PORT AND TERMINAL MANAGEMENT

COURSE OBJECTIVE
• To enlighten the students about the major
functions in the port and terminal
management
• To expose the students on the trends in port
and terminal management
• TOTAL: 45 PERIODS
 UNIT - I 8
INTRODUCTION TO PORT AND TERMINAL

• Role of ports in international trade and transport

• Economic impact of ports on the regional
economy
• Multiplier effect
• Location characteristics of ports
• Different types of ports (natural, manmade, river,
estuary)
 UNIT - II 12
PORT OPERATIONS

• Design features of facilities in ports for

handling various cargoes
• Organization structure in Ports
• Delivery of port services and the relationship
between various departments
• Marine Department
• Traffic Department
• other departments
 UNIT - III 8
PORT MARKETING AND SERVICES

• Marketing of Port services

• Pricing of Port services
• Components of port tariff
• Concept of hinterland
• Identifying the needs of ship owners and
operators, ship agents, forwarders, truckers,
rail and barge operators
• Concept of Total Logistics cost.
 UNIT - IV 10
PORT PERFORMANCE

• Measurement of port performance

• Vessel turn round time, cargo volume, speed
of cargo handling
• Information flow requirements of the port,
statutory bodies and port users
• Port community computer systems and EDI
applications
 UNIT - V 7
PORT SECURITY AND ISSUES

• Environmental issues connected with Ports &

Terminals
• Health and safety issues
• Port security issues
• International Ships and Port facility security
(ISPS) code
• Role of national, regional and local governments
in owning / operating / managing ports
 COURSE OUTCOME
• The students would be aware about skills
pertaining to port and terminal management
• The students should be able to understand the
principles and applications for port and
terminal management
 REFERENCES
• 1. Maria G. Burns, Port Management and
Operations, CRC Press, 2014.
• 2. Patrick Alderton, Port Management and
Operations, Third Edition, Lloyd's Practical
Shipping Guides, 2008.
• 3. H. Ligteringen, H. Velsink, Ports and
Terminals, VSSD Publishers, 2012.
 UNIT - I 8
INTRODUCTION TO PORT AND TERMINAL
• Seaports are areas where there are facilities
for berthing or anchoring ships and where
there is the equipment for the transfer of
goods from ship to shore or ship to ship.
• 3,500 to 9,000 ports in the world.
 The Importance of Ports
• A port is essentially a point where goods are
transferred from one mode of transport to
another.
• 95% of India‘s foreign trade by weight/volume
and about 70% by value involve transportation
by sea.
 Port functions
• Landlord for private entities offering a variety of
services;
• Regulator of economic activity and operations;
• Planning for future operations and capital
investments;
• Operator of nautical services and facilities;
• Marketer and promoter of port services and economic
development;
• Cargo-handler and stores;
• Provider of ancillary activities.
 The Main Functions and Features
of a Port
• Civil engineering features
• Sea and land access.
• Infrastructures for ships berthing.
• Road and rail network.
• Industrial area management
• Administrative functions
• Control of vehicles, all modes, entering and
leaving the port.
• Environmental control.
• Control of dangerous cargo.
• Safety and security within the port area.
• Immigration, health, customs and commercial
documentary control.
• Operational functions
• Pilotage, tugging and mooring activities.
• Use of berths, sheds, etc.
• Loading, discharging, storage and distribution
of cargo
 Some Definitions
• Port: A town with a harbour and facilities for a
ship/shore interface and customs facilities.
• Harbour: A shelter, either natural or artificial,
for ships.
• Dock: An artificially constructed shelter for
shipping.
• Lock: In tidal waters the majority of docks have been maintained at a
fixed depth of water by making the access to them through a lock, which
allows the ship to be raised or lowered as it enters or leaves the dock
• Advantages:
• 1. A constant depth of water can be maintained.
• 2. Cargo handling between ship and shore is easier.
• 3. The ship’s mooring lines do not need constant attention.
• Disadvantages:
• 1. Increase in capital cost. It is also a constructional feature
• difficult to alter if changes in ship design make it too short
• or narrow. This has been a problem with many ageing
• ports in tidal waters.
• 2. Extra time and possible delays for the ship when arriving
• and leaving.
• Breakwater or Mole. A long solid structure, built
on the seaward side of the harbour, for protection
against the weather, rough seas and swell.
• Wharf. A structure built along the shore where
vessels can berth alongside. Pier or Jetty. A
structure built out from the shore or river bank on
masonry, steel or wooden piles for berthing ships.
It is not a solid structure and should not greatly
impede the flow of tide or current. However both
these terms are often used with considerable
variations.
• Dolphin. An isolated islet of piles or masonry to
assist in the berthing or manoeuvring of ships.
• Stevedore. A person employed in moving the
cargo on or off the ship. This is again a term with
many local variations. For instance, in London it
was the term for one of the skilled team who
stowed the cargo on board the ship but after
Lord Devlin’s report the many traditional
functional terms used in this area were
abandoned in favour of the all-embracing term
“docker”.
• Tug. A small power-driven vessel used in ports and harbours
• to:
• — Tow barges and other unpowered craft between required
locations within the harbour. In the early days of sail they
were among the first steam vessels to be developed as they
were very useful in helping sailing craft in and out of port.
• — Help large vessels to manoeuvre in and out of locks and
on and off their berths.
• — Help in salvage and rescue situations. Many will be
equipped with fire fighting and pollution control equipment.
• A modern harbour tug will probably have a bollard pull of
somewhere between 20 to 70 tons
 Legal definitions

• Port means an area within which ships are loaded with

and/or discharged of cargo and includes the usual places
where ships wait for their turn or are ordered or obliged
to wait for their turn no matter the distance from that
area.
• Safe Port means a port which, during the relevant
period of time, the ship can reach, enter, remain at and
depart from without, in the absence of some abnormal
occurrence, being exposed to danger which cannot be
avoided by good navigation and seamanship.
• Berth means the specific place where the ship is
to load and/or discharge. If the word berth is not
used, but the specific place is (or is to be)
identified by its name, this definition shall still
apply.
• Safe Berth means a berth which, during the
relevant period of time, the ship can reach,
remain at and depart from without, in the
absence of some abnormal occurrence, being
exposed to danger which cannot be avoided by
good navigation and seamanship.
• 90 per cent of the world’s merchandize and
commodity trade is transported by ship
• ‘disintegration of production and the
integration of world trade’- Feenstra
• international barriers to trade have been lifted
by the GATT/ WTO -agreements since the
1980s
• ICT- ‘death of distance’ (Cairncross, 1997) or a
‘flat world’(Friedman, 2005)
• Both containerization and ICT that allowed the
reduction of shipping costs and the rise in
importance of logistics and supply chain
management in the evolving global economy
• HINDERLAND – Coverage area. A region lying inland
from a coast. The land behind the coast or the banks
of river or an area of a country that is far away from
cities.
• Mumbai port has a vast hinterland covering the
whole of Maharashtra and large arts of Madhya
Pradesh, Gujarat, Rajasthan, Delhi.
 Four important functions of Ports
1. Administrative (ensuring that the legal, socio-
political and economic interests of the state and
international maritime authorities are protected),
2. Development (ports are major promoters and
instigators of a country’s or wider regional economy),
3. Industrial (major industries process the goods
imported or exported in a port), and
4. Commercial (ports are international trade junction
points where various modes of transport interchange;
loading, discharging, transit of goods).
 Port
• A port is a facility for receiving ships and
transferring cargo.
• Situated at the edge of an ocean, sea, river, or lake.
• Ports have cargo-handling equipment –cranes,
forklifts for loading/unloading of ships
• Canneries or other processing facilities nearby
• Harbour pilots and tugboats are used to maneuver
large ships
• Customs facilities to handle international traffic
 Port Terminals
• Terminal refers to a complete port facility for
accommodating, loading/ discharge of ships and for
the storage, stacking and handling of cargo on shore
• (e.g. bulk cargo terminal, oil terminal, livestock
terminal, etc.).
• A mole or breakwater is a massive port structure
made of masonry or large stone blocks laid in the
sea to protect the harbour from waves and current.
jetty and pier are used to mean the same
 Port accommodation
• Port accommodation is divided into berthing and
storage accommodation.
• Berthing accommodation includes general cargo
berths (wharves, quays, piers, docks), oil tanker jetties
or terminals, bulk cargo facilities, container and
rollon/roll-off terminals, liquefied gas terminals, etc.
• Storage facilities include transitsheds (along the
wharves or docks), back-up storage located away from
the dock,warehouses, stockyards and stacking areas
for containers, stockpiles for bulkcargo etc.
• "port" and “ seaport“ handle ocean-going vessels
• "river port“ handle river traffic- barges, shallow draft
vessels.
• "inland ports”- ports on a lake, river, or canal have access
to a sea or ocean
• "fishing port“ for landing and distributing fish.
• "dry port" is used to place containers or conventional
bulk cargo, usually connected to a seaport by rail or road.
• "warm water port“ does not freeze in winter. -
Petersburg and Valdez
• "port of call" is an intermediate stop to collect supplies/
fuel.
• Cargo containers eliminate loading of smaller
packages at each transportation point, and sealed
• Standard containers loaded on a ship, train,
truck, or airplane, simplifying intermodal
transfers.
• Cargo arrives by train and truck to be
consolidated at a port and loaded onto a large
container ship for international transport.
• At the destination port, it is distributed by ground
transport.
• No standardised means of evaluating port performance
and traffic
• The world's busiest port is claimed by both the Port of
Rotterdam -cargo tonnage handled (total weight of goods
loaded and discharged)and the Port of Singapore -shipping
tonnage handled (total volume of ships handled).
• Since 2005, the Port of Shanghai has exceeded both ports
to take the title in terms of total cargo tonnage
• largest world port: Port of Shanghai, Port of Singapore,
Port of Rotterdam, Port of Hong Kong, Port of New
York/New Jersey
 Problems of Indian Port
• Inefficient and non-optimal deployment of port equipments.
• Lack of co-ordination in the entire logistic chain.
• Lack of proper roads connecting the hinterland for speedy movement
of cargo.
• Frequent labour unrest.
• Many major ports are affected by silting and requires frequent
dredging.
• Except for Bombay and Madras, other ports do not have the facility of
night navigation and pilots. This hampers working round the clock.
• Less competitive and attractive due to its poor productivity, inefficient
process and procedures, less chances for hub status due to inadequate
drafts and away from international sea routs, and high freight cost.
Indian major ports and hinderland
 Hazardous/dangerous cargoes
• Something that can cause significant harm. A
condition or physical situation with a potential for an
undesirable consequence, such as harm to life (or
limb), environment or property
• explosive, flammable, corrosive, noxious, poisonous,
radioactive and irritative substances, commodities
which emit poisonous vapour and are dangerous
when wet, bio-medical material, substances liable to
spontaneous combustion, pressurised gases and
magnetised metal.
 Shipper’s paper
• The documents (such as a bill of lading,
invoice, freight bill, or delivery receipt or in
marine transportation a manifest export
declaration or consular documents) employed
between a shipper of goods and a common
carrier
 Fleet Management
• Fleet Management is a function which allows
companies which rely on transportation in
business to remove or minimize the risks
associated with vehicle investment, improving
efficiency, productivity and reducing their
overall transportation and staff costs,
providing 100% compliance with government
legislation
• Fleet management is the function that oversees,
coordinates and facilitates various transport and transport
related activities.
• Covers vehicles involved in the movement of goods; the
management of light vehicle fleets used in the
transportation of people and light cargo;
• Fleet management underpins and supports transport
related activities through the management of the assets
that are used.
• Effective fleet management aims at reducing and minimizing
overall costs through maximum, cost effective utilization of
resources such as vehicles, fuel, spare parts, etc.
 The Top-10 Port Environmental Issues (ESPO Survey 2004)

1. Port Waste Management

2. Dredging
3. Dredging Disposal
4. Dust
5. Noise
6. Air Quality
7. Bunkering
8. Hazardous cargo
9. Port Development (land related)
10. Ship discharge (bilge)
 DIFFERENT TYPES OF PORTS
• Two: by function and by geographic type
I. BY FUNCTION
• 1. A cargo interface –
• Hub or Centre port, also sometimes referred to as
a mega port, direct-call port, hub and load centre
port, megahub (greater than 4mn TEUs per
annum where a TEU =Twenty-foot Equivalent
Unit), superhub (greater than 1 million TEUs per
annum), load centre port, pivot port, etc.
• In the past - large major ports, dealing with
international trade and smaller local ports serving the
needs of their own hinterland with mainly coastal or
short-sea shipping.
• As inland transport developed larger ports became
larger and smaller ports smaller
• (2) Feeder port—to feed and distribute cargo from 1.
• (3) Entrepot or transit port.
• (4) Domestic port, i.e. a natural outlet for surrounding
hinterland.
 (B) A MIDAS (Maritime Industrial
Development Area)
• also known in France as Zones Industrielles
Portuaires (ZIP))
• mid-1960s
• petrochemicals, oil refineries, steel works saw the
advantages of locating themselves in port areas
• (5) Large industrial zone with its own marine
transport terminal.
• (6) Customs free port.
• (7) Oil port.
• (C) Specific ship/shore interface
• (8) Naval port.
• (9) Fishing port.
• (10) Specific Commodity Export Port
 II. BY GEOGRAPHIC TYPE
• (1) Coastal submergence—New York and
Southampton.
• (2) Ryas (submerged estuaries)—Falmouth,
Rio.
• (3) Tidal estuaries—Bristol, London, Antwerp.
• (4) Artificial harbours—Dover.
• (5) Rivers (non-tidal)—Montreal
The Port of London
 Other types of Ports by
Martin Stopford
• In his “Maritime Economics“ classified ports based on the
location, cargo volume and nature trade and logistics function
served by a port in the national and global economy
• Four broad typologies-
• 1. Local Small Ports -small and of local significance (Type 1),
• 2. Large Local Ports -large but not involved in global trade
(Type 2),
• 3. Large Regional Ports-large port but limited to region (Type
3)
• 4. Redistribution or Transshipment Ports -large ports, wholly
dependent on global trade
• Classification of ports in terms of major and
minor ports has been largely derived from
legal enactments, such as Indian Ports Act
1908 and the Major Ports Trusts Act 1963.
• Major ports and minor ports are not purely
based on its size. Not all Indian minor ports are
not really minor either in size or traffic
performance, nor all ―major ports are really
major performers.
Economic impact of shipping industry across
three channels
Three metrics
 Multiplier Effect
• In microeconomics, things are assumed to be constant; However,
in macroeconomics, the after effects are also taken into account.
• The Multiplier Effect discusses the repercussions of initial
changes in expenditures which amplify the initial effects.
• A change in price level has the potential to affect many different
parts of the economy either in positive or in adverse ways
depending on how the effects happen.
• The multiplier effect takes the initial wealth, international, and
interest rate effects and amplifies these original effects.
• For example, a Port locating in a city may create jobs, revenue,
and knowledge spillovers.  This can help to improve the local
economy through the multiplier effect.
Methods of estimation of muliplier effect of
investment
• Founders of multiplier effect Richard Kahn
(1931) and John Maynard Keynes (1936; 1973).
• The result of investments in economy is so-
called multiplier effect, which is expressed in
much bigger increase of result in comparison
with performed current investments that can
lead to significant growth of economy and
standard of living of population.
• Single Deep-Water System (SDWS)
• The indicators of material expenses listed in the
table and used for estimation of multiplier effect of
realization of major investment projects on water
transport are calculated on the assumption of share
of material expenses in output defined with help of
statistical analysis of data and with due
consideration of its differentiation on water
transport by types of activity (transportation of
freights, passengers, transshipment in ports) and
other allied branches of economy.