Functions Of Sea Port

Introduction of Port

Types of Ports

Generation of Ports

Role and Functions of Port

Port Services

Role of Port Authority

 Introduction of Port

It’s Talk about Ocean: How It was?

How when we started expedition in the Sea?
 Oceans have always been an
alien territory for humans.

Ancient humans dared not sail too far into the ocean for
fear of falling off the edge of the world.
Human Impacts to
Marine Ecosystems
❑ There are evidence that ancient
civilizations had trade relations between
the coastal cities.
❑As science progressed, humans began to
understand more about this unknown
world.
❑The age old belief was broken when the
planet was proven not to have edges;
In modern time Ports are
also changed with the
change of Vessel Shape,
size and dimension.
 A harbour is a place where ships can seek
shelter. In the concept of “shelter” must be
included anchorages, landing places on beaches
and
Ports with structures like; access channels,
breakwaters, jetties, landing stages, quays,
warehouses for storage of commodities and
equipment, ship sheds and slipways for ships.
❑In ancient time naturally sheltered areas were used for
docking the boats and ships.
❑As per Lorenzi (2013), the oldest harbour to have been
discovered is 4500 years old. This port was discovered at
Wadi aljarf in Egypt.
❑Ports played an immense role in trade, commerce and
politics even during the dark ages.
❑Empires became richer by trade and stronger by conquest.
Rome and its 4 ports (Portus Tiberinus, Portus Claudius,
Portus Trajanus and Ostia) brought fortune to them.
❑ The navigation is documented in Europe in the Mediterranean since
3000 BC in the East (Egypt) and during 2000 BC in the Aegean
(Greece). In Italy the Etruscans sailed 1000 BC;
❑ The Romans built their empire sailing to and from the Port of Ostia.
Several Ports in Hispania was connected in 50 AD with current
Southampton, Cherbourg, La Coruna, Lisbon and Rome Marseille
❑ The Vikings came to Canada in 1000 AD
❑ The Chinese arrived in California in 1421
❑ The Portuguese arrived in Puerto Rico in 1434
❑ The Spanish arrived in the Caribbean in 1492 ......…
❑ Until the 18th Century insecurity in shipping, led to a great
relationship between the military and civilian aspects. Very often
merchant ships carrying guns.
❑ In the 19th Century the "iron fleet" takes the place of the "wood
fleet" ‐ first the sail was replaced by steam, which is then replaced
by the diesel engine propulsion. In the late 19th Century, except for
the transatlantic, the length of merchant ships was limited to 100 m
and its draft less than 10 m.

Peru Callao port 1655 French frigate Ifigenia S. XVIII Spanish vessel Numancia S.XIX
❑ The Geneva Convention of December 9, 1923, by granting status
to the International Regime of Maritime Ports, ie, "shall be
considered as seaports, frequented by ocean vessels
serving the foreign trade ports."
❑ This definition is very partial, because it removes all river and lake
ports.
❑ To facilitate access to foreign ships in 1923 was accepted and
Geneva international convention.

Merchant vessel in 1923 Geneva Convention 1923

Introduction of Port

Types of Ports
World Port Source provides
interactive images, maps and
contact information for 4,570
maritime and fluvial ports in
196 countries around the
world
Maritime 3408 75%
Fluvial 1162 25%
Total 4570
❑ A natural port could be sea, river or lake. It could be located in
an estuary or upriver. It can be a port with or without tides.
❑ An artificial port can be created inland reaching the depths
required by dredging or could gain access to the sea by landfills,
piers and other structures. Many ports are mixed, combining
these two possibilities;
❑ In the World there are currently 4570 Ports, from which 2564
(56%) are built on natural areas : coasts, rivers or bays.
By specific traffics :
❑ multipurpose ports
❑ specialized ports
❑ minerals ports.
Minerals Port
❑ bulk ports.
❑ oil ports.
❑ container ports
❑ passengers port
Petroleum Port
By logistic function : By trade services:
❑ Local port ❑ International
❑ Supply ports ❑ National
❑ Regional
❑ Transshipment port
❑ Local
❑ Gateway port ❑ Free Trade
❑ Hub port ❑ Transshipment,
❑ Feeder ports, ❑ Marina
❑ Free ports ❑ Merchandise
❑ Transit ports ❑ Cruise
❑ industrial ports ❑ Fishing
Public Private
Landlord Corporatized
Service Tool Port service
Port Port
Port port

21
 Model Definition
Public Public or Service ports have a predominantly public
character. The number of service ports is declining
worldwide.
Tool In the Tool port model, the port entity owns, develops, and
maintains the port infrastructure as well as the
superstructure but the only the stevedoring service done by
Private sector.
Landlord the landlord port is characterized by its mixed
public‐private orientation. Under this model, the port entity
acts as regulatory body and services are private.
Private In Private ports, land is privately owned and also services.
This requires the transfer of ownership of such land from
the public to the private sector.
Type Ownership Port Infra Super Stevedoring Other
Admin. Structure Structure Labour Functions

Public Public Public Public Public Public Mainly

Service port Public

Tool Port Public Public Public Public Private Mainly

Public
Landlord Public Public Public Private Private Mainly
Port Private

Corporatize Public private Private Private Private Mainly

Port Private
Private private private Private Private Private Mainly
Service Port Private

23
Main types of Public-
Private Partnerships
❑ Italy is now encouraging the merger of port authorities,
❑ Greece has changed from corporatizing the state-owned
enterprises managing ports to their full privatization.
❑ Korea, and China, the national port system is still very
dependent on government policies and action plans.
❑ Canada is exploring ways to enhance transparency in the
port sector;
❑ Colombia seeks to re-establish authority in the privatized
national port system.
 Strength:
Service • Superstructure development and cargo
handling operations are the responsibility
Port of the same organization

Weaknesses:
• limited role for the private sector in cargo handling;
• less problem solving capability and flexibility;
Service • lack of internal competition, leading to inefficiency.
• dependence on government budget, less

Port investment.
• Operations are not user or market oriented.
• Lack of innovation.
 Strength:
• Investments in port infrastructure and equipment are
Tool decided and provided by the public sector, thus
Port avoiding duplication of facilities.

Weaknesses:
• The port administration and private enterprise jointly
share the cargo handling services, leading to conflicting
situations.
Tool • Private operators do not own major equipment,
therefore they tend to function as labor pools and do
Port not develop into firms with strong balance sheets.
• Risk of underinvestment.
• Lack of innovation.
Strengths:
❑ A single entity (the private sector) executes cargo handling
operations and owns and operates cargo handling equipment.
The terminal operators are more loyal to the port and more likely
to make needed investments as a consequence of their long-term
contracts.
❑ Private terminal handling companies generally are better able to
cope with market requirements.
Weakness:
❑ Risk of overcapacity as a result of pressure from various private
operators.
❑ Risk of misjudging the proper timing of capacity additions.
 EU EE US LA ASIA Port Model Around the Globe
% % % % %
70%

Public 10 50 10 5 60 60%

50%

Tool 20 30 30 20 30 40%

30%

20%
Landlord 63 20 55 65 5
10%

0%
Private 7 0 5 10 5 EU EE US LA ASIA

Public Tool Landlord Private

Introduction of Port

Types of Ports

Generation of Port
 The port sector has radically changed over
the past two centuries.
 During the 19th century and first half of
the 20th century, ports tended to be
instruments of state or colonial powers and
port access and egress was regarded as
a means to control markets
❑ After World War II, the economies of all nations
began to open up to other countries ‐ the
international exchange of goods grew faster than
GDP in most economies of developed countries.
❑ These developments, together with the
shipbuilding, leading to two phenomena of
merchant ships: Size and Cost.
❑ On April 26, 1956, the first of these rebuilt
container vessels, the Ideal X, left the Port Newark
in New Jersey and a new revolution in modern
shipping resulted
First Second Third
Central lack of
Labour Planning port
unwilling service
to Centralized
chanage Govt. quality ;
Control
Introduction of Port

Types of Ports

Generation of Ports

Role and Functions of Port

Facilities Services

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A Port Authority is a public or a private entity that, whether
or not in conjunction with other activities, under national
law or regulation is empowered to carry out the :

(i) administration,
(ii) development,
(iii) management,
(iv) operation of the port land and infrastructure and
(v) the coordination and control of port operation
activities.
Historically, port authorities were governmental or quasi-governmental
public institutions established in order to address:

❑ The need to manage property rights in waterfront areas.

❑ The need to plan port development.

❑ The provision of public goods, like navigation safety, cannot be excluded for
users who refuse to pay while consuming services that are unlikely to be
provided by the market.

❑ The need to take into account both positive and negative externalities.

❑ The need to promote the efficiency of local monopolies in port services

provision, which have the potential to generate economic rents.
Port governance is the adoption and
enforcement of rules governing conduct
and exercising authority and
institutional resources to develop and
manage port activities to benefit society
and the economy.
❑Port governance issues have become
central to the port policy agendas.
❑ Governments revisited the objectives of
ports and reformed existing structures
and strategies to match the
contemporary economic environment.
Governance of
port is
compilation of
all Port
Functions
Waves of port reform
❑ Successive waves of port governance reforms,
management, and organization have taken place
worldwide since the 1990s.
❑ In response to the globalization of production and
consumption, the ongoing growth in maritime trade,
and, more specifically, the booming demand for
container transport and its supporting infrastructure
provided by container ports and terminal operators.
❑ These reforms increased the autonomy of port-level
authorities to act and introduced a more active role for
private firms in providing port services.
❑ Number of developed and developing economies
expanded the involvement of private actors in port
operations and management.
❑ The core theme was the devolution of port
management and operational responsibility and, to
a lesser extent, the transfer of port assets from
local public (decentralized) entities to private
commercially driven corporate port entities.
❑ Some of these port entities are today listed on
international stock markets. Commonly, the public
sector retains beyond the ownership of the port a
supervisory and monitoring role, disassociated from
the provision of services and port operations.
❑ In some cases, though (like the UK), there is no
national agency monitoring ports. In the absence of
consensus on the most appropriate governance
model, implementing the planned reforms proved to
be excessively challenging for several governments.
The restructuring of national port systems continues, as
does the quest for identifying the most appropriate
allocation of governance structures and management
responsibilities, and this for two main reasons.

❑ First, ports continue to seek suitable models for optimum

performance outcomes, how best to lower entry barriers
to acquire the benefits of intra-port competition, reform
port labor, and best engage local stakeholders in efforts
to improve port hinterland access.
❑ Second, despite the best intentions, the first wave
of reforms has not always delivered the expected
benefits. Even though port governance
configurations are rarely in place for long enough
to observe clear consequences or outcomes,
decision-makers implement adjustments ranging
from relatively simple fine-tuning to complete
reversal of previous decisions.
Within the port system, one or more organizations fill the
following roles:
❑Landlord for private entities offering a variety of
services;
❑Regulator of economic activity and operations;
❑Planning for future operations and capital investments;
❑Operator of nautical services and facilities; Marketer
and promoter of port services and economic
development;
❑Cargo-handler and stores;
❑Provider of ancillary activities.
Within the port system, one or more organizations fill the following
roles:
❑ Landlord for private entities offering a variety of services.
❑ Regulator of economic activity and operations.
❑ Regulator of marine safety, security, and environmental control.
❑ Planning for future operations and capital investments.
❑ Operator of nautical services and facilities.
❑ Marketer and promoter of port services and economic
development.
❑ Cargo handler and store.
❑ Provider of ancillary activities.
Full cost recovery should be viewed as a
minimum port authority objective;

once this objective has been achieved,

however, the port authority can pursue other-
than-financial objectives considered desirable
by the government or by itself.
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Introduction of Port

Types of Ports

Generation of Ports

Role and Functions of Port

Port Services
The range of services ports offer differs widely.
➢ In general, modern ports offer two kinds of services: core and
value-added services.
➢ The core services provided by most ports include, but are not
limited to:
➢ Marine services:
~ Access and protection.
~ Pilotage.
~ Towage.
~ Vessel traffic management.
~ Fire protection service.
~ Chandeliering
➢Terminal services:
 Vessel tie-up services.
 Container handling and transfers.
 Traditional breakbulk and neobulk cargo
handling.
 Dry and liquid bulk cargo handling.
 Container stuffing and stripping.
 Bagging and packaging.
 Cargo storage, acceptance and delivery.
➢Repair services:
 Dredging and maintaining channels and basins.
 Equipment repair and maintenance.
 (Dry dock) ship repairs.
 Container and chassis repairs.
➢Estate management services.
➢Information management services.
Examples of Port Economic Multiplier Effects

❑ Petro-chemical industry. ❑ Banking.

❑ Value-added services.
❑ Repair and maintenance.
❑ Packing and repacking.
❑ Labeling.
❑ Testing.
❑ Telecommunications.
❑ Customs.
❑ Inland transport.
❑ Warehouse and
distribution.
❑ Ship chandlery.
❑ Cleaning and laundry.
 Competition between ports was minimal and
port-related costs were relatively insignificant in
comparison to the high cost of ocean transport
and inland transport.
 As a result, there was little incentive to improve
port efficiency.
Port Services
➢The range of services ports offer differs widely.
➢ In general, modern ports offer two kinds of services: core and
value-added services.
➢ The core services provided by most ports include, but are not
limited to:
➢ Marine services:
~ Access and protection.
~ Pilotage.
~ Towage.
~ Vessel traffic management.
~ Fire protection service.
~ Chandeliering
➢Terminal services:
 Vessel tie-up services.
 Container handling and transfers.
 Traditional breakbulk and neobulk cargo handling.
 Dry and liquid bulk cargo handling.
 Container stuffing and stripping.
 Bagging and packaging.
 Cargo storage, acceptance and delivery.
➢Repair services:
 Dredging and maintaining channels and basins.
 Equipment repair and maintenance.
 (Dry dock) ship repairs.
 Container and chassis repairs.

➢Estate management services.

➢Information management services.
Examples of Port Economic Multiplier Effects
• Petro-chemical industry. Banking.
• Value-added services. • Customs.
• Repair and maintenance. • Inland transport.
• Packing and repacking. • Warehouse and
• Labeling. distribution.
• Testing. • Ship chandlery.
• Telecommunications. • Cleaning and laundry.
Introduction of Port

Types of Ports

Generation of Ports

Role and Functions of Port

Port Services

Role of Port Authority

Introduction of Port

Types of Ports

Generation of Ports

Role and Functions of Port

Port Services
Role of Port Authority

Port Community System and Stakeholders

❑ Ports usually have a governing body referred to as the
port authority, port management, or port administration.
Port authority is used widely to indicate any of these
three terms.
❑ The term port authority has been defined in various
ways. In 1977, a commission of the European Union (EU)
defined a port authority as a “State, Municipal, public,
or private body, which is largely responsible for
the tasks of construction, administration and
sometimes the operation of port facilities and, in
certain circumstances, for security.”
❑This definition is sufficiently broad to accommodate the
various port management models existing within the
EU and elsewhere.
❑Ports authorities may be established at all levels of
government: national, regional, provincial, or local. The
most common form is a local port authority, an
authority administering only one port area.
❑However, national port authorities still exist in various
countries such as Thailand, Tanzania, Sri Lanka,
Nigeria, and Aruba.
➢ The United Nations Conference on Trade and
Development (UNCTAD) lists the statutory powers of a
national port authority in Developing Countries as follows
(on the assumption that operational decisions will be
taken locally):
➢ Investment: Power to approve proposals for port
investments in amounts above a certain figure. The
criterion for approval would be that the proposal was
broadly in accordance with a national plan, which the
authority would maintain.
❑ Financial policy: Power to set common financial
objectives for ports (for example, required return on
investment defined on a common basis), with a common
policy on what infrastructure will be funded centrally
versus locally, and advising the government on loan
applications.
• Tariff policy: Power to regulate rates and charges as
required to protect the public interest.
• Labor policy: Power to set common recruitment
standards, a common wage structure, and common
qualifications for promotion; and the power to approve
common labor union procedures.
Licensing: When appropriate, power to establish principles
for licensing of port employees or agents.
• Information and research: Power to collect, collate,
analyze, and disseminate statistical information on port
activity for general use, and to sponsor research into port
matters as required.
• Legal: Power to act as legal advisor to local port
authorities.
The full recovery of costs will help a port authority to:
• Maintain internal cost discipline.
• Attract outside investment and establish secure long-
term cash flows.
• Stimulate innovation in the various functional areas to
guarantee a long-term balance between costs and
revenues, especially when faced with innovations by
terminal operators, port users, rival ports, and hinterland
operators.
• Generate internal cash flows needed to replace and
expand port infrastructure and superstructure.
Increasing Autonomy of PAs
1998
Antwerp
2005 Hamburg

2001
Canada
1988
New Zealand
1999
Western Australia
2001 2005
Rotterdam
1991
UK

PA as public Commercialized PA Privately owned

PA as public
department entity with
indirect Public PA, no direct or
with Public Goals substantial influence mainly through indirect public
and direct Public autonomy and shareholdering. Public & involvement
Influence public goal commercial goal.
 Traffic Area Customer Stakehlder
Managemnet Management Management Management

• Safe, secure, • Provide space • Attract new • Invest in an

fast and for growth; customers attractive
• Intensify land location
reliable use; • Creates climate, in
vessel traffic • Develop the customers partnership
management required satisfaction; with
• Partnership (Public) other(public0
• Provide valu stakeholders;
for traffic infrastructure;
added for • Influence
management • Secure
environmental
customers as relevant
on road and performance in “business regulation;
rail Port area Partner”. • Invest to
maintain a
license to
operate
Increasing Autonomy of PAs
1998
Antwerp
2005 Hamburg

2001
Canada
1988
New Zealand
1999
Western Australia
2001 2005
Rotterdam
1991
UK

PA as public Commercialized PA Privately owned

PA as public
department entity with
indirect Public PA, no direct or
with Public Goals substantial influence mainly through indirect public
and direct Public autonomy and shareholdering. Public & involvement
Influence public goal commercial goal.
  The conventional roles of a port authority are those of a landlord,
a regulator, and an operator of the port:

• As a landlord, a port authority manages the port assets under its

jurisdiction. This commonly concerns the provision of
infrastructures such as piers and the dredging of waterways. This
was commonly done with public funds that port authorities were
able to levy.

• As a regulator, a port authority sets the planning framework,

namely fees, subcontracting services, and safety, as well as the
enforcement of national and port-related rules and regulations.
• As an operator, a port authority provides day-to-day services to
ships (e.g. pilotage and towage) and merchandises (e.g.
loading/unloading and warehousing).
 Traditionally, port authorities performed one or more of these
functions, with the variance defined by local port development
traditions. The determining variables were the centralization
level of port governance-related decisions and the extent of
private operations. Since the late 1990s, changes in the
business and political environments within which ports
operate transformed these functions:
  Traditionally, port authorities performed one or more of these functions, with
the variance defined by local port development traditions. The determining
variables were the centralization level of port governance-related
decisions and the extent of private operations.

 Since the late 1990s, changes in the business and political environments
within which ports operate transformed these functions:

• Devolution of governance has supported the notion that Port Authorities

act as corporatized and/or commercialized entities that define autonomously
at the local level the planning, development, and management of activities at
the respective port(s) under their responsibility.
❑ Cluster governance is an emerging and extensive trend where the port
authority assumes leadership in activities that conventionally were
outside its jurisdiction.

❑ These include the setting of inland terminals and logistics zones

(directly or in partnership), various strategies to monitor and improve
performance (such as stakeholder relations management, marketing
strategies, and internationalization activities), setting port community
systems, promoting environmental and social initiatives, being
involved in training and education for port-related employment as well
as facilitating relations with its surrounding urban areas.
The Main Activities of Landlord Port Authorities
In ports that continue to have a predominantly public character, known
as service ports,
 The port authority acts as the operator offering a complete range of
services required for the functioning of the seaport system.
 The port owns, maintains, and operates every available asset (fixed
and mobile), and cargo-handling activities are executed by labor
employed directly by the port authority.
 They are under the direct jurisdiction of public agencies such as a
ministry, such as transport or maritime), a Chair (or Director-
General), Board of Directors, with personnel civil servants appointed
by and directly reporting to the public agency.
Port authorities are the port level regulators, undertaking and
monitoring several public authority governance functions.
 take care of the application and enforcement of regulations set by
other policy-makers, such as national administrators responsible for
port policy set by international organizations, such as the
International Maritime Organisation.
 Take care operational safety, the implementation of local or
international safety and security codes (i.e. the ISPS Code), and
protocols and rules governing the provision of auxiliary services.
 implement specific regulations like navigation, and law and order,
PA’s are assisted by the Harbor Master or the coastguard.
 Port authorities regulate financial revenues by having full or partial
control of port tariffs.