Port Operations & Management: An Overview

1. Vijay Hiranandani

2. INTRODUCTION
Sea ports are historic, commercial and
infrastructural assets that form the backbone of
national and regional economies.
OUTLINE:
Main features and operations of ports
Importance of ports
Evolution of ports
Types of ports
Port management

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

4. MAIN FEATURES & OPERATIONS OF PORTS:
Ports reflect national heritage, local commercial
attitudes, practices, and laws that differ widely between
nations.
Ports require long-term, expensive, and specialized
investments and resources that represent a substantial
chunk of national economy.
Ports are large civil engineering undertakings and a
collection of activities entailing huge sunk costs.
Ports provide ship/shore intermodal interface.

5. The advent of intermodalism has caused ports to compete
for cargoes. This has jolted businesses to increase port
efficiency and value-added activities in recent years.
Value-added activities range from
cargo loading and discharging,
industrial services in ports,
combining and separating cargoes,
up-to-date information on inventory and cargo movements,
stuffing/de-stuffing containers,
loading cargo in crates and crates on pallets,
shrink-wrapping, labeling, weighing, repackaging.

6. Civil engineering features:
Sea and land access
Infrastructures for ships berthing & unberthing
Road and rail networks
Industrial area management
Administrative functions:
Control of all modes of vehicles entering and
leaving the port
Environmental control
Dangerous and hazardous cargo control
Safety and security within the port area
Immigration, health, customs, and commercial
documentary control

7. Hong Kong Port Container Terminal
http://my.hktdc.com/photolib/showhk.asp?id=0700036

8. Operational functions:
Facilitating arrival and departure of ships
Providing navigational aids and Vessel Traffic
Separation (VTS) facilities
Pilotage, tugging and mooring activities
Use of berths, sheds, etc
Loading, discharging, storage and distribution of
cargo
Facilitating supply chain logistics and management

9. WHY ARE SEAPORTS IMPORTANT?
Seaports are a haven with facilities for berthing and
anchoring ships and providing equipment for transfer of
goods from ship-shore, shore-ship & ship-ship.
Ports function as
 distribution centers;
industrial zones;
energy supply bases;
mercantile trading centers with banks, brokers, and
traders;
urbanization and city redevelopment centers;
life activity bases in rural ports;
maritime leisure bases in cruise passenger ship
terminals;
private yacht marinas;

10. Genoa, Italy.
http://www.travel-mall.net/dbimg/location6.jpg

11. Ports form a vital aspect of the national transport
infrastructure.
Ports form the main transport link with their
international trading partners and are a focal point for
national and regional motorways and railways.
Ports are a blessing for national prosperity – they
provide a gateway for trade and attract commercial
infrastructure such as banks, shipping agencies, freight
forwarders, stevedores, etc.
Ports create a hustle and bustle of industrial activity.
Ports are places where foreign cultures and ideas
influence a nation.

12. Ports are a focal point with shallow waters where
ships converge thereby making them vulnerable to
maritime accidents.
Ports are places where valuables are concentrated and
where cargo can be damaged or stolen during handling.
Ports are places where repairs and/or planned
maintenance is carried out on ships.
 Ports are places where
costly delays can occur,
ships are surveyed,
most shipping services – agents, brokers, etc are located,
cargoes come from, and
customs and government policies are implemented.

13. Hamburg Port, Germany
http://www.maritimemarket.ru/images/hamburg.jpg

14. EVOLUTION OF PORTS
Ports have evolved over time
Their development phases can be classified as follows:
First Generation Port:
Existed before and until 1960s
Comprised of a basic cargo interface between
land and sea transport
Isolated from transport and trade activities
Resembled an independent kingdom
Isolation between different port activities
Usually a bulk cargo port

15. Second Generation Port:
During 1960s – 1980s
They were developed transport, industrial and
commercial service centres
Offered various types of industrial and
commercial activities
They reflected sophisticated port policies
and development strategies
Provided industrial facilities within the
port area
Well developed network of transport
infrastructure
They integrated different activities and
zonal relationships

16. Third Generation Port:
From 1980 onwards
Arose from global containerization, inter-
modalism, and booming trade requirements
They are hubs of international production and
distribution
Combine traditional, specialized and
integrated activities
Well-planned infrastructure and information
processing facilities
Offer value-added services
User friendly
Offer simplified customs procedures
More environmentally conscious

17. Nagoya Port, Japan
http://www.iaphworldports.org/gallery/img/Nagoya2_jpg.jpg

18. DIFFERENT TYPES OF PORTS
Hub, center or mega port – a major port dealing with
international trade. Example: Rotterdam in The
Netherlands.
Feeder port – to feed and distribute cargo from major
ports. Example: Port Riga in Latvia provides feeder
service to Hamburg in Germany.
Entrepot or transit port – serves as a transit port.
Example: Batumi seaport in Georgia is a transit port for
Kazakh and Azerbaijan.
Domestic port – provides a natural outlet for
surrounding hinterland. Example: Jafarabad port in
India.

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

20. PORT MANAGEMENT – A BRIEF
Ports last longer than ships and this requires the port
management to avoid any costly blunders.
Ports are classified according to their ownership or
administration. Basic types are:
State owned ports
Autonomous ports
Municipal owned ports
Private owned ports
There is an impetus to increase private ownership of
ports.

21. Ports are governed by various types of boards such as
Representative Board – consisting of persons
representing interests concerned with port operation
Board of Experts – consisting of members with
proven expertise
Two Tier Boards – consisting of one tier to run the
port on day-to-day basis and other tier to plan and
implement major policies

22. Port management aims to:
Operate with overall cost-leadership
Minimize user payment by ensuring quick ship
turnover in port
Minimize through-transport costs
Minimize port costs
Maximize benefits
To port owners
To the town, region or nation
Generate employment

23. Hamburg Port, Germany
http://www.iaphworldports.org/gallery/img/mainporthamburg.jpg

24. CONCLUSION
Ports have historical, commercial and
infrastructural significance.
They form the backbone of national and
regional economies.
Supporting efficient port operations and
management is vital for national prosperity.

25. References
Alderton P.M. (1999). Port Management & Operations.
London: LLP
Grammenos Costas Th. (2002). The Handbook of
Maritime Economics and Business. London: Informa
Professional.