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Edition: 1.

1A July 2000

Distance Education Course PA302.1

Port Operations

Unit 1 The role of ports


Ports have been an important part of economic life for centuries. They serve a vital role in international marine transportation. Also, their activities bring economic benefits to their localities. The two lessons in this unit will cover the topics of: how, why, and where ports developed the important functions of ports in marine transportation intermodal and transshipment links.

Module A: Certificate in Port Administration Diploma in Shipping LogisticsJamaica Maritime Institute

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Unit 1: The role of ports

Port Operations

Unit 1............Activities and expectations


Agenda
To complete this unit, you will: 1. Read and study the text in this unit, and any assigned passages in the course textbook or Student Reader. 2. Apply the information by performing the Activities. 3. Test yourself by doing the Practice Exercises and checking your answers.

Resources
The textbook for this course is: Elements of Port Operation and Management Author: Alan E. Branch Publisher: Chapman and Hall Your Student Reader contains selected readings from: UNCTAD Handbook on Port Development

Learning outcomes
When you have completed this unit you will be able to: Describe the position of a port as a vital link in ocean transportation and international trade. Identify the factors that affect the efficiency of a port. Identify some of the economic benefits of a port city and the surrounding area. Identify the factors that affect the choice of a port. Describe the factors considered in choosing a transshipment port.

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Module A: Certificate in Port Administration (Course PA-302.1) Diploma in Shipping LogisticsJamaica Maritime Institute

Port Operations

Unit 1: The role of ports

Lesson 1......Location, development, and characteristics of ports


Discussions of port operations sometimes involve the use of special terminology. Refer to the list of abbreviations in your Student Reader if you come across any abbreviations, initialisms, or acronyms, with which you are not familiar. A good example to start off with would be UNCTAD. Read UNCTAD Handbook on Port Development Part 1, Chapter 1, paragraphs 123 (pages 58). The words port and harbour are often used interchangeably, but they have different meanings: A harbour is a natural inlet, bay, or river mouth that affords safe moorings or anchorages for vessels. If you look at a map of the Caribbean you will see that, on many islands, the harbours are located on the southwest coast which is on the lee side of the island away from the prevailing trade winds. Many harbours have also been artificially created or enhanced through the use breakwaters, piers, landfill, etc. A port is a harbour that has been developed, through the construction of dock walls, quays, terminals and other shore equipment, to facilitate the docking of vessels and the handling of various cargoes.

Most natural harbours around the world, especially in populated areas, have evolved into ports, and many have expanded far beyond their original shape and size.

Links in the international marine transport system


Ports are just one of the links in the international marine transport system. Other links include: transport between shippers and receivers facilities and the port by inland transport (road, rail, or barge) transport from port-to-port by sea in ships.

In the ports, goods and people are transferred between the seaborne and inland modes of transport.

Module A: Certificate in Port Administration (Course PA-302.1) Diploma in Shipping LogisticsJamaica Maritime Institute

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Unit 1: The role of ports

Port Operations

Listed below in more detail are the most common links in the transport system between the point of origin and final destination.
From point of origin by inland transport

1. Preparation for shipping at mine, plant, factory, shippers premises, warehouse, plantation, etc. 2. Loading to inland transport (road, rail, or barge). 3. Transport from shipper to port.
Port of loading

1. Unloading from inland transport at port terminal. 2. Storage or assembly for shipping at the terminal. 3. Loading to vessel. 4. Ocean transport.
Port of discharge

1. Unloading vessel at destination port. 2. Storage or disassembly at the terminal. 3. Loading to inland transport (road, rail, or barge).
Inland transport to receiver

1. Transport from port to inland destination. 2. Receipt by consignee, receiver, consumer, etc.

Characteristics of safe and efficient ports


In order to be efficient a port needs safe approaches from the sea. The navigation channel must be well marked by buoys and lights to aid day and night navigation in and out of the port. The vessels berths should be such that the vessel is protected from weather and wave action. An efficient port should have sufficient berths available to accommodate the number of vessels that can be expected under normal circumstances. The depth of the water in the harbour and alongside the berths must be sufficient to allow vessels to enter and sail with maximum allowable draft (and thus maximum cargoes). The depth must allow for tidal changes, and for seasonal changes in river levels.

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Module A: Certificate in Port Administration (Course PA-302.1) Diploma in Shipping LogisticsJamaica Maritime Institute

Port Operations

Unit 1: The role of ports

Port facilities
The port facilities should be designed to handle the various commodities that are imported or exported. This may require special terminals and equipment. This will be explained in more detail in subsequent lessons.

Pilots and tugboats


Most ports have qualified pilots available to assist the master of a vessel while entering and sailing from the port. In many ports the use of a local pilot is compulsory. In ports where the docking (berthing) and undocking of the vessel is complicated due to confined spaces, large vessels, wind, busy water traffic, etc., the use of tugboats may be required. In some ports the use of tugs is mandatory. Although modern vessels are increasingly becoming more manoeuvrable by being equipped with bow thrusters, and even stern thrusters, tugboats are still required in certain cases.

Communications
Communications between a vessel and the shore entities of a port are of utmost importance. Almost all ports have the basic means to communicate with the vessel via radiotelephone prior to arrival. The vessels master needs to contact the port authority, pilot office, tugboats and linesmen, shipping agent, customs and immigration departments, stevedoring company, and terminal operators.

Vessel traffic services


Any but the smallest ports will provide a vessel traffic service (VTS) to guide vessels in and out of port, particularly ports where large vessels have to negotiate a narrow channel, or where the port is plagued by fog or other adverse weather conditions. The VTS may use equipment ranging in complexity from a radio telephone to a modern Vessel Traffic Management System (VTMS) which uses shore-based radar linked to computers and other sophisticated surveillance sensors, not unlike those used at airports.

Human resources
A very important component of an efficient ports operation is its human resources. A well-trained workforce and good management/labour relations often attract more shipping business than just good location and facilities.

Module A: Certificate in Port Administration (Course PA-302.1) Diploma in Shipping LogisticsJamaica Maritime Institute

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Unit 1: The role of ports

Port Operations

Infrastructure around the port


None of the above characteristics is of much value if the overall infrastructure around the port is non-existent or of poor quality. An efficient port needs good road and rail access. This is necessary for the fast supply and removal of goods to and from the port area. The following factors have an effect on port efficiency: availability of properly equipped road and rail transport companies local transport regulations physical restrictions, such as rail or road overpasses, weight restrictions, etc.

Ancillary services
The ancillary services offered by a good port include: bunker services (supply of fuel and lubricating oils) ships stores (selling engine room parts and victuals for the ships crew) repair services dry-docking facilities for major repairs.

Many ports have developed a thriving shipbuilding industry.

Activities
1. Look at a map of your island. Identify the natural harbours on the island. Notice which of them have been developed into ports. 2. If you are close to a port, tour the area and list some of the useful infrastructure and ancillary services nearby. 3. Make a rough sketch of an imaginary, ideal port. Mark in the essential infrastructure and services.

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Module A: Certificate in Port Administration (Course PA-302.1) Diploma in Shipping LogisticsJamaica Maritime Institute

Port Operations

Unit 1: The role of ports

Practice Exercise for Lesson 1


Test your understanding of Lesson 1 by answering these questions. Check your answers and re-read any parts you found difficult. The answer key is at the back of this unit. 1. The main function of a port is to: a. b. c. d. carry cargo from the point of origin to its destination provide a safe berthing for cargo vessels provide facilities for loading and unloading cargo vessels communicate with vessels entering and leaving a harbour

2. A port is: a. b. c. d. a natural safe anchorage a harbour developed with docks, quays, and terminals a harbour enhanced with piers and breakwaters a harbour on the lee side of an island

3. The function of a pilot and tugboat is to: a. b. c. d. guide vessels in and out of a port to replace bow thrusters and stern thrusters to make sure the vessel is in the correct berth to ensure the depth of the water is sufficient for the draft of the vessel

4. The VTS is: a. b. c. d. a radiotelephone communication system a way of contacting customs and immigration an ancillary navigation system a service for directing port traffic

5. Road and rail transportation have only a minor effect on the operation of a port. True or false? a. true b. false

Module A: Certificate in Port Administration (Course PA-302.1) Diploma in Shipping LogisticsJamaica Maritime Institute

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Unit 1: The role of ports

Port Operations

Lesson 2......The choice of ports


Ports play a very important role in the economics of a region. They provide employment, financial activity (banking and trade), and engineering activity (construction and maintenance). Read Elements of Port Operation and Management Chapter 1.

The role of ports in trade


Trade and transportation go hand in hand. When goods are bought or sold they have to be transported to market locally, regionally, or internationally. When the trade is international, a lot of that transportation involves carriage by sea For high-quality, high-value cargo, airports can provide some of the same functions as sea ports. But air transportation is expensive. Transportation by water is still the most economical and fuel-efficient mode of transportation per kilotonne mile.

Choosing transshipment ports


A transshipment port is where major shipping lines call to discharge most of their long-haul cargo from mainline vessels. At the transshipment port, the cargo is transferred to smaller feeder vessels, which convey it to inter-regional or sub-regional ports. The mainline vessel then usually returns to its home port. The choice of a transshipment port may be determined by a series of interrelated factors: geography available port facilities and equipment productivity and service domestic cargo base.

Geography
Transshipment ports should be located on the direct sailing routes of mainline vessels. Because of the relatively high cost of operating a mainline vessel, it is more important to reduce its travelling distance and time than it is to reduce those of the feeder vessels.

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Module A: Certificate in Port Administration (Course PA-302.1) Diploma in Shipping LogisticsJamaica Maritime Institute

Port Operations

Unit 1: The role of ports

Of course, it is also an advantage, though a secondary one, if the transshipment port can be located to minimize feeder vessel sailing times and distances too. Transshipment ports must be located to serve potential inter-regional and sub-regional markets. These may not have sufficient volume to warrant direct-line haul service, but collectively can contribute enough volume to warrant a feeder service. The location of the port is chosen to facilitate on-movement of containers in various directions. This is particularly important when several mainline routes converge at the transshipment port.

Port facilities and equipment


Transshipment ports must be able to handle the special needs of coordinated mainline and feeder-vessel traffic. There must be: the physical capacity in berths and container yards to handle vessels and containers without congestion, delays, or breakdown high-quality equipment in good repair to minimize downtime. Equipment should include gantry cranes and yard gantries; forklifts and straddle carriers; tractor, chassis, and other rolling stock; and general yard equipment adequate water depth in the channel and alongside berths modern ships over ten metres in draft and over 2500 TEUs must be accommodated. NOTE: a TEU is a twenty equivalent unit, that is the capacity to carry one standard twenty-foot-long container

Productivity and service


Many factors in a port affect its choice for transshipment services. They range from costs to labour relations and the availability of reliable repair services.
Charges

Rates and charges must be competitive for cargo handling and for port-related services such as stuffing and stripping containers, free days allowed, and so on. Incentives may be offered such as volume rebates.
Labour relations

The human factor is essential to good service. Labour productivity must be high to complement facilities and equipment. Competent labour must be available to operate the equipment.

Module A: Certificate in Port Administration (Course PA-302.1) Diploma in Shipping LogisticsJamaica Maritime Institute

19

Unit 1: The role of ports

Port Operations

Amicable labour relations, freedom from industrial strife, and co-operative attitudes toward productivity standards are positive factors in the choice of a port.
Navigation

Pilot and tugboat services must be available at suitable times to avoid delays in bringing vessels in. This prevents unproductive, costly downtime of cranes and other equipment.
Subsidiary services

Other services that are considered by shipping lines when choosing a transshipment port are: port security and safety from pilferage of containers freedom from excessive damage availability of repair services co-operation of terminal operators and stevedores quality of container tracking and inventory control systems preferential berthing arrangements for mainline transshipment carriers.

Domestic cargo base


The issue of the importance of domestic cargo to the location of a transshipment port is controversial within the port industry. Some people believe that a substantial local market is advantageous in attracting container movement to a transshipment port. Others believe that factor is unimportant.

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Module A: Certificate in Port Administration (Course PA-302.1) Diploma in Shipping LogisticsJamaica Maritime Institute

Port Operations

Unit 1: The role of ports

Activity
Imagine you are a particular type of manufacturer or farmer and must choose which port(s) your goods are to be shipped through. List all of the factors that could affect your choice.

Module A: Certificate in Port Administration (Course PA-302.1) Diploma in Shipping LogisticsJamaica Maritime Institute

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Unit 1: The role of ports

Port Operations

Practice Exercise for Lesson 2


Test your understanding of Lesson 2 by answering the following questions. Check your answers and read over any parts you found difficult. The answer key is at the back of this unit. 1. Turn-around time of a vessel is affected by: a. b. c. d. good facilities, infrastructure, and equipment motivated, well-trained workforce neither of the above both of the above

2. Pilotage and tugboat charges have no effect on port costs. True or false? a. true b. false 3. Name four subsidiary services that affect the choice of a port. a. ___________________________________ b. ___________________________________ c. ___________________________________ d. ___________________________________ 4. Sea ports are preferable to airports because: a. b. c. d. planes are too small sea ports are more accessible sea transport is more economical plane fuel is more costly than ship fuel

5. Ports contribute to the economics of a region through: a. b. c. d. banking and trade employment construction and maintenance all of the above

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Module A: Certificate in Port Administration (Course PA-302.1) Diploma in Shipping LogisticsJamaica Maritime Institute

Port Operations

Unit 1: The role of ports

Answer keys
Lesson 1
1. 2. 3. 4. 5. c. provide facilities for loading and unloading cargo vessels b. a harbour developed with docks, quays, and terminals a. guide vessels in and out of a port d. a service for directing port traffic b. false.

Lesson 2
1. 2. d. both of the above b. false 4. 5. port security and safety from pilferage of containers freedom from excessive damage repair services co-operation of terminal operators and stevedores quality of container tracking and inventory control systems preferential berthing arrangements for mainliner transshipment carriers

3. Any four of the following:

c. sea transport is more economical d. all of the above.

Module A: Certificate in Port Administration (Course PA-302.1) Diploma in Shipping LogisticsJamaica Maritime Institute

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Unit 1: The role of ports

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Module A: Certificate in Port Administration (Course PA-302.1) Diploma in Shipping LogisticsJamaica Maritime Institute

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