SlideShare a Scribd company logo
32 BC Shipping News April 2012
ports & terminals
R
ecently I attended the ECA ses-
sion hosted by the Chamber of
Shipping of British Columbia.
During the session, one could recognize
that among the many questions, there
was one that was outstanding: what
will happen to the local marine indus-
try after enforcement of the Emission
Control Area?
Further to this, I have also followed
some of Port Metro Vancouver’s pres-
entations during the past year, once
again the big question sounds like:
“should the economy change, one way
or another, what will be the outcome
for the local ports?”
The source of these kinds of ques-
tions is in fact the human mind’s
tendency for constructing a business
model and connecting all known exter-
nal and internal sensors, components
and stimulants to see the effect on the
output, and based upon that output,
make a decision for future moves.
Visualizing the dynamic models of a
marine port had been part of my past
job and designation as an instructor
and member of a maritime training in-
stitute, port and logistics faculty group.
I shall emphasize that all of these
dynamic models already exist in
the minds of CEOs and operational
mangers, but transferring the idea in
an understandable and interesting way
is another matter which I shall try to
accomplish in this short article.
The modelling approach in decision-
making and design aspects of marine
ports has gained greater attention as
managers face a problem area that is
very dynamic in nature. Researchers
have proposed different software pack-
ages and approaches in simulating and
modelling port operations for varying
purposes.
Marine ports are the interfaces be-
tween two modes of transport — land
and water. Ports are industrial areas
that are home to the interchanging of
cargo, information and funds among
different parties such as shippers, car-
riers, insurance companies, customs,
banks and stevedores.
Ports vary significantly in terms of
size, type of operation, location, man-
agement, type of equipment, layout and
many other aspects. Port managers are
aware of different factors affecting the
Visually modelling
a port
Captain Hossein.J.Kamali
smooth and efficient operation of mar-
ine terminals and utilize appropriate
models in supporting their decisions.
As within any operation, representa-
tion of the system plays a crucial role in
management. Representation can vis-
ually show how independent compon-
ents work and interact. It is important
to define the boundaries of the system
and it’s behavior which involves inputs,
processing and outputs.
Following illustrates a simple step
by step modelling of a port in a linear
format which is understandable for
non-experts.
It should be noted that flow of cargo
is not the only source of income for
ports, they charge their customers for
Figure 1. — Gate valve representation of
a simple port system.
As within any operation, representation
of the system plays a crucial role in
management.
April 2012 BC Shipping News 33
ports & terminals
a number of dues and services. No sys-
tem is truly linear and no man-made
model can suffice for decision-making
but should be viewed as a tool for an-
alysis and consideration. Visual rep-
resentation is easier to interpret than
straight text.
A simple way of representing a port
system is to identify a “gate valve”, also
known as a “sluice valve”, which operates
by lifting a gate/wedge out of the path of
the fluid, Figure 1. The fluid is the cargo;
the inlet and outlet of the valve are the
land and water transportation activ-
ities. The reservoir behind the gate valve
represents the storage yard and the gate
is an internal element affecting the
throughput of the port. When we com-
bine the valve with a reservoir a simple
cargo terminal is formed.
This type of schematic diagram is
standard for the logistics of many busi-
nesses, with raw material as input,
inventory being kept in storage and
product as output. In this simple model
the gate is playing an important role, it
restricts the flow of cargo and regulates
the rate of throughput.
Figure 2. — Three major subsystems of marine ports.
Figure 3. — Subsystems interacting with throughput of the port.
However, a real port system is far
more complex. Cargo movement can be
in both directions (import & export)
and there are many other elements
which can restrict the rate of through-
put, such as quay cranes, quay transfer
equipment, workers/unions, weather,
drafts, market, local legislation and
others. The flow is not restricted by
any single valve but by a series of
valves, which holistically determine the
throughput.
Thus the above simple system can be
used as a single building block which
can be anywhere from fully closed,
slightly open or fully open.
Marine Port Subsystems
Marine ports are composed of three
major subsystems as illustrated in
Figure 2: Quay (Berth); Yard; and Gate
and rail-head.
Quay
Quay is where the physical transfer of
goods from ship to shore and vice versa
takes place. Throughput governing ele-
ments include:
•	 Quay equipments such as cranes, con-
veyer belt and pipes which transfer
goods from ship to shore and vice
versa
•	 Berth’s length and depth which de-
cides the number and size of ships
that can be berthed simultaneously
•	 Security level which is a measure to
enhance the security of ship and port
facilities
•	 Berth’s traffic and labour staffing at
any given time
34 BC Shipping News April 2012
ports & terminals
Yard
Yard is where inventory is kept. It’s
throughput is governed by:
•	 Material handling equipment
•	 Current capacity
•	 Wharfage
•	 Complexity of the documentation
process
Gate and rail-head
Gate and rail-head are where the
goods are cleared in/out by the Cus-
toms department and connection is
established with land transportation
by interchanging the goods with land
vehicles.
The diagram in Figure 2. is similar to
a pipeline where subsystems determine
the capacity of the whole; the system
throughput rate is determined by the
least open gate valve.
There are more closely interrelated
systems and players within the logistics
chain of the marine industry that affect
the throughput of the port, including
multimodal transportation, rival ports,
off-dock terminals, lighterage at an-
chor and ocean carriers as shown in
Figure 3.
The main core of the port itself is at-
tached to land transportation from one
side and approaching sea passage on
the other side.
It should not be assumed that any
gate valve in the above model works in-
dependently. Although complete clos-
ure of a single valve along the pipeline
stops the entire throughput, their vari-
ance is not independent but is continu-
ously under the influence of the other
components, passively and/or actively.
For example, a berth’s depth is pas-
sively under influence of the approach-
ing canal. It would be redundant to
dredge a berth more than draft limita-
tion of the approach passage. Elements
such as labour force, ports equipment,
type of vessels to service and berth
traffic volumes and patterns, actively
affect each other in a multilateral way.
The same applies for international
trade, regional trade, national legisla-
tion, ocean carriers and rival ports.
Limitation of a port’s storage cap-
acity encourages the use of off-dock
terminals, which in turn is affected by
the multimodal transport and custom
regulations.
National legislation such as the
Emission Control Area which urges the
use of more expensive fuel by ocean car-
riers can affect the pattern of their port
rotation in favour of or against rival
ports. Poor quay equipment would re-
quire ships with mounted cranes. Depth
limitation encourages cargo work at an-
chor (lighterage).
The diagram evolves to Figure 4. by
showing interrelationships between
building blocks as red arrows.
To avoid excessive visual complexity,
only basic interrelationships have been
shown.
We may conclude that ports are stra-
tegically located in the supply chain as
an interface in the flow of goods and
act as a platform for the exchange of
information. As a key link within the
supply chain, ports have to co-operate
with shipping agents, forwarders, off-
dock terminals, ocean carriers, port
authorities, shippers, rail/road/feed-
er operators, truckers, governments
and administrative services such as
Customs.
Challenges facing ports are not only
related to the periodic economic cycles
and fluctuations but also to the chan-
ges in the structure and organization
of the industry. Ports must be adapt-
able to these changes and become more
involved in the integration of supply
chains by changing their traditional
fragmented approach into an integrat-
ed system within which new roles and
relationships with other players are
defined.
A holistic dynamic model can help
tackle the numerous issues ports face
and can save considerable time and
money in design and decisions which
otherwise may lead to sunk costs.
Captain Hossein J. Kamali is an
accomplished Master Mariner with exten-
sive international training and work ex-
perience in ocean-going vessels, shipping,
logistics, port operations and container
management. He has authored several
books on these subjects. Captain Kamali
can be reached at h.kamali@shaw.ca.Figure 4. — The interrelationships show the evolution of the supply chain.
Challenges facing ports are not only re-
lated to the periodic economic cycles...
but also to the changes in the structure
& organization of the industry.

More Related Content

What's hot

3. transpo system overview
3. transpo system overview3. transpo system overview
3. transpo system overview
Deuce Condenuevo
 
Cascade Effects in Container Shipping: Implication for Regional and Feeder Ports
Cascade Effects in Container Shipping: Implication for Regional and Feeder PortsCascade Effects in Container Shipping: Implication for Regional and Feeder Ports
Cascade Effects in Container Shipping: Implication for Regional and Feeder Ports
Portek International Pte Ltd
 
AssignmentLSC_Arjit_final
AssignmentLSC_Arjit_finalAssignmentLSC_Arjit_final
AssignmentLSC_Arjit_finalArjit Saran
 
Cgf summary logistics
Cgf summary logisticsCgf summary logistics
Cgf summary logisticscgrowth
 
CONECT_Reeve pres final_110314
CONECT_Reeve pres final_110314CONECT_Reeve pres final_110314
CONECT_Reeve pres final_110314John Reeve
 
CMA CGM DPW -May 21 2013
CMA CGM DPW -May 21 2013CMA CGM DPW -May 21 2013
CMA CGM DPW -May 21 2013Vino Kumar
 
Team 8_2M(Final)
Team 8_2M(Final)Team 8_2M(Final)
Team 8_2M(Final)Jenny Hoang
 
MarketNote September 15 2015
MarketNote September 15 2015MarketNote September 15 2015
MarketNote September 15 2015
Matthew Marshall
 
Study of port performance in india
Study of port performance in indiaStudy of port performance in india
Study of port performance in india
Heisenberg26
 
Impact on trade on expansion of panama canal a dissertation
Impact on trade on expansion of panama canal a dissertationImpact on trade on expansion of panama canal a dissertation
Impact on trade on expansion of panama canal a dissertation
Heisenberg26
 

What's hot (11)

3. transpo system overview
3. transpo system overview3. transpo system overview
3. transpo system overview
 
Cascade Effects in Container Shipping: Implication for Regional and Feeder Ports
Cascade Effects in Container Shipping: Implication for Regional and Feeder PortsCascade Effects in Container Shipping: Implication for Regional and Feeder Ports
Cascade Effects in Container Shipping: Implication for Regional and Feeder Ports
 
AssignmentLSC_Arjit_final
AssignmentLSC_Arjit_finalAssignmentLSC_Arjit_final
AssignmentLSC_Arjit_final
 
Cgf summary logistics
Cgf summary logisticsCgf summary logistics
Cgf summary logistics
 
CONECT_Reeve pres final_110314
CONECT_Reeve pres final_110314CONECT_Reeve pres final_110314
CONECT_Reeve pres final_110314
 
CMA CGM DPW -May 21 2013
CMA CGM DPW -May 21 2013CMA CGM DPW -May 21 2013
CMA CGM DPW -May 21 2013
 
Team 8_2M(Final)
Team 8_2M(Final)Team 8_2M(Final)
Team 8_2M(Final)
 
MarketNote September 15 2015
MarketNote September 15 2015MarketNote September 15 2015
MarketNote September 15 2015
 
Study of port performance in india
Study of port performance in indiaStudy of port performance in india
Study of port performance in india
 
Impact on trade on expansion of panama canal a dissertation
Impact on trade on expansion of panama canal a dissertationImpact on trade on expansion of panama canal a dissertation
Impact on trade on expansion of panama canal a dissertation
 
Revised_Freight_Rail_Handbook_8 24 2012
Revised_Freight_Rail_Handbook_8 24 2012Revised_Freight_Rail_Handbook_8 24 2012
Revised_Freight_Rail_Handbook_8 24 2012
 

Similar to portmodeling

Measuring and evaluating port performance and productivity
Measuring and evaluating port performance and productivityMeasuring and evaluating port performance and productivity
Measuring and evaluating port performance and productivity
Brandix India Apparel City Pvt Ltd.
 
An Analysis Of Turnaround Time In Ref. To Chennai Port Trust
An Analysis Of Turnaround Time In Ref. To Chennai Port TrustAn Analysis Of Turnaround Time In Ref. To Chennai Port Trust
An Analysis Of Turnaround Time In Ref. To Chennai Port Trust
Karla Adamson
 
Port and Terminal Operations Management PPT
Port and Terminal Operations Management PPTPort and Terminal Operations Management PPT
Port and Terminal Operations Management PPT
zelalemdagne3
 
Port cluster of economy
Port cluster of economyPort cluster of economy
Port cluster of economy
Indian maritime university
 
Efficiency assessment 2325aEFFICIENCY ASSESSMENT OF OFF-DOCK CONTAINER TERMIN...
Efficiency assessment 2325aEFFICIENCY ASSESSMENT OF OFF-DOCK CONTAINER TERMIN...Efficiency assessment 2325aEFFICIENCY ASSESSMENT OF OFF-DOCK CONTAINER TERMIN...
Efficiency assessment 2325aEFFICIENCY ASSESSMENT OF OFF-DOCK CONTAINER TERMIN...
AkashSharma618775
 
Port Chapter two and three.pptx
Port Chapter two and three.pptxPort Chapter two and three.pptx
Port Chapter two and three.pptx
zelalemdagne3
 
Container Terminal study
Container Terminal studyContainer Terminal study
Container Terminal study
Sumit Sharma
 
Respond  100 Response 1Inland ports can benefit from lea.docx
Respond  100 Response 1Inland ports can benefit from lea.docxRespond  100 Response 1Inland ports can benefit from lea.docx
Respond  100 Response 1Inland ports can benefit from lea.docx
wilfredoa1
 
SELECTION OF DRY PORT LOCATION FOR COSCO SHIPPING LINE GHANA COMPANY LIMITED ...
SELECTION OF DRY PORT LOCATION FOR COSCO SHIPPING LINE GHANA COMPANY LIMITED ...SELECTION OF DRY PORT LOCATION FOR COSCO SHIPPING LINE GHANA COMPANY LIMITED ...
SELECTION OF DRY PORT LOCATION FOR COSCO SHIPPING LINE GHANA COMPANY LIMITED ...
AkashSharma618775
 
Ensuring innovative development of the marine transport management system in ...
Ensuring innovative development of the marine transport management system in ...Ensuring innovative development of the marine transport management system in ...
Ensuring innovative development of the marine transport management system in ...
Igor Britchenko
 
Best Services of Logistics Transportation.pptx
Best Services of Logistics Transportation.pptxBest Services of Logistics Transportation.pptx
Best Services of Logistics Transportation.pptx
nimatoozseo
 
Coastal shipping and CHA Documentation
Coastal shipping and CHA DocumentationCoastal shipping and CHA Documentation
Coastal shipping and CHA Documentation
adarshdaz
 
Empty Container Relocation: Businesscase
Empty Container Relocation: Businesscase Empty Container Relocation: Businesscase
Empty Container Relocation: Businesscase
Paradigma Consulting
 
Seminar on Atlantic Action Plan - SMEs experience on European projects along...
Seminar on Atlantic Action Plan - SMEs  experience on European projects along...Seminar on Atlantic Action Plan - SMEs  experience on European projects along...
Seminar on Atlantic Action Plan - SMEs experience on European projects along...
Eduardo Oviedo
 
Recommendation For Tasco Essay
Recommendation For Tasco EssayRecommendation For Tasco Essay
Recommendation For Tasco Essay
Amanda Gray
 

Similar to portmodeling (20)

Measuring and evaluating port performance and productivity
Measuring and evaluating port performance and productivityMeasuring and evaluating port performance and productivity
Measuring and evaluating port performance and productivity
 
Port modeling
Port modelingPort modeling
Port modeling
 
Oecd
OecdOecd
Oecd
 
Oecd-sea transportation
Oecd-sea transportationOecd-sea transportation
Oecd-sea transportation
 
An Analysis Of Turnaround Time In Ref. To Chennai Port Trust
An Analysis Of Turnaround Time In Ref. To Chennai Port TrustAn Analysis Of Turnaround Time In Ref. To Chennai Port Trust
An Analysis Of Turnaround Time In Ref. To Chennai Port Trust
 
Port and Terminal Operations Management PPT
Port and Terminal Operations Management PPTPort and Terminal Operations Management PPT
Port and Terminal Operations Management PPT
 
Port cluster of economy
Port cluster of economyPort cluster of economy
Port cluster of economy
 
Efficiency assessment 2325aEFFICIENCY ASSESSMENT OF OFF-DOCK CONTAINER TERMIN...
Efficiency assessment 2325aEFFICIENCY ASSESSMENT OF OFF-DOCK CONTAINER TERMIN...Efficiency assessment 2325aEFFICIENCY ASSESSMENT OF OFF-DOCK CONTAINER TERMIN...
Efficiency assessment 2325aEFFICIENCY ASSESSMENT OF OFF-DOCK CONTAINER TERMIN...
 
Port Chapter two and three.pptx
Port Chapter two and three.pptxPort Chapter two and three.pptx
Port Chapter two and three.pptx
 
Container Terminal study
Container Terminal studyContainer Terminal study
Container Terminal study
 
Respond  100 Response 1Inland ports can benefit from lea.docx
Respond  100 Response 1Inland ports can benefit from lea.docxRespond  100 Response 1Inland ports can benefit from lea.docx
Respond  100 Response 1Inland ports can benefit from lea.docx
 
PPD 531 Final Draft
PPD 531 Final DraftPPD 531 Final Draft
PPD 531 Final Draft
 
SELECTION OF DRY PORT LOCATION FOR COSCO SHIPPING LINE GHANA COMPANY LIMITED ...
SELECTION OF DRY PORT LOCATION FOR COSCO SHIPPING LINE GHANA COMPANY LIMITED ...SELECTION OF DRY PORT LOCATION FOR COSCO SHIPPING LINE GHANA COMPANY LIMITED ...
SELECTION OF DRY PORT LOCATION FOR COSCO SHIPPING LINE GHANA COMPANY LIMITED ...
 
Ensuring innovative development of the marine transport management system in ...
Ensuring innovative development of the marine transport management system in ...Ensuring innovative development of the marine transport management system in ...
Ensuring innovative development of the marine transport management system in ...
 
Best Services of Logistics Transportation.pptx
Best Services of Logistics Transportation.pptxBest Services of Logistics Transportation.pptx
Best Services of Logistics Transportation.pptx
 
Coastal shipping and CHA Documentation
Coastal shipping and CHA DocumentationCoastal shipping and CHA Documentation
Coastal shipping and CHA Documentation
 
Empty Container Relocation: Businesscase
Empty Container Relocation: Businesscase Empty Container Relocation: Businesscase
Empty Container Relocation: Businesscase
 
Ports cautious investment
Ports cautious investmentPorts cautious investment
Ports cautious investment
 
Seminar on Atlantic Action Plan - SMEs experience on European projects along...
Seminar on Atlantic Action Plan - SMEs  experience on European projects along...Seminar on Atlantic Action Plan - SMEs  experience on European projects along...
Seminar on Atlantic Action Plan - SMEs experience on European projects along...
 
Recommendation For Tasco Essay
Recommendation For Tasco EssayRecommendation For Tasco Essay
Recommendation For Tasco Essay
 

portmodeling

  • 1. 32 BC Shipping News April 2012 ports & terminals R ecently I attended the ECA ses- sion hosted by the Chamber of Shipping of British Columbia. During the session, one could recognize that among the many questions, there was one that was outstanding: what will happen to the local marine indus- try after enforcement of the Emission Control Area? Further to this, I have also followed some of Port Metro Vancouver’s pres- entations during the past year, once again the big question sounds like: “should the economy change, one way or another, what will be the outcome for the local ports?” The source of these kinds of ques- tions is in fact the human mind’s tendency for constructing a business model and connecting all known exter- nal and internal sensors, components and stimulants to see the effect on the output, and based upon that output, make a decision for future moves. Visualizing the dynamic models of a marine port had been part of my past job and designation as an instructor and member of a maritime training in- stitute, port and logistics faculty group. I shall emphasize that all of these dynamic models already exist in the minds of CEOs and operational mangers, but transferring the idea in an understandable and interesting way is another matter which I shall try to accomplish in this short article. The modelling approach in decision- making and design aspects of marine ports has gained greater attention as managers face a problem area that is very dynamic in nature. Researchers have proposed different software pack- ages and approaches in simulating and modelling port operations for varying purposes. Marine ports are the interfaces be- tween two modes of transport — land and water. Ports are industrial areas that are home to the interchanging of cargo, information and funds among different parties such as shippers, car- riers, insurance companies, customs, banks and stevedores. Ports vary significantly in terms of size, type of operation, location, man- agement, type of equipment, layout and many other aspects. Port managers are aware of different factors affecting the Visually modelling a port Captain Hossein.J.Kamali smooth and efficient operation of mar- ine terminals and utilize appropriate models in supporting their decisions. As within any operation, representa- tion of the system plays a crucial role in management. Representation can vis- ually show how independent compon- ents work and interact. It is important to define the boundaries of the system and it’s behavior which involves inputs, processing and outputs. Following illustrates a simple step by step modelling of a port in a linear format which is understandable for non-experts. It should be noted that flow of cargo is not the only source of income for ports, they charge their customers for Figure 1. — Gate valve representation of a simple port system. As within any operation, representation of the system plays a crucial role in management.
  • 2. April 2012 BC Shipping News 33 ports & terminals a number of dues and services. No sys- tem is truly linear and no man-made model can suffice for decision-making but should be viewed as a tool for an- alysis and consideration. Visual rep- resentation is easier to interpret than straight text. A simple way of representing a port system is to identify a “gate valve”, also known as a “sluice valve”, which operates by lifting a gate/wedge out of the path of the fluid, Figure 1. The fluid is the cargo; the inlet and outlet of the valve are the land and water transportation activ- ities. The reservoir behind the gate valve represents the storage yard and the gate is an internal element affecting the throughput of the port. When we com- bine the valve with a reservoir a simple cargo terminal is formed. This type of schematic diagram is standard for the logistics of many busi- nesses, with raw material as input, inventory being kept in storage and product as output. In this simple model the gate is playing an important role, it restricts the flow of cargo and regulates the rate of throughput. Figure 2. — Three major subsystems of marine ports. Figure 3. — Subsystems interacting with throughput of the port. However, a real port system is far more complex. Cargo movement can be in both directions (import & export) and there are many other elements which can restrict the rate of through- put, such as quay cranes, quay transfer equipment, workers/unions, weather, drafts, market, local legislation and others. The flow is not restricted by any single valve but by a series of valves, which holistically determine the throughput. Thus the above simple system can be used as a single building block which can be anywhere from fully closed, slightly open or fully open. Marine Port Subsystems Marine ports are composed of three major subsystems as illustrated in Figure 2: Quay (Berth); Yard; and Gate and rail-head. Quay Quay is where the physical transfer of goods from ship to shore and vice versa takes place. Throughput governing ele- ments include: • Quay equipments such as cranes, con- veyer belt and pipes which transfer goods from ship to shore and vice versa • Berth’s length and depth which de- cides the number and size of ships that can be berthed simultaneously • Security level which is a measure to enhance the security of ship and port facilities • Berth’s traffic and labour staffing at any given time
  • 3. 34 BC Shipping News April 2012 ports & terminals Yard Yard is where inventory is kept. It’s throughput is governed by: • Material handling equipment • Current capacity • Wharfage • Complexity of the documentation process Gate and rail-head Gate and rail-head are where the goods are cleared in/out by the Cus- toms department and connection is established with land transportation by interchanging the goods with land vehicles. The diagram in Figure 2. is similar to a pipeline where subsystems determine the capacity of the whole; the system throughput rate is determined by the least open gate valve. There are more closely interrelated systems and players within the logistics chain of the marine industry that affect the throughput of the port, including multimodal transportation, rival ports, off-dock terminals, lighterage at an- chor and ocean carriers as shown in Figure 3. The main core of the port itself is at- tached to land transportation from one side and approaching sea passage on the other side. It should not be assumed that any gate valve in the above model works in- dependently. Although complete clos- ure of a single valve along the pipeline stops the entire throughput, their vari- ance is not independent but is continu- ously under the influence of the other components, passively and/or actively. For example, a berth’s depth is pas- sively under influence of the approach- ing canal. It would be redundant to dredge a berth more than draft limita- tion of the approach passage. Elements such as labour force, ports equipment, type of vessels to service and berth traffic volumes and patterns, actively affect each other in a multilateral way. The same applies for international trade, regional trade, national legisla- tion, ocean carriers and rival ports. Limitation of a port’s storage cap- acity encourages the use of off-dock terminals, which in turn is affected by the multimodal transport and custom regulations. National legislation such as the Emission Control Area which urges the use of more expensive fuel by ocean car- riers can affect the pattern of their port rotation in favour of or against rival ports. Poor quay equipment would re- quire ships with mounted cranes. Depth limitation encourages cargo work at an- chor (lighterage). The diagram evolves to Figure 4. by showing interrelationships between building blocks as red arrows. To avoid excessive visual complexity, only basic interrelationships have been shown. We may conclude that ports are stra- tegically located in the supply chain as an interface in the flow of goods and act as a platform for the exchange of information. As a key link within the supply chain, ports have to co-operate with shipping agents, forwarders, off- dock terminals, ocean carriers, port authorities, shippers, rail/road/feed- er operators, truckers, governments and administrative services such as Customs. Challenges facing ports are not only related to the periodic economic cycles and fluctuations but also to the chan- ges in the structure and organization of the industry. Ports must be adapt- able to these changes and become more involved in the integration of supply chains by changing their traditional fragmented approach into an integrat- ed system within which new roles and relationships with other players are defined. A holistic dynamic model can help tackle the numerous issues ports face and can save considerable time and money in design and decisions which otherwise may lead to sunk costs. Captain Hossein J. Kamali is an accomplished Master Mariner with exten- sive international training and work ex- perience in ocean-going vessels, shipping, logistics, port operations and container management. He has authored several books on these subjects. Captain Kamali can be reached at h.kamali@shaw.ca.Figure 4. — The interrelationships show the evolution of the supply chain. Challenges facing ports are not only re- lated to the periodic economic cycles... but also to the changes in the structure & organization of the industry.