Unit 7:

Logistics Management in Port Terminals

CHAPTER
Logistics Management
4
Elasticities of –demand
LM401
BSC/DISL 2021- and
supply
2022

Patrice Maranda
 Objectives

Discuss the importance of logistics management

1 in a port terminal

Outline the Physical flow in a port terminal

2

3 Describe Information flows in a port terminal

 Introduction

What is a Port?

What is Logistics?

What is Port Logistics?

What is Logistics

Hub?
 What is a Port?

According to the Port Law, the term "port"

means a region comprising certain water and
land areas, having the functions for vessels to
enter, leave, lie at anchor and moor, for
passengers to embark and disembark, and
for goods to be loaded, unloaded, lightered
and stored, and being equipped with the
necessary dock facilities.
What is a Port?

Ports can be defined in many different ways:

o As a place to shelter for ships.
o As a cluster of maritime related activities.
o As a modality interchange port.
o As a catalytic converter for economic growth.
o As a gateway to the hinterland

What is important to realize is that maritime transport and

ports go hand in hand and that developments in one
segment have an impact on the other one.
 Function of Ports

• The junction of sea and land; the facilities

for the safe docking of the ship; timely
transfer of passenger, cargo ship, shore.
 What is Logistics

Logistics refers to the management of the

flow of goods from the supplier to the
receiving entity. In order to meet
requirements, it involves the integration of
transport, storage, handling,loading, handling,
packaging, circulation
processing,distribution, recycling, information
processing.
 Logistics Function

Transport, storage, loading, handling,

packaging, circulation processing,
distribution, recycling, information processing.
 Port Logistics

Port logistics, refers to the port, under the platform of

logistics park, distribution system, logistics information
system and commodity trading center, leverage the strength
in its shoreline resources, infrastructure, goods distribution,
information, to expand the logistics operation, seek the
organic integration of transport, warehousing, loading, agent,
easy processing , distribution, information processing .

Thus the comprehensive system providing services for all

kinds of industry supply chains is formed to provide the multi-
functional, integrated comprehensive logistics services.
 Port Logistics Function

The function of comprehensive service,

information processing, multimodal transport,
commerce and trade service, bonded service,
function of concentration and radiation.
 Port Logistics

The different activities associated to port logistics flows can

be grouped into three categories:

i) activities associated to vessel berthing;

ii)activities related to vessels loading and unloading, including

transferring cargo from the quay to container yard (and vice
versa); and

iii)activities at the container yard, like cargo receiving,

handling and delivering.
 Port Logistics

All these activities take place in ports of

loading and discharge, are associated to
physical, financial and informational flows and
are performed by the different actors of port
logistics chain such as exporters, importers,
ocean carriers, ship agents, international
freight forwarders, non-vessel owner common
carriers, customs brokers, container
terminals and port authorities.
 Logistics Hub

The logistics hub refers to the logistics facilities

group supported by comprehensive transport hub,
which can link two or more modes of transports,
undertake the role of interchange of the main
logistics between the region (or logistics hub), and
can organize the direct lines (round) (direct train,
direct shipping line, direct flight and highway direct
line) by a number of tightly linked operations,
reasonable division of labor, convenient transport
node facilities(logistic park,logistic center).
 Logistics Hub Function

1. Link two or more modes of transportations

2.Undertake the role of transit, exchange and

link.

3.Closely linked operation, reasonable

division of labor and convenient transport.
Evolution of port function
 General overview of operations in a
container terminal
The main operations of a typical container port may be
classified in one of the seven basic types. These are:
––Manoeuvring of ships between anchorage
areas and berths;
––Berthing and deberthing of ships;
––Positioning of cranes alongside ships;
––Loading and unloading of containers;
––Moving containers between the berth and the yard;
––Configuring and operating the yard;
––Moving containers between the yard and the gate.
Business-technical systems of CT are characterized
 Conditions for successful hub port

• Location (proximity to major world routes)

• Quick turnaround time
• Quality service with efficiencies and
productivity
• Reasonable costs
• Ability to accommodate super larger ships-
deep water, advanced equipment
 Conditions for successful hub port

• Excellent networks covering neighboring

feeder ports
• Existence of logistics cluster
supporting value-added logistics
activities
• No burdensome paper works
• Intermodal infrastructures-access to
rail, air and road distribution networks
• Local market producing freight volume
 Emerging Challenges and
issues for most ports

• Globalisation of manufacturing and outsourcing

• Global trends if logistics network restructuring and
reposition of regional and or local distribution centre
• Rapid growth in volume of world seaborne freight,
especially container
• Emerging hub and spoke system in global shipping
service
• Increase of transhipment cargo and competition
among ports and terminal operators
• Introduction of the super mega size
containership
 Emerging Challenges and
issues for most ports

• Increasing competition towards hub ports

• Emerging terminal operators and their growing
market share
• One stop shopping concept and intermodal transport
linking strategically between ocean, railway, road and
inland waterway
• Increasing role of ports in global supply chain
management and logistics network
structures
• Increase of productivity and efficiency in
ports
Globalization of World Economy bolsters the increase
importance of international trade and the roles of
ports and MNCs
Terminal Operations

Patrice Maranda 2019

 Terminal Operations

A terminal can be defined as a location where

at least two different modes of transport
meet each other.
Terminals can be different by the type of
product being handled i.e. passengers, cargo or
information. A transshipment center is a
unimodal terminal. See below for an overview.
Terminal Operations
 Bulk Terminal
Characteristics of deep water bulk handling
facilities:
o Vast storage areas required (in view of ground
pressure)
o Processing facilities e.g. blending / weighing
o High crane productivity (50 to 85 tons per
lift)
o Hinterland connections required by rail / inland
waterways
o Remote location (noise / dust)
Bulk Terminal
 Tank Terminal

Characteristics of tank terminals:

o Deepwater facilities.
o Bridging time between delivery and processing: storage.
o Transport to refineries takes place either via pipeline or barge.
o Given characteristic of product different set of
handling equipment required : pumps
o Quayside construction is simple, only a jetty is
required.
o When a wide variety of chemical products are handled,
the complexity of the terminal increases in view of separation
and contamination of products
Tank Terminal
 Container Terminals
In general there are two types of container
terminals:
1.Gateway terminals: Serving a captive area by
means of primarily non-feeder modalities.

2.Transhipment terminals: Mainly serving deep-

sea and feeder vessels (trans)shipping cargo to
either out-ports or overseas destinations. Hub-
and-spoke operations.
 Container Terminals
Main developments affecting container terminals:
o Increase in production due to bigger vessels and
call size.
o More container movements (transshipment)
o Every loaded TEU is nowadays handled 3.5 times
on average
o Peak and queuing management.
o Automation of stacking and horizontal transport.
o Increase in storage density.
o More emphasis on non-truck modalities.
 Main Facilities in Container Terminals:

• Quay
• Container yard
• Container
Freight Station
• Gate Facility
• Interchange
Area
• Rail-head
 Activities at Container Terminals
(Cargo Export Flow)

• Receipt/delivery operation
Receipt and delivery by road and rail, packing and
unpacking, container inspection and cleaning

•Container yard operation

Storage & in-terminal movements

•Quay transfer operation Load

and discharge operations

• Ship operation
Transfer and securing
containers and cargo on ship
 Container Terminal

The development of container terminals is

still ongoing, because of the continued
pressure on fast turn around times and
performance (see also below). This picture
is a sketch of one of the concepts that was
developed for the port extension in
Rotterdam. It shows the various possibilities
of making intermodal connections. These
conceptual terminal designs were not
realized in practice, at not at this location.
 Container Terminal

Below is a generic container terminal design.

One can clearly recognize the quays with the
berths, the cranes, the stacks, and the
equipment to transport containers between
the stacks and the cranes. Notice also that the
terminal lay out has a entry and exit gate
building, and (in light blue) slots for trucks to
pick up and off load containers. These
elements appear in all container terminals
designs, although the specific geographical
circumstances may require adaptations.
Container Terminal
 Container Terminal
In addition to the physical flow of containers on a terminal,
the terminal is also a node of information flows. These
information flows accompany the containers and inform
the handlers what is in the container, where it should go,
who is picking it up and when, and so on. Further
information flows involve port authorities, customs and
other inspection agencies and their respective activities.
As a result of all these information requirements,
terminals require complex information and container
control systems to make sure that all the required
information is available at the right time for the right
organizations
 Container Terminal

Container-Terminal Functions
In Fig. (next slide) it is shown that the seaport container
terminal plays a major role within the container logistics, as it is
the interface between the oversea and hinterland transport.

The transshipment function—which should not be confused with

the transshipment container refers to discharging and loading
vessels, barges, and trains. The added value of theses
processes is provided by the speed at which vessels are
handled and the decoupling of oversea transport and hinterland
transport. However, direct transshipment from one mode of
transportation to another is nearly impossible. Therefore, the
storage function of a container terminal is
of particular importance for the performance of the container
terminal.
 Container Terminal

Schematic processes of container terminals (based on Saanen 2004, p. 28)

 Container Terminal
Some reasons for the essential importance of the
storage function are:

•The terminal process would become too complicated in case of

direct transshipment, since all individual exchange would have to
be controlled in such a way that they arrive in the right
sequence, at the right time and at the right place in order to
process the relevant transshipment operation without any
delays.

•For terminals with more than two different modes of

transportation, direct transshipment would require a
sophisticated terminal design. All handled modes of
transportation have to be located very close to each other, which
would cause serious problems for terminals with deep-sea
vessels, barges, trucks and trains.
 Container Terminal
Some reasons for the essential importance of the storage function
are:

•Both individual means of transportation between which containers are

transshipped have to be simultaneously present if containers are
transshipped directly. Especially for transshipment between two vessels as
well as between trains and vessels it is virtually impossible, as vessels
and trains may be very long and sequence relations for loading and
unloading of vessels and trains would have to be simultaneously
respected.

The receivers of a container do not always need their cargo very fast.
Thus, they are not always interested in direct transshipment, in contrast,
they may be interested in inexpensive storage possibilities. In addition,
containers have to be stored on the terminal due to customs demands and
financial requirements. Some containers stay even longer than 6 months
on the terminal.
 Container Terminal Layout

Hundreds of container terminals with different

layouts, different container-handling concepts
and different types of equipment exist around
the world. Nevertheless, most terminals have
a comparable arrangement of their
subsystems and facilities, which is
schematically shown below.
Container Terminal Layout
 Container Terminal Layout
the ship-to-shore subsystem is located at the waterside edge
of the terminal where quay cranes are used to load and
discharge vessels and barges.

In general, the ship-to-shore subsystem is followed by the

horizontal-transport subsystem, which is responsible for the
transport of full and empty containers between the quay
cranes and the storage subsystem. Usually, this horizontal
transport is executed by different types of transport vehicles.
The storage subsystem is the place on the terminal where

On the landside, the storage subsystem is followed by the

hinterland-connection subsystem, which fulfils the function of
an interface between the terminal and its hinterland.
Kumport Terminal (Istanbul, Turkey)
HIBIKI Container Terminal (Japan)
DCT Container Terminal (Poland)
Port of Odessa (Ukraine)
Port of Kingston
Terminal Planning Activities
Terminal Equipment
Terminal Equipment
 Trends in Terminal Equipment
The main trends in terminal equipment development are:

• Handling capacity of quay cranes will continue to increase

Terminal transport system between quay and stack will be
automated although conventional systems are predominant
• Automated stack equipment will become standard
• The truck gate will use electronic identification by means of
pin-code cargo card or bar coding, pre-information and
pre- booking allows priority truck handling, leading to 30
min. turn around times. Gates are unmanned and
equipped with video- data (Vision Technology)
• Software suppliers standardize terminal management
systems
 Terminal Performance

The capital intensity and fixed nature of the

capacity of a terminal creates a strong need
for careful monitoring and optimisation of
capacity and asset utilisation. The
possibilities for optimal performance are
largely based on the possibilities of the
assets, but also on the quality of planning and
operations.
 Terminal Performance

The objectives of terminal performance

are clear
• Learn to evaluate the performance ratios
of a terminal
• Be able to read “in between the figures
• Evaluate criteria when selecting a
terminal.
Changing Role and Function of
Transport Terminals
Characteristics of
Freight Terminals
 Port Functions

To provide services as a business partner of choice to

the port stakeholders, ports fulfill four key functions:
• Regulatory function: ensure that statutory
requirements are fulfilled
• The landlord function: focuses on managing and
planning the real estate, implementing policies and
strategies for development of infrastructure, providing
access for road and rail based transportation
• Operator function: engage in physical transfer of
goods between sea and land
• Stakeholder function: Community (“cluster”)
manager
 Lean & Agile ports
Agility and leanness are two elements that allow ports to
streamline operations achieve coordination in order to
make best use of available resources.
• A lean port is one that as a business unit makes the best
use of its available resources (tangible & intangible
assets) and by eliminating all sort of wastes in the physical
and documentary or information processes related to
cargo and modes, delivers perfect customer service
• An agile port is one that:
• Requires new management philosophy) embracing also
those retaining to the network
 Lean & Agile ports

•Can be adaptable,responsive, flexible and a centre

of knowledge
•Gets involved in partnerships and strategic
alliances(with inland depots)
•Fulfills the requirements of info
structure,infrastructure and superstructure
accessibilities
• Continuously tries to innovate,
•Performs research and evaluation of performance
(anticipate the unanticipated)
 Discussion

What is a hub and spoke network

Factors behind Transshipment
Major Hubs around the world
 Port Operations

• Complex chain of interacting events

–Approach channels
–Pilotage
–Immigration & checks
–Anchorage
–Vessel supplies
–Berthing space
–Cargo handling
–Storage space
–Gate clearance
–Inland transport network
 Efficiency @ Port

• Accomplishment of a job with a minimum

expenditure of time and effort

• Make best use of land, equipment and labor

given geographical, physical and
institutional constraints
 Efficiency @ Terminal

• Berth vessel on arrival

• Fast turnaround
– Adequate equipment
and labor
– Ample storage space
– Supporting inland
transport
network
– Gate clearance
• Timely Pilotage
 Efficiency @ Terminal

Element of Measure of Measure

Terminal Productivity

Crane Crane Utilization TEUs/year per Crane

Crane Productivity Moves per Crane-Hour
Berth Berth Utilization Vessels/year per Berth
Service Time Vessel Service Time (hrs)
Yard Land Utilization TEUs/year per Gross Acre
Storage Productivity TEUs/Storage Acre
Gate Gate Throughput Containers/hour/lane
Turnaround Truck Time in Terminal
Time
Gang Labor Productivity Number of Moves/man-hour
 Efficiency @ Terminal
• Terminal Planning and Design
– Layout
– Capacity
– Equipment

• Operations
– Space and resource allocation policies
• Berth
• Quay crane
• Trucks
• Yard space
• Yard crane
• Manpower
• Gate
 Challenges @
Port
– Increase in fuel costs
– Advent of Mega vessels
– Increasing pressure to adopt
environment friendly policies and even
threat of possible sanctions to be
imposed
– New technology
– Competitor ports
– Change in global trade patterns and
routes
 Information
Flow

Patrice Maranda 2019

 Information Exchange

Benefits Challenges

Common situational
Technical issues
awareness

Better use of
Political issues
resources

Timeliness of data
Builds relations
collection &
release
Supports future
Unclear priorities
cooperation

Creates a culture of Confidentiality

exchange concerns

Sustains Culture of guarding

communication information
 From Data to Information

Data Collection

Collation/
Filtering

Analysis

Information
 Information Question

Is it our
responsibility?

How can Is it
it be shared? operational?

What is
the source?
 Logistics Information

Seasonal Affects
Freight Forwarder
Ocean Ports
Ports Mills
River Ports Logistics Services
Transporters

Local Market
International Food
Transport Hub Warehousing
Health
National Airports Goods
Non-Foo d Logistics Fuel
Helipads
Shelter

Storage Facilities Logistics

Information

Road
Rail Transport Network
Customs
River
Entry Points
To Country Overland

Government Corridors In
Activity Area Other 3W Country
Time/Costing
Partnership Humanitarian Org
Storage Maps
Capacity
Dedicated Fleet
 Information in the Supply Chain

Information Functions Principles

Tracking Standardized

Measure Performance Accurate & Relevant

Control & Reporting Current

Evidence based decision-making

Information Categories

Internal External
 Discussion –
Supply Chain Information Flow

Discuss and list per group the information needed to

manage and control your Supply Chain (procurement,
transport, warehousing):

• What kind of information do you need?

• Who do you get the information from?
• Who do you provide information to?

15 minutes to prioritize
15 minutes to present/discuss
Information Across the Supply Chain
 Tracking and Tracing

Trace Track Control

 Information Management Process
Info Dissemination

Website

Data Gathering Maps

Infrastructure Specific Logistics

Analysis/Info Reports
Generation
Relief Commodities
Bulletins
Databases
Fuel
GIS
Customs Tools for Coordination

Web Platform Info for Logistics

Aviation Coord Meetings

Programm Commodities
e
Requests
Cargo Prioritization

Customs
Patrice Maranda 2019 Information Guide
From Data to Information