P O RT O P E R AT I O N S , PLANNING AND LOGISTICS LLOYD’S PRACTICAL SHIPPING GUIDES The Handbook of Maritime Economics and Business Costas Th. Grammenos (2002) Maritime Law 6th edition Chris Hill (2004) ISM Code: A Practical Guide to the Legal Insurance Implications 2nd edition Dr Phil Anderson (2005) Risk Management in Port Operations, Logistics and Supply Chain Security Khalid Bichou, Michael G. Bell and Andrew Evans (2007) Port Management and Operations 3rd edition Professor Patrick M. Alderton (2008) Introduction to Marine Cargo Management J.
Mark Rowbotham (2008) Steel Carriage by Sea 5th edition A. Coppers (2009) PORT OPERATIONS, PLANNING AND LOGISTICS BY KHALID BICHOU First published 2009 by Informa Law Published 2013 by Informa Law from Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Informa Law from Routledge 711 Third Avenue, New York, NY, 10017, USA Informa Law is an imprint of the Taylor & Francis Group, an informa business © Khalid Bichou 2009 All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Reprinted material is quoted with permission.
Whilst every effort has been made to ensure that the information contained in this work is correct, neither the authors nor Informa Law from Routledge can accept any responsibility for any errors or omissions or for any consequences arising therefrom. Product or corporate names may be trademarks or registered trademarks and are used only for identification and explanation without intent to infringe. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN 13: 978-1-843-11805-3 (hbk) Text set in 10/12pt Plantin by Exeter Premedia Services CONTENTS About the Author ix List of Figures xi List of Tables xv CHAPTER 1 INTRODUCTION 1 1. Ports and the maritime business 2 2.
Multi-disciplinary approaches to port operations and management 11 3. Rationale of the book 28 CHAPTER 2 PORT ORGANISATION AND DEVELOPMENT 31 1. Port roles and functions 31 2. Port institutional and organisational structure 36 3.
Port development 41 CHAPTER 3 PORT PLANNING 51 1. Capacity management 67 CHAPTER 4 PORT INVESTMENT AND FINANCE 79 1. Financial statements and ratio measures 79 2. Port costs and costing 83 3.
Economic versus commercial appraisal of port investments 97 4. Port financing and private sector participation 107 v vi Contents CHAPTER 5 PORT PRICING 121 1. Port pricing strategies 121 2. Port pricing in practice 125 Appendix 1.
Salalah Container Terminal Tariffs 127 CHAPTER 6 PORT OPERATIONS 135 1. The quay site 136 2. Yard and gate systems 142 3. Modelling terminal operations 144 4.
Integrating terminal operations 159 CHAPTER 7 PORT PERFORMANCE AND BENCHMARKING 161 1. Metrics and productivity index methods 161 2. Conclusion—benchmarking methods 184 CHAPTER 8 INFORMATION AND COMMUNICATION TECHNOLOGIES IN PORTS 195 1. Software and communication platforms 196 2.
Automatic identification and data capture 199 CHAPTER 9 PORT COMPETITION AND MARKETING 205 1. Features and elements of port competition 205 2. Port promotion and marketing 222 CHAPTER 10 PORT LOGISTICS 225 1. Ports and logistics systems 225 2.
Ports and supply chain networks 239 Contents vii CHAPTER 11 PORT SAFETY 247 1. System’s safety for risk assessment and management 247 2. Risks and safety indicators 252 3. Valuing port safety 257 CHAPTER 12 PORT SECURITY 259 1.
Scope and nature of security threats to ports 259 2. Overview of port security programmes 261 3. Risk approach to port security 274 4. Economic evaluation of port security measures 281 Appendix 1.
ISPS Port Facility Security Equipment Checklist 291 Appendix 2. N-RAT Assessment Exercise Report 305 CHAPTER 13 PORT ENVIRONMENTAL MANAGEMENT 307 1. Environmental principles of port operations 307 2. Principles and procedures of environmental management in ports 314 CHAPTER 14 PORT LABOUR AND HUMAN RESOURCE MANAGEMENT 317 1.
History and organisation of port labour 317 2. Port training and education 319 3. HR systems and job types in ports 322 References and Further Reading 329 Index 345 This page intentionally left blank ABOUT THE AUTHOR Dr Khalid Bichou is a transport logistics and port consultant and is the co-founder of the Port Operations Research and Technology Centre (PORTeC) at Imperial College London. He has over 17 years of international experience in the port, maritime, transport and logistics industries including periods in senior positions and as Consultant and Adviser to global operators, financial institutions, governments and international agencies.
His expertise spans port and maritime operations, transport economics and infrastructure, freight and distribution logistics, trade facilitation and supply chain security. Following a career which has included periods as Transport Economist in a global shipping company, Transport Investment Analyst in a European bank, Head of Strategy and Business Development in two Nordic ports, Head of Port Infrastructure and Investment in a governmental agency, Director of Ports and Maritime Administration, and Senior Port and Transport Logistics Specialist in two international agencies, he has operated for the last five years as an Independent Consultant. He has been involved in around 40 consul- tancy projects and advisory services in over 32 countries. He has also been active in professional training and capacity building and has designed and delivered over 25 training courses and seminars for the maritime, transport and logistics industries.
He is a chartered member of the Institute of Transport and Logistics, Director of Logistics-Ports and Maritime at AVCONET, International Advisor to the Supply Chain and Logistics Group, and member and adviser of several other professional and academic associations in the field. He was recently appointed Specialist Port Adviser to the UK House of Commons and Transport Logistics Adviser to the EU Parliament. He has published two books and over 30 papers and policy reports. He is visiting academic and lecturer at several universities and research institutions, both in the UK and abroad.
ix This page intentionally left blank LIST OF FIGURES Chapter 1 Figure 1.1: Selection of ports and terminals 6 Figure 1.2: Main agents and intermediaries in international shipping 7 Figure 1.3: Description of selected operational patterns of liner shipping 9 Figure 1.4: Scope of this book 28 Chapter 2 Figure 2.1: Main operational and administrative functions of a port 35 Figure 2.2: Variations of functional roles and institutional models across different port services and facilities 41 Figure 2.3: The ports of Marseille and Antwerp in the years 1575 and 1650 respectively 43 Figure 2.4: UNCTAD’s port generations model 44 Chapter 3 Figure 3.1: Illustration of different definitions of port capacity 52 Figure 3.2: The process of a general framework for port demand and traffic forecasting 57 Figure 3.3: Illustration of the trade-off between ship and port costs 66 Figure 3.4: Elements of a contractual review between ports and shipping lines 67 Figure 3.5: Process and elements of strategic port planning 68 Figure 3.6: A simplified approach for port planning and development 69 Figure 3.7: Container identification in the ship 70 Figure 3.8: The VTS operation room of the port of Dover 72 Figure 3.9: Container identification in the yard 76 Figure 3.10: A demand approach for estimating CY and terminal requirements 77 Chapter 4 Figure 4.1: Illustration of fixed, variable, average, marginal and total costs 84 Figure 4.2: Example of an ABC application 87 Figure 4.3: A model for cost control and distribution across port supply chain components 88 Figure 4.4: Transport cost, shipment size, and mode choice 90 Figure 4.5: Modal shift assumptions in the MDS container demand study 91 xi xii List of Figures Figure 4.6: Typical cost structure of container shipping 92 Figure 4.7: Inclusion of handling and friction costs 93 Figure 4.8: Operating cost of an 8000 TEU container-ship 94 Figure 4.9: Illustration of waiting time (Adapted from Bell, 2007) 95 Figure 4.10: Top 10 commodity groups ranked by value per ton 96 Figure 4.11: Main components of a tender document 118 Figure 4.12: General clauses in a typical tender document 119 Chapter 5 Figure 5.1: Illustration of short-term and long-term marginal costs 122 Figure 5.2: Interplay between SRMC and variations in port demand 123 Figure 5.3: Illustration of the congestion pricing 124 Chapter 6 Figure 6.1: Container terminal sites and main handling equipment 137 Figure 6.2: Quay site operations for selected ports and terminals 138 Figure 6.3: Illustration of lifting capabilities of modern STS cranes 141 Figure 6.4: Main cranes and handling equipment used in the yard 143 Figure 6.5: Selected yard layout and cargo handling configurations 143 Figure 6.6: Sample layout of tractor-chassis (wheeled) system 147 Figure 6.7: Sample layout of straddle carrier direct system 148 Figure 6.8: Sample layout of straddle carrier relay system 149 Figure 6.9: Sample layout of RTG system 150 Figure 6.10: Sample layout of RMG system 151 Figure 6.11: Illustration of NISAC port operations simulator diagram 155 Figure 6.12: IDEF0 model for import container’s flow 156 Figure 6.13: IDEF0 model for export container’s flow 157 Figure 6.14: IDEF0 model for transhipment container’s flow 157 Figure 6.15: Illustration of operational bottlenecks in container terminal operating systems 160 Chapter 7 Figure 7.1: Graphical illustration of frontier methodologies 170 Figure 7.2: DEA production frontier under the single input and single output scenario 175 Figure 7.3a: Illustration of DEA input orientation (excluding the effect of technological change).4: Linear cause-and-effect BSC relationships 184 Figure 7.5: Basic matrix of performance–ratio dimensions 188 List of Figures xiii Chapter 8 Figure 8.1: Generic system architecture for an ERP system 199 Figure 8.2: OCR gate portal 200 Figure 8.3: A self-handling gate kiosk 202 Figure 8.4: Typical RFID architecture in terminal management 204 Chapter 9 Figure 9.1: Markets, products and competitive dynamics 206 Figure 9.2: Generic competitive strategies 208 Figure 9.3: Key factors in a SWOT analysis of ports 210 Figure 9.4: ANSOFF matrix 214 Figure 9.5: BCG matrix 214 Figure 9.6: Main cooperation and consolidation structures in international shipping and ports 218 Chapter 10 Figure 10.1: Melnik’s rail terminal in Bulgaria 229 Figure 10.2: Calgary CPR intermodal terminal 232 Figure 10.3: Scope and potential for ports to develop beyond a maritime logistics centre 237 Figure 10.4: Actors and the port role in the system of inland port expansion 239 Figure 10.5: Channel typologies and components of the maritime network 241 Figure 10.6: Levels of channel and network analysis in ports 242 Figure 10.7: Leagile supply chain configuration 244 Chapter 11 Figure 11.1: Example of a port accident: crane collapse 248 Figure 11.2: Example of a fault tree analysis 249 Figure 11.3: Example of an event tree analysis 250 Figure 11.4: FSA Methodology 251 Figure 11.5: Risk Matrix/Map 251 Figure 11.6: UK valuations of preventing a road fatality at constant 2004 prices 258 Chapter 12 Figure 12.1: A decision support system to implement the 24-hour rule 269 Figure 12.2: The screening process combining actions from the 24-hour rule and the CSI 270 Figure 12.3: Continual improvement under a supply chain security management system 274 Figure 12.4: The NVIC risk assessment model 275 Figure 12.5: PFSA and PFSP processes 276 xiv List of Figures Figure 12.6: Hierarchy of security measures by level of security and network coverage 281 Figure 12.7: The Booz Allen Hamilton’s port security war game simulation 287 Chapter 14 Figure 14.1: Examples of port jobs requiring NVQ qualifications 320 Figure 14.2: Organisation of Tanjung Pelepas container terminal (with consent from APMT) 325 Figure 14.3: APMT detailed description of the operations manager’s tasks 326 L I S T O F TA B L E S Chapter 1 Table 1.1: Growth of world seaborne trade in million tons 3 Table 1.2: Growth of world container seaborne trade and throughput in million EUs 3 Table 1.3: International classification of ships 4 Table 1.4: Different classifications of ports 11 Chapter 2 Table 2.1: Breakdown of port functions by type of assets and facilities 35 Table 2.2: Generic institutional port models 38 Table 2.3: Description, strengths and weaknesses of port institutional models 39 Table 2.