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Rationale of Port Business

Port businesses aim to move goods efficiently and at affordable prices by utilizing maritime transport which is cheaper than other modes of transport. Ports function as trade gateways and logistics hubs by facilitating the storage and transfer of goods between sea vessels, barges, trains, and trucks. Port performance is measured using indicators such as vessel turnaround time, cargo volume handled, and speed of cargo handling to optimize operations and efficiency.

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Mohammed Shaji E IMU Kochi
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356 views46 pages

Rationale of Port Business

Port businesses aim to move goods efficiently and at affordable prices by utilizing maritime transport which is cheaper than other modes of transport. Ports function as trade gateways and logistics hubs by facilitating the storage and transfer of goods between sea vessels, barges, trains, and trucks. Port performance is measured using indicators such as vessel turnaround time, cargo volume handled, and speed of cargo handling to optimize operations and efficiency.

Uploaded by

Mohammed Shaji E IMU Kochi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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RATIONALE OF

PORT
BUSINESS
Goods are moved from one place to another
Transport by sea is cheaper- Delivered at
affordable prices
Maritime transport is a derived demand
Maritime Sector is a service sector
Depend on Demand and supply of world
trade
• Port manager job is to satisfy different users
• Ports can be considered as integral parts of
logistics supply system
• Ports are seen as logistics and distribution
centres that optimise the movement of goods
• Ports are trade gateway
Derived Demand
• Demand for a goods and service that result
from the demand for a different or related
good or service
• It is a demand for some physical thing where
a market exists for both goods and services
• Derived demand have significant impact on
derived product market price
Factors affecting Demand for shipping
• WORLD ECONOMY
• SEABORNE COMMODITY TRADE
• AVARAGE HAUL
• TRANSPORT COSTS
• POLITICAL EVENTS
• ELASTICTY OF DEMAND
• COMPETITION
FUNCTIONS OF SEA PORTS
• TRADITIONAL FUNCTION
• TRANSIT FUNCTION
• INDUSTRIAL FUNCTION
• NET WORK FUNCTION
• ECONOMIC FUNCTION
• COMMERCIAL FUNCTION
• TRANSPORT FUNCTION
TRADITIONAL FUNCTION
• Storage area –Facilitates untill they
transported to final destination
• Involves Simple paking area to
Tank farm capable of holding million of barrels
Transit function
• Opportunity for trans shipment
• Transfer of goods between different modes
of transport
• Sea going vessels – Barges – railway wagons
Truck
INDUSTRIAL FUNCTIONS
• Ports provide terminals for handling liquid &
solid bulk cargoes for industry
• Export of Industrial products
• Logical out come of Traditional + Transit Fn
NETWORK FUNCTION
• Hub and spoke concept /Load cntre concept
• Feeder port concept
• ECONOMIC FUNCTION
• Generates revenue to a country from
facilities available for berthing and pilotage
• Customs duty
• Cargo &ware housing activities
Commercial function
• Facilitates cargo handling , transit ,delivery
• Ware housing
• Passenger handling
• Allied services
Port functions –(Assets& facilities)
• NAUTICAL INFRASTRUCTURE
• BERTH /QUAY INFRASTRUCTURE
• PORT AREA INFRASTRUCTURE
NAUTICAL INFRASTRUCTURE
• Marine services
• Access & navigation
• Pilotage & Towage
• Vessel traffic Management
• Dredging & maintenance
BERTH /QUAY INFRA STRUCTURE
• Terminal services
• Berthing
• Tie up services
• Stevedooring
• Bunkering
• Quay transfer
Port super structure
• Logistic and value added services
• Cargo storage processing
• Information processing
• Estate and rental service
• Repair Services
•PORT ORGANISATIONAL
STRUCTURE
• A Typical port will have common functional elements
regardless of the structural model
• Board of directors
• Marine traffic
• Mangement services’
• Finance
• Engineering
• Real Estate Dept
• Marketing & commercial
• Personnel dept
• Health dept
• Control of strategic direction lies with
Board of directors
• Through management committee headed by
CEO will establish medium to long term
development plan
• Represented by all stake holders
• Marine Trafic Dept
• Deputy Conservator of Port & Harbour
master
• Operational part of Berthing & unberthing
• Statutory responsibility to enforce regulations
related to safety environmental protection
• Vessel navigation
• Vessel traffic system
• Pilot
Marine dept
Hydrographic survey
Dredging
Vesel Trafficking Service (VTS)& Vessel Traffic
Management Service (VTMS)
• Designed to improve & enhance safety of ships
moving inside port area
• Capability to interact with vessel trafic and
respond to situations in VTS area
• 24X 7 days
Management services
Shore based activities
Berth allocation
Cargo handling
cargo entry
Safety of ship
• FINANCE DEPT
A port is a financial entity with large flow of income
and expenditure which need to be controlled
• Control and prepare Budget
• Collect revanues & port dues
• Make payments
• Prepare accounting statements
• Provide financial statistics
Engineering dept
• Infra structural developemnt
• Civil electrical Mechanical Marine
• Maintain wet and dry infra structure of port
• (Locks quays terminals roadways bridges)
• Renovation and new builds
• Real estate dept
• Land property of port
• Lease agreement development maintenance
Marketing & Commercial dept
• The marketing promotion and commercial
relations department is an essential activity
through which port management is able to
extend the out reach to its present customers
and potential customers
• Explore new business opportunities
Personnel Dept /HR dept
• Right number of staff with right expertise in

right position associated with work of port

• Staff recruitment training & development


•PORT
PERFORMANCE
MEASUREMENT
• Port management is concerned about
effectiveness of its operation
• An indication of Port performance is of
increasing important as the size of ship
continues to grow
• Competition increases
• Capital investment of port rises
Features concerning port productivity
• VESSEL TURN AROUND TIME
• CARGO VOLUME HANDLED
• SPEED OF CARGO HANDLING
• CARGO SAFETY & PILFERAGE PREVENTION
Vessel Turnaround Time
• The total time that a vessel spends at a port
from its arrival to departure.It is conveyed as
a specific time measure
• It is a summation of several sub activities
Waiting time for berth
Maneuvering time
Mooring/Unmooring time
Idle time
Cargo handling time
• Port indicators are control tools or
instrument that allow a manager to measure
port performance and corrective decisions to
improve it when and where it is needed

• Help decision making for investment


• Strategy for port development
• 2/3 of total maritime cost takes place in ports
• The port manager has to manage many
different operations with in port to reach an
optimum service level where waste and delay
keep minimum
Port operations performance
• PHYSICAL PERFORMANCE
Out put of existing assets & facilities
• QUALITY PERFORMANCE
Factor of competion -Price & services
Flexibility & reliability
• FINANCIAL PERFORMANCE
• Overall financial acounting
performance
PHYSICAL PERFORMANCE
• Performance indicators are produced ina
quantifiable manner to allowobjective analysis
and comparision
• Berth Performance
• Handling operation performance
• Storage performance
Berth performance indicators
• Berth performance indicators concern the
calculation of ship waiting time and its time
in port
• Port manager to ensure optimum use of
berth in ports
Indicators for berth performance-

Berth Through put


Total units handled in a period of time

Service Time & Service time ratio


Time spend in berth by a ship
STR= Cumulated time / Total No of Ships
Waiting Time-
Time spend for waiting berth
Time between ship arrival & berthing

Waiting ratio= Time waiting for


berth/Serv.Time
Turn around time
Total time from arrival to final departure
Time in port ratio= Waiting time+ Serv time /No
of ships
• Berth occupancy ratio
Ratio determined by dividing the berth has
been occupied in hrs per year to total hours
in an year(8760 hrs)
It shows level of demand for port service
• Berth Working time ratio
• No of Hours during which a ship is worked in
port during total service time on berth
• Berth working time ratio=
• Total timewworked/ Service time
HANDLING OPERATIONS
PERFORMANCE INDICATORS
• While assessing handling operation
performance following are considered
• Ship shore handling equipments
• yard transfer equipment
• Labour force
• Ship output
• Shipoutput performance indicators measure
the rate atwhich cargo is handled between
ship and shore
• Three shipoutput performance indicators
• Working shipoutput
• Beth ship out put
• Port ship out put
• Working ship out put is the ratio of total
tonnage handled to total hours worked
• Berth ship out put is the ratio of total tonnage
handled to total hours on berth
• Port ship output is the ratio of Totaltonnage
handled to total hours in port

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