1.How critical is selection of ports/airports. Explain in relation with cost and efficiency. 2.

How was Suez/Panama Canal impacted global trade. Considering their economic importance, should they not be treated as international assets?
2.2. Determinants of efficiency Terminal efficiency is in turn determined by the following factors: 2.2.1. Container mix. The composition of trade in relation to the proportions of 40foot and 20-foot containers is an important determinant. Although a 40-foot container is equivalent to 2 TEUs, it takes approximately the same time to handle as a 20-foot one. 2.2.2. Work practices: Delays in commencing and during stevedoring. Delays in commencing and during stevedoring can cause inefficiency. The effect of these delays can be measured in terms of differences between berth time and gross working time, and between gross and net working time, respectively. Gross working time is calculated from the time stevedoring labour goes on board to the time labour leaves the vessel on comple- tion of cargo handling. Net working time takes account of delays that interrupt the stevedoring operation. These delays could be due to meal breaks, equipment breakdown, ship problems, weather, etc. The difference between berth time and gross working time could be due to delays caused by industrial disputation and award conditions such as high rates of penalty and shift allowances. 2.2.3. Crane efficiency. Crane efficiency is an indicator of how well working time is being used. There are two areas of crane efficiency: crane hours per working hour and effectiveness of crane operation. Crane hours depend on the number of cranes used to load/unload a vessel as well as on the hours worked per day. In very high productivity ports up to three cranes may be used whereas in some ports only one or two cranes are used. Effectiveness of crane operation refers to crane productivity measured in terms of number of lifts per crane hour. Crane productivity may be related to the type and age of cranes, related work practices, terminal layout, and management. 2.2.4. Vessel size and cargo exchange (economies of scale). Vessel size and cargo exchange (containers loaded plus containers unloaded per ship) is also an important determinant of terminal efficiency. A greater number of cranes can normally work a larger vessel, and a larger cargo exchange allows better container selectivity in the vessel hold and results in a lowering of berthing time as a percentage of total service time.