BA 7064

PORT AND TERMINAL

MANAGEMENT
PROF.DR.T.MUTHU PANDIAN
M.TECH.,MBA.,PhD.,FIE
 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 Indias 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 ships 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
Devlins 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 worlds 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 countrys 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.
 Shippers 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 portto 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 submergenceNew York and
Southampton.
(2) Ryas (submerged estuaries)Falmouth,
Rio.
(3) Tidal estuariesBristol, London, Antwerp.
(4) Artificial harboursDover.
(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.