1.

Topic / Working Title: Queuing Theory: A Value Engineering Recommendation to Analyze Port Efficiency

2. Literature Review
Chittagong Port of Bangladesh is the 58 th busiest terminal in the world. Value Engineering method is used
by applying queuing method to analyze ideal quantity of jetties, cranes to be set up at each berth, and the space for
potential development to deal with the adverse trading pattern of the country. The demand for expansion is
considered by incorporating the economic factors with the engineering approach. The queuing theory, a
deterministic approach, is at risk of incorrect parameter values, as it generalizes a berth capacity in the measurement,
making the cost-benefit evaluation inaccurate. This results to better income and on the side of port owners
disregarding national economic benefit. The forecasted Gross Domestic Product (GDP) is integrated in the
engineering analysis to calculate the optimum number of structures required, saving resources at the same time
tackling the congestion problem in the country. (Rahman, 2021)
Nahinur Rahman. "The Capacity Planning of Bay Terminal as An Expansion of Chittagong Port for
Encountering Congestion Problem Using Queuing Model Integrated with Economic Factors." Industrial
Engineering Management 10 (2021)
Queue models are utilized to decide the optimum number of servers accommodating the berthing ships.
Queuing costs incurred by ships in ports are analyzed through a cost function. The purpose of berth investment
is to create a port efficient enough to sustain delays at least possible amount . Value Engineering is applied
by establishing the number of berths, area of the container park, and the amount of handling equipment . However,
tides are often omitted in the model consideration. This also reduces the rate of serviceability of berths, hampering
the efficiency of the system. The objective of the analysis is to produce a port capable of serving ships reliably to
address the congestion problems at minimum cost.
E. D. Edmond, R. P. Maggs. How Useful are Queue Models in Port Investment Decisions for Container
Berths? Pergamon Press Ltd. (1978)

To the support the decision making of Manila International Container Terminal officials expansion cost
benefit analysis is used through the aid of queuing theory. The study notes that port inefficiency is attributed to the
inadequate port and vessel capacity, ineffective port management, and anticompetitive policies. The ideal number of
berths is calculated to help the officials properly invest and address the congestion problem. Saeed and Larsen
reiterate that construction of additional berth will not help the port efficiency and the total cost for the construction
would not be rationalized. They suggest looking into other factors that constitute to port inefficiency.

Saeed, Naima., Larsen, Odd. Application of queuing methodology to analyze congestion: A case study of
the Manila International Container Terminal, Philippines. Case Studies on Transport Policy. (2016)