1. ARRIVAL & DEPARTURE

Pilotage, tugs and mooring

Berths

2. ADMINISTRATIVE FORMALITIES

Cleaning & preparing cargo

Repackaging, labelling, sorting

Setting up logistics network

SERVICES & FACILITIES FOR CARGO

ARRIVAL & DEPARTURE 1.

USER NEEDS IN TERM SERVICES PROVIDED

Cargo handling on ship and on quay

Transport to/from storage

Storage/warehouse

Dangerous cargo segregation

2. ADMINISTRATIVE FORMALITIES

Police, immigration, customs, Health

Approach channel

Supplies, water, bunkers

SERVICES & FACILITIES FOR SHIPS

3. CARGO TRANSFER

Opening/ closing hatches

Breaking out/ stowing

PORTSECURITY&SAFETY

PORTSECURITYREFERSTOTHEDEFENSE,LAWANDTREATYENFORCEMENT,ANDCOUNTERTERRORISMACTIVITIESTHAT FALL WITHIN THE PORT AND MARITIME DOMAIN. IT INCLUDES THE PROTECTION OF THE SEAPORTS THEMSELVES, THE PROTECTION AND INSPECTION OF THE CARGO MOVING THROUGH THE PORTS, AND MARITIME SECURITY. THE IMPORTANCEOFSECURITY&SAFETYFORSEAPORTMANAGEMENTOPERATIONAREASBELOW;

Prevent smuggling activities

It could also involve the smuggling of weapons and arsenal into a country and issues of stowage and illegal immigration port.

Avoid entry the goods that are prohibited

This is to avoid any prohibited goods or products to enter certain country whereby can give environmental effects or negative implications to the consumers or to the environments.

03

Prevent crime activities

Ports are busy areas and are spread over a very large area This would mean that certain areas of the ports can be inaccessible all the time as far as patrolling is concerned and therefore could lead to stealing of cargo from the cargo containers.

ROLEOFAUTHORITY

FINANCIALPOLICY

Tosetcommonfinancialobjectives forportswithacommonpolicyon whichinfrastructurewillbefunded.

TARIFFPOLICY

Powertoregulateratesandchargesas requiredtoprotectthepublicinterest.

LICENSING

Powertoestablishprinciplesforlicensingofport employeesoragents.

INFORMATION&RESEARCH

Tocollect,collate,analyze,anddisseminatestatistical informationonportactivityforgeneraluse,andtosponsor researchintoportmattersasrequired.

LEGAL

Toactaslegaladvisortolocalport.

The function and duties of a port authority regarding marine safety and environmental protection are:

To regulate and control navigation within the limits and the approaches to the port.

To disseminate nautical and other relevant information to ships and all other involved parties.

PORT MANAGEMENT PORT MARINE OPERATIONS

ShipArrival

01 HarbourMasterwillallocateasuitableberth and apply any restrictions he may feel necessary for the safe passage of that particularvesselinhisport.

02

Vessel

Types

PartoftheHarbourMaster'sroleistobefully conversant with the types of vessel that representtheport'smainbusinessandtohave athroughknowledgeoftheirrequirements whilsttheyareinport.

ROLE OF HARBOUR MASTER

03

Ship'sStayinPort

The Harbour Master's advice is regularly sought during a ship’s stay by companies, organisations or government officials associated with such activities as fuel bunkering,tankcleaningandthedeliveryof stores,waterandcrew.

01

StrategicPlanningProcess

Ports must move with the times in responsetoglobalshiftsinmaritimetrade. Strategic-level business plans must be developed.

OtherAuthoritiesinthePort

02

TheHarbourMastermaycooperatewitha number of authorities including representatives of port state control, customs, environmental agencies, local governmentandutilities.

03

LeisureUseofPorts

Leisure activities may take many forms, includingrecreationalboating(bothpower andsail),swimming,divingandorganised aquaticevents.

The Harbour Master has a key role to play ensuring that people living and working in or close to the port, the port’s staff, customers or visitors to the port environment can go about their business safely.

A harbourmaster is an official responsible for enforcing the regulations of a particular harbour or port, in order to ensure the safety of navigation, the security of the harbour and the correct operation of the port facilities.

PROVIDESFAST CONNECTIVITYIN ORDERTO TRANSPORTTHE PRODUCTSTOITS CONSIGNEES

ROLE OF PORT OPERATOR

Handletheinventoryand movethegoodsout, resultinginquicker turnaroundtime.

PROVIDES STORAGE SPACE & WAREHOUSE FACILITIES

PROVIDES BUNKERING & OTHER SHIP RELATED FACILITIES

Servethenumerous vesselssailinginMalaysia bysupplyingbunkerfuel.

Storedvarioustypesof bulkcargowarehouse.

TRAFFIC MANAGEMENT

Vesseltrafficmanagement (fastturnaround,security andreliability).

Actasafreezoneauthority whereallfreezonefunction includingdeclarationand processingof documentationis processedwithintheport operator’sownfunction.

25

2.LOADING&UNLOADINGPROCESS

Theoperatorshallprovidelabor& equipment necessaryforloading& unloadingoperations,soastoensurethat thecontainersandcargoofthecustomer arehandledinasafeandefficientmanner.

4. STORAGE PROCESS

Thecargowillplace atcontaineryardor warehouseuntilithas ademand.

PORT OPERATION PROCEDURE

5. ISSUING PROCESS

ForwardingAgent(FA)will paythedutytoreleaseor removethegoodsfrom warehouseorfreetrade zone.

6. ISSUING PROCESS

1. ACCEPTANCE PROCESS

Priortotheship’sestimatedarrival,itsagents ormanagers(operationdepartment)should submitanonlinerequesttotheportand providingthefollowinginformation:

Vessel’sname

Ship’smainparticular

Estimateddateandtimearrival

Estimateddateandtimeofdeparture

Cargotypeandvolume

3. HANDLING PROCESS

Toensureoperationalsafety,theport’s protocolstypicallyrequireapermitfrom theshipmasterthatwillauthorizethemto examineandevaluatetheoperational efficiencyoftheship’scargohandling equipment.

FAwillinstructhaulage companytopickupthe containerfordeliveryto theimporter/buyer.

With more than 90% of world trade transacted through ports, the management of port operations must be exceptionally efficient and synonymous with efficiency. These conditions are indisputable for maintaining a good reputation and for perpetuating a solid relationship with your customers, based on trust and results.

STAGES IN PORT OPERATION MANAGEMENT

STAGE 1

STAGE 2

STAGE 3

STAGE 4

PORT OFF PORT – LIMITS (OPL) OPERATIONS

PORT OPERATION AND BERTHING MANAGEMENT

SHIP OPERATIONS AT BERTH / TERMINAL

PORT AND TERMINAL OPERATORS LOGISTIC NETWORK

OPL services help ships achieve time efficiency and minimum deviation, low cost, and economies of scale.

From this stage onward, the port authorities will handle the ship’s navigational, berthing, loading, and unloading operations, taking into consideration its commercial and contractual status, that is, depending on whether the ship is a liner or a tramp.

After the ship has met the navigational and documentation prerequisites, the operations stage involves the vessel’s actual purpose of visiting the port, which may include loading, unloading, bunkering(supplying of fuel), victualing(provide food), and other operations.

Competent ports actively pursue to attract skilled global partners such as terminal operators, to run a certain number of their containers, bulk and liquid cargoes, and multipurpose cargo terminals and become active members of the regional logistics infrastructure.

01

GEOGRAPHICAL FACTORS 02

SIZE AND TYPES OF VESSELS

Physical ability of port to accommodate the operation of the vessel.

05

Infrastructure & equipment availability

The infrastructure of the portimpactshowreliably and quickly your cargo reachesitsdestination.

04

GOVERNMENT POLICY

Merchantshipsarebroadlyclassifiedonthebasisoftheirsizes andareasofoperation.Theclassificationoftheshipisdecided rightatthedesignstageonthebasisoftherouteofoperation andthepurposeoftheship.

03

FACTORS IN CHOOSING PORT LOCATION

THE NEED FOR CUSTOMS

Customs clearance work involves preparation and submissionofdocumentations requiredtofacilitateexportor imports into the country, representing client during customs examination, assessment, payment of duty andcotakingdeliveryofcargo from customs after clearance alongwithdocuments.

Develop reliable models of port productivity, and consider how existing ports may be able to meet growing demand and how to measure constraineddemandforandsupplyofportcapacity.

Thedesignofaportbasedonthe alignment and the width of the oceanisveryimportantbecauseit makes it easier for large ships to enterintoaport.

The concerned authorities of the deep-water ports are responsible foroilspillprevention,containment and cleanup, potential dangers from waves, weather, & geological conditions.

Human factors input is becoming increasingly important to improve thesafetyandefficiencyonboard ships.

Physical environmental factors constitute the environmental assessment requirements for ensuring safe access & navigation withinports.

EFFECTS OF PORTS DESIGN FLAWS

May cause loss of life, serious injury,economiclossanddamage.

Small error or unlucky event can triggeroffadisaster.

INCREASED LEAD TIME

REDUCED LEVEL OF RESPONSIVENESS

INCREASED NUMBER OF ACCIDENT

Lead time must be short for uploading and unloadingfromshiptoberth. Longer vessel time at the port, the agents needtopaymoreondockingfees.

INCREASED COST

Due to cargo damaged because of the cargo has been placed in non suitable place, it increasesthecostanddecreasesprofit.

Goods in port cannot move easily to another placewhenaccidentsoccur.

Some equipment cannot be used immediately in emergency situation or specialsituation.

Inaccurateinformation-Happensbecause labors in port did not get information on time.

THE PROFITABILITY

FACTORS OF SEAPORTS CHOICE

PORT DOCUMENTATION

Port documents are forms that accompany a shipment listing the date shipped, the customer, the method of shipment, the quantities and specifications of goods shipped

1

Standardize business practices

PURPOSE OF DOCUMENTATION

Demonstrates professionalism

The business can be more profitable

2

3

Provides helpful guidance for performance

4

5

Comply with federal, state, and local regulations

DOCUMENTATION FOR BERTHS AND OPERATIONS

DOCUMENTATIONFOR BERTHS

Noticethatissentbycarrieroragent to port operator to inform about the arrivalshipment,numberofpackages, description of goods and collection

SHIPWORKING

A department in a port generally handling the operational resource planning, responsible to analyze information given by forwarding company, so that the resources required in the operation can be well planned and coordinated.

APPLICATIONFOR DIRECTDELIVERY

Application for direct delivery goods to owner oragentthroughterminal manager operator and custom.

DOCUMENTATION FOR RECEIPT AND DELIVERY

DO (DELIVERY ORDER)

A document issued by a carrier or forwarder authorizing a third party, whom appointed as their subcontractor, to deliver or release a consignment to a nominated party of the cargo.

E-DO (ELECTRONIC DO)

Asystemusedbyshippingliners.Before importerortheiragentareallowedtopick uptheirimportcargo,theyarerequiredto paytotheshippinglinefreightandrelated charges.

CPL (CONTAINER PACKING LIST)

PackingList(alsoknown asabillofparcel, packagingslip,delivery list,manifestorcustomer receipt,shippinglist)isa documentwhichdetails thecontents,andoften dimensionsandweight.

EIR (EQUIPMENT INTERCHANGE RECEIPT)

Adocumentrequiredwhentransferringa cargocontainerfromonevesseltoanother, ortoashippingterminal.Thereceiptincludes thecontainernumber,stackingpositionand stowageposition.

ROT (REQUEST OF TRANSPORT)

A document used to book or to confirm the haulage for the delivery of container. Each and every details required in the ROT will be written manually or typed if there is a system for the haulage booking.

1 2 3 4 5

DOCUMENTATION FOR RECEIPT &

CMO (CONTAINER MOVEMENT ORDER)

Container movement order will be released by shipping agent to forwarding agent to indicate the depot where the empty container should be sent.

DELIVERY

6

CDR (CONTAINER DAMAGED REPORT)

Adocumentthatdescribesandestablishes avaluefordamagetoashippingcontainer aboardashippingvessel.

7

INWARD/OUTWARD

Inwardandoutward operationsrefertothe responsibilityofshipping agentsresponsiblefor shipmentandcargoatports worldwideonbehalfofthe shippingcompany.

IED (INTEGRATED EXPORT DOCUMENT)

Thisdocumentwillbesentbyshippingagent toportoperationforloadinggoods.

Example-Exportpermit

8 9 10

IID (INTEGRATED IMPORT DOCUMENT)

Thisdocumentwillbesentbyforwarder/shipping agenttoportoperation.Itinvolvestheactivitiesof discharging/unloadinggoodsfromvessel.

TYPES OF CARGO

Break Bulk Cargo Neo Bulk Cargo

- Break bulk cargo stands for goods that cannot fit in standard-sized shipping containers.

- Concerns cargo is a cargo carried in drums, bags, pallets, or boxes.

- Includes a prepackaged, accountable and transported load units, and not stored in a container.

- Concerns cargoes are vehicles, heavy machinery, logs, livestock newsprint or paper, steel, lumber.

Refrigerated cargo Liquid Bulk Cargo Dry Bulk Cargo

- A packaged and frozen foods which is perishable in nature.

- Concerns cargoes are meat, fish, dry vegetables and fruits.

Liquid bulk cargo contains goods that are liquid in nature and shipped in bulk.

- Concerns cargo is petroleum LNG (Liquefied Natural Gas), representing an emerging segment.

- Dry bulk cargoes are not packaged and usually transported in large quantities.

- Concerns cargo is a wide variety of materials such as coal, iron ore, grains, bauxite, and sand. 40

TYPES OF CONTAINER

Dry storage container

Flat rack container

Open top container

The most commonly used shipping containers; they come in various dimensions standardized by ISO. They are used for shipping of dry materials and come in the size of 20ft, 40 ft and 10ft.

With collapsible sides, these are like simple storage shipping containers where the sides can be folded so as to make a flat rack for shipping of a wide variety of goods.

With a convertible top that can be completely removed to make an open-top so that materials of any height can be shipped easily.

Tunnel container

Container storage units provided with doors on both ends of the container, they are extremely helpful in quick loading and unloading of materials.

Open side container

These storage units are provided with doors that can change into completely open sides providing a much wider room for loading of materials.

CONTAINER HANDLING EQUIPMENT

- Generally equipped with a hoist, wire ropes or chains to lift and lower materials.

- Mainly used for lifting heavy things and transporting them to other places.

- Intended to move semi trailer within a cargo yard, warehouse facility, or inter modal facility.

- Used to position cars rather than trailers.

- Able to transport a container in short distances, as known as reach stacker.

- Very quickly and pile them in various rows depending on its access.

- Also called a lift truck, a fork truck, or a forklift truck.

- Used to lift and move materials short distances.

Stacker Crane Prime Mover Container Handler Forklift

CONTAINER HANDLING EQUIPMENT

Lifting Frame Quay Crane Rubber Tire

The equipment that uses to handle effectively break cargo by hooked up to load a break bulk cargo. Manual lifting frames ranging from 20 to 36 metric tonne capacity are used mainly with core probes and head clamps, but are also effective for handling certain types of break bulk cargo.

A container crane (also container handling gantry crane or ship-to-shore crane) is a type of large dockside gantry crane found at container terminals for loading and unloading intermodal containers from container ships.

Gantry Cranes (RTG)

A rubber tired gantry crane (RTG crane) (also transtainer) is a mobile gantry crane used in intermodal operations to ground or stack containers.

Inbound containers are stored for future pickup by trucks, and outbound are stored for future loading onto vessels.

Side Handler

A side lift is a road going truck or semi trailer that it used to hoist and transport standard container.

Lifting of containers is achieved through the use of parallel crane like hoist which can be used to lift a container from the ground.

REASONS WHY PORTS NEED TO MEASURE THEIR PERFORMANCE IN PORT ACTIVITIES

EFFECTIVENESS OF OPERATION EFFICIENCY OF OPERATION

PRESENT PERFORMANCE COMPARES WITH PAST PERFORMANCE

TARGETS AND COMPARISON WITH PERFORMANCE

Needs to know how effectivelyitisoperating.

How much cargo it handleseveryday?

How many customers doesitserveinaweek?

Must know how efficiently itisoperating.

What resources (in terms of people, machines, surface area etc) does it take to carry out its activities?

How much cargo does it handleperemployee?

How much does it cost to handle each tons of cargo?

Needs to know how its present performance compares with past performance.

Is it handling more cargo per employee or machine thanlastyear?

Isthereanyimprovementin efficiency?

Any business needs targets, and must compare its performance with those targets. Has the port or terminal achieved the production targets set at the beginning of the year? Has it beaten its traffictargets?

METHODS OF MEASUREMENT IN PORT PERFORMANCE

01

Quality

The equipment in port must the best one in the shipping industry and should be available in peak hours without downtime in operations. Goods should be ready and being shipped on time and the operations should be on going where timing is necessary concern in loading and offloading.

Service

Port management have high responsiveness to any complaint from customer.

Responsiveness

Price is worth it with the quality of service and must be competitive.

Totalcost

Profit must exceed cost to run port.

BENEFITS OF PORT AUTHORITIES TO MEASURE THE PERFORMANCE OF THE PORT

Involve in performance ofportpersonnel in identifying threats, defending the assets.

The mostcommon corporate arrangementsthatport authoritiespreferin orderto strengthen theircompetitive edge.

Portboardshouldput portbusinessin the interestofthe whole communityof stakeholdersopenly, accountablyandwith commercial prudence.

Qualityofinfrastructure andtransportcostsare importantforexport-led economic growth.

Combination ofport facilities,including sufficientinvestment, supportive government policies,excellence in operation andinformation technology.

REFERENCES

Alderton, P.M.(2008).Port Management and Operations.CRC Press

Kenneth Christopher (2014). Port Security Management 2nd Edition.CRCPress.

Maria G. Burns. (2014). Port Management and Operations. CRC Press.

UNCTAD(2011)ReviewofMaritimeTransport2011.UnitedNations,NewYork andGeneva.

Yahalom, S., & Guan, C. (2018). Port Performance. Port and network, 107.

CONTINUOUS ASSESSMENT

The overall structure of Port Operation Management : A Guide For Students serves to consolidate the knowledge we have acquired from being educators and lecturers of the port operation. This book aims to provide the student with an understanding of the main activities associated with port operations management. As this book focuses on the port operationmanagement,itissuitableforbothcollegestudentsandundergraduatestudents who are taking a basic business project course in local universities or colleges. We welcome constructive suggestions and comments from lecturers and students. Such feedback is always given careful consideration and is very helpful for future improvements. Our grateful thanks are also extended to all friends for their support in completing this book. Finally,wewishtothankourfamilymembersfortheirsupportandencouragement.