Terminal Management 11

MISE TEAM 2004
TERMINAL MANAGEMENT
PROGRAMME
COMPENDIUM
Terminal Operations and Performance

Indicators
AUTHORS
David Whitaker
Professor Bernard Francou PhD

CONTENTS
1. PORTS AND THE GLOBAL SUPPLY CHAIN 6
1.1 Introduction ................................................................................................................... 6

1.1.1 Containers ..................................................................................................... 7
1.1.2 Container Definition ...................................................................................... 7
1.2 Ports .............................................................................................................................. 8
1.3 Supply Chain ................................................................................................................. 8
1.4 Globalisation .................................................................................................................. 9
1.5 Shipping Alliances ........................................................................................................ 10
1.6 Ports – Strengths and Weaknesses .............................................................................. 10
1.7 Hub Ports ..................................................................................................................... 11
1.8 Marine Terminals ......................................................................................................... 12
1.8.1 Flexibility ..................................................................................................... 12
1.8.2 Continuous Improvement ............................................................................ 12
1.9 Conclusion ................................................................................................................... 13
2. MARINE TERMINAL OPERATIONS 14
2.1 Introduction ................................................................................................................. 14

2.2 Port Development ........................................................................................................ 14
2.3 Technological Change .................................................................................................. 15
2.4 Functions of the Marine Terminal ............................................................................... 17
2.5 Factors Important to a Terminal’s Design and Operation ........................................... 18
2.6 Types of Terminal........................................................................................................ 18
2.7 General Cargo or Multipurpose Terminals .................................................................. 20
2.8 Container Terminals .................................................................................................... 21
2.8.1 The Advantages and Disadvantages of Containerisation ........................... 21
2.8.2 Effect of Containership Size on Terminal Design ...................................... 22
2.8.3 Environmental Issues .................................................................................. 22
2.9 Marine Terminal Features ........................................................................................... 23
2.9.1 The Quay .................................................................................................... 23
2.9.2 Gatehouse ................................................................................................... 24
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TERMINAL OPERATIONS AND PERFORMANCE INDICATORS
MAERSK INTERNATIONAL SHIPPING EDUCATION
2.9.3 Rail Interface .............................................................................................. 25

2.9.4 Buildings ...................................................................................................... 25
2.9.5 Lighting ....................................................................................................... 25
2.9.6 Pavement .................................................................................................... 26
2.10 Terminal Security ........................................................................................................ 26
2.10.1 The Terminal ............................................................................................... 26
2.10.2 Cargo .......................................................................................................... 27
2.10.3 Equipment ................................................................................................... 28
2.10.4 Intruders and Visitors .................................................................................. 28
2.10.5 Security Checklist ....................................................................................... 29
2.11 Emergency Contingencies ........................................................................................... 30
2.11.1 Responsibilities ............................................................................................ 30
2.11.2 Emergency Response Plan ......................................................................... 31
2.11.3 Hazards ....................................................................................................... 31
2.11.4 Port of Refuge ............................................................................................ 33
3. CARGO HANDLING EQUIPMENT 35
3.1 Factors Determining the Type of Equipment Required ............................................... 35

3.2 Container Terminal Equipment .................................................................................... 37
3.2.1 The Chassis System .................................................................................... 37
3.2.2 The Straddle Carrier .................................................................................... 38
3.2.3 Rubber Tyred Gantries ................................................................................ 41
3.2.4 The Top-Pick or Top-Lift Truck ................................................................ 43
3.2.5 The Yard Tractor ........................................................................................ 46
3.2.6 Dockside Container Gantry Cranes ............................................................. 47
4. CARGO PLANNING 50
4.1 Introduction ................................................................................................................. 50

4.2 Container Movements .................................................................................................. 51
4.2.1 Flow Patterns .............................................................................................. 51
4.3 Export Cargo................................................................................................................ 51
4.3.1 Export Cargo Booking List .......................................................................... 51
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4.3.2 Receiving Refrigerated Cargo .................................................................... 52

4.3.3 Cut-Off Date for Receiving ....................................................................... 52
4.3.4 Allocation of Cargo to Storage Locations .................................................. 52
4.3.5 Confirmation of Cargo to be Loaded .......................................................... 53
4.3.6 Pre-Stowage Plan ....................................................................................... 53
4.4 Import Cargo ............................................................................................................... 53
4.4.1 Inbound Stowage Plan and Cargo Manifest ............................................... 53
4.4.2 Preparation of Terminal for Discharge Operations .................................... 54
4.4.3 Inspection of Discharged Cargo ................................................................. 55
4.5 Vessel Operations........................................................................................................ 55
4.5.1 Prior to Vessel’s Arrival .............................................................................. 55
4.5.2 After the Vessel’s Arrival ........................................................................... 56
4.5.3 Vessel Stowage ........................................................................................... 56
5. INTERMODAL LINKS 58
5.1 Introduction ................................................................................................................. 58

5.2 Definition of Intermodal Transportation ...................................................................... 58
5.2.1 The Challenges of Intermodal Transportation ............................................. 59
5.2.2 Intermodal Definitions ................................................................................. 60
5.3 The Rail Mode ............................................................................................................. 61
5.3.1 Rail Development ........................................................................................ 61
5.3.2 Rail Intermodal Operations .......................................................................... 62
5.3.3 Ship to Rail Container Transfer Facilities .................................................... 62
5.4 The Road Mode........................................................................................................... 63
5.4.1 Road Transport Development ..................................................................... 63
5.4.2 Innovation ................................................................................................... 64
6. KEY PERFORMANCE INDICATORS 65
6.1 Introduction ................................................................................................................. 65

6.2 Definitions ................................................................................................................... 66
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6.2.1 What is Port Performance? ........................................................................ 66

6.2.2 What is an Indicator? .................................................................................. 67
6.3 Berth Output Indicators............................................................................................... 68
6.3.1 Definition ..................................................................................................... 68
6.3.2 Source and Reliability of the Data .............................................................. 68
6.3.3 Factors Influencing the Result .................................................................... 69
6.4 Berth Service Indicators ............................................................................................. 69
6.4.1 Definitions ................................................................................................... 69
6.4.3 Factors Influencing the Result .................................................................... 72
6.5 Berth Utilisation Indicators .......................................................................................... 72
6.5.1 Definitions ................................................................................................... 72
6.5.3 Factors Influencing the Results .................................................................. 73
6.5.4 Conclusion ................................................................................................... 74
6.6 Performance Indicators for Handling Operations ....................................................... 74
6.7 Handling Output Indicators ......................................................................................... 74
6.7.1 Ship Output ................................................................................................. 74
6.7.2 The Gang Output ........................................................................................ 75
6.8 Utilisation Ratios of the Input ...................................................................................... 77
6.8.1 Utilisation of the Equipment ........................................................................ 77
6.8.2 Utilisation of the Workers ........................................................................... 77
6.8.3 Source of Information and Reliability ......................................................... 78
6.8.4 Factors Influencing the Results .................................................................. 78
6.9 Performance Indicators for Storage Operations ......................................................... 78
6.10 Definition of the Ratios ............................................................................................... 79
6.11 Source of Information and Reliability.......................................................................... 79
6.12 Factors Influencing the Results ................................................................................... 80
6.13 Conclusion ................................................................................................................... 80
6.14 Indicators for Quality of Service ................................................................................. 80
6.15 Flexibility Indicators..................................................................................................... 81
6.15.1 Working Hours ............................................................................................ 81
6.15.2 Punctuality .................................................................................................. 82
6.16 Reliability Indicators .................................................................................................... 82
6.16.1 Security ....................................................................................................... 82
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6.16.2 Commercial Climate ................................................................................... 83

6.16.3 Work Reliability ........................................................................................... 83
6.16.4 Conclusion ................................................................................................... 83
6.17 Estimate of Port Capacity and Port Planning ............................................................. 84
6.18 Berth Capacities .......................................................................................................... 85
6.18.1 Methodology ............................................................................................... 85
6.19 Storage Capacity ......................................................................................................... 86
6.20 Port Planning ............................................................................................................... 87
6.20.1 Estimate of the Time of the Congestion ..................................................... 88
6.20.2 Use of the Indicators for Limiting or Delaying the Congestion ................. 88
6.20.3 Conclusion ................................................................................................... 88
Answers to Self-Assessment Questions ...................................................................................... 89

Appendix 1 ................................................................................................................................. 91
Resources ................................................................................................................................... 96
PLEASE NOTE
• Self-Assessment Questions have been provided at the end of each chapter. These
questions are designed to help you with your study. The questions are for your
personal study only; do not send in your answers to these questions as they will
not be assessed.
© Copyright Informa UK Limited, 2003. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical,
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written permission of Informa UK Limited.
5
1. PORTS AND THE GLOBAL SUPPLY CHAIN
Learning Outcomes
After successfully completing this chapter, you will have a better understanding
of:
• the historical developments of container terminals ;
• how containerisation began;
• how this affected ports;
• what is meant by “supply chain”; and
• how the container terminal can influence the success of globalisation.
1.1 INTRODUCTION
1-001 Before containers arrived on the scene, ocean freight was carried in general cargo ships.
Until the mid-1960s, almost all general cargo was transported in the breakbulk form and
it was usually loaded by hand. Ships were designed to accommodate a variety of cargo
types, including breakbulk merchandise and quantities of dry bulk commodities such as
grain or coal, or liquid commodities such as palm oil, latex etc. The loading and unloading
of a ship was very labour intensive. Cargo was well stowed and secured but it was
always vulnerable to pilferage and damage. Valuable cargo was placed in the open holds
of a ship and mixed with other commodities in a manner best suited to fill the space.
There was limited space on the ship and in the terminal warehouse to place valuable
cargo behind locked doors.
1-002 The methodology used to transport cargo changed over the years in order to save labour.
Breakbulk cargo was unitised to ease the process of loading and discharging. Any cargo
of similar size and shape that can be bound together is considered unitised. For example,
cartons of canned goods are palletised and pieces of lumber bundled into a package.
1-003 Mechanisation was introduced on board ship in the form of forklifts. Initially, most ships
were not designed for this. The ships’ derricks did not have the capacity to hoist a lift
truck aboard. The surfaces in the ‘tween decks were not “flush” so the lift trucks had
difficulty manoeuvring throughout these spaces. Obstacles were everywhere in the decks,
interfering with easy stowage. Many decks within the ship were not designed to
accommodate the combined weight and height of the forklift and loaded pallet.
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1-004 With the introduction of unitised cargo there was a need to redesign ships for the express
purpose of handling unitised cargo. The well-proven “union purchase” method of rigging
derricks was replaced by ship-mounted cranes or sophisticated swinging booms capable of
lifting 15 or 25 tonnes. The decks within a ship were built without coamings or other obstructions
that might impede the movement of a lift truck and the stowage of unitised cargoes.
1-005 Today, most cargo that previously was handled as breakbulk cargo is safely stowed and
hidden from view inside containers. Breakbulk cargo now generally consists of neo-bulk
commodities such as bagged agricultural products, forest products and steel, which all
move in large volumes.
1.1.1 Containers
1-006 “Containerisation” is the movement of cargo in standardised re-usable containers. In the

modern era, this has come to mean door-to-door service offered to shippers by intermodal
operators. With containerisation, freight need be handled only twice:
• when it is loaded into the container; and later
• unloaded at its destination.
1-007 Intermodal transport of freight takes place when one transport operator contracts to
move cargo from one point to another by more than one means of transport (e.g. truck,
rail, ship, plane, barge or pipeline). For this movement, the shipper is issued with one bill
of lading and one freight charge.
1.1.2 Container Definition
1-008 A general-purpose container is a box of a standard size, constructed of aluminium, steel

or fibreglass. It is often ribbed to provide strength and rigidity. It has reinforced corner
posts. Access is gained by double watertight doors, usually at one end. An intermodal
container can be easily transported by ship, rail, truck or even air.
1-009 The standard closed 20’ box, when empty, will weigh about 2 tonnes. Such containers
are 8’6” high.
1-010 In addition to the closed, general-purpose container there are:
• open top containers (used for bulky cargo which can be loaded through the top);
• flatracks (convenient for machinery or palletised goods);
• refrigerated containers (reefers);
• tank containers; and
• 4’ high open top containers (suitable for heavy cargo such as metal ingots).
For a list of container types, refer to Liner Trade Module II, part 16. Details on ISO
container definitions are included in Appendix 1.
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The Expression TEU
1-011 This is a Twenty Foot Equivalent Unit. A 40’ container is, therefore, 2 TEUs. A 45’
container can be shown as 2 TEUs or 2.25 TEUs. There is no differentiation for the
height of the container.
1-012 For background information on the beginnings of containerization and the Malcolm McLean,
Sealand US story, it is worth researching an article from the Marine Digest, Volume 79,
No 11, July 2001. www.marinedigest.com
1-013 The transfer of general cargo to containers gradually brought about the globalisation of
shipping services. It also brought about the “supply chain”.
1.2 PORTS
1-014 Before containers, a port was concerned only with the activities occurring within its own
boundaries. It had little interest in the effectiveness of the transportation network that
linked the port to its hinterland. In most cases, ports knew little about the dynamics of the
connecting inland transportation network. They did not understand what positive or
negative affect such transportation could have on the port’s business.
1-015 Ports viewed the parties using the port as “users” and not as “customers”.
1-016 Ports acted dictatorially because they felt that the market they served was captive to
them. They chose the nature of the services they would provide and arbitrarily set the
rules and rates for such services.
1-017 The only specialised facilities within the port were those catering to the bulk trades, such
as coal, grain and liquid commodities. Bulk sites in a port were primarily built as private
facilities for use by the major shippers of these commodities.
1.3 SUPPLY CHAIN
1-018 A supply chain is an integrated transportation network that transports goods from point of
origin to final destination. It is the seamless movement of goods using various modes of
transport:
• highway;
• rail;
• air; and
• water.
It involves the use of a single bill of lading from point of origin to destination.
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1-019 Containers became the ideal catalyst for the introduction of transportation supply chains.
1-020 Ports were forced to recognise their role as an important link in the supply chain. They
were obliged to become active participants within the transportation network.
1-021 Ports were compelled to understand the hinterland area of their market, to investigate
how to broaden their potential market and to accommodate the needs of their customers.
1-022 Ports, and the terminals within them, had to collaborate with all modes of transportation to
secure their customer base and to attract new customers.
1.4 GLOBALISATION
1-023 The transfer of general cargo to containers resulted in shipping lines agreeing to work
together as consortiums, sharing space on each other’s ships. The allocation of space to
each shipping line within the consortium was commonly equal to the number of 20’ slots
its own ships provided in relation to the total space provided by all ships deployed within
the consortium. In this manner each line was able to offer frequent service to its customers
without having to operate many ships. In turn, this brought about the globalisation of
shipping services.
1-024 Globalisation of manufacturing placed pressure on to the shipping lines to deliver the
freight “just-in-time”. That is “just-in-time” to allow the manufacturer’s production line
to continue operating without the need for an inventory of parts in storage. The
transportation system virtually became the warehouse. For many importers, it is more
important to know when their goods will arrive rather than how fast they can be delivered.
The Logistics module will expand on this subject.
1-025 The global services provided by the container shipping lines began the gradual evolution
towards larger ships.
1-026 The construction of bigger ships changed the dynamics of shipping and forced the major
shipping lines to switch from using round-the-world services in favour of providing pendulum
services. An example of a pendulum service is one operating from the Far East to
Northern Europe via California and returning via the same route.
1-027 The introduction of pendulum services resulted in the formation of “Hub Ports”. In Asia,
these included the ports of:
• Singapore;
• Hong Kong;
• Kaohsiung; and
• Busan.
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1-028 These ports are heavily used for the transshipment of regional and globally destined
cargo between ships providing pendulum services and ships providing regional services.
1-029 Global-shipping services resulted in the development of specialised hub ports that have
minimal or no hinterland of their own. They just happen to be geographically positioned to
enable cargo to be transshipped for furtherance to global and regional destinations.
Examples of hub ports include container terminals in:
• Panama;
• Jamaica;
• Sri Lanka;
• Freeport in the Bahamas;
• the United Arab Emirates;
• Salalah in Oman; and
• the Port of Tanjung Pelapas in Malaysia.
1.5 SHIPPING ALLIANCES
1-030 The move to larger ships, particularly post-panamax ships, brought about several structural
changes in the business relationships of the major shipping lines. If you refer to Liner
Trade Module II ‘the Maersk Fleet’ you will find excellent examples of ship sizes.
1-031 First was the development of Alliances. With the larger ships, no shipping company could
continue to be competitive and offer frequent port calls on its own. By joining together
with other large shipping lines and forming an Alliance, each line was able to continue to
offer frequent service to the ports on its trade route. This is clearly highlighted in Liner
Trade Module I, Fundamentals of Transportation, part 7.4
1.6 PORTS – STRENGTHS AND WEAKNESSES
1-032 The competitive strength of a regional port is measured by the size of its local market and
its ability to service a large hinterland via good intermodal connections. The Ports of Los
Angeles and Long Beach are fine examples of this. They have a huge local market plus
rail networks that enable the ports to service major markets across the USA.
1-033 For a port to become a hub, it must be geographically located to be able to link regional
trade with the major trade routes followed by the global container services.
1-034 Another factor that will enhance a port’s strength is the use of free trade zones. These
enable manufacturers to process global goods without incurring local import taxes.
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1-035 The modern port may also attract major importers and exporters to position their operations
at the port by providing adjacent consolidation and distribution facilities. This, in turn,
attracts shipping lines to the port for the opportunity to participate in the shippers’ business.
North America, Seattle and Tacoma have successfully employed this strategy.
1-036 The port should also be able to generate two-way trade and provide guaranteed around-
the-clock high performance services.
1.7 HUB PORTS
1-037 Factors that can determine the success of a hub port include:
• Geographic Location
The port should be situated close to the major shipping routes in order to minimise
any deviation to the vessel’s course.
• Central Location to Regional Ports
The transshipment port should be central to the ports that it will serve in that
region to reduce feeder vessel transit time and expense.
• Mainland Location
Although island hubs exist, the ability to offer land transport alternatives to the
customer is important.
1-038 Which ports will become or will remain the hubs of the future will be determined by who
is prepared to invest in:
• The Infrastructure
Are the channels sufficiently deep for the larger ships to approach the berth, to
manoeuvre and remain safely at the berth?
Will the wharves support the larger cranes with the greater outreach?
The entrance and exit facilities help to determine the efficiency of a terminal.
Is the gate large enough to allow for the smooth flow of traffic?
Should the lanes be reversible?
Is there sufficient queuing space for vehicles waiting during peak periods or prior
to the gate opening?
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Can containers be weighed?
Is an on-dock rail yard in place?
• Operating and Labour Practices
Do they need to be streamlined in order to increase the efficiency of their container

terminals?
• Training
Without highly skilled staff that must be available day and night, the terminal will
be unable to provide the service expected.
1.8 MARINE TERMINALS
1-039 What part does the marine terminal play in the supply chain?
The marine terminal is the place where the container is interchanged from one carrier to
another, whether it is from ship or between ship, rail or truck (or to air via truck). The
interchange of containers at the port must be achieved seamlessly to optimise the “just-
in-time” supply chains that global merchants now depend on to maintain an uninterrupted
flow of goods.
1-040 The shipping industry faces ever-increasing costs. The ability of the marine terminal to
help reduce some of the carriers’ costs will lead to the success of the terminal and the
port.
1.8.1 Flexibility
1-041 Transshipment operations require that a level of flexibility be included in the terminal’s
operating procedures to allow unforeseen situations to be addressed. The terminal’s
employees need to be empowered to make well-informed decisions to prevent undue
delays to the vessel’s operations. Flexibility is an important indicator when analyzing a
marine terminal’s quality of service. Performance indicators will be discussed in more
detail later in this module.
1.8.2 Continuous Improvement
1-042 The terminal must be continuously seeking new and better ways of doing things to maintain
success for itself and its customers. This may mean continuing investments in equipment
and in personnel training.
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1.9 CONCLUSION
1-043 The liner industry continues to evolve. Vessel sizes will increase and some lines will
consolidate with others. The shipping industry will continue to seek to reduce costs.
Terminal operators, as a part of the “supply chain” must continue to seek ways to help
their customers. They will need to anticipate their customers’ changing requirements.
This will be true whether the terminal is a part of a regional port or a transshipment port.
SELF-ASSESSMENT QUESTIONS
1. Define “containerisation”.
2. Define “supply chain”.
3. What is meant by “just-in-time” transportation?
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2. MARINE TERMINAL OPERATIONS
Learning Outcomes
of:
• the functions of a port and how it influences terminal design;
• what are the factors important to a terminal’s design;
• the main elements of the terminal;
• site security and contingencies for an emergency; and
• container terminal security procedures in connection with cargo

acceptance.
2.1 INTRODUCTION
1-044 Cargoes have been carried by sea for thousands of years. Initially, waterborne traffic
existed over short distances, from one river port to another nearby port, possibly within
the same river. Then as mariners and merchants gained greater skills in navigation and
seamanship, they built larger vessels and sailed them over greater distances.
2.2 PORT DEVELOPMENT
1-045 The port provides a terminal for the transportation system. A “terminal” is defined as the
“end” or “end part”. In the case of transportation, a terminal exists at either end of a
railway line, an airline route or any shipping route where sheds, hangars, garages, offices
and stations to handle freight and passengers are located.
1-046 Traditionally, ports had been developed in natural harbours and they became the hearts of
many cities.
(a) Terminals originally appeared in the centre of an urban settlement and were
designed to service that settlement, e.g. London.
14
(b) Terminals developed in ports that offered good protection for ships to shelter
from storms, e.g. Vancouver, San Francisco.
(c) The terminal consisted of a wharf, or wharves, built in line with the local
waterfront.
1-047 In Britain, the port of Felixstowe has developed basically from nothing in the late 1960s
into Britain’s largest container port. At the beginning it was mainly a fishing port with a
wartime base for seaplanes. But there was trouble in established ports where workers
were concerned about the effect containerisation would have upon the size of the waterfront
workforce. To by-pass the labour problems, a container terminal was developed at
Felixstowe and this has since grown into a port handling 2.7 million TEU (20-foot equivalent
units) annually. Felixstowe’s major advantage over ports that were in a river was that it
saved on the ships’ steaming times as they moved between ports on both sides of the
North Sea. Good road and rail connections enable the port to serve most parts of the country.
1-048 However, today, ports or marine terminals might be developed wherever they can be
economically justified.
2.3 TECHNOLOGICAL CHANGE
1-049 In the latter half of the 20th century, there were many technological changes to ships and
to the ports that served them. Land transportation also changed to satisfy the needs of
commerce.
1-050 Since the Second World War, the cargoship has altered dramatically. Because of high
operating costs, and because of the time and the cost of labour required to work the
traditional general cargoship, the use of such a ship has steadily declined. First, some
cargoes were palletised and the handling of the cargo was mechanised. As a result,
revolutionary versions of the general cargoship were developed. These included:
• ro-ro (roll-on/roll-off) ships;
• LASH (Lighter Aboard Ship) vessels; and
• containerships.
1-051 Today, the general cargoship has powerful cranes instead of derricks. Cargo can be
loaded through the side or over the stern as well as through the many hatches. But most
of the cargo once handled by these ships is now containerised.
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1-052 This led to a swift evolution in the design and development of all types of merchant ship.
No sooner had specialised general cargo ships been built when they were replaced by
containerships. As a result, ports have experienced many changes. In some places,
previously efficient piers or docks became empty as general cargo operations moved to
the new container terminals. A similar situation has repeated itself in the movement of
liquid and dry bulk commodities, now employing very large ships, and in facilities built for
large cruiseships and their passengers.
1-053 These changes significantly affected the design and location of ports and their marine
terminals. Large open areas were suddenly needed to accommodate a modern container
terminal, and frequently this has meant the construction of sites outside of cities, often on
land created by dredging and other means of landfill. This in itself has posed problems if
the dredged soils were contaminated. The same situation exists in the development of oil
and dry bulk terminals. The large volumes of liquid and dry bulk commodities being
shipped today require specialised facilities with plenty of deep water. Dredging is one
way of providing the deep water but often a causeway is required to carry the land
transportation systems across shallow water areas to the deepwater berth. Such a berth
may be in a location unprotected from the open sea. The disposal of dredged material
can be difficult and expensive, especially if the sediment is contaminated. Ports are
under pressure not to dispose of the material at sea, but to reuse it if possible. Dredged
material can be used in construction projects. Clean or slightly contaminated material
can be used in reclamation areas; the sediment can be placed at the bottom of a land
reclamation project and covered with clean sand. It may include the restoration of wetlands
and wildlife habitat. This helps in mitigating for any disturbances caused to the environment
while a terminal is under construction.
1-054 In the past, the construction or expansion of a port has placed emphasis on its connection
with the sea. However, as port cities have grown and international trade has expanded,
the ability of the port to transfer the cargo from the dock to the end-user has grown in
prominence. It has been realised that it is no good to handle the cargo from large ships
unless the shore side transportation infrastructure is also capable of the handling the
additional volumes. In North America, the railroads have had to respond to the continuing
acceleration of trade with the Far East and the resultant congestion of rail traffic in the
ports.
1-055 To overcome this at the Ports of Los Angeles and Long Beach, where about one-quarter
of all US waterborne traffic moves, a special agency, “the Alameda Corridor Transportation
Authority” was formed to manage and administer a project that has constructed a dedicated
cargo route between the harbours and the intermodal rail yards near downtown Los
Angeles. To accomplish this construction there had to be cost sharing between the ports,
the local governments, the various cities along the corridor and with the railroads. This
US$2.4 billion project is designed to create a fast and efficient way to carry containers
the distance of 32 kms between the ports and the trans-continental railroad network.
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1-056 Ports are a hive of activity. They have buildings, storage areas and equipment for receiving,
storing and re-shipping cargo with connections to rail, road or pipeline transportation.
Some ports are located on natural harbours (e.g. Vancouver, British Columbia, Seattle
and San Francisco in the USA and Sydney, Australia). Others are built on artificial
harbours protected by breakwaters (e.g. Los Angeles or Kobe, Japan. Kobe has in fact
created two large islands, Port Island and Rokko Island, protected by breakwaters and
joined to the mainland by bridges. On these islands they have developed container
terminals, industrial sites and residential and recreational areas). Many ports are located
far from the sea on rivers (e.g. Antwerp, Hamburg, Montreal, and Philadelphia).
1-057 Today, ports do face a dilemma. They face the pressure to build large, costly marine
terminals for a shipping industry that is under great financial strain. Also, the port and its
terminal operators must be prepared to provide the systems, the service and the appropriate
technology1 expected by the customer. As ports compete with one another, shipping lines
can possibly take advantage of these circumstances in order to secure more favourable
conditions and lower rates for their ships and cargoes.
2.4 FUNCTIONS OF THE MARINE TERMINAL
1-058 The operations of all freight terminals are similar in one respect. They are designed to
move cargo, in varying forms, between different modes of transport. In marine terminals,
at least one of those modes is by water. The nature of the marine terminal business could
be:
• To Transfer Cargo
(a) Ship ! " Rail
For example, heavy or oversized equipment.
(b) Ship ! " Road
For example, general cargo, containers.
(c) Ship ! " Ship
For example, cargo being transshipped from one trade route to another.
1
Technology does not just imply the infrastructure. Handling the documentation created for a large container ship is important.
Not too long ago, this involved receiving large envelopes of bills of ladings from the ports of loading. Now much of this can
be transmitted electronically. Computers have enabled a progression towards automated systems that speed the release of
cargoes.
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(d) Ship ! " Barge
For example, lumber brought by barge from mill; general cargo moving
inland.
(e) Ship ! " Pipeline
For example, crude oil to refinery; tallow from reduction plant.
(f) Ship ! " Air
For example, priority cargoes that combine sea and air transportation for
reasons of economy and time; passengers connecting with cruiseships.
• To Store Cargo
For example, using the warehouses to provide care and protection for a customer’s
product.
• To Consolidate Cargo
For example, to receive cargo from various sources and via different means of
transport, to assemble the commodities in one place prior to the arrival of the
ship.
• To Package Cargo
For example, to receive a commodity in bulk for bagging at the terminal.
• To Process Cargo
For example, the oil terminal that receives the raw material and refines it.
2.5 FACTORS IMPORTANT TO A TERMINAL’S DESIGN AND OPERATION
1-059 It could be said that planning to handle cargo really begins long before any is handled.
The facility must be designed to handle the anticipated products. In order to be competitive,
the terminal must be able to accept the size of ships that the trade dictates. The terminal
must be able to berth the ships safely and should have all the appropriate equipment
available to handle the cargo, allowing the goods to move efficiently.
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1-060 Terminal operators need to understand that they must handle their clients’ cargo with
care. Poor maintenance of equipment, inadequate warehouses and the poor condition of
the surface of the storage areas may expose the cargo to contamination, damage and/or
loss. The operator should listen to the customers’ suggestions or requirements. Changes
may need to be implemented and the terminal personnel may require special training.
1-061 Factors to consider when planning the marine terminal include:
• land requirements;
• local industrial development;
• anticipated composition and flow of cargo;
• access for ships, to and from the sea – there needs to be good aids to navigation;
also ample deep water and manoeuvring space;
• type and size of ships to be expected;
• transportation links to hinterland – good access to highways, railways and/or river

transportation systems;
• condition of existing facilities;
• environmental issues – wildlife and their habitat, the disposal of contaminated

dredging material, air pollution from the effects of the construction and of the
cargo operation. Ports have to make sure the air and the water are kept clean
and that ‘foreign’ species are not imported in ships’ ballast tanks;
• economic and financial studies;
• weather conditions that may interrupt the movement of vessels – time lost is
costly to a vessel, especially when it operates in tightly scheduled service; weather
factors, which affect ports, include wind, rain, fog, snow, and ice; wind is of
particular concern because it can have an adverse affect upon the operation of
large machinery, such as ship loaders and unloaders, and container gantry cranes;
• fire protection – essential to serve the interests of the port and its clients;
• security;
• emergency response.
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2.6 TYPES OF TERMINAL
1-062 Terminals exist to suit the needs of different commodities and types of vessel, including:
• bulk terminals, for liquids and/or dry bulk materials;
• grain terminals;
• general cargo terminals, which may handle breakbulk cargoes and containers;
• ro-ro terminals, generally handling wheeled traffic;
• cruiseship terminals;
• container terminals dedicated to the movement of containers only.
2.7 GENERAL CARGO OR MULTIPURPOSE TERMINALS
1-063 Before Container Terminals are discussed it is worth noting that container handling
operations may also take place at a multipurpose terminal. The term “multipurpose terminal”
generally refers to a facility handling commodities that range between container and bulk
operations. Cargoes handled on such a terminal could include the full range of:
• forest products;
• steel;
• project cargoes;
• breakbulk general cargo;
• heavy lifts;
• ro-ro cargoes;
• commodities in bulk; and
• containerised cargo.
1-064 On general cargo terminals, cargo is handled by differing methods. The cargo may be in
the form of cartons, cases, drums, sacks, packages, bundles, pallets or units. The ships
that are engaged in such trades are relatively small freighters. They will be equipped
with derricks or cranes with sufficient capacity to handle most of the cargo that they are
required to carry. Bulk cargoes might be handled by fixed or portable pneumatic equipment.
Warehouses on the terminals are mostly used for general cargo products that may perish
if exposed to rain. In addition to the weather, protection is required from vandalism,
pilferage and contamination from any source, including birds or animals.
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2.8 CONTAINER TERMINALS
1-065 As mentioned in the chapter on Ports and the Global Supply Chain, containerisation was
the idea of Malcolm McLean when he created SeaLand. SeaLand used a 35-foot container
and was quickly followed by Matson using a 28-foot container. These companies were
the pioneers for the way most general cargo is carried today, by homogenising the cargo
into one commodity, the container. This change created the equivalent of “mass production”
in the shipping industry by introducing mechanisation and standardisation, and even
automation. It also caused an extremely high capital commitment to the members of the
shipping industry.
1-066 When the advantages of this method of transportation became apparent, standards for
the dimensions and capacities of containers were developed, initially by the American
Standards Association, but later controlled by the International Standards Organisation
(ISO). Ultimately, everyone adopted these standards (see Appendix 1).
2.8.1 The Advantages and Disadvantages of Containerisation
1-067 The advantages of containerisation are:
• Faster turnaround of ship.
• Reduced time for movement of cargo between shipper and consignee.
• Less handling of actual cargo.
• Less damage.
• Less opportunity for pilferage.
• Reduced labour costs.
• Easier transfer between different modes of transport.
• Less exposure of cargo to the weather.
1-068 The disadvantages include:
• High cost of specialised ships.
• High cost of shore facilities.
• Improperly secured cargo inside a container can be damaged or endanger the

container, the ship and other cargoes.
• Specialised containers (e.g. reefers, flat racks) may be limited in use and carry
freight in one direction only, to be returned empty.
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2.8.2 Effect of Containership Size on Terminal Design
1-069 Containerised traffic is continuing to increase at a rapid rate and terminals around the
world are experiencing unprecedented levels of throughput. Also, the dimensions of
containerships have changed radically. At first, any containership was of a size that
would allow it to pass through the locks of the Panama Canal and so the ship-to-shore
cranes were designed to reach across “panamax” vessels. Today, many ships are too
large to transit the Canal and so “post-panamax” cranes are needed. Also, many terminals
were built with berths long enough to hold two large containerships. Today’s containerships
are larger than could be envisaged years ago and many such facilities can now only
support one ship at a time.
1-070 The amount of land available for the construction and expansion of container terminals is
minimal, while environmental concerns place new but necessary restrictions upon ports
and terminal operators. Many innovative designs have been produced to solve the problems
of lack of space. Unfortunately, many of these options are waiting to be built. The high
costs and risks associated with developing new technologies are often prohibitive.
1-071 A container terminal must service the ships as quickly as possible. Containerships operate
on a published timetable and cannot afford any delays that will affect their schedule.
Efficiency on the terminal depends on the equipment and upon the system and organisation.
It is necessary to know the location of and the status (full, empty, damaged, clean etc) at
all times. Therefore, the use of computers is essential to permit the speedy movement of
containers through the terminal. Computers have also simplified the vessel loading/
discharging operations.
Development and design of a Container Terminal will be a workshop activity during

the Karlslunde seminars
2.8.3 Environmental Issues
1-072 The environment, the air, the land and the water, are all potentially at risk because of the
construction and operation of a marine terminal. It is essential that the protection of the
environment be fully considered when planning the facility.
1-073 During construction, the environment can be affected by:
• disturbances to residential areas by additional traffic;
• nuisances caused by noise, vibration, and dust;
• the impact forced upon marine and surface flora and fauna by dredging and
excavation – if wildlife habitat is disturbed it may be necessary to compensate by
creating alternative and comparable sites; and
• disposal of contaminated soils.
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1-074 During operations, the environment can be affected by:
• Ships
- noise (sound of ship’s generators);
- air pollution;
- water pollution;
- erosion of shore line by ships’ wakes.
• Cargo Handling
- noise;
- dust;
- machinery exhaust;
- traffic;
- excessive lighting.
1-075 It may be difficult to make any project completely harmless to the environment. But, with
good planning and strict adherence to regulations, potential damage and risk can be reduced
to acceptable levels.
2.9 MARINE TERMINAL FEATURES
2.9.1 The Quay
1-076 One purpose of the quay is to provide restraint for the vessel while having its cargo
loaded or unloaded. It must be strong enough to support enormous cranes and large
enough to allow the efficient movement of traffic.
1-077 The quay may be built on piles (see Figure 2), on top of caissons or behind retaining walls.
It must support steel crane rails and have a source of high voltage electrical power. It must
be equipped with a fendering system capable of protecting both the quay and the vessels.
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Figure 2
New Berth on Piles, Under Construction
1-078 The length of the berth depends upon the size of the vessels expected at the facility and
how many ships would be handled at the same time. Sufficient length must be allowed
for a dock gantry crane to be positioned across the extreme ends of a ship. In addition,
there must be room for the terminal’s equipment to manoeuvre safely and efficiently at
these positions. The width of the apron must take into consideration the size of the
cranes to be installed.
1-079 The waterside crane rail used to be positioned about 2.5 metres from the concrete face
of the quay. This allowed sufficient space for the bollards, the crane’s power cables
(perhaps inside a trench) and for the ship’s gangways. However, this is now deemed to
be too close to the edge because of cranes being struck and destroyed by a manoeuvring
vessel. Most installations now allow sufficient space for a vehicle service road on the
waterside of that rail.
2.9.2 Gatehouse
1-080 The gateway to a terminal is the place where responsibility for the care of the container
takes place. Information is exchanged between the terminal operator and the highway
driver. It is at this point where the condition of the container is inspected and recorded. If
the container chassis is to be left at the terminal, it also will be inspected.
1-081 The entrance to a container terminal impacts the smooth flow of highway traffic through
the terminal. There should be sufficient space for trucks to queue if necessary. At the
inspection point there must be sufficient room for the inspectors to walk around the
container and with the ability to see its roof.
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1-082 In advance of the terminal, there should be clear directional signs identifying the various
lanes, such as:
• inbound;
• outbound;
• empty containers;
• weigh scale; and
• by-pass lane.
Preferably, these signs should be overhead but possibly supplemented by arrows painted
on the road.
2.9.3 Rail Interface
1-083 In North America, many marine terminals now have on-dock railyards since a large
percentage of the container throughput is to travel by rail. This feature does streamline
the operation and enhance the “seamless movement” of the goods. However, the rail
operation does consume valuable waterfront land.
2.9.4 Buildings
1-084 Buildings are required for:
• the gatehouse operations;
• vessel operations;
• maintenance and repair;
• worker facilities (lunchroom and toilets); and
• administration.
2.9.5 Lighting
1-085 Work on the waterfront goes on by day and by night. Therefore, good illumination is
required to facilitate the operation. There should be:
• uniform light intensity, no sudden sharp shadows;
• no blinding of equipment operators;
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• as few light poles as possible;
• cost efficient and easy maintenance lights.
2.9.6 Pavement
1-086 A pavement is needed to distribute the loads from the heavy mobile equipment and the
containers to the subsoil. To a large extent, the bearing capacity of the subsoil will
determine the pavement design. The choice of top layer depends largely upon local
costs. Possibilities include:
• Gravel
Cheap, but it does not meet the needs of the modern marine terminal.
• Asphalt Concrete
Easy to construct, but quite expensive. Asphalt is very flexible which is a

disadvantage in the case of concentrated loads and high temperatures.
• Reinforced Concrete Slabs
Subject to cracking under high concentrated loads.
• Concrete Blocks
Flexible and easy to maintain, can be laid mechanically, need to be frost resistant
where applicable.
1-087 Drainage patterns should avoid excessive and frequent peaks and valleys. Pavement
slopes within the container yard should be limited to 1% to 1½% maximum.
2.10 TERMINAL SECURITY
2.10.1 The Terminal
1-088 A marine terminal needs to be kept secure from unauthorised persons in order to:
• protect the large, expensive and technical equipment which is on site;
• protect the intruder from possible harm in a “material handling area”; and of
course
• protect the valuable cargoes which might be in storage.
In addition, it must prevent unauthorised persons from boarding a vessel at the terminal.
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1-089 After the events of 11 September 2001, procedures for controlling access to the terminal
have been re-examined and reinforced. Ports are highly vulnerable especially since
much of their activities often take place close to a city centre or to industrial areas. A new
International Ship and Port Facility Security (ISPS) Code has been adopted by the
International Maritime Organisation (IMO) which affects both ships and ports.
1-090 The ISPS Code was developed to establish an international framework involving co-
operation between contracting governments, government agencies, local administrations
and the shipping and port industries to detect security threats and take preventive measures
against security incidents affecting ships or port facilities used in international trade. It
also established the respective roles and responsibilities of these parties at the national
and international level for ensuring maritime security and to ensure the early and efficient
collection and exchange of security-related information. This code also provides a
methodology for security assessments so as to have in place plans and procedures to
react to changing security levels; and to ensure confidence that adequate and proportionate
maritime security measures are in place.
1-091 The US Customs Service has implemented further security safeguards by introducing the
24-hour advance manifest rule. The effective date of implementation was December 2,
2002. Since that date all carriers are now required to submit a cargo declaration 24 hours
before cargo is laden aboard the vessel at a foreign port. Answers to frequently asked
questions about the 24 hour rule may be found at the US Customs Service website at
http://www.customs.ustreas.gov/xp/cgov/import/carriers/24hour_rule/.
2.10.2 Cargo
1-092 Cargo is often thought of first when security is mentioned. In the case of general cargoes,
pilferage was a serious problem before the advent of containers. All general cargoes
were loaded by hand and only the most valuable could be stowed in a secure locker
whether on the ship or on the terminal. The majority was fully exposed in the open stow
of the ship’s holds and tween decks or on the floor of the warehouse. To a large extent,
the container revolution eased this problem. It was replaced by a much less costly
practice of “shopping”, whereby an occasional container was opened and a few cases of
the contents stolen.
1-093 Unfortunately, the criminal threat is now the removal of full containers. In some cases,
this is done using forged papers in order to claim the container from the terminal.
Sometimes, holes are cut in the fences and a container driven away; other times the
entire contents of a container have been removed under cover of darkness.
1-094 Cargo seals are a concern. Even high security bolt-type seals cannot guarantee the
integrity of a container. Such seals may frustrate an intruder but cannot make the container
impregnable. In general, a seal can only demonstrate that the container has been opened
or is still secure. However, police in one port discovered that a local business was making
copies of “door seals” upon request. These seals would have an identical serial number
to that shown on all documents for the container to be tampered with. Terminal employees
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had been stealing cargo from a container during the night and concealing the thefts by
replacing the seal with an identical one made locally. (The investigation also showed that
nobody seemed to control the issuance of seals for local use. Security seals should be
locked away and strict procedures followed to control their issuance and inventory.)
1-095 Other occurrences include the unauthorised modification of data in a computer system
and by the alteration of container numbers. Such cargo crime is a serious and growing
concern. Cargo claims are a major problem for the transport industry and for the insurers.
Claims for cargo loss exceed those for personal injury, property, collision and pollution
both in number and in value.
1-096 Another container security risk is that of tampering with the temperature settings on
refrigerated containers. A valuable shipment will be lost if a change in temperature
causes the product to perish.
1-097 The loss of a container is not really commonplace but it is the most significant threat
facing the operators of a container terminal. No terminal manager can safely assume it
will not happen to him.
2.10.3 Equipment
1-098 All terminals today have expensive equipment and systems on the site. Much of this is
worth many millions of dollars. Tampering with, or the unauthorised use of, such equipment
could result in costly repairs and/or loss of production. This could translate into delays to
the vessel(s) on berth. On a container terminal, this includes any of the machinery
designed to handle containers. It also includes the computers, whether they are in the
offices or in the machinery. Without these computers, today’s terminal does not easily
function.
2.10.4 Intruders and Visitors
1-099 A stranger, innocently, or with intent, walking or driving through an area dedicated to the
movement of cargo, whether by wheeled machines, by conveyor or through a pipeline, is
in danger of being hurt or of causing a situation detrimental to the operation of the terminal.
1-100 A safe route for passing through a container yard has to be provided for any visitor,
including vessel crewmembers. Often this in the form of painted walkways, which hopefully
deter the pedestrian from walking between rows of containers or through other dangerous
areas. However, just because a person follows such a designated path, it does not release
that person from the responsibility of staying alert and looking out for his safety and for
the safety of those around him.
1-101 Everyone must be made aware that they are in a “Materials Handling Area”.
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2.10.5 Security Checklist
1-102 Security checklist is as follows:
• Fence Line
- Does the perimeter fence extend for the whole of the terminal’s boundary?
- Is the perimeter fencing at least two metres high?
- Is the perimeter fence surmounted by at least three strands of barbed or

razor-edged wire, preferably canted outwards?
- Is the perimeter fence constructed of stout chain link fencing, or better?
- Is the chain link fencing mounted on stout metal or concrete posts anchored
securely in the ground?
• Entrances
- Are the gates of the facility capable of being secured in such a manner as
to prevent a forced entry?
- Do the lanes at the entrance and exit have any form of road barrier in
order to prevent vehicles being brought on to or off the site during non-
working hours?
- Are car parking arrangements compatible with good site security?
• Guards
- Are watchmen employed to patrol the site during non-working hours?
- Are watchmen employed to monitor closed-circuit television cameras

during non-working hours?
• Procedures
- Are keys for outbuildings and perimeter gates retained under conditions
of supervision and security?
- Are the keys accurately signed out and again on return?
- Are empty containers thoroughly inspected when being checked out of

the terminal?
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- Is a system employed to ensure unauthorised cargo cannot be removed

from the terminal?
- Is there a formalised system for recording reports of incidents and events?
- Is computer access selectively limited to employees on a need-to-know

basis?
- Are blank forms and completed documentation kept under secure

conditions?
- Are trained, qualified and experienced managers available at any time,

night or day, to handle unusual incidents involving the facility or the
cargo?
- Are occasional spot checks made by outside personnel, experienced in

the industry, on the terminal’s operating and security procedures?
• Computers
- How vulnerable are the computers to fraud by permanent staff, temporary

staff or outsiders?
- Is the computer room and its equipment adequately protected during

working and non-working hours?
- Are the computer records adequately backed up in the event of fire,

criminal damage or other catastrophe?
2.11 EMERGENCY CONTINGENCIES
2.11.1 Responsibilities
1-103 Safety and emergency response are significant factors in the operation of any industrial
plant. Various governmental agencies may have jurisdiction over the activities of a
workplace.
1-104 The safety of all personnel on the terminal is of paramount importance. All equipment
must be safe and must be operated in a safe manner to protect the well being of the
workers. Drivers of any piece of machinery have to be trained in its safe operation. In
the interests of safety, the operator must:
• be familiar with the machine’s size and capacity;
• know how to operate the machine;
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• understand the operating procedures at the work site;
• operate in a safe manner; and
• use common sense and be at all times alert.
2.11.2 Emergency Response Plan
1-105 Unfortunately, accidents do happen and regulations require that first aid facilities are
available for any such occasion. Obviously, if the terminal is situated in or close to an
area serviced by a local hospital, then post-first aid care is readily available. However, if
the terminal’s location is in a remote area, the transportation of an injured person who
requires hospital care must be planned beforehand, e.g. plane, helicopter, fast boat etc,
using the assistance of outside agencies such as the military or Coast Guard if necessary.
1-106 In the event of an accident where there is danger to life or the environment, the appropriate
agency, or agencies, must be informed. Also, if it is necessary to warn the public, the
media (radio, television and newspapers) should be advised and kept informed. The
news media will undoubtedly be aware of any such incident on the terminal and it is
advantageous to provide them with all available information.
2.11.3 Hazards
1-107 An emergency situation could be created by the hazards of:
• fire or explosion;
• spills of chemicals, oil or fuel;
• collision between vehicles, equipment and/or vessels; and
• theft or vandalism.
1-108 Measures can be taken to limit the risks to these hazards by establishing “Standard Operating
Practices” (SOPs) for various elements of the terminal’s operations. SOPs should be
written to cover situations, such as:
• Fire
Fire prevention can be achieved by:
- prohibiting smoking in buildings;
- thorough housecleaning in warehouses;
- regular inspection of sprinkler systems;
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- enforcing a permit system for any burning or welding conducted on the

site, including on any vessel at the berth; and
- maintaining adequate access to all fire hydrants and extinguishers on the

premises.
• Delivery of Fuel to Terminal
Arrange for the fuel truck to be escorted from the gate to the storage tanks and
position the truck such that any spill can be contained.
• Delivery of Bunkers and Lubricating Oils to Ships
Co-ordinate the delivery time with ship and fuel company and escort fuel truck to
ship’s side. Provide sandbags to prevent any spilled oil from reaching the harbour.
• Control of Movement and Handling of Dangerous Goods
No dangerous goods should be allowed on the site without a permit provided by

the harbour master or equivalent authority. All dangerous goods should be
segregated according to regulations and should be accessible at all times. Lists of
dangerous goods on site should be posted for the benefit of any authority.
• Speed Limits
Establish a safe speed for vehicles operating on or passing through the site and
encourage the reporting of offenders. Take action against anyone abusing the
speed limit (whether the offender is an employee or a visitor).
• Security Procedures
Maintain a log of patrols. Control access to the site.
• Vessel arrivals
A terminal official should be present as a witness whenever a vessel arrives or

departs. A ship when moving, albeit slowly, is capable of causing costly damage
to the dock face, the fendering systems or to parked dock gantry cranes.
• Site Inspections
Establish regular inspections of the site to identify and correct any unsafe situation.
Even with safety protocols in place, accidents, caused by humans, machinery or

nature, do happen. Therefore, it is necessary to draw up plans to enable workers
to respond to the following incidents:
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- fires – minor, major, in mobile equipment, in buildings, onboard ships;
- spills (on land or in the water) – chemical, dangerous goods, fuel;
- collisions – between any combination of vehicle, equipment, ship and

people (even the emergency landing of an aircraft on site);
- bomb or sabotage threats;
- power outage; and
- major storm, flood, earthquake or volcanic ash fallout.
2.11.4 Port of Refuge
1-109 A ship in distress may be in need of a safe haven. Should permission be granted for the
distressed vessel to enter the port and to berth at your terminal? Traditionally, this has
posed no great problem. But today’s large vessels, with much fuel or dangerous cargo on
board, might have a devastating impact on the port and its operations. This is an issue
under discussion around the world today. Questions being asked include:
• Should a port have to take any vessel in distress, even if it poses a risk to the port
and the surrounding areas?
• Would the presence of the vessel disturb the activities of the port and its terminals?
• Can access to the port be reasonably denied and if so, when?
• Will the vessel create an unacceptable risk to the local population, to the coast and
port environment?
• Would there be a greater harm to the environment if the vessel were left at sea?
• Is there a threat to the safety of the crew and others on board the distressed ship?
1-110 If the distressed vessel is admitted to the port and to your terminal, is it possible to:
• Discharge any affected cargo?
• Arrange for specialists and equipment to handle the ship and its cargo?
• Provide facilities to make suitable repairs to the ship?
• Protect the environment from harm?
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1. What is the definition of “terminal” with respect to transportation?
2. List five potential functions of a marine terminal.
3. Why is the waterside gantry crane rail positioned a long way from the
dock face?
4. What activities take place at the gatehouse?
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3. CARGO HANDLING EQUIPMENT
Learning Outcomes
of:
• factors that determine the type of cargo equipment required; and
• the most used types of terminal equipment.
1-111 As a part of the studies pertaining to a container terminal, the types of equipment needed
to move the containers must be closely examined.
3.1 FACTORS DETERMINING THE TYPE OF EQUIPMENT REQUIRED
1-112 Factors determining the type of equipment required include:
• space available;
• expected volume of traffic; and
• distance to travel within container yard.
1-113 An analysis must be made of the various operating systems. In the case of a container
terminal, this means comparing the costs of operating with straddle carriers, rubber tyred
gantries or top lifting equipment, or using an all-wheeled operation.
1-114 Once the method of operation has been determined, the type of equipment and its
specifications can be defined. The choice will now depend on:
• availability (what is the delivery time?);
• specifications (to be determined by the purchaser so that the manufacturers’ bids

can be assessed against a common criteria);
• cost;
• performance;
• ease and cost of maintenance;
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• financing/leasing arrangements; and
• warranties.
1-115 Since such machinery is likely to be very expensive, and the price may vary considerably
from manufacturer to manufacturer, much detail is needed before final decisions can be
made. In the case of a large item like a dock gantry crane or yard crane, one decision to
be made involves the choice of having it erected on site or delivered fully assembled, see
Figure 3.1 below:
Figure 3.1
New Crane Being Delivered Fully Assembled
1-116 The inventory of spare parts for the machinery, and the availability of the parts, need to
be considered. The location of the port might have a bearing on this decision. If the
terminal is located close to a major supplier of parts, where delays to operations would be
minimal, then only a small inventory of spares need be maintained on site. However, if
the facility is in a remote location, the inventory of spare parts must, of necessity, be quite
large. It may be necessary to have an arrangement in place whereby the manufacturer,
or its representative, would provide fast delivery of needed parts in an emergency.
1-117 The provision of a fully equipped maintenance shop on site is most important. This allows
for equipment repairs to be made, but more importantly, it allows for a systematic
“preventive maintenance programme”. Maintenance should be proactive so that its activities
and resources are under control. The maintenance shop needs to be equipped to handle
repairs or to maintain any or all of the following:
• heavy-duty machinery;
• automotive vehicles;
• hydraulics;
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• electrical systems;
• electronics;
• milling;
• welding;
• plumbing; and
• painting.
1-118 Modern equipment is so sophisticated that it would be next to impossible for the local
maintenance crew to understand every facet of its technology. Facilities close to an urban
area would have the benefit of expert advice from trade specialists. In remote locations,
such advice would likely come at great expense if technicians need to be flown in.
1-119 If the terminal is operating on a tight budget, an emphasis on price might become the key
factor in the choice of manufacturer of new equipment. But, it is important to consider
the quality of the equipment being purchased. When one breakdown can cause costly
delays to a vessel, there is perhaps a need to ensure that the equipment’s control systems
are reliable and service friendly. In the case of electrical components, reliability may be
affected by moisture and corrosion. In tropical areas water ingress is a concern for
electric motors and switchboards. The designs for these have to consider the affects of
rain coming as a downpour or being driven by high winds. Tropical temperatures may
make air conditioning necessary for electrical enclosures. Air conditioning will reduce
the humidity in such an enclosure but care must be taken to prevent condensation forming
on the walls as a result.
3.2 CONTAINER TERMINAL EQUIPMENT
1-120 In choosing the equipment to handle containers in the storage area, there needs to be
much research and discussion. No single system can be applicable to every terminal and
situation. There are various methods of handling containers using different types of
equipment. The following describes the systems and equipment most commonly in use
today.
3.2.1 The Chassis System
1-121 In the chassis system, or wheeled operation, an import container, when discharged from
a ship, is placed directly on to a highway chassis. A terminal tractor then moves the
chassis to a place in the marshalling area. The export container is similarly handled – a
terminal tractor moves it from the marshalling area to the ship’s side where it is lifted off
the chassis and onto the ship.
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1-122 A drayman, arriving to collect an import load, first processes the documentation at the
gate, then locates and locks on to the appropriate chassis in the Container Yard (CY),
completes the receipt at the exit gate, and drives away from the terminal with the chassis
and container. The empty container can be returned to the terminal, inspected and parked
for future use, still sitting on the chassis.
1-123 An export load will possibly commence as an empty container sitting on a chassis in the
CY. It is collected from there by a drayman, taken to the shipper’s location, packed and
then returned full to the CY. At the gate, the container is inspected once again,
documentation is processed, and then the drayman parks the loaded chassis in the
marshalling yard.
1-124 Advantages of the wheeled system are:
• There is ready access to every container in the CY at all times.
• Container damage is kept to a minimum.
• The drayman’s turnaround time is also reduced to a minimum.
• Few personnel are required to operate the CY.
• The only equipment required by the terminal operator is a fleet of tractors to move
the chassis and containers to and from the ship’s side.
1-125 Disadvantages of the system are:
• When both ship and gate operations are using the CY, the resulting congestion can
cause conflict and loss of production in both operations.
• Much land is needed.
• The CY needs constant monitoring to update container locations.
3.2.2 The Straddle Carrier
1-126 The straddle carrier (see Figure 3.2 on the next page) has the ability to lift vertically and to
travel horizontally with the container, providing the user with flexibility and versatility.
The machine is able to stack containers three or four high. In some cases, the machine is
able to straddle railcars to load or unload containers and move them to their place of rest in
the CY.
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Figure 3.2
Straddle Carrier
1-127 When using a straddle carrier system, the import container is discharged from the ship and
placed on the dock. The straddle carrier will then lock on to the container and travel with
it to the CY or CFS (Container Freight Station), if there is one on site. The export
container is picked up by the straddle carrier in the CY and transported to the ship’s side
for loading to the vessel.
1-128 A truck, which is on the terminal to collect an import container, will be instructed to park
in an area designated for truck loading while the straddle carrier picks up the container
from the CY, transports it to the loading area and places it on the truck’s chassis. A truck
delivering a container for export also will park in the designated exchange area. The
straddle carrier will then lift the container from the chassis and transport it to a planned
location in the CY.
1-129 Advantages of the straddle carrier system are:
• Only one piece of equipment is needed for transporting and stacking the container.
• Land utilisation is reasonable (better than chassis system).
• No problem with inadequate chassis supply.
• Because ship-to-shore cranes place the containers on to the ground and not on to
a trailer, the cranes are able to operate at maximum capacity.
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1-130 Disadvantages include:
• Maintenance costs on some straddle carriers may be high.
• Operators need to be well disciplined to maintain traffic control.
• Above average damage may occur to sides and roofs of containers.
1-131 A concept recently introduced is the straddle carrier designed only to shuttle containers
between the ship and the equipment in the storage area. This straddle carrier, known as a
Shuttle Carrier (see Figure 3.3) is designed to pick up a container and travel with it at high
speeds. It cannot lift the container over another. The low height and high traveling speed
make this carrier the most efficient way of moving containers through the terminal. It
allows the terminal to have the high stacking density provided by the rubber tyred gantry
or rail mounted gantry, together with the straddle carrier’s efficient method of moving
containers.
Figure 3.3
Shuttle Carrier
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3.2.3 Rubber Tyred Gantries
1-132 Rubber Tyred Gantries (RTGs) have long been a feature of the container yard. This type
of machine (see Figure 3.4) operates along a lane of containers that may be stacked three,
four or five high and up to seven rows wide. The machine can be taken from that lane to
another by stopping it at a specific spot at the end of the lane. There, the wheels are
turned through 90 degrees, allowing the machine to move to the similar location at the
chosen lane where the wheels are returned to the original alignment. The RTG does not
travel while holding a container. Instead it lifts the container to transfer it between the
trailer and the stack.
Figure 3.4
Rubber Tyred Gantries
1-133 In the RTG method of operation, the import container is discharged from the vessel to the
stevedore’s chassis (bombcart). The unit is then towed to the appropriate RTG, which
will remove the container from the bombcart and place it into storage. The export container
is taken from the stack by the RTG and placed on to the bombcart. The container is then
towed to the crane for loading to the vessel.
1-134 When a container is being received for export, the trucker will tow it, on the highway
chassis, to a designated container yard location. (This location will have been determined,
probably by computer, when the receipt was being completed at the gatehouse.) The
trucker must then unlatch the container and wait for the RTG to remove the container
from the chassis and place it in the stack. If the trucker has come for an import container,
he will be directed to position his chassis beside the appropriate block of containers in the
CY. An RTG will then remove the container from the stack and place it on to the chassis.
The truck driver must now secure the container to the chassis and return to the gatehouse
to complete the documentation before leaving the terminal.
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1-135 The RTG offers the following advantages:
• Land is better utilised than under the chassis system.
• The equipment used to move the containers within the container yard costs less
than the straddle carrier system.
1-136 The disadvantages are:
• Accessibility to a container becomes more difficult as stacking density increases.
• The new RTG is an expensive machine.
• Busy periods cause a shortage of machines to meet all operations.
• The RTG cannot travel with a container attached.
• More labour is needed than with straddle carrier system.
1-137 A machine similar to the RTG is the “Rail Mounted Gantry” (RMG). As the name
implies, this machine runs on rails, therefore, it is dedicated to work only the area between
the rails. This could be a “lane” of containers in the CY (Thamesport in England operates
in this fashion) or perhaps it could straddle the “on dock” rail tracks, as it does at Delta
Port (see Figure 3.5 ) in the port of Vancouver, British Columbia. The machine is more
stable than the RTG, and can be designed to handle containers outside of its legs, but as
mentioned, is limited to a given area of operation.
Figure 3.5
Rail Mounted Gantry
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3.2.4 The Top-Pick or Top-Lift Truck (FLT)
1-138 The top-pick (see Figure 3.6), sometimes known as a top-lift or top-rack, is a heavy-duty
top lifting truck. It is an economical machine for operating within a small container yard.
Such a machine probably has a capacity of 95,000 lbs, and with a top-lift spreader it is
capable of stacking fully loaded 40 foot or 45 foot containers four high. The machine can
be used on its own, carrying containers between the ship’s side and the CY, but it is better
used in conjunction with tractors and bombcarts as in the RTG system.
Figure 3.6
Top Pick
1-139 A variant to the standard, and popular, straight-masted machine is the “Reach Stacker”
(see Figure 3.7). This machine is quite versatile with superior capacity, efficiency and
safety. It is capable of reaching across a container to place or recover another in the
adjacent row. It can be used at rail sidings where it can reach across a bombcart to the
railcar beside it.
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Figure 3.7
Reach Stacker
1-140 Which is better, the well known forklift truck (FLT) or the more modern and versatile
reachstacker?
This is a question commonly asked by port equipment operators. Neither machine is

better than the other. The application that the machine is required for will determine the
choice. Reachstackers are gaining in popularity and may become dominant in the loaded
container market, but FLTs still have a role to play, especially for handling empty containers
(see Figure 3.8). A decision can only be made after an analysis is made with respect to the
available stacking areas, the volume of traffic and the flexibility required.
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Figure 3.8
Empty Container Handler
1-141 Safety and ease of handling are other considerations. Reachstackers offer improved visibility
for the driver although one manufacturer of FLTs has introduced a model where the mast
is not in front of the drive axle. Instead, there are two masts behind the axle, one on each
side of the operator. These masts are mounted to the chassis and cannot tilt. Instead, the
lifting attachment is able to tilt. Because the load moment is now acting behind the drive
axle, that machine can now be lighter and have a shorter wheelbase or turning radius.
1-142 Manoeuvrability under loaded conditions – the FLT can work well within a 15-metre wide
aisle stacking or retrieving loaded containers. The reachstacker can do the same, but may
not be able to offer the second row capability. The true second row reachstacker would
need a 16-metre aisle thus reducing the storage capacity of the CY.
1-143 The advantages of the top-pick are:
• The machine is versatile, can travel anywhere, and by replacing the spreader
beam with forks, it can be used to handle other cargoes.
• It is a comparatively inexpensive machine and is easy to service.
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1-144 The disadvantages of the top-pick are:
• The wheels place heavy stresses upon the surface of the CY.
• More space between the container blocks is needed than with an RTG to allow the
machine to manoeuvre.
• Containers are not so easily selected by number because of the size of the storage
blocks.
3.2.5 The Yard Tractor
1-145 The yard tractor (see Figure 3.9) has become the major piece of equipment being used in
most container terminals (such equipment is versatile and also used extensively in multi-
purpose terminals for moving other cargoes). The tractor, often known as a “yard hustler”,
has had to be modified in recent years and even redesigned with a heavier capacity. An
example of this is the four-wheel drive version designed to haul a string of trailers.
Figure 3.9
Yard Tractor
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3.2.6 Dockside Container Gantry Cranes
1-146 Dock gantry cranes (see Figure 3.10) have had to become faster and larger as the new
generations of containerships have appeared. They need to be faster to handle the increased
volumes of containers being carried. They need to be higher because of the increased
height of vessels and of their on-deck stowage. The booms need to be longer to be able to
extend across the modern ship.
Figure 3.10
Dock Gantry Cranes
1-147 A comparison of specifications for cranes built in the early 1970s and those built in the late
1990s is given on the following page.
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1970s 1990s
Capacity
- Under Spreader 40 L/Tons 50 L/Tons
- Under Hook 46 L/Tons 60 L/Tons
Outreach 120’ 175’

(Panamax) (Super Post-
Panamax)
Height of Spreader Above Dock 76’ 110’
Distance, Bumper to Bumper 94’ 88’
Speed
- Hoist (Full Load) 100’ / Min 170’ / Min
- Trolley 410’ / Min 600’ / Min
1-148 As can be seen, apart from the crane’s width, all dimensions have increased over the
years. The width has diminished to allow two cranes to work more closely together on the
ship.
1-149 Environmental aspects of the machinery need to be studied when choosing the equipment.
Even though most dockside container gantry cranes have electric motors, the RTGs, Top
Picks and Straddle Carriers are diesel powered. In addition, if the terminal is not efficiently
operated, the highway vehicles attending the terminal can be delayed at the gate and
inside the CY, with engines running, thus generating many air pollutants.
1-150 Visiting the Container Terminal at Aarhus will give trainees the opportunity to see much
of the above equipment in operation.
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1. What are the pros and cons of a straddle carrier.
2. How does the RTG change lanes?
3. What are the disadvantages of the top pick?
4. When buying new equipment, what criteria will the choice depend
on?
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4. CARGO PLANNING
Learning Outcomes
of:
• the reason why planning of cargo movements is so important; and
• how modern technology is helping monitor cargo movements.
4.1 INTRODUCTION
1-151 Preparing for the movement of cargo through the terminal will begin long before it actually
arrives. This is so whether the cargo in question is in bulk (dry or liquid), breakbulk or
containerised, or if it involves passengers.
1-152 The use of computers to record and monitor the cargo movements is now commonplace.
It is possible for a marine terminal to keep track of shipments from the moment they leave
the manufacturer’s site and then to follow the cargo as it is transported by rail to the port.
Once it is removed from the railcars or highway vehicle, inventory of the product can be
maintained until it is loaded to the vessel. In the interests of customer service, it may be
advantageous to allow the shipper access to the marine terminal’s computer, only to seek
information about its own product. Similarly, it is also sensible to allow the shipping line,
or its agents, access to information about cargo being received for its ships. This access
will also allow the shipping line to update the booking lists and so provide timely details
and instructions for the terminal’s operations staff.
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4.2 CONTAINER MOVEMENTS
4.2.1 Flow Patterns
1-153 Containers may move through the marine terminal in any of the following patterns:
Import – Ship to gate
Import – Ship to rail
Import – Ship to barge
Export – Gate to ship
Export – Rail to ship
Export – Barge to ship
Transship – Ship to ship (mainline or feeder)
Empties – Import returned empty, export released empty
4.3 EXPORT CARGO
4.3.1 Export Cargo Booking List
1-154 In the case of export cargoes, planning for its handling begins once the line has provided
the terminal with a “booking list”. This should be issued well in advance of the vessel’s
arrival. The list will contain pertinent information such as:
• Name of vessel and voyage number (in some trades it is possible to be receiving
cargo for more than one voyage of the same vessel).
• Description and quantity of the cargo booked.
• Name of the shipper.
• Port of discharge.
• Booking number.
• Special details, i.e. hazardous cargo information, temperatures for refrigerated

cargo, weights and dimensions of heavy lifts or oversized cargo.
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1-155 The booking list will need to be updated daily, or even more frequently, so that the terminal
always has a complete list. The terminal should not accept any cargo unless there is
reference to it on the list. Cargo delivered to the terminal but which does not appear on
the list must be held outside of the premises until such time that the shipping line authorises
its receipt.
4.3.2 Receiving Refrigerated Cargo
1-156 Refrigerated cargoes must not be accepted on the terminal without knowing the
temperature at which the product is to be maintained, or if there are any doubts about its
current temperature. It is important always to monitor the temperature that the shipper
of the cargo requires, and which scale is to be used. Most frozen products seem to be
carried at –18oC, which equates to 0oF. To set the reefer unit at the wrong temperature
is one mistake. To fail to correct it as soon as possible is another.
1-157 To accept a container of refrigerated cargo on to the terminal without possession of the
required temperature settings can be expensive. The last carrier, and in this case, the
terminal is a carrier, to receive a container into its care in apparent good order, is responsible
for the condition of that container and its cargo (this applies to any container or cargo, not
just refrigerated).
4.3.3 Cut-Off Date for Receiving
1-158 To aid in the planning, an important date should be established – the “cut off date”. The
shipping line and the terminal operator must agree on this date. This is the date, and the
time of day, by which cargoes must have been delivered to the terminal if they are to be
loaded to the nominated ship. The terminal operator will not want to be receiving cargo
while the ship, particularly a containership, is alongside, and yet both the operator and the
shipping line will have to be conscious of the shipper’s wishes and limitations. Successful
delivery of the cargo to the buyer may mean more to everyone handling the cargo than the
inconvenience of receiving it late. The shipper is a mutual customer of both the terminal
and the shipping line.
4.3.4 Allocation of Cargo to Storage Locations
1-159 Using the booking list, the terminal can plan the efficient use of its storage areas. The
cargo for a ship will be consolidated by commodity, ports of discharge and by dimension.
Today’s terminals usually use computer software to store and process this information
1-160 The storage areas, both within warehouses and outside, will probably be best divided into
a grid. These grids might be large blocks to hold shipments of breakbulk cargoes. In the
case of containers they would appear as a pattern of painted rows of 20 foot, 40 foot and
45 foot spots. Each spot or block will have a unique address. The address will be used to
plan the receipt of cargo, to maintain control of the cargo while on the site and to use as a
point of reference when the cargo is to be loaded to a ship. All personnel involved in the
52
loading operation will be familiar with the “grid” on that particular site and so can deliver
cargo from storage to the ship’s side without delay. The location of the grid in relation to
the position of the ship in the port will determine the number of machines and the size of
the workforce needed to support the loading or unloading operation.
4.3.5 Confirmation of Cargo to be Loaded
1-161 Just prior to the ship’s arrival, all information about the cargo to be loaded to the vessel
can be produced. The shipping line, in conjunction with the terminal staff, can confirm
what cargo has been received and is physically available to be loaded to the ship. From
this list they must remove any items that cannot be shipped at that particular time. The
reasons for not shipping cargo could be varied. Possibly there is a “letter of credit” yet to
be produced, or a shipment is incomplete, or because there is insufficient room on the
ship.
1-162 The shipping line should now issue a confirmation detailing which cargo is to be loaded.
4.3.6 Pre-Stowage Plan
1-163 Using this information, the shipping company can now produce a pre-stow plan, showing
the parts of the ship designated for each port of discharge and for each commodity. In
the case of a containership, this will distinguish also between the various sizes of containers.
1-164 At this point the terminal’s staff can determine the order in which cargo is to be loaded into
each part of the ship. Combining this with the information about the cargo to be discharged,
if any, they can also plan the efficient use of equipment and labour to handle the cargo.
4.4 IMPORT CARGO
4.4.1 Inbound Stowage Plan and Cargo Manifest
1-165 The shipping line will provide the terminal with a copy of the inbound stowage plan and
the inward foreign manifest. The plan will indicate the type, quantity and location of
cargo that the ship is carrying for each port of discharge. The manifest will provide
information about the cargo for this port only. It will provide greater details about the
cargo than is shown on the plan. In some cases it will help distinguish cargo that may have
a priority, which may require special attention, or cargo that may be for direct discharge to
a lighter, a railcar or a truck.
1-166 The manifest will indicate:
• The name of the ship and the voyage number.
• Country of registration.
• Name of ship’s master.
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• Port of loading.
• Date of sailing from load port.
• Port of discharge.
• Names and addresses of shippers.
• Names and addresses of consignees.
• Bills of lading numbers.
• Marks and numbers as shown on cargo.
• Description of goods, number and kind of packages.
• Gross weight or measurement weight.
• Remarks.
1-167 From the above, information can be compiled and made available to the terminal’s
management. This will allow them to prepare for the discharge operation.
4.4.2 Preparation of Terminal for Discharge Operations
1-168 Details that are needed in this preparation include:
• Date and time of arrival.
• Where to berth the vessel.
• What types of cargo are to be handled?
• Where should they be stored?
• Can the cargo be stored outside or does it require inside storage?
• Is it necessary to consolidate cargo already on the dock to make space available?
• What lifting gear is required?
• What mobile equipment is needed?
• Is it necessary to rent additional equipment?
54
• How large a workforce is required?
• Will inland transportation have to be co-ordinated to move priority cargoes?
• Is any cargo to be discharged direct to lighter, railcar or truck?
• If so, are the necessary documents and Customs’ clearances available?
4.4.3 Inspection of Discharged Cargo
1-169 Cargo being discharged from a ship must be tallied and inspected for damage. A photographic
record of damaged cargo should be created. These records are vital should there be any
claim made about the condition or amount of cargo. The cargo must be sorted according
to bill of lading and placed in the storage area accordingly. For protection from moisture
or damage from the dock surface, some cargoes will need to be placed on dunnage, with
dunnage separating the various tiers.
1-170 In the case of a containership, it is almost impossible to inspect the condition of each
container and its seal at the time of discharge. It is generally unsafe to attempt this
because of the heavy equipment being used and the danger this exposes workers to.
Therefore, all parties must understand, that the first opportunity to inspect a container is
when it is being delivered to road or rail transport or when it is set down at the terminal’s
CFS for destuffing.
1-171 Nowadays, many ports routinely pass containers through a scanner for security reasons.
4.5 VESSEL OPERATIONS
1-172 The initial stages of preparation for loading or discharging a vessel will be similar regardless
of the nature of the cargo or ship.
4.5.1 Prior to Vessel’s Arrival
1-173 Prior to vessel’s arrival:
• Confirm the date and time of arrival.
• Select the appropriate berth for the ship (and possibly the position of the vessel,
i.e. port side or starboard side to the berth).
• Discuss and finalise the operation with the ship’s agent, port captain or focal point.
• Order labour and equipment.
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4.5.2 After the Vessel’s Arrival
1-174 After the vessel’s arrival:
• Meet the master and/or chief officer to present any proposed stowage plans or
flow sheets, which detail the order of work.
• Present any safety rules and dangerous cargo regulations that must be adhered to,
plus a plan of the facility showing the location of gates with the safe routes through
the terminal to those gates. Also provide the ship with a list of important telephone
numbers to be used to contact port staff or for emergency situations.
• Respond to ship’s requests for fresh water, removal of refuse etc.
• Maintain contact with the ship’s personnel throughout the operation so that everyone
knows what is happening at all times. Keep the master informed about anything
that could affect the estimated departure time.
4.5.3 Vessel Stowage
1-175 The containers, when placed on the ship must be stowed in a satisfactory manner. This
means that:
• The stowage will not cause harm to the ship or her crew or to any other cargoes
onboard.
• The cargo will be protected from damage or loss.
• At the ports of discharge, containers will be accessible without causing the costly
and unnecessary movement of others.
1-176 Also, and particularly important today with the high cost of operating a ship, the loading
and discharging operations will need to be completed economically and yet as quickly as
possible.
1-177 The stowage and securing of containers affects the safety of the ship, her crew, and of the
cargo itself. It is vitally important that those responsible for planning and supervising the
operation pay proper attention to safety. However, regardless of who plans and supervises
the loading operation, the ship’s master is ultimately the person responsible for the safety
of his or her vessel and for the cargo. The ship is expected to deliver the goods in the
same condition that they were received onboard.
1-178 Attention must be paid to the concerns and wishes of the vessel’s master and his officers.
They may have good reasons for asking the terminal to follow a particular order of work.
Perhaps the ship has to complete repairs in a given part of the ship. Perhaps there are
problems with the ballast pumps and they are unable to trim the vessel as speedily as is
necessary to keep pace with the cranes’ production. Their concerns may have a negative
impact on the terminal’s anticipated productivity but it is their ship and their needs must be
respected.
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1-179 It must also be remembered that the ship’s crew, owners and agents are the customers of
the port. It is they who are responsible for the safe delivery of the ship and its cargo to
the port of discharge, and it is they who must be satisfied if the ship is to continue using
the port.
1-180 Upon completion of the operation, it will be necessary to provide documentation showing
cargo that was loaded to the ship.
1-181 First there will be a stowage plan, detailing how many containers have been stowed in
each hold and for each destination. This plan may be a composite, combining this port’s
cargo with containers from any previous port of loading.
1-182 Then there will be a list describing any refrigerated cargo and the temperature at which
it is to be maintained. Also there must be a dangerous cargo list for any hazardous cargo
loaded to the ship.
1-183 In the case of breakbulk cargo, a “mate’s receipt” should be produced for the mate to sign.
Such receipt should show the quantity and full description of the cargo. It can include
comments about the apparent condition of the cargo, especially if it appears to be damaged.
1. What is the purpose of the “cut off date”?
2. Who is ultimately responsible for the stowage and securing of

containers on the ship?
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5. INTERMODAL LINKS
Learning Outcomes
of:
• what is meant by intermodal links;
• the historic development of the concept of intermodal links; and
• some of the jargon used in the current language of intermodal transport.
5.1 INTRODUCTION
1-184 Just as it is impossible to consider a port without considering the access and facilities for
ships, so it is impossible to discuss a port without considering how the cargo is transferred
on the landward side. One of the main purposes of a port is to transfer cargo between
modes. The modes that connect with the port are road, rail and pipeline. There is also a
considerable amount of “sea-air” intermodal movements, which are linked by road transport.
Waterborne transshipments via other ships or barges are not considered here in this section.
This section will look at the rail and road links necessary for a port to be intermodal.
5.2 DEFINITION OF INTERMODAL TRANSPORTATION
1-185 Intermodal transportation takes place when one transport operator issues a single document
of carriage in which he contracts to provide transportation of goods from one point to
another by more than one means of transportation and for which the owner of the goods
pays only one overall freight payment.
1-186 Intermodal transportation is sometimes referred to as intermodalism, intermodality,

multimodal transportation or multi-modalism. It has been around for a long time, however,
the term intermodal transportation and its widespread use really only came into its own
with the development of the general cargo container.
1-187 It should be noted that intermodal transportation is often considered to be synonymous

with containerisation; however, many bulk cargoes, such as grain, coal and petroleum
products, are moved intermodally and have been so since long before containers were in
common use.
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5.2.1 The Challenges of Intermodal Transportation
1-188 The challenges of intermodal transportation are:
1. The Problem
Moving goods between different shaped vehicles operating in different mediums. Most
ship operators will be extremely keen to encourage marine terminals to improve ship
turnaround time in order to save on vessel costs. However, focusing on the vessel alone
gives us a very narrow focus on the management of cargo within the port. The ultimate
customers are the shippers and consignees of the cargo and it is, therefore, necessary to
look at the port productivity by measuring how long the cargo has to be in the port. The
problem is that the different modal vehicles have very different shapes and capacities.
For example:
• Ship
6,000 TEU capacity – effectively rectangular by use of container cells – medium

water.
• Train
400 TEU capacity – rectangular and double stacked – medium land.
• Lorry (Truck)
2 TEU capacity – rectangular – medium land.
• Airplane
Cylindrical – medium air.
2. The Challenge
To keep goods moving without delays when goods must be transferred from one mode to
another. Without the change of medium and mode there would be no need for a port
except for national government requirements for customs, port health etc. This would be
the ideal for the shipper and the consignee, no delay in the movement of goods. However,
the challenge for all terminal operators is how to minimise the delay incurred while
transferring cargo between the different modes. For example, when a large containership
discharges 3,000 TEU in 24 hours the terminal has to have the space to store that capacity
even if it is only for a few hours for some containers. It is impossible to distribute 3,000
TEU immediately. When considering ship to rail movements the vehicles are better matched
in capacity. Trains can be scheduled to coincide with the discharge. Priority rail containers
59
can be identified before discharge. Except for a few notable exceptions, like Hong Kong,
road traffic has a random arrival pattern and the mismatch in ship to lorry vehicle capacity
usually means that it will take several days to distribute the road traffic. For exports, the
challenge is to martial export containers in such a manner as to facilitate the efficient
loading of the ship while minimising delays to the cargo shipment.
5.2.2 Intermodal Definitions
1-189 Intermodal definitions are:
• Single Modal Transfers
Single modal transfers occur between vehicles of the same mode and are easier
because vehicles are similar and operate in the same medium.
• Online Transfers
Online transfers occur between vehicles of the same company and are easier to
accomplish than interline transfers that occur between vehicles of two different
companies.
• Intermodal Cargoes
Intermodal cargoes are generally classified as general, bulk and neo-bulk cargoes.
• Documentation
Documentation and data transfer concerning intermodal cargoes is as important as

the intermodal transfer itself. Electronic data interchange (EDI) is increasingly
being used.
• Liability
Liability in intermodal transportation usually falls on a single operator regardless

of which operator was involved when loss or damage occurred.
• Deregulation
Deregulation of government controls, particularly in railroads and trucking, have

made the advance of intermodal transportation easier.
• Just-In-Time
Just-in-time production processes make extensive use of intermodal transportation

because of its inherent reliability, frequency and alternate route choices.
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• The Container Revolution
Driven by the desire of operators to improve general cargo handling productivity

and to benefit from economics of scale.
• Standardisation
Sea-Land started with 35’ x 8’ x 8’ 6" containers, Matson with 28’ x 8’ x 8’ 6”.
The International Standards Organisation (ISO) settled on 20’ and 40’ containers
8’ wide by 8’ or 8’ 6” high. Now there are 45’ containers and other lengths and
widths being considered.
• Computer Control
With the rapid transit times affected by containerisation of general cargo, the
documentation process had to be speeded up. The containers themselves also
required a comprehensive inventory control system.
• Door-to-Door Movement
Many early containerisation ventures were operationally driven; however, it was

soon apparent that the ability to offer a door-to-door service allowed the shipper a
choice of operator, route and port. Thus the service rapidly became consumer
driven.
• Logistics Management
This is a business management technique that controls the whole manufacturing

process from source materials to point of sale. The requirement is for efficient,
consistent and reliable transportation links to allow stocks to be minimal. This will
be more deeply discussed in your Logistics module.
5.3 THE RAIL MODE
5.3.1 Rail Development
1-190 Rail transportation developed in the early part of the 19th century and for the first time
high volume, long distance overland movement of freight was possible. Although railroads
were mostly developed with private capital, they had very significant government assistance
in obtaining rights of way and in some cases were given government land.
1-191 Railroads soon became very profitable and extremely powerful, both commercially and
politically. In most countries there were several different private railroads. In a small
country such as Britain there were at least six major railroads each with their own London
terminus and with different rail gauges. Even now a movement through London entails a
transfer from one terminus to another.
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1-192 Although privately owned, railroads developed on a national basis. Europe now has a
variety of nationally owned railroads, some with differing rail gauges – a true challenge to
the development of a European intermodal network.
1-193 In North America, railroads were of even more significance than in Europe, unlocking the
vast potential of the continent. The relative size of North America to Europe and the
spatial relationship of its major population centres increased the value of the railroads.
1-194 One major difference between the USA and Canada was that Canada developed single
company transcontinental railroads. Despite the size and importance of individual US
railroads, no single company developed a fully transcontinental railroad.
5.3.2 Rail Intermodal Operations
1-195 To railroads in North America, intermodal operations meant the movement of road trailers
on railcars, commonly known as piggyback operations. TOFC (Trailer on Flat Car) and
COFC (Container on Flat Car) are both piggyback operations. In the case of COFC, the
container is mounted on a road chassis. Rail intermodal services were developed to
compete with truck services. By intermodal, the railroads mean the movement of containers
and trailers. Other rail movements, such as grain and coal, although intermodal come
under the railroads heavy-haul divisions. Import/export services refer to the movement
of marine containers from ships to their final destination for imports, or from origin to the
ship for exports. Rail intermodal movements are extensively used for domestic services
within North America.
5.3.3 Ship to Rail Container Transfer Facilities
1-196 Ship to rail container facilities are:
• Inland Container Transfer Facility (ICTF)
This is a terminal that is usually sited a few miles from the marine terminal. It will
serve many marine terminals in the area and usually handle domestic traffic as
well.
• Rail Container Terminal (RCT)
Sited adjacent to or within a port’s boundaries. Such a terminal would normally

have been built exclusively for marine traffic, but may handle some domestic
traffic.
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• On-dock Rail Terminal
On-dock rail facilities (see Figure 5.1) vary from a full size rail terminal to a siding
serviced by the marine terminal’s regular handling equipment. The marine terminal
usually operates on-dock facilities, the railcars being switched by the rail company.
The advantage of on-dock rail is the quick transfer of containers from ship to rail.
A disadvantage is that it may increase switching costs for the rail companies.
Figure 5.1
On Dock Rail Facility
1-197 Note that ICTF and RCT could also refer to inland rail terminals.
5.4 THE ROAD MODE
5.4.1 Road Transport Development
1-198 Road transport preceded rail by several thousand years. However, the infrastructure was
poor and most movements of freight were over short distances and of low volume. The
limiting factor was the carrying capacity and range of the animals used to transport freight.
A typical range was 20 miles per day.
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1-199 Trucks did not make a significant impact until the First World War when their versatility
became apparent. Initially, truck traffic was restricted to cartage applications in that they
just replaced the horse and cart.
5.4.2 Innovation
1-200 Improvements and, where possible, automation of transport distribution and transshipment
of goods has made it possible to save costs and create a continuous efficient traffic flow.
1-201 For the North American railroads, intermodal is where the action is. Except for a period in
the mid-1990s, intermodal traffic has been the segment of their operations with the strongest
growth. This trend is expected to continue.
1-202 The strategy has improved the image of railways with a focus on scheduled departures
and on-time service. Historically, the railroads have struggled with a poor reputation for
on-time performance. There has been a gradual recognition that the rail service had not
been as good as that provided by the motor carriers.
SELF-ASSESSMENT QUESTION
1. What advantage does road transport have over rail?
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6. KEY PERFORMANCE INDICATORS
Learning Outcomes
On successful completion of this chapter, you will be able to:
• give the methodology for creating the indicators;
• give, classify and explain the ways of calculating the different indicators;
• research the information needed for each indicator;
• show the meaning and the use of the indicators for establishing a diagnosis
and take the decisions; and
• discuss the results of the diagnosis in order to prepare recommendations.
1-203 At the end of this module, you should be able to diagnose the efficiency of the terminal.
6.1 INTRODUCTION
1-204 The efficiency of Port is important because the cost of the ships and the goods at ports
determine the major part of the maritime transport chain.
1-205 According to several studies, it is admitted that two-thirds of the total maritime cost are
incurred in ports, mainly:
• wharfage;
• handling; and
• storage operations.
1-206 However, cost not only includes the port dues and the price invoiced by agents for the
operations, but also the time in ports and the quality of services.
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1-207 This means that the responsibility of the manager of the port is two-fold:
• flexibility – to smooth operations as much as possible; and
• forecasting and planning – to prepare for the future by good planning.
1-208 Despite the fact that more and more ports all over the world have engaged in a process
of privatisation, the port authority is still involved in the control of efficiency because the
survival of the port in a competitive market or the economy of the country in case of
monopoly, are determined by efficiency.
“Efficiency is the Key Word of Terminal Management”
1-209 Anyway, whatever the status of the port, the operator and/or the port authority must have
objective information on the actual situation on which to base decisions.
1-210 For this reason, it is important to create tools to continually measure the evolving situation
at the terminal, to assess performance and enable timely decisions to improve productivity,
heighten service levels and inform investment decisions – these tools are the performances
indicators.
“Performance Indicators Measure Efficiency”
1-211 Such a control instrument or better management information system is nowadays an absolute
necessity for port management due to the complexity and large variety of different activities
in the port industry.
6.2 DEFINITIONS
6.2.1 What is Port Performance?
Physical Performance
1-212 Physical performance is the output of the existing facilities. We can calculate the
performance of the port as a whole or the performance for each kind of facility (berth,
specialised berth, yard, crane, shed, storehouse, labour force etc).
Financial Performance
1-213 Financial performance is the contribution of each category of services provided.
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Quality performance
1-214 Quality performance is becoming a more important factor of competition than price.
Reliability, flexibility, application of rules, time spent resolving conflicts and arguments are
included in the quality of service, as well as the handling capacity. Quality performance
denotes the ability to solve problems.
6.2.2 What is an Indicator?
1-215 An indicator is a tool of measurement of the performance. The indicators are always
quantified as mathematical formulas in order to be objective and calculated in a harmonised
way.
1-216 From the above, it is clear that the quality of the indicators depends on the reliability of the
information.
1-217 The description of the indicators will, therefore, be linked with the kinds of information
we need and the problems we may meet when collecting the data. These indicators exist
for all the operations and for any kind of cargoes or yards.
1-218 Though a port is a whole, when analysing the efficiency of a port we are obliged to
separate the activities and measure their efficiency separately to determine the strengths
and the weaknesses of the port.
1-219 This analysis of the indicators will be followed by the methodology for estimating the
maximum capacity of the port’s facilities and the ways to upgrade it thanks to the use of
the port performance indicators.
Performance Indicators for the Berths
1-220 The berths serve the ships. The first function of a port is to receive ships and provide
them with services, such as:
• shelter;
• piloting;
• tugging; and
• mooring facilities.
1-221 The performance indicators for the berth are mainly necessary for the planning departments
and for the harbour master who is in charge of locating the ships.
1-222 A lack of berths results in waiting time for the ships but an over-capacity of berths is a
waste of capital.
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1-223 Therefore, the output, service and utilisation ratios are explained in this chapter from the
planning and the commercial aspects.
6.3 BERTH OUTPUT INDICATORS
1-224 The berth output indicators are very useful for the terminal planner because they show
the evolution of the performance of each berth and determine the terminal capacity.
6.3.1 Definition
1-225 The berth throughput indicator is the total number of teu or units handled on one berth in
a stated period (usually a year).
For containers : BT = total TEU/one year on the berth concerned
6.3.2 Source and Reliability of the Data
1-226 The general statistic tables of the terminal are the main source. This should be generally
available, but it is necessary to check carefully the following difficulties that we meet
when we analyse the actual situation:
Containers
1-227 TEU (20 foot equivalent units):
• Conventionally, one 40 ft container is equivalent to two 20 ft.
• When the total tonnage handled includes the containers, the weight of the loaded
boxes includes the tares of the containers fully loaded and empty.
Berth
1-228 The berth must be identified. The simple case is one ship for one berth but there are
many other cases, such as:
• Ports are not homogeneous. There are berths of 150, 200, 250 or 300 metres
according to the traffic they are dedicated to or according to the date of their
construction.
• Consequently, two small ships can be operated on the same berth or, inversely,
one long ship can be berthed along two short berths.
• The case of the lighterage (timber logs or handling on the both sides of the vessel)
the ship is berthed along one berth but the lighters operate on another one.
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• Two ships can be double-banked along the same berth.
• Many other cases can be seen in ports – your experience will show it.
Double Counting
1-229 Some operations imply a double handling of the commodities:
• the transshipment (mainly containers) are registered twice; and
• the shifting from a hold to the other (via the quay only) are counted twice.
6.3.3 Factors Influencing the Results
1-230 Some indicators can be calculated separately to evaluate the weight of each influencing
factor in the present situation. For example:
Direct delivery ratio = TEU directly delivered/total TEU handled.
Average shipload = Total TEU handled/number of ships berthed.
6.4 BERTH SERVICE INDICATORS
1-231 The service indicators are useful for the shipowners and the shippers because the turn-
around time the ships spend in ports is paid by the ship owner and also by the shipper
(especially in the case of chartered ships because he has to pay demurrage).
6.4.1 Definitions
1-232 The turn-around time is the time spent in the port by all the vessels calling in a specific
period. It includes:
• Waiting Time (WT)
The delay between the ship’s arrival in port and its tying up at the berth.
Average WT ratio = cumulated time for waiting (in hours)
total number of ships
It can be calculated for a specific berth or terminal or calculated for the whole port
or calculated for a type of vessels as well.
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• Time at Berth or Service Time (ST)
The time the ship stays berthed (between the berthing and the departure time).
Average ST ratio = cumulated service time
It can be calculated for a specific berth or terminal or calculated for the whole port
or calculated for a type of vessel as well.
ST includes the working time for operations and the idle time.
• Time in Port (PT) or Turn-round Time
The time that the ship spends in the port from the arrival in front of the port up to
the departure after leaving the limits of the port.
Average PT ratio = cumulated WT + ST
• For Commercial Reasons
It is very frequently calculated as the following ratio:
Grade of waiting = cumulated WT
cumulated ST
1-233 Indeed, the comparison of the waiting time with the service time provides good information
about what is acceptable to shipowners. They usually accept a 10% rate for bulk and
general cargo vessels. Beyond this rate, they consider the port as a low quality one. For
ro-ro and containerships, shipowners usually do not accept any waiting time.
1-234 It can be calculated for a specific berth or terminal or calculated for the whole port or
calculated for a type of vessel as well.
1-235 The sources of information for calculating such indicators are the office of the harbour
master. This office registers:
• the date, hour and minute of the arrival of the ships to where the pilot is awaiting;
• the date and time when the ship leaves the berth;
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• the type and size of the ships;
• the time of the nautical operations; and
• the name of the berth that she is alongside.
1-236 When looking at the data, you should be aware of some difficulties which are often
encountered:
• Berth
As already explained above, the berth must be very well identified. Sometimes,
the ship is shifted from one berth to another. The harbour master does not
necessarily register that operation and the calculation of the berth time is then
impossible to calculate for each berth where the ship has successively been moored.
Is a mooring buoy considered as a quay when the handling operations are performed
by lighterage?
• Time
The time in port should be calculated in hours. Any calculation in days is definitely
insufficient because many ship calls last only 10 hours and many ports are opened
24 hours a day.
The calculation is usually not given directly by the database, but must be calculated
by difference between the time of departure and the time of arrival of each ship
(EXCEL provides the means for this calculation).
• Type and Size of the Ships
The registration of this information is usually not reliable enough because it is

subject to interpretation. It is clear for tankers, gas carriers, bulk carriers or
integral container vessels, but it is not clear for the multipurpose ships carrying
containers on the upper-deck and break bulk cargo in the holds. It is also difficult
for the conventional vessels.
The best and easiest way to rightly register the types and sizes of the ships, is to
link the database of the port with the database of the Lloyd’s Marine Intelligence
Unit. www.LloydsMIU.com
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6.4.3 Factors Influencing the Result
1-237 Influencing factors can be as follows:
1. Topographic and geographic factors, including:
• estuary port;
• tide time;
• locks; and
• weather.
2. Operational factors, including:
• port congestion;
• unavailability of berths;
• priorities of other ships;
• unavailability of pilots or tugs.
6.5 BERTH UTILISATION INDICATORS
1-238 Berth utilisation indicators indicate the actual intensity of use of the berths.
6.5.1 Definitions
1-239 Definitions are given below:
• Berth Occupancy Ratio
This shows the level of demand for services.
Berth occupancy ratio = ∑ service time
hours in a year (or other period)
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• Berth Worked Time Ratios
These show the number of hours that the ships are effectively operated. It gives
indication about the quality of services to ships. The formula is:
Berth worked time ratio = ∑ time worked
∑ service time
This indicates whether there is a high idle time or not during the operations. Idle
time may have various causes such as: bad weather conditions, opening hours,
break down of equipment, insufficient equipment etc
The following ratio is often associated with the following working hours per day
that indicates the daily working (or opening) hours.
Daily working time rate = working hours
24
For example, a working time ratio of 50% means that the port works only 12
hours a day and the ship is idle 12 hours.
1-240 The information is provided thanks to the timesheets. Some difficulties may be encountered
when collating this information:
• If the port authority is operating the port, it is easy to get the timesheets.
• If independent operators or stevedores perform the handling, the port authority

has difficulties to be provided with the documents.
Other difficulties arise because the operators do not indicate the effective reason of the
idle time not to show the weaknesses of their work organisation.
1-241 Influencing factors can be as follows:
• The quality of the handling operations (see the following chapter).
• The opening hours of the port.
• The social climate.
• The weather.
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6.5.4 Conclusion
1-242 The berth related ratios mainly concern the services to ships: they measure the maximum
capacity of the port, the level of services supplied by the infrastructures and are used by
the planners for translating the forecasted demand in requirements for new berths or new
terminals.
1-243 But berth operations are not independent from the other activities in the port and the time
in ports depends mainly on the productivity of the handling operations between ship and
shore, on one hand, and the quay transfer operations, on the other hand.
6.6 PERFORMANCE INDICATORS FOR HANDLING OPERATIONS
1-244 When analysing the berth indicators, only the infrastructure is concerned. As to the
handling operations, they mobilise:
• equipment for operations from sea to shore or vice-versa;
• land equipment for the transfer from/to storage area; and
• the labour force.
1-245 The efficiency of a port is measured by the output it is able to produce during a period of
time and with the means that it mobilises for serving ships and goods.
1-246 We analyse first the efficiency ratios when serving the ships and then the efficiency
ratios of the input mobilised for performing the handling tasks.
6.7 HANDLING OUTPUT INDICATORS
6.7.1 Ship Output
1-247 The major commercial argument for a port is the ship output because the shipowner
requires short calls, what a shipowner wants to know is the tonnage that the port is able
to handle in one day. The more the port is able to reduce the time spent in the port, the
more satisfied the shipowners are.
1-248 All the indicators, which show the exact situation and the evolution of the call duration
are, therefore, very relevant.
Definitions
1-249 Ship output indicators measure the rate at which cargo is handled to and from a vessel.
They are clear indicators of how good the cargo handling operations are. There are three
ship output (SO) indicators:
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1. WSO – TEU per ship worked hour = ∑ TEU handled
∑ worked hours
2. BSO – TEU per ship at berth = ∑ TEU handled
∑ service hours
3. PSO – TEU per ship hour in port = ∑ TEU handled
∑ hours in port
It is logical that WSO > BSO > PSO
Source and Reliability of Data
1-250 The main source of data to be collected for calculating the ratios is the timesheet form
filled in by the handling supervisor.
1-251 In many ports, the ship output is given in number of boxes per hour. Such a calculation
does not take into account the size of the containers.
1-252 Other difficulties arise because the operators do not always indicate the effective reason
of the idle time not to show the weaknesses of their work organisation.
Factors Influencing the Results
1-253 The ship output obviously depends on the handling methods at the quay and, therefore,
the means mobilised for the handling labour force (number of gangs and equipment).
1-254 It is the reason why we set up ratios related to the gang output and the equipment utilisation.
6.7.2 The Gang Output
1-255 The ship output depends, among other things, on the number of gangs used for the handling
and the efficiency of the gangs. Except in very small old-fashioned ports, the gang
includes not only workers but also the handling equipment for ship to shore operations and
quay transfer operations. Therefore, the gang output can vary with the type, capacity
and efficiency of the equipment provided.
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Definitions
1-256 As far as the containers handling is concerned, the formula is:
Average output per gang per hour = ∑ TEU (or boxes) handled
∑ (gang x hours worked)
1-257 The ratio can be calculated for a day or for a shift or for an hour. It is not recommended
to calculate it for a year because it is often necessary to fine-tune the analysis and take
into account the problems related to the peek phenomenon.
1-258 Sometimes, in some ports, the average output is calculated per man x hour. Additionally,
the way of calculation depends on the information provided in the timesheets.
1-259 In the majority of cases, the gang output is similar to the crane or gantry crane output
because each gang uses a crane or gantry crane.
1-260 For gantry cranes, we usually speak of “movements per hour” (it is then easier to compare
the performances of the different ports because every port has its own mix of 40 ft and
20 ft containers).
1-261 It is also relevant to evaluate the mobilisation of the labour force capacities in the port.
The number of gangs mobilised for operating one ship is a good indicator of the efforts for
accelerating the operations.
Average number of gangs per ship = ∑ number of gangs
number of ships
1-262 This ratio is usually calculated for each type of vessel.
Source and Reliability of Data
1-263 The difficulties for estimating the gang output are the same as the ones of the ship output
because the source of information is the “timesheet” as well.
Factors Influencing the Results
1-264 The gang production depends more on the quality and capacities of the equipment used
than on the number of workers.
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1-265 All other factors being constant, experience demonstrates:
• quay handling equipment is always more efficient than the ship handling equipment;
• to operate old ships is always more time-consuming than new ones;
• an overstaffed gang does not increase the output; and
• the social climate and the incentive policies.
6.8 UTILISATION RATIOS OF THE INPUT
1-266 Equipment and labour force are the two physical inputs.
6.8.1 Utilisation of the Equipment
1-267 For the purpose of estimating the capacity and the degree of mobilisation of a port, or to
evaluate the capacity remaining for additional traffic as well, it is necessary to know the
time of utilisation.
Rate of utilisation of cranes = number of worked hours
number of available hours
1-268 The average rate can be calculated per day or per month or per year.
6.8.2 Utilisation of the Workers
Rate of utilisation of workers = ∑ (men x hours) worked
∑ (men x hours) available
1-269 The average rate can be calculated per day or per month or per year.
1-270 Because of the problems of the peeks, it is preferable to calculate the ratios on a monthly
or daily basis. The yearly average rate does not show the periods when the problems
happen.
1-271 This ratio is very important because it is always the basis for discussion between workers
and employers when they determine the level of employment required in the port.
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6.8.3 Source of Information and Reliability
1-272 The source of information is the timesheet with all the difficulties that we have already
explained:
1-273 The main factors influencing the ratio with regard to quay equipment are:
• the peaks of traffic; and
• the frequency of the breakdown.
1-274 The main factors influencing the ratio with regard to labour force are:
• the peaks of traffic;
• the trade unions policy;
• the type of equipment;
• the type of cargo; and
• the type of ships.
6.9 PERFORMANCE INDICATORS FOR STORAGE OPERATIONS
1-275 Most ports in the world have to provide:
• covered transit sheds for the break bulk cargo;
• the CFS for the LCL containers;
• yards for open storage, mainly containers;
• space and storehouses for long term storage;
• open storage or silos for bulk cargo;
• tanks for liquid bulk; and
• space for dangerous goods.
1-276 However, such facilities have a cost for building, maintaining and operating them.
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1-277 To determine the needs in square meters of sheds or open storage facilities is difficult
because the surface depends not only on the type and volume of cargo but also on the
time that the cargo stays in the port.
1-278 The commercial policy of the port depends also on the availability of space and possible
extension. If the port area and storage facilities are large, the commercial policy might
consist of attracting cargo by a low tariff. On the other hand, if the port is surrounded by
a city and cannot enlarge the space available, the port authority policy will be to accelerate
the delivery time and reduce the transit time in the sheds by increasing dues on storage.
1-279 Therefore, the ratios mainly concern the utilisation factors of the storage facilities. They
are the key of the policy.
6.10 DEFINITION OF THE RATIOS
1-280 The average dwell time in storage facilities is calculated by the formula:
Average DT = ∑ (TEU x dwell time)
∑ TEU stored
The unit is the day.
1-281 It is obvious that any reduction of the time spent in the yard will result in the reduction of
space requirements.
1-282 Later we will show the calculation of the capacity of the port facilities by using these
different ratios.
6.11 SOURCE OF INFORMATION AND RELIABILITY
1-283 In the transit slots, the information comes from the register book where all the cargoes are
consigned. The date, hour of the in and out movements are also registered.
1-284 This information is transferred to the financial department or the operation department
for the billing of the storage, the financial department is the source of the information in
this case.
1-285 However, the problem is more complicated by the fact that, in most ports, there is a grace
period during which the storage is free. The financial department consequently knows
only the cargo staying more than the grace delay in the shed or on the yard. The grace
period may be 10 days and it would be difficult to investigate the cargo staying less than
10 days. Two solutions for solving the problem are to:
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• investigate by enquiry in the register book; this method is boring and not very
reliable because of the peek phenomenon; or
• investigate at the freight forwarders who have very good knowledge of the port
and are able to roughly estimate the average dwell time according to the type of
cargo.
1-286 If the administrative operations are monitored, then it is very simple to calculate the
dwelling time ratio of any kind of cargo.
1-287 In most of the big ports, the monitoring systems exist and it is easy to get the information.
In other ports, only the “handicraft” system of collection of information is possible.
1-288 We can see how the monitoring is compulsory when we want to get a good information
about the port operations and the ways to improve the performances.
6.12 FACTORS INFLUENCING THE RESULTS
1-289 The level of the ratios often depends on the following elements:
• the custom clearance delay;
• the shippers’ abilities and capacities of storage; and
• the tariff policy.
6.13 CONCLUSION
1-290 Storage is often a problem in ports because of changes in the lay out design as a
consequence of technological development in ships and handling methods.
1-291 The dwell time determines the space required. Performance indicators are consequently
required to improve the efficiency of the port. Monitoring is progressively introduced into
terminal management and is the only way to calculate these indicators.
6.14 INDICATORS FOR QUALITY OF SERVICE
1-292 The quality of service is nowadays the first requirement from the shipper’s logistician.
1-293 Many factors determine the quality of the services in ports: some are quantifiable while
others are not. In the framework of our course about the performance indicators we deal
only with the quantifiable ones but we cannot ignore the others.
1-294 Some of the previously shown indicators can be considered as quality indicators:
• waiting time;
• turn-round time in port;
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• handling productivity;
• storage grace delay; and
• working hours in the port.
1-295 But other non-physical indicators show the other aspects of the terminal because, as you
know, a port is not only an infrastructure but also the combination of many services
gathered for serving the ships and the goods.
1-296 Experience shows that shippers and shipowners are very concerned by the social climate,
reliability, the welcome in the port and many other services provided to the crews or to
the shippers. The ISO 9000 process for gaining quality assurance accreditation is spreading
in the port field. More and more ports are engaged in this process. But there is not yet a
well-defined list of indicators and objective way to measure the quality.
6.15 FLEXIBILITY INDICATORS
1-297 Flexibility measures the ability of the port services to adapt to the requirements of the
shippers and shipowners.
6.15.1 Working Hours
1-298 The co-ordination of the administrative and physical operations is one of the key aspects
of efficiency. The target is the simultaneous opening hours for all the services.
1-299 The measurement ratio is: number of non-co-ordinated hours/24 hours.
Example
Opening Number of
Service Hours Co-ordinated Hours
Tugging/pilotage 6 – 22 8 hours
Handling 0 – 24 0
Custom clearance 8 – 18 14 hours
Delivery/receipt 6 – 20 10 hours
Port office 7 – 17 14 hours
Total Average/24 hours 11.5 hours
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1-300 This shows that the port is opened 24 hours a day only for the handling and the other
services do not organise 24 hours services.
6.15.2 Punctuality
1-301 Shipowners and shippers are very concerned by the capacity of the port to respect the
forecasted time schedule (particularly for ferries, or containerships).
1-302 The measurement ratio is the percentage of respected arrival and departure times:
Punctuality ratio = ∑ delayed time (arrivals or departures)
number of calls
1-303 According to the purpose of the analysis and the type of sailing schedule, we may take
into account only the delays above a certain time (for example one hour or more).
6.16 RELIABILITY INDICATORS
6.16.1 Security
1-304 The security for ships and cargoes is essential for shipowners and shippers.
1-305 A port is never 100% safe and secure and there are sometimes pilferage or accidents.
Some ports have developed a marketing policy by promising to the shippers “a zero
mistake target” in the port.
1-306 It is, therefore, relevant to determine indicators for measuring the grade of success of
such a policy.
Indicator of security = ∑ Number of pilferage (or robbery or other) cases
∑ number of BL (or manifests)
1-307 The time unit of registration can be the month or the year.
1-308 In addition, the indicator must show the importance of the problem in value or in volume.
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Indicator of loss in value = total amount of the loss (in dollars)
Indicator of loss in volume = total of loss in tonnes
total tonnage operated
Indicator of casualties = total number of casualties
number of ships (or tonnes)
6.16.2 Commercial Climate
1-309 There are always arguments in all the port in the world in case of pilferage, robberies or
loss and casualties or late delivery of the cargo etc. Any activity leads to mistakes or
accidents.
1-310 Many other affairs are dealt with on a mutual agreement after an expertise performed by
specialists. The problem is often raised not on the estimate of the value of the loss but on
the responsibilities of the different actors involved. Measurement of this climate is complex
and varied.
6.16.3 Work Reliability
1-311 Shippers and shipowners are very sensitive to the “just in time operations”.
1-312 All the logistic chains are nowadays organised for reducing the delays, reducing the transit
time and limiting the stock levels thanks to a good transportation policy.
1-313 The port is an element of this chain and any stoppage of its activity results in troubles all
along the logistic chain and ultimately on the cost and reputation of the products.
1-314 The reliability of the port is, therefore, an important topic.
1-315 A universally used indicator of reliability is the absence of strikes or social events in the
port.
Reliability indicator = number of effective worked days
number of scheduled working days
6.16.4 Conclusion
1-316 There are plenty of different situations and plenty of different types of economic, sociologic
and political environments. The indicators for quality are, therefore, only partial and must
be adapted to different situations.
83
1-317 The indicators shown above are probably applicable in most terminals because they concern
most of the troubles met in most of the world’s ports.
1-318 It is up to each terminal to select other indicators according to their targets.
6.17 ESTIMATE OF PORT CAPACITY AND PORT PLANNING
1-319 One of the targets of the port performance indicators is to diagnose the present situation
and permanently survey the port activities.
1-320 The second target is to enable the planners to estimate the limits of the capacity of the
port and the time when new facilities will be required according to the traffic forecasts.
1-321 Thirdly, the information about the port performances gives the manager a good base for
setting improvement objectives as far as the performances are concerned.
1-322 Based on the performance indicators of the productivity of the operations, the terminal
management analyse whether they can handle a higher or lower volume of cargo and/or
number of ships.
1-323 The physical limiting factors of the performances are the number of berths, the container
yard, the handling equipment and the gate.
1-324 It is clear that each facility influences the performance of the others:
• The handling productivity determines the berthing time of the ships and
consequently the berth occupancy ratio and the waiting time.
• The capacity of the yard and the design of the lay out influence the handling
productivity.
• The customs clearance delay determines the dwell time of the cargo in the terminal
and, therefore, the area of the yard needed for storing the cargo.
1-325 It is clear that each element impacts upon the other elements of the chain in the terminal
area. Nevertheless, we should analyse the capacity of each of the elements, independently
one from another. We will successively analyse:
• the berth capacity; and
• the storage capacity.
1-326 Once this analysis is completed, it is then possible to diagnose the situation in the port.
1-327 Finally, the planners will be able to propose solutions for coping with the traffic forecasted
for the 15 next years.
84
6.18 BERTH CAPACITIES
1-328 The above performance indicators in the handling operations are the way to estimate the
port capacities
6.18.1 Methodology
1-329 We will firstly consider the ratios at their current level.
1-330 Secondly, we divide the port facilities in homogeneous entities.
1-331 Thirdly, we calculate the maximum output by using the following steps:
TEU/gang/hour x
average number of gang/ship = TEU/ship/worked hour
TEU/ship/worked hour x
worked hour/service time = TEU/service hour
Annual maximum capacity = TEU/service hour x 24 hours x 365

days x maximum occupancy
ratio x number of berths
1-332 The maximum occupancy ratio depends on the number of berths available and the arrival
pattern of the ships.
1-333 As far as liner services are concerned, we can simplify this by using the following table:
Number of Berths Maximum Occupancy Ratio
1 30%
2 50%
3 60%
4 66%
5 70%
6 74%
7 77%
8 78%
Source: UNCTAD
85
1-334 We have considered as a maximum occupancy ratio the rate resulting in a 10% waiting
time/service time.
Example
1-335 Let us consider a terminal with four berths. What is the maximum capacity of the
terminal?
Tonnes/gang/worked hour = 25 TEU

Number of gang per ship = 2.5
Tonnes/ship/worked hour = 62.5 tonnes (25 x 2.5)

Worked time/service time = 45%
TEU/service hour = 28.13 TEU (62.5 x 0.45)
Annual maximum capacity = 28.13 x 24 x 365 x 0.66 x 4

= 650,000 tonnes for the four berth terminal
1-336 By changing the ratio worked time/service time, you can increase the capacity. You can
simulate other organisations of works by using EXCEL and see the results.
1-337 In practice, it is a little more complicated because we must evaluate first the gang output
according to the type of cargo and packing handled and then elaborate the mix gang
output before calculating the total capacity.
6.19 STORAGE CAPACITY
1-338 Storage capacity is very often limited by the cities surrounded the ports or by the topographic
elements (hills, mountains, rivers etc). Anyway, the land area is expensive and it is
economically justified to limit the area dedicated to the storage and using the land for
operations. As you know, the handling and quay transfer operations need more and lore
space to be efficient.
1-339 Nevertheless, the planners must know the capacity of the storage facilities (covered and
open) for estimating the capacity of the port to cope with the traffic in the next 10 years.
1-340 The capacity depends on the dwell time of the cargo:
• Dwell Time
The time of occupancy of the yard determines the times that we can fill in the
groundslots.
86
1-341 Therefore, the number of square meters occupied by one tonne of cargo depends on the
type of cargo. This characteristic is named the stowage factor. The stowage factor is the
surface occupied by one tonne of goods.
1-342 Also, the area taken up by containers is dependant on the handling equipment used. For
example, a chassis operation requires one slot per container, whereas some RMG operations
can stack containers eight or nine high. For containers, the stowage factor is effectively
the “slot” that the area occupied by one 20 ft container (20 ft x 6 ft).
1-343 The mathematical formula for calculating the surface needed for storage is as following
for containers:
S = Slot x dwelling time x separation factor x operating factor
365 x stacking high
1-344 Separation factor depends on the layout and the quality of services provided (dedicated
yards or not) and on the type of equipment used leading to different circulation system on
the yard. Operation factor depends on the stacking high and the density of the storage.
1-345 Consequently, the capacity in TEU is:
Yearly capacity in TEU = S x 365 x stacking high
dwelling time x separation factor x

operating factor
1-346 The formula shows that the higher the dwelling time is the lower the storage capacity is.
6.20 PORT PLANNING
1-347 Project planning consists of performing scenarios of development according to the traffic
forecast.
1-348 The evaluation of the capacities of the different facilities gives the port planner the time
when the port will be congested. It is good information, but it does not show how to solve
the problem of the congestion.
1-349 The performance indicators are the tools for helping to solve the problems.
87
6.20.1 Estimate of Time of the Congestion
1-350 The comparison of the traffic forecast and the maximum capacity of the facilities will
show the year when the congestion will happen either for berth or for the storage.
6.20.2 Use of Indicators for Limiting or Delaying the Congestion
1-351 The port planners have to take decisions after analysing all the aspects of the decisions –
the consequences of the decision from the social, economic, financial, operational and
technical points of view. The performance indicators are the tools of quantification of the
consequences.
1-352 The congestion can be postponed by different actions:
• building new berths (but this is expensive and it might be financially difficult); and
• to improve the output by:
- extending the open hours,
- buying new equipment,
- changing the methods of working,
- taking incentive measures for workers,
- accelerating the customs clearance, and
- limiting the dwelling time of the cargo in port etc.
This is probably cheaper than building new quays.
1-353 By performing a simulation on a spreadsheet, we can easily evaluate the consequences of

any solution on the port capacity.
6.20.3 Conclusion
1-354 Terminal performance indicators have been created for improving the ways of analysing
the diagnosis and to help the decision-makers.
1-355 Most of the indicators are related to the operations (berth, handling, storage) because they
are the main fields where the improvement is possible.
1-356 As far as the quality of the service is concerned, the indicators are to be found and
universally adopted. The actions to be decided are not simple because they deal with the
workers and human behaviour. Only a subtle mix of indicators put together can give the
planners a good estimate of the actions to be decided.
1-357 Terminal performance indicators are the tools but the interpretation and the research of
the right decisions to be taken is probably a subtle art.
88
ANSWERS TO SELF-ASSESSMENT
QUESTIONS
• CHAPTER 1 – PORTS AND THE GLOBAL SUPPLY CHAIN
1. “Containerisation” is the movement of cargo in standardised re-usable containers.

In the modern era, this has come to mean door-to-door service offered to shippers
by intermodal operators.
2. A supply chain is an integrated transportation network that transports goods from

point of origin to final destination. It is the seamless movement of goods using
various modes of transport:
• highway;
• rail;
• air; and
• water.
It involves the use of a single bill of lading from point of origin to destination.
3. “Just-in-time” service allows the manufacturer’s production line to continue

operating without the need for an inventory of parts in storage. For many importers
it is more important to know when their goods will arrive rather than how fast it
can be delivered.
• CHAPTER 2 – MARINE TERMINAL OPERATIONS
1. A “terminal” is defined as the “end” or “end part”. In the case of transportation, a

terminal exists at either end of a railway line, an airline route or any shipping route
where sheds, hangars, garages, offices and stations to handle freight and passengers
are located.
2. Transfer cargo. Store cargo. Consolidate cargo. Package cargo. Process cargo.
3. Because of the risk of collision between ship and gantry crane.
4. Information is exchanged between the terminal operator and the highway driver.
It is at this point where the condition of the container is inspected and recorded. If
the container chassis is to be left at the terminal, it also will be inspected.
89
• CHAPTER 3 – CARGO HANDLING EQUIPMENT
1. The machine can be taken from one lane to another by stopping it at a specific
spot at the end of the lane. There, the wheels are turned through 90 degrees,
allowing the machine to move to the similar location at the chosen lane where the
wheels are returned to the original alignment.
2. It cannot change lanes.
3. The wheels place heavy stresses upon the surface of the CY, more space between
the container blocks is needed than with an RTG to allow the machine to manoeuvre,
containers are not so easily selected by number because of the size of the storage
blocks.
4. Availability (what is the delivery time?), specifications (to be determined by the

purchaser so that the manufacturers’ bids can be assessed against a common
criteria), cost, performance, ease and cost of maintenance, financing/leasing
arrangements and warranties.
• CHAPTER 4 – CARGO PLANNING
1. This is the date, and the time of day, by which cargoes must have been delivered
to the terminal if they are to be loaded to the nominated ship. The terminal
operator will not really want to be receiving cargo while the ship, particularly a
containership, is alongside.
2. The ship’s master is ultimately the person responsible for the safety of his or her
vessel and for the cargo.
• CHAPTER 5 – INTERMODAL LINKS
1. Inherent flexibility and the fact that final delivery of most goods is made by truck
gives road transport a significant advantage over rail. In North America, rail is
rarely competitive with road for distances under 500 miles.
90
APPENDIX 1
ISO CONTAINER TYPES
Over the years standard container types and sizes have emerged. The ISO devised a standard
coding system in the early days of containerisation and extended it as new types of containers were
developed. A new system was created for implementation in 1996. The table on this page lists the
original ISO container types and their corresponding number. The identifying number is stamped on
the outside of the container.
ISO Container Types (Original)
ISO No Size / Type Height Description
2010 20’ DF 8’ 0” 8’ Dry Container

2040 20’ Ins 8’ 0” 8’ Insulated
2060 20’ RF 8’ 0” 8’ Reefer
2160 20’ FR 8’ 6” Flatrack
2170 20’ Tank 8’ 6” Tank
2200 20’ DF 8’ 6” 8’ 6” Dry Container
2210 20’ DF 8’ 6” 8’ 6” Dry Container
2232 20’ RF 8’ 6” 8’ 6” Reefer
2251 20’ OT 8’ 6” High Side Open Top
2263 20’ FR 8’ 6” Flatrack/Collapsible Ends
2330 20’ RF 8’ 6” 20’ Reefer
2380 20’ BK 8’ 6” 20’ Bulk
2760 20’ FR 4’ 0” Half Height Flatrack
4263 40’ FR 8’ 6” Collapsible Flatrack
4330 40’ RF 8’ 6” 40’ Reefer
4332 40’ RF 8’ 6” 40’ Reefer
4350 40’ OT 8’ 6” 40’ Open Top
4351 40’ OT 8’ 6” High Side Open Top
4360 40’ FR 8’ 6” Flat Rack
4364 40’ FR 8’ 6” Collapsible Flatrack
4500 40’ DF 9’ 6” High Cube Dry Container
4510 40’ DF 9’ 6” High Cube Dry Container
4530 40’ RF 9’ 6” High Cube Reefer
4532 40’ RF 9’ 6” High Cube Reefer
4760 40’ FR 4’ 0” Half Height Flatrack
4960 40’ PL 1’ 0” Platform
5500 45’ DF 9’ 6” High Cube Container
91
ISO CONTAINER CODES (EFFECTIVE JANUARY 1996)
The new codes are very different from the old codes. There is an “Official Register” of these
Internationally Protected ISO Alpha Codes. Its title is Containers BIC-Code.
It is available from Bureau International des Containers, 167 Rue de Courcelles, F-75017 Paris,
France.
The coding consists of four characters, each one representing a different aspect of the container.
The first indicates length, the second indicates the width and height, while the third and fourth
describe the type.
Size Code
FIRST CHARACTER
Code Length
2 20’
4 40’
B 24’
L 45’
M 48’
Note: There are other codes for some unusual lengths.
SECOND CHARACTER
Code Height
0 8’
2 8’ 6”
4 9’
5 9’ 6”
6 >9’ 6”
9 <=4’
Note: There are additional height codes for containers that are wider than 8'. Such containers are
generally found in domestic use.
92
TYPE CODES
The third and fourth characters identify the container type and other related characteristics. This
code does not as yet list all of the possibilities, as further detailed study is necessary before a
satisfactory structure can be agreed upon.
THIRD CHARACTER
Code Description
G General purpose container without ventilation

V General purpose container with ventilation
B Dry bulk container
S Named cargo containers (e.g. livestock carrier, automobile carrier,
live fish carrier)
R Thermal container, refrigerated, self-powered
H Thermal container, insulated or refrigerated with removable equipment
U Open top container
P Platform container (flatrack)
T Tank container
FOURTH CHARACTER
This is a numeral that can have a different meaning depending on the type of container.
COMPLETED CODE
In general, there are a limited number of types of containers in use. A reasonable sampling of the
new codes could be as listed on the following page.
93
Length/
ISO Code Type Height Description
22P1 20’ FR 8’ 6” Flatrack with fixed ends

22G1 20’ DF 8’ 6” Dry container
22R0 20‘ RF 8’ 6” Reefer
22H5 20’ Ins 8’ 6” Insulated
22U0 20’ OT 8’ 6” Open top
42P3 40’ FR 8’ 6” Collapsible flatrack
42G0 40’ DF 8’ 6” Dry container
42R0 40’ RF 8’ 6” Reefer
42U0 40’ OT 8’ 6” High side open top
42P1 40’ FR 8’ 6” Flatrack with fixed ends
45G0 40’ DF 9’ 6” Dry container, high cube
45R0 40’ RF 9’ 6” Reefer high cube
L5G0 45’ DF 9’ 6” Dry container
20’ Dry Container

(New ISO Container Code)
(22G1)
94
20’ Insulated Container

(Old ISO Container Code)
(2040)
95
RESOURCES
• “Logistics of Cargo Movement”, Philip Durell, Lecturer at Pacific Marine Training Campus
of British Columbia Institute of Technology
• “The Role of Ports in the Supply Chain of a Globalised World”, Gordon Payne, Director,
Seaport Consultants Canada Inc – www.seaport.com
• “What makes for a Successful Transshipment Hub?” Jeff Drake, Contship Italia, Genoa,
Italy – www.porttechnology.org/journals/ed9
• “Increasing Productivity and Service Quality of the Straddle Carrier Operations at a

Container Port Terminal”, Journal of Advanced Transportation, October 1999. Lazar N
Spasovic, Alexios Sideris, Sanchoy Das & Xiuli Chao, New Jersey Institute of Technology
• “Transportation, Industrial Location and the New Economy”, J Cortright, Impresa Inc,
March 2001
• Handbook of Port and Harbour Engineering, Gregory P Tsinker, Chapman & Hall
• Report of the Committee on Port and Ship Safety, Environment and Construction to the
18th Biennial Conference of the IAPH, Sydney Australia. April 1993, IAPH
• Grains and Oilseeds, Handling, Marketing, Processing, Canadian International of Grains

Institute
• Terminal Security – Manual issued by the TT Club ”Through Transport Mutual Services”
• “Fraser Surrey Docks Ltd”, Fraser Port, Canada – Emergency Response Manual –
www.fsd.bc.ca
• “Permanent International Association of Navigation Congresses” – Development of

Modern Marine Terminals.
• “Pacific Marine Training Campus” of British Columbia Institute of Technology – Terminal

Logistics – www.bcit.ca
• “Frog Navigation Systems” – www.frog.nl/eng/cargo
• Sea-Trading, Volume 2, Cargoes. A Fairplay Publication
• “Pacific Marine Training Campus” of British Columbia Institute of Technology – Ocean

Freight Cargoes – www.bcit.ca
• Canadian Transportation and Logistics – www.ctl.ca/research/rail_intermodal
• “Gateway to the Orient”, The Vancouver Sun, 6 July 2001
96
UNCTAD DOCUMENTS
• Manual on a uniform system of port statistics and performance indicators, 1983
• Port Performance Indicators, 1976
• Monograph on Port Management – Measuring and evaluating port performance and

productivity, 1987
OTHER DOCUMENTS
• Port Management Textbook – Institute of Shipping, Economics and Logistics, ISL

Bremen, 1990
• Elements of Port Operations and Management – Alan Branch, 1986
• Basic Elements of Ports Operation System – Professor B Francou, World Maritime

University, 2001
• Speaking in Tongues, article in Port Development International – February 1999, pages

16-17.
97

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MISE TEAM 2004

Terminal Operations and Performance

Professor Bernard Francou PhD

1. PORTS AND THE GLOBAL SUPPLY CHAIN 6

1.1 Introduction ................................................................................................................... 6

2. MARINE TERMINAL OPERATIONS 14

2.1 Introduction ................................................................................................................. 14

2.9.3 Rail Interface .............................................................................................. 25

3. CARGO HANDLING EQUIPMENT 35

3.1 Factors Determining the Type of Equipment Required ............................................... 35

4.1 Introduction ................................................................................................................. 50

4.3.2 Receiving Refrigerated Cargo .................................................................... 52

5.1 Introduction ................................................................................................................. 58

6. KEY PERFORMANCE INDICATORS 65

6.1 Introduction ................................................................................................................. 65

6.2.1 What is Port Performance? ........................................................................ 66

6.16.2 Commercial Climate ................................................................................... 83

Answers to Self-Assessment Questions ...................................................................................... 89

© Copyright Informa UK Limited, 2003. All rights reserved.

• the historical developments of container terminals ;

• how containerisation began;

• how this affected ports;

• what is meant by “supply chain”; and

• how the container terminal can influence the success of globalisation.

1-006 “Containerisation” is the movement of cargo in standardised re-usable containers. In the

• when it is loaded into the container; and later

• unloaded at its destination.

1.1.2 Container Definition

1-008 A general-purpose container is a box of a standard size, constructed of aluminium, steel

1-010 In addition to the closed, general-purpose container there are:

• flatracks (convenient for machinery or palletised goods);

• refrigerated containers (reefers);

• tank containers; and

The Expression TEU

1.3 SUPPLY CHAIN

• Freeport in the Bahamas;

• the United Arab Emirates;

• Salalah in Oman; and

• the Port of Tanjung Pelapas in Malaysia.

1.5 SHIPPING ALLIANCES

1.6 PORTS – STRENGTHS AND WEAKNESSES

1.7 HUB PORTS

• Central Location to Regional Ports

Should the lanes be reversible?

Can containers be weighed?

Is an on-dock rail yard in place?

• Operating and Labour Practices

Do they need to be streamlined in order to increase the efficiency of their container

1.8 MARINE TERMINALS

1.8.2 Continuous Improvement

2. Define “supply chain”.

3. What is meant by “just-in-time” transportation?

• the functions of a port and how it influences terminal design;

• what are the factors important to a terminal’s design;

• the main elements of the terminal;

• site security and contingencies for an emergency; and

• container terminal security procedures in connection with cargo

2.2 PORT DEVELOPMENT

2.3 TECHNOLOGICAL CHANGE

• ro-ro (roll-on/roll-off) ships;

• LASH (Lighter Aboard Ship) vessels; and

2.4 FUNCTIONS OF THE MARINE TERMINAL

(a) Ship ! " Rail