Ports & Terminals 1st Part.pdf

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Ports and Terminals Operation Management
Dr. Capt. Mostafa Abdel Hafez
9/19/2018
Dr.Mostafa Abdelhafez

Course Contents
1. Introduction to International trade
2. Basic concepts on ports
3. Classification of ports
4. Port activities
5. Port governance models
6. Measurement of Port Performance
7. 7th week exam
8. Indicators of output
9. Indicators of service
10. Indicators of utilization
11. Indicators of productivity
12. 12th week exam
13. Planning & operation of container terminals.
14. New trends in port operation
15. Final Exam
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Introduction to International Trade
• Why is maritime transport needed?
• For different reasons, there is often a need to move goods from one place to
another, sometimes across the sea.
• Maritime transport (of goods) derives from trade.
• Maritime transport is a service sector totally dependent on the demand and
supply of world trade.
• For shipping or a port manager whose job is to satisfy the transport need
and whose mission is to develop his business in this highly competitive
market place, it is paramount for him to know and understand why trade is
happening?
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• The logic of trade
• The conditions of production are generally different, to various extents,
from producer to producer. Such a difference is the major driving force for
trade.
• These conditions are also called factors of production. These factors of
production include:
1. Labour (costs, habits, regulation….)
2. Capital (availability, quantity, cost …)
3. Land (climate, resources, location, availability, cost….)
4. Technology (production and management know-how, marketing…)
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• Recent trade development
• Since the Second World War, world trade has grown much more rapidly
than the world production (commodity output).
• The main reason for the above reality is the trade barriers have generally
been diminishing after 1960’s and formidable telecommunication
technology development.
• There are two kinds of barriers to international trade: artificial barriers and
natural barriers. Artificial barriers are mainly related to trade policy issues
and natural barriers are mainly related to the trade transaction process
especially transport.
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• The world seaborne trade
• Maritime transport is still playing a dominant role in today’s world trade
movement.
• At least 90 per cent by volume of total trade is carried by sea.
• Sea transport, and hence the port service, plays a vital role in those
countries’ economies.
• This is because trade is the only way to modernize the country and that
trade has to be carried by sea.
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• Major factors affecting the demand of maritime transport
1. Economical factors
• Developments in world economy and trade have a direct effect on the
maritime Demand.
2. Political events and development
• Wars have always been a big influential factor on maritime transport
demand.
• Political alliance may also have significant impacts on maritime transport
demand.
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3. Natural factors
• Weather conditions are perhaps the most important factor for
the maritime transport demand of grain.
4. Technical reasons
• Maritime transport can create new demand for trade. This is
true not only in terms of reduced costs, it is also true in terms
of newly developed transport technology. Fresh fruit, meats
and vegetables.
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• Elements of maritime transport
•The maritime transport has main three elements:
1.The goods which will be born by sea.
2.The vessels which will carry these goods.
3.The ports which will receive these vessels where the goods can
be loaded and discharged
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Basic concepts on ports
• Ports are places where ships can anchor, berth, load and discharge.
• When people describe a port, they normally say how many ships the
port receives or how much cargo the port handles.
• People look therefore either ship’s side or cargo’s side of port
functions.
• Loading and discharging have long been widely recognized as the
major role of ports, but the most fundamental function of a port is to
provide ships with a safe anchoring and berthing place.
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• Ports are first of all built to accommodate ships.
• Although numbers of definitions on ports emphasize the cargo
(movement) related functions by stating that a port is an
interface between sea and land transport or ports where
cargoes are loaded and discharged to and from ships, the
reality sometimes demonstrates different conceptions.
• Ports do not have to be interface of different modes of
transport when cargo is simply transshipped from one vessel to
another.
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• The cargo processing facilities set up in the port area mean that no land
transport may be required after the cargo discharged.
• It can be processed and re-exported or locally consumed, such as the case
of coal of power station.
• Ports do not have to be the place for cargo handling as ships may come to a
port merely for taking its provisions, let alone the vessels other than cargo
ships that come to ports for different purposes.
• Without cargo, a port can still function like a port (for passenger or ship-
related services) but a place without ships or not being able to receive ships
cannot call a port.
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• By definition as well as in reality, ports are born, develop,
decline and dead with ships.
• The activities that do not have a relationship with ships and
shipping, even taking place in the port area, should not be
considered as port activities.
• Whilst ships are dependent of cargo, there is also a relationship
between ports and cargo ‘ no cargo, no ships and no ships, no
ports. Therefore, no cargo, no ports’.
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Classification of ports
• No two ports in the world are identical, neither in their
physical setting nor in their economic and operational
environment.
• However, ports have also common features which justify a
general classification of ports into a few numbers of group.
• The classification of ports can be done in accordance with
different criteria such as:
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The classification of ports
The location and
physical features of the
port
The ownership and
organizational features
of the port
The nature of ships or
cargo to serve
Commercial/operational
features of the port, etc.

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The location and physical features of the port
Natural Port
Man-made
port
Sea Port River Port
Tidal or Non
Tidal Port

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Port activities
• Port activities are not easy to define because they change over
time.
• Traditional cargo handling is only a part of port services today.
• Cargo transformation and processing, distribution and
logistics services are playing an increasing role in ports.
• Generally speaking port activities can be divided, in terms of
services and revenues generation, into 5 main groups as
explained in the following:
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Port governance models
• Definition
• “Governance is the art of organizing and steering societies and
organizations”
• Good governance is about both achieving desired results and achieving
them in the right way.
• Governance models are just a tool to achieve good governance, not a goal
as such
• Historically ports were the domain of the public sector, but over last decade
port reform in many countries has resulted in private sector involvement:
ports have become collections of public and private actors.
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Port governance models
• Port governance: organization and coordination of activities in
a port
1. Who owns the assets?
2. Who has what responsibility?
3. Who does the operations?
4. Public or private actors?
5. How are actors interrelated?
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Public service port
1. Focus mainly on realization and protection of public interest
2. Public port authority offers all port services and manages a port
3. Public port authority owns, maintains and operates all fixed and mobile
assets
4. Public port authority employs all port workers
5. Controlled by the ministry in charge of transport affairs (sometimes even
part of it)
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Tool port
1. Public port authority owns and maintains everything and performs most of
the services
2. Some cargo handling activities performed by an independent commercial
entity but with mobile assets owned by the public port authority
3. Split operational responsibilities can threaten efficiency
4. Public port authority makes land, equipment and superstructure available
for an independent cargo-handling companies.
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Landlord port
1. Separated functions of port governance and port operations
2. Most common and apparently most efficiently balanced port model
3. Public port authority rents the land which it owns or manages on behalf of
the state (region, municipality)
4. Infrastructure is owned and managed by the public port authority and
leased to private port operators
5. Private port operator pays the lease to the public port authority (usually a
fixed sum per square meter per year)
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Landlord port
6. The level of the lease amount is related to the initial preparation and
construction costs (e.g., land reclamation and quay wall construction).
7. Superstructure assets and cargo-handling equipment mostly provided by
separate (mostly private port/terminal operating company)
8. Dock labour employed by private terminal operators, though sometimes
can be hired from the port pool system (Dockers' union)
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Private service port
1. Very few examples in the world (mainly UK and New Zealand)
2. Port seen as fully commercial entity and thus being sold to private entity
which manages and operates a port
3. Land, infrastructure, superstructure and all cargo-handling equipment is
owned, maintained and operated by private entity
4. Dock labour fully employed by private port owner
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Private service port
5. Full withdrawal of the state (public sector) from port
ownership, management and operation
6. In the absence of a public port regulator (e.g. UK) privatized
ports are essentially self regulating.
7. Risky venture for the government port land can be sold or re-
sold for non-port activities, thus making it impossible to
reclaim for its original maritime use
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Overview of port governance models
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Relation between public and private roles
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Relations between risks of public and private
sector
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Strengths and weaknesses of public service ports
• Strengths
1. Superstructure development and cargo handling operations are the
responsibility of the same organization (unity of command).
• Weaknesses
1. No or only a limited role for the private sector in cargo handling operations.
2. There is less problem-solving capability and flexibility in case of labour
problems, since the port administration also is the major employer of port
labour.
3. There is lack of internal competition, leading to inefficiency.
4. Wasteful use of resources and under-investment as a result of government
interference and dependence on government budget.
5. Operations are not user-oriented or market-oriented
6. Lack of innovation
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Strengths and weaknesses of tool ports
• Strengths
1. Investments in port infrastructure and equipment (in particular ship/shore
equipment) are decided and provided by the public sector, thus avoiding
duplication of facilities
• Weaknesses
1. The Port Administration and private enterprise jointly share the cargo
handling services (split operation), leading to conflicting situations.
2. Because the private operators do not own major equipment, they tend to
function as labour pools and do not develop into firms with strong balance
sheets. This causes instability and limits future expansion of their
companies.
3. Risk of under-investment.
4. Lack of innovation.
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Strengths and weaknesses of landlord ports
• Strengths
1. Excellent balance of public and private sector roles.
2. Ideal for PPP (Public Private Partnership) schemes.
3. A single entity (the private sector) performs cargo-handling operations and
owns and operates cargo-handling equipment.
4. The terminal operators are more loyal to the port and more likely to make
needed.
5. Investments as a consequence of their long-term contracts.
6. Private terminal handling companies generally are better able to cope with
market requirements.
• Weaknesses
1. Risk of over-capacity as a result of pressure from various private operators
2. Risk of misjudging the proper timing of capacity additions.
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Strengths and weaknesses of private service ports
• Strengths
1. Maximum flexibility with respect to investments and port operations.
2. No direct government interference
3. Ownership of port land enables market oriented port development and tariff
policies.
4. In case of redevelopment, private operator probably realizes a high price
for the sale of port land
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• Weaknesses
1. Government may need to create a Port Regulator to control monopolistic
behaviour.
2. The Government (be it national, regional or local) loses its ability to
execute a long term economic development policy with respect to the port
business.
3. In case the necessity arises to re-develop the port area, Government has to
spend considerable amounts of money to buy back the port land.
4. There is a serious risk of speculation with port land by private owners.
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5. No future cash flows for the public sector.
6. Public interests unguarded.
7. Strategic assets become out of control.
8. Limited influence on performance.
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Measurement of Port Performance
• Performance Measurement
1. Universally used to assess how well someone or something has done
against set objectives or peers.
2. The process whereby an organisation establishes the parameters within
which programmes, investments, and acquisitions are reaching the desired
results.
3. The process of measuring performance often requires the use of statistical
evidence to determine progress toward specific defined organisational
objectives.
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Port Performance
• The cost of cargo handling in ports is such an important part
of the overall cost of maritime transport.
• Improvement in port performance is a key factor in bringing
down the cost of international seaborne trade.
• How can we measure the performance of cargo handling in
port, in order to establish where the problems lie and what
level of performance is possible?
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Collecting information
• The major theme of this unit is the importance to the management of
cargo-handling operations at a berth, or in the port as a whole, of
collecting information on the performance of berth operations.
• If you do not collect, analyze and distribute information on the cargo
handling operations at your berth, you will have no way of knowing
when things go wrong nor of identifying where action can be taken to
improve performance.
• Port authorities need information for a wide range of reasons, but we
are concerned with berth operations and the efficiency with cargo is
handled, and there are four main reasons for collecting that sort of
information:
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• To know your berth
1. What types of cargo are loaded at the berth;
2. What types of cargo are discharged;
3. How much cargo is, on average, loaded and discharged per vessel’s call;
4. What proportion of cargo goes direct delivery, and how much of that goes by
road, rail and barge;
5. What demands there are for storage.
• To set performance targets
1. To checks the efficiency of use of equipment, labor and other resources;
2. To provide incentives for improving performance;
3. To prepare bonus schemes to motivate workers.
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• To improve performance
1. By allowing you to compare actual performance with your set targets
and to identify and remedy problems
• To plan development
1. Whether to build new berth;
2. Whether new sheds or open storage areas are needed;
3. Whether to purchase new equipment;
4. Whether to change manning levels.
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• Port Performance Indicator
• Instead, a series of different measures are used; we call them Port
Performance Indicators. Some of these give a broad measure of overall
performance but others are more specific.
• There are four commonly used groups of performance indicators:
1. Indicators of Output
2. Indicators of Service
3. Indicators of Utilization
4. Indicators of Productivity
• We shall examine these four types of Indicators one by one in the
following sections.
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1. Indicators of Output
• The term, ‘output’ refers to the quantity of cargo, in tones,
handled in a stated time period, e.g. a shift, a day, a month
or a year.
• Ports have three major types of indicators. They all have
their uses and advantages, and we shall look at each of them
in turn.
1. Berth Output
2. Ship Output
3. Gang Output
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Berth Output
• The most commonly quoted measure of Berth Output is called Berth
Throughput.
• It measures the total tonnage of cargo handled at a berth in a stated period
usually a year.
• There are some complications about calculating Berth Throughput.
 For instance, what about cargo that is handled more than once during a
loading or discharge operation, or is merely moved to gain access to other
cargo or for rearranging for subsequent stage in the voyage?
 This is all cargo-handling at that berth and should be counted when
calculating the output of that berth, even if the cargo concerned does not
originate at the port nor is delivered from the port.
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 Then again, what about cargo handled via a barge at a berth
but which is feeding a ship working at a mooring buoy or
anchorage? This cargo, too, has to be included in the
throughput at some berth.
• To ensure that all relevant data are recorded, without
misleading duplication, it is obviously necessary to follow
some agreed set of rules or conventions.
• The convention recommended by UNCTAD is that the
Throughput at a particular berth should include:
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1. Cargo loaded and discharged directly between the ship and quay;
2. Cargo loaded via a barge or coaster (a ship used to carry cargo along the
coast from port to port)working alongside the ship;
3. Cargo handled directly between a barge and the quay;
4. Cargo handled between the quay and vessels that are double-banked (i.e.
Tied up alongside a vessel already at the berth; this is not a common
practice but is occasionally seen when port congestion is severe);
• But it should exclude:
1. cargo handled from double-banked vessels working away from the quay.
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• The UNCTAD convention is put into practice by following a standard set
of rules:
1. Include all cargo loaded into a vessel or discharged from it directly via the
quay, even if that vessel is double-banked.
2. Add the tonnage of cargo shifted for some reason within a hold of the ship,
even if it is not discharge to the quay.
3. Record cargo shifted from one hold to another via the quay (or a barge
alongside), but double this value when adding it to the total (it has, after all,
been handled twice: once to the quay or barge and again in returning it to
the hold).
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4. Record the tonnage of cargo discharge to barge and then
transferred across the quay; double this figure when it to the
total (again, it has been handled twice). The same applies to
cargo loaded via barge, of course.
5. Include any cargo discharged in error and then re-loaded
(twice).
6. Cargo, which is transshipped via the quay (i.e. discharged
from one vessel to the quay, to be loaded onto another that
will berth there later), is counted twice.
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• Example (1):
• Calculate the Annual Berth
throughput for No. 3 berth at
Alexandria Port, assuming that the
data follow, for January 2017, is
typical of the year’s activities
Loaded cargo
Discharged Cargo
Quay to Ship
From shed 1824 t
From open storage 371 t
From road 515 t
From rail 864 t
Tonnage counted =
Ship to Quay
To shed 2740 t
To open storage 1305 t
To road 423 t
To rail 960 t
Tonnage counted =
Via Barge
Quay to Barge 69 t
Barge to Ship 1286 t
Tonnage counted =
Via Barge
Ship to barge 415 t
Barge to Quay 407 t
Tonnage counted =
Shifted Cargo
transshipped via quay 1248 t
Transshipped direct 50 t
Tonnage counted =
Shifted Cargo
Shifted in ship 271 t
Shifted via quay 146 t
Tonnage counted =
Estimated Annual Berth Throughput =
Total Tonnage counted for
January =
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Ship Output
• Ship output indicators measure the rate at which cargo is
handled from a vessel at a berth.
• Ship Output is expressed in one of three ways, depending on
the time period used to measure the weight of cargo handled.
1. Tones per Ship Working Hour.
2. Tones per Ship Hour at Berth.
3. Tones per Ship Hour in Port.
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• The measure Tones per ship working hour is calculated by dividing the
tonnage of cargo loaded into or discharged from a ship by the number of
hours that the ship was worked:
Total tonnage handled
= Tones/ship working hours
Total hours worked
• Example (2):
• If a ship is at a berth for 4 days and is worked for one 8-hour shift on
the first day, two 8-hour shifts on the second and third days and one 8-
hour shift on the fourth day to discharge 4500 t and load 300 t, what is
the output per ship working hour?
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• Another useful measure is to express ship output as tones per ship hour at
berth, by dividing the total tonnage of cargo loaded and discharged by the
total time (in hours) spent at berth by the vessel:
= Tones/ship hours at berth
Total hours at berth
• Example (3):
• If the vessel in example 2 tied up at 0800 hours on day one and cast off
at 1600 hours on day 4, what was the ship output per ship hour at
berth?
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• A third measure of ship output is expressed in terms of tones of cargo
handled to or from a vessel for every hour it spends in port
= Tones/ship hour in port
Total hours in port
• Example (4):
• If the vessel referred to example 2 and 3 arrived in port at 1300 hours
on the day before it berthed, and actually left port at 1700 hours on the
4th day at berth, what is the ship output expressed in tones per ship
hour in port?
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Gang Output
• The final measure of output – Gang output:
• The average tones of cargo handled by one gang in one hour.
• While ship output measures (and, indeed, berth output measures) vary
according to the number of gangs employed and, in many cases, according
to intensity of use of the berth, Gang output does not. It brings the
measured value down to the average output of a single gang.
• There are several ways in which a Gang Output value could be arrived at.
For example, the actual weight of cargo handled by a particular gang in one
shift could be recorded, and this figure divided by the number of hours
actually worked in that shift, i.e.:
Total tones handled by gang in a shift
= t/gang-hour
Shift hours
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• Example (5):
• If a gang loaded 75 tones of tea into a vessel in a 7,5-hour shift, what
was the output per gang-hour?
• Gang output provides a very useful way of monitoring labor performance,
and knowledge of average gang outputs for different types of cargo is of
considerable assistance when planning operations.
• Calculating Average Gang Outputs is also an important step in costing
cargo-handling operations.
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• Example (6):
• The M.V. UNCTAD arrived off port rapid at 19.30 hours on Thursday, 10
October, to discharge 2180 tonnes of general cargo and to load 1440 tonnes
of tea, coffee, sisal and forest products.
• No berth was vacant, and the vessel was instructed to anchor and await a
berth.
• A berth eventually became available at 01.30 hours on Saturday, 12th
October, and M.V. UNCTAD berthed at 04.30 hours.
• Discharge operations commenced at 06.00 hours and proceeded on a 2-shift
basis (each shift of 7.5 hours duration, plus overtime when required) until
loading was completed at 19.30 hours on Monday, 21st October.
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No overtime
No overtime
2 gangs
2 gangs
06.00-14.00 shift
14.00-22.00 shift
October 12
No overtime
2 gangs
06.00-14.00 shift
October 13
No overtime
2 hrs. overtime
4 gangs
4 gangs
06.00-14.00 shift
14.00-22.00 shift
October 14
No overtime
2 hrs. overtime
4gangs
4 gangs
06.00-14.00 shift
14.00-22.00 shift
October 15
No overtime
No overtime
4 gangs
4 gangs
06.00-14.00 shift
14.00-22.00 shift
October 16
No overtime
2hrs overtime
4 gangs
4 gangs
06.00-14.00 shift
14.00-22.00 shift
October 17
No overtime
2hrs overtime
3 gangs
3 gangs
06.00-14.00 shift
14.00-22.00 shift
October 18
No overtime
2hrs overtime
3 gangs
2 gangs
06.00-14.00 shift
14.00-22.00 shift
October 19
No overtime
2 gangs
06.00-14.00 shift
October 20
No overtime
No overtime
2 gangs
2 gangs
06.00-14.00 shift
14.00-19.30 shift
October 21
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• The M.V. UNCTAD eventually left the berth at 06.30 hours on Tuesday,
October 22nd and cleared the port at 08.00 hours on the same day.
• Calculate the ship output in Tonnes/Ship Hour in Port, Tonnes/Ship Hour
at Berth and Tonnes/Ship Working Hour.
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2. Indicators of Service
• There are many indicators that can be used to measure the quality of
service a port provides for its users (shippers, importers, shipowners) but
the most commonly used indicators, and the only one that we shall
consider, is Ship Turnaround Time: the total time spent by a particular
vessel in port.
• Ship turnaround time gives an excellent indication of the speed of service
being provided to ship operators; it is a very important element in
determining maritime transport costs.
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• Ship Turnaround Time
• The time a ship spends in port can be divided into two components:
1. Waiting Time
2. Ship’s Time at Berth
• Waiting Time is the delay between the ship’s arrival in port and its tying
up at the berth. It can be quite large when no vacant berths are available
because of congestion, or if the tides are against the vessel, or when strikes
or other similar events occur. Normally, however, Waiting Time is only a
small proportion of Turnaround Time.
• The second component of Turnaround Time is Ship’s Time at berth: the
total time a vessel spends at the berth, whether loading or discharging
cargo or just lying idle. Like Waiting Time, it is measured in hours or
days. Ship’s Time at berth is the component of turnaround time is more
directly under your control.
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Times at which each step starts and stops are documented in port

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• Waiting Time and Ship’s Time at berth are readily calculated from simple
port records, either for individual ship’s or (as is more usual) for particular
types or classes of ships calling at specific berths or groups of berths at a
port.
• Clearly, the more cargo a vessel has to load and discharge, and the more
varied the cargo is in type and handling characteristics, the longer it will
take to service the ship and the longer it will spend at berth.
• How easy it would be for you if you only had to deal with a few large
ships, each with a large amount of uniform cargo to be handled!
• Nevertheless, your managerial skill will have a considerable influence on
the rate of cargo handling, whatever its type, quantity, disposition, stowage
or route through the port.
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• There are four actions that you can take to improve the cargo-handling
rate at a berth.
1. Requisition & allocate the appropriate number and size of gangs;
2. Select and requisition the appropriate type and quantity of equipment;
3. Supervise and organize the cargo handling operation effectively and
appropriately.
4. Coordinate the arrival of transport and receipt/delivery of cargo.
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• Always allocate and supervise your resources effectively so
as to keep ship’s time at berth to the minimum and so speed
up ship turnaround time.
• There is, of course, another very important factor: what
proportion of time during the Ship’s Time at Berth the ship is
actually being worked and cargo is being handled.
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3. Indicators of Utilization
• Indicators of Utilization are really measures of how
intensively berth facilities and resources are used. There are
two important indicators in this group:
1. berth Occupancy (the proportion of time at a berth is
occupied by vessels)
2. Berth Working Time (the proportion of Ship’s time at Berth
for which labor is scheduled to work).
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• Berth Occupancy
• Berth Occupancy effectively indicates the level of demand for port
services.
• It can be measured over various time intervals, (a week, a month, a year)
and is normally expressed as a percentage: the number of hours (or days,
when calculating over very long periods) the berth is occupied in a given
period (whether cargo is being worked or not) divided by the total number
of hours (or days) in that period, multiplied by 100 (to convert the ratio into
a percentage).
Hours (or days) berth is occupied
• Berth Occupancy = * 100
Total possible hours (or days) in period
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• Example (7):
• If there were ships at your berth on 274 days last year, what was the
Berth Occupancy for that period?
Berth Occupancy = 274 days * 100 = 75%
365 days
• Berth Occupancy is often misunderstood and misused by port managers;
unless it is fully understood, it is a particularly dangerous basis for decision
making.
• The tendency is to think that a high Berth Occupancy value is desirable and
that it indicates high berth efficiency.
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• The operational disadvantages of high Berth Occupancy, with ships at
your berth for 80% of the time or more are:
1. You have little or no time to plan and prepare cargo handling operations;
2. There is not enough time to clear imported cargoes from quays, sheds and
yards before the next ship arrives;
3. There is insufficient time to consolidate exports;
4. Working under this sort of pressure puts considerable strain on labor,
management, storage space and equipment.
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• So, high Berth Occupancy causes quality of service to decline.
• It signals congestion, and there is a danger that ships have to
queue for berth, putting up costs through increased
Turnaround Time, congestion surcharge, demurrage charges
and so on.
• High Berth Occupancy does not indicate an efficiency run
berth
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• At the other extreme, low berth Occupancy (say 50% or less in the case of
a general cargo berth) indicates that resources are being underused, perhaps
lying idle for much of the time, and that there is spare ship and cargo
handling capacity.
• Low Berth Occupancy indicates underuse of resources.
• So, Berth Occupancy is an indicator to be used with caution- aiming for
high values may be very dangerous (in terms of congestion delays),
• While low values-may be uneconomic (in term of return on investment).
• Research and experience have shown that, at a general cargo berth, Berth
Occupancy values within the range of 60% to 70% are perhaps the safest to
aim for.
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73
• In practice, the Berth Occupancy value that can be
considered ‘safe’ at general cargo berth depends on four
main factors:
1. The arrival pattern of general cargo ships;
2. The number of general cargo berths in the port;
3. How effective the berth allocation system is, and
4. The average Ship’s Time at those berths.
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• Example (8):
• Calculate the Berth Occupancy
for Zone C (Berths 8, 9 and10)
of Port Rapid for the one-week
period quoted in the following
Harbor Master’s records:
Berth 10
Berth 9
Berth 8
Date
Llandaff
Fairwater arrived
at 18.30 hrs
Lakeside left
berth at 20.30 hrs
July 3rd
Llandaff
Fairwater
Unoccupied
July 4th
Llandaff left
13.30
Ely arrived
20.00
Fairwater
Canton arrived
04.00
July 5th
Ely
Fairwater left
20.30
Canton
July 6th
Ely left berth
21.30
Unoccupied
Canton
July 7th
Unoccupied
Lisvane arrived at
04.00 hrs
Canton
July 8th
Heath arrived
04.30
Lisvane
Canton left 21.00
July 9th

75
• Number of hours occupied by vessels:
• Berth 8 = + + + + + + =
• Berth 9= + + + + + + =
• Berth 10= + + + + + + =
• Total=
• Total berth hours available= * * * =
• Berth Occupancy = hrs. * 100 =
• hrs.
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• If Berth Occupancy averaged 85% over a year, it would be
uncomfortably high; since the calculated value is an average,
in some months it must have been higher than 85%, perhaps
even 100%, with sever port congestion.
• There is always the risk with high Berth Occupancy that the
port will not be able to cope with a sudden increase in demand.
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77
• What steps would you take to reduce high berth occupancy to an
acceptable level?
1. Speed up cargo handling, either by using more gangs and equipment or
more shifts and overtime;
2. Work vessels at anchor via barges, to reduce the number of vessels
waiting for berths (but remember you’ll need resources to receive cargo
ashore from the barges);
3. Improve Berth Allocation policies, to ensure fair distribution of vessels
and appropriate matching of ship to berth;
4. If bunching of ship arrivals is the cause, bring it to the attention of senior
management, so that they can try to persuade shipowners and agents to
even out vessel arrivals.
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78
• Berth Working Time
• It is that part of Ship’s Time at Berth for which labor is scheduled to work.
• Non-Operational Time is that time when the berth is not scheduled to work.
• Idle Times are unscheduled interruptions to cargo handling at a hatch.
• Operational Time is the time that cargo is actually being worked at a berth,
after all delays have been deducted.
Operational Time = Ship’s Time at Berth – (Non Operational Time + Idle Time)
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79
• Example (9):
• What percentage of ship’s Time at Berth is Berth Working Time for berth
that works a 5-day week, with one 8-hour shift per day (with a ½ - hour
meal break), assuming 100% Berth Occupancy for that week?
• Berth Working Time = 5 * 7 ½ = 37 ½ hrs.
• Ship’s Time at Berth = 7 * 24 = 168 hrs.
• Percentage = 37 ½ * 100 = 22.3 %
168
• So, Berth Working Time is only 22.3% of ship’s Time at Berth.
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4. Indicators of Productivity
• All three categories of indicators discussed so far provide, to greater or
lesser extent, useful data for a management information system but not
measure efficiency and cost effectiveness of the Berth Operation; they
do not indicate how effectively labor, equipment, buildings and land are
being used.
• In general terms, efficiency is the ratio between output achieved and
effort put in.
• A useful measure of efficiency in cargo handling operations would be
the cost per tone of cargo.
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• Productivity: the efficiency of terminal operations, i.e. the ratio of output to
input.
• Expression - the quantity of production (items, tonnes, units etc.) achieved
per unit of resource (per person, per square metre, per item of equipment)
in unit time (day, week, month etc.).
• 1. Ship productivity 2. Crane productivity
• 3. Quay productivity 4. Terminal area productivity
• 5. Storage area productivity 6. CFS area productivity
• 7. Equipment productivity 8. Labour productivity
• 9. Cost-effectiveness
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81

82
• The nature of Port Costs:
• It is usual to think of Port Costs (or, indeed, as we shall, of
Berth Costs) as having two components:
• Fixed Costs: are independent of output, performance or
utilization – they have to be paid whether a berth handled
150,000 tonnes a year or 1 tone.
• Variable Costs: are directly related to output – they increase
with the quantity of cargo handled.
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• The fixed costs of the berth are:
1. The capital cost of berth construction (or the interest charges
on the investment);
2. Cost of building sheds and offices;
3. Salaries of permanent staff;
4. Cost of ownership of equipment – the purchase cost (or
interest on borrowed capital) of cranes, trucks, etc. , and
some routine maintenance costs.
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• The Variable Costs at a berth are:
1. Wages of casual or hourly – paid labor;
2. Incentive, bonus or overtime payments to staff and labor
3. Fuel for forklift trucks and other vehicles;
4. Some equipment maintenance and repair costs.
9/19/2018

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