Port and Terminal Management Exam#1 – Flashcards
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Port functions (1)
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Smooth Transit of Cargo and Passengers Through Its Facilities
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Port components WATER (1)
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Water Side (Access) Sea :Approaches (Breakwaters), Channels (Turning Basins&Locks), Moorings (Anchorages)
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Port Components LAND (1)
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Land Side (Infrastructure): Cargo and Passenger Handling Facilities, Storage Facilities (Distribution), Marinas (Fishing Ports) Other Facilities (Industrial, Commercial and Public) & Modal Connections
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Port Components (1) SERVICES
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Tugs, Pilots, Ship Yards, Repair Services Support Services
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Port economic functions (1)
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(1) Local/Regional Employment (2) Port and Near Port Spending (3) Support/Facilitate Trade (4) Generate Tax Revenue
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Stakeholders (1)
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Public, Port Workers, Shipping Lines, Terminal Operators, Service Providers, Gov. Agencies
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Supply chain: general understanding of what it is (1)
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a system of organizations, people, technology, activities,information and resources involved in moving a product from supplier to customer (within and across companies) • The planning and management of all activities involved in the efficient, effective flow and storage of goods, and related information
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Port's role in supply chains (1)
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Global commerce and containerization has caused ports to evolve from being traditional land/sea interfaces to members of customer logistics network
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Supply chain flows; port and terminal roles (1)
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Physical Flow: of Cargo, interchange between land and sea, storage, value added services and customer need, time, place, and possesion Information Flow - Creating, Holding, Passing it on Financial Flow - Costs to provide services, efficiency, competitive costs, controlling customer costs
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Critical supply chain components
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Time, Information, and Risk - Complex networks with numerous handoffs and service options - The Right Products, to the right customer, at the right time in the right quantity.
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Current port management issues
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Triple Bottom Line - Financial (Technology Impacts on Service and Facilities, Vessel Size, Expansion and Modernization & Competition for public funds), Regulatory (Security, Safety, and environment) & Social (Public use/Acess, ports as good local partners)
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Historical Perspective of Port Policy (2)
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The U.S. has never had a specific Federal port policy "Do not disturb" the competitive relationships between ports
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Lack of a national port policy- impacts (2)
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Positives - Develop their own business, Utilize the technology they can finance and accommodate, Strategize and plan their own development, Solicit Federal funds based on their own needs. Negatives - Neighboring ports often offer the same services, No direct Federal assistance planning/acquiring technology, Haphazard port development, Competition for Federal funds.
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Federal control existing today /what is needed (2)
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17 Federal agencies are currently responsible for decision-making = a system of often conflicting,inefficient laws, polices,and programs. What is Needed: Government reports and studies point to a need for system-wide investments in the national transportation system (Marine Transportation System (MTS)
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Port authority: definition and functions (3)
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definition: A state, municipal, public or private body which is responsible for the construction, administration and operation of port facilities Functions: Invest money/issue bonds • Set and regulate rates and charges for services/facilities • Collect fees and charges • Establish, manage, and/or operate port infrastructure • Market and promote the port • Set and enforce port regulations • Negotiate contracts/leases/operating agreements
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Drivers of privatization (3)
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#1 Phenomenal cargo growth requires investment in facilities, infrastructure, technology, equipment #2 High levels of competition #3 Increased security/environmental requirements #4 Managing local community interests, needs, demands
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Why ports privatize (4)
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• To meet today's port challenges • To increase port capacity and efficiency • To gain cargo handling/supply chain expertise • To reduce costs • To modernize • To become more responsive stakeholder needs • To achieve financial stability and financial targets
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Port ownership types: (3)
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public; landlord; concession; capital lease; build operate transfer
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Public ownership type (3)
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Port Authority owns: Inftrastructure, Superstructure, Terminal Equipment and Labor Responsibility
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Landlord Ownership Type (3)
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Port Authority Owns and Terminal Operator can lease or buy, TO owns the superstructures, TO owns the terminal equipment and the TO has the responsibility of labor
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concession ownership type (3)
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• Port Authority retains ultimate ownership • Private operator invests capital to build, expand, maintain facilities and equipment
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capital lease ownership type (3)
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Similar to a concession, except that private operator only required to maintain the facilities and equipment
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build operate transfer ownership type (3)
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• Private operator builds the port or facilities, operates them and eventually transfers ownership to the government. • Also known at BOOT (Build Own Operate Transfer)
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Port authority's role after privatization (3)
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• Harbor Master functions (navigation, safety, hazardous cargo control, traffic control) • Dredging and harbor maintenance • Provide port development guidelines • Administer rents and leases • Manage security and environmental issues for the port • Conceive and implement port policies • Coordinate regulatory matters with other public or governmental authorities • Customer and stakeholder management • Maintain/improve common use areas of portinfrastructure
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Public Terminal (3)
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Access to all vessels, Some operational control by users, No capital cost for users; variable operational costs for users
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Terminal Operator (3)
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Contracted vessels, Some operational control by users, Capital cost for terminal operator; variable operational costs for users
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Shipping Line Terminal (3)
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Own vessels/Partner vessels/ Contracted vessels, Total operational control by line; some control by partners and contract users, Capital investment for line; variable operational costs for partners and contract users
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Typical Port Organization & Key Departments (4)
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Commissioners with an ED and the Key Departments: Operations, Finance, Marketing, and Administration
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Typical Terminal Operator Departments & Accountabilities (4)
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1 Terminal Manager oversees Marine Mngr, Yard Mngr, Gate Mngr, Maint. Mngr, Admin Mngr, Safety Mngr, Client Mngr
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Interaction between Port organizations (4)
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Port Authority Functional Departments talk to Shipping Line "Shoreside" Functional Departments who also talk to Terminal Operator Functional Departments. The Shipping & Terminal Depts talk to the Shipping Line Vessels
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Operational Environment prior to Containers (5)
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Competition Between Ports:Very limited "Vessels go where the cargo is" Service Area: Local service was the norm ▪ No port impact beyond the gate ▪No service to/from interior (hinterland) on through B/Ls Port Infrastructure: Limited rail on dockLimited shoreside cranes- ship's gear ▪Dockside warehousing and cargo sheds ▪Limited, narrow access to piers Cargo Operations: Slow and steady Manual labor orientation
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Operational Environment today (5)
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Competition Between Ports: Heavy competition between ports Service Area: Shipper: origin to destination ▪Port: on dock rail or "connectors" to off dock rail ▪SSL: port to port; local area near port; intermodal orig/dest Port Infrastructure: On dock rail connections Wharf and yard cranes ▪Port area warehousing and DC's ▪High capacity/rapid access to port areas Cargo Operations:High velocity, Labor saving orientation, High use of technology
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Port Marketing Mix (5)
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Product, Promotion, Price, and Place
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Product factors and customer need (5)
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Location: Proximity to trade lanes, markets, and customer facilities Modal Connections: # and type of connections, nearness to port Capacity: operational drafts (water and air), # and types of berths, ability to handle large volume, and minimal congestion. Equipment Assets: Cargo handling (apron/yard) Facilities: # and type of berths, gates, acess, cargo types handled, warehouses, FTZs, distribution centers Information: secure, timely, accurate Ancillary Services: # and type provided Social/Regulatory: Adherence to regulations, ISO compliance, good citizenship Customer Services: customer focus, good problem solving, know how, Value Added: Marking, labeling, kitting, transloading
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Port Promotion Definition (5)
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Selling the port using advertising, publicity, and e tools
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Buyers of port services (5)
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Shipping lines (Carriers) and Shipper Cosignees (Shippers)
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Goals of Port Promotion (5)
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to increase port business and increase public awareness.
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Price factors and port differentiators (5)
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Cargo Handling Efficiency • Vessel Productivity • Vessel berth time (turn time) • Receipt and delivery operations Cost • Stevedoring • Vessel port call fees • User fees • Equipment fees Labor • Productivity • Work force stability • Skill levels Other Cost Factors • Enter and exit time • Berth productivity • Proximity to trade lanes
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Place: customer need and port differentiations (5)
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Cargo Access/Port Access = customer neeed • Minimal port/terminal enter and exit times, Terminal hours of operation, Timely cargo location in terminal (differentiations)
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Why ports and terminals are capital intensive businesses (6)
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Build:maintain facilities Acquire: maintain equipment Working capital: to support operations
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Funding: needs and sources (6)
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Needs: recover their investments and pay off debts Sources: Taxes, User fees, Loans, Federal/government grants, Operating revenue, Bonds (municipal and revenue)
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Port and terminal revenue: sources and spending (6)
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Operating income and fees, Interest income, Grants, Taxes received, Commercial rents/leases, Other sources
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How revenue is increased (6)
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More Value = increased density/throughput Lower cost = automation, reduced fixed/variable costs Increased rates = charge more, implement fees
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Typical expenses (6)
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• Salaries, wages, benefits • Utilities • Supplies and services • Advertising and promotion • Maintenance • Interest and loan fees • Capital items
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Typical capital expenses (6)
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•Facility upgrades and new construction • Dredging • Cargo handling equipment • Infrastructure upgrades and new construction • Security
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Risks that impact port finances (6)
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• Costs exceed estimates • Revenue less than estimates • Political upheaval • Unforeseen regulatory issues • Labor unrest/actions • Force majeure
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Sources of regulations/regulatory issues (7)
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Sources: Federal, Local State Issues: Security, Record Keeping, Training, Safety, Environment
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OSHA (7)
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Workplace safety and health and Safety training and education i.e.: • Cargo handling within terminals • Gangways and yard equipment • Protective gear •Working areas • HAZMAT handling • Lifting gear testing/certification
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USCG (7)
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Port and Waterway Security/ Marine Safety Environment i.e.: • Vessel hazardous waste management • Oil spills • MARPOL regulations (liquids, solids, ballast water, vapors, etc.) • Hazardous Cargo • Vessel security • Port security • Recreational boating management • Aids to navigation
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FMC (7)
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• Marine Terminal Operator Activities • Impacts public port authorities, private terminal operators, terminal operator organizations • MTOs must publish tariffs of rates and services
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CBP (7)
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• Cargo security, tariff enforcement, duty collection • Container Security Initiative (CSI): cargo inspection • Safe Port Act ("10+2") • Anti-smuggling • Enforce import/export laws/regulations
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ACE (Corps of Engineers) (7)
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• Dredging of navigable waterways • Fill material regulations
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Regulated terminal operations (7) and functions
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Maintenance and Repair: Cranes: apron and yard • Chassis/bomb carts • Other cargo handling gear • Machine shop operations • Car washing • Fueling • Painting • Container cleaning • Battery storage/replacement • Used oil, battery, paint, solvent disposal Cargo Operations: Crane operation- vessels • Crane operation- yard • Trucks- receipt/delivery • Yard hustler operations • Rail car operations • Tour busses, taxis • Shuttle buses •Water, stores, fuel • Hazmat management • Noise/air/water pollution Terminal Administration Storm water runoff Noise and air pollution Worker safety Illness and injury prevention
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Three steps to building compliant organizations (7)
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(1) Know the regulations (2) Build an organization that follows the regulations (3) Establish working relationships with the regulatory agencies
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Financial and social impacts of regulations (7)
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F: Facility upgrades, modifications • Staffing for compliance management • Possible interruption of operations • Changes to work processes S: • Safe and secure workplaces • Reduced environmental impact • "Green" thinking and decision making
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Marine terminals: definition and functions (8)
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A marine terminal is a facility where cargo, people, information, and in some cases, liability is transferred from: • One carrier to another carrier • One mode to another mode
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Functional areas in a marine terminal (8)
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Marine(Vessel Operations), Gate and Yard Operations, Cargo Handling and Rework, Cargo Storage, Cargo Processing, and Cargo Value Added Services
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Port Department: Operations (4)
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Terminal Ops Cruise Ops Marina Ops Fishing Ops Dredging Maintenance
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Port Department: Finance (4)
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Payables Receivables Budgeting Planning
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Port Department: Marketing (4)
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Public Relations Research
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Port Department: Administration (4)
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Human Resources Police/Safety Legal Port Development Information Services
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Terminal Manager (4)
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• Entire terminal, personnel, operations, budgets • Tactical terminal planning • Short term strategy
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Marine Dept/Manager (4)
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• Vessel cargo operations • Labor relations • Budgeting
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Yard Dept/Manager (4)
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• Terminal cargo handling operations • Labor relations • Budgeting
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Gate Dept/Manager (4)
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• Cargo receiving and delivery operations • Labor relations • Budgeting
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Maintenance (M&R) Dept/Manager (4)
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• Terminal equipment maintenance and repair • Labor relations • Budgeting
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Safety Dept/Manager (4)
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• Terminal cargo handling operations • Government relations • Budgeting
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Admin Dept/Manager (4)
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• Human resources • Finance • Budgeting • Information Systems
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Client Dept/Manager (4)
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• Client liaison, finance • Budgeting
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Rail Dept/Manager (4)
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• Vessel cargo operations • Labor relations • Budgeting
