LECTURE 3 TITLE:

1.0 OBJECTIVES 1.1 to explain the various components in the total ocean transportation system.

The Ocean Transport System

2.0

INTRODUCTION 2.1 2.2 Ocean transportation is one type of transport industry. Ocean transportation system needs other types transport industry to complete the function of linking raw materials to processing centers and finished products to consumers. Ocean transportation needs the contribution of other type of services such as ports and its related activities including telecommunication. Interaction between one transport industry and the other determines efficiency of the total system.

2.3 2.4

3.0

INDUSTRY CHARACTERISTIC 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Ocean transportation industry comprises those of the public sectors as well those of the private sectors. Components making up the industry is a mixture of fixed asset as well as mobile assets. Fixed assets are normally costly and thus normally assumed under the responsibility of the public sector. Examples of fixed assets are ports, navigational structures, railroads, etc. Government influence in the ocean transportation industry is thus more on the management and control of the main fixed assets. Free competition in thus more apparent in business that deals with the mobile component. It is perculiar that the fixed assets of ocean transportation industry are the slowest in technological advancement.

4.0

MODES OF TRANSPORT 4.1 4.2 4.3 4.4 4.5 4.6 Goods ( as products of commodities) can be moved by five different modes, railroad, road, air, water and pipelines. Each mode will have its own means of moving the goods. The means for railroad is basically rail wagons. The means for railroad is lorries and trucks. The means for air is basically airplanes The means for water is basically barges and ships

4.7 4.8

4.9 4.10 4.11 4.12 4.13 4.14 4.15

Each mode has its own unique economic, institutional and operational characteristic. eg. the economic of sea transport is some circumstances control by cabotage policy whereas the economic of air transportation is not related directly to economies of scale. Points (nodes) between modes of transport are places where cargos are shifted from one mode of transport to the other. Thus, freight stations and ports are between road/rail transport to port. The carriage of good in most cases involve the use of more that one mode of transport. Factors that affect decision making are the alternatives available,. .the required capacity,.. .the nature of good,.. .the speed and reliability.

5.0

THE TRANSPORT CHAIN IN OCEAN TRANSPORT 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 Movement of cargo in ocean transportation involves five components. First the inland carrier in the local country Second the port of origin Third the ocean carrier Fourth the port of destination Fifth the inland carrier in the foreign country The ocean transport system proper comprises the 3rd. 4th. And 5th. Components. Shippers (person dealing with ocean transportation of good from one destination to the other) cannot however view ocean transportation in isolation. It has to be viewed as a total network to ensure that all limitations and bottlenecks restricting the process are addressed. .eg. if a shipper is entrusted to ship pieces of rail tracks each of length approximately 70m, packaging, land transport, handling at port and stowage on board both locally and on the foreign land need to be considered. Issues of predominant important to shippers in are: large capacity,.. ..low cost per unit transport,.. ..high flexibility ( possibility of transporting the goods using different types of ocean carriers.)

5.9 5.10

5.11 5.12 5.13

6.0

THE INLAND TRANSPORT 6.1 6.2 6.3 The movement of cargo to and from ports is often called hinterland transport. The various modes of hinterland transport are: road, .rail,..

6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 7.0 PORT 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11

.waterways. Other modes are pipelines and conveyor belts but these normally stationed within the compound of ports or freight stations. Lorries, trucks, trailers and specialised hauliers are some means of road transport related to ocean transportation. Rails are famous because of its large capacity per travel, ..and free of congestion. Rivers and canals are types of waterways. Examples are those in Holland, Germany, China and Bangladesh. Means of transport for inland waterways are barges and lighters ( tongkang). These barges and lighters act as feeder services from larger ocean carrier so as to reach further inland. ..the popularity of inland waterways in the old days is apparent with flour mills mostly being located by the river, so as steel factory. Areas of debates on inland waterways are inland port facilities, .disadvantages in term of environmental pollution,.. .speed and reliability. But few customers can be served by just the rail. Road and waterways compliments the rail.

7.12 7.13 7.14 7.15 7.16

Ports has two functions, shelter of goods while in transit, ..and transfer of good from ship to hinterland transport and vice versa. There are eight types of port in term of control and operation. The first is the universal world port/regional port/local port. This type of port serve the international seaborne trade networks. They are called universal because they can handle almost all type of sea cargo. First stage collection of cargo is by local port, second stage by regional port and finally to world port. The second type of port is the free port. This type of ports offer free trade zone that minimise the restriction in customs clearance. The third type of port is the terminal port/intermediate port/way port. These are terms used in liner shipping and the port where the voyage starts or ends is the terminal port while the port of call along the journey are the intermediate or the way ports. The fourth type of port is the specialised port. The process only one type of cargo and thus the opposite of universal port. The fifth type is the general cargo/passanger/container/lash (lighter aboard ship)/ro-ro (rollon roll off)/ferry ports. They specialised in one group of cargo. The sixth type is the railway/inland waterway/road/pipeline ports. The are inland shelter and transfer facilities.

7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 8.0

The seventh type is the commercial ports. Their activity are mainly for specific trading houses, induatrial enterprises and fowarding agencies. The eighth type is the transit port. They basically deals with goods for national foreign trade for import and export. The concentrate on custom clearance for the goods. We have at all ports services like, navigation, towage and pilotage,.. .berthing/unberthing.. .stevedoring,.. .cargo handling on quay, .cargo storage,. .cargo clearance.

CLOSING 8.1 8.2 8.3 Ocean transportation should not be view in isolation. Each component in the transport chain compliments each other. Each component in turn depend on many other means (or sub-component) in order to function properly.