Port Operations
4.1 PORT MANAGEMENT SERVICES: TERMINAL OPERATORS; PROPERTY LEASING OPPORTUNITIES
Modern seaport facilities are technology-intensive platforms of carriage of goods, situated by a natural or man-made dredged port and containing multiple terminals, docks, and berths. Port management and terminal operations encompass a wide range of activities.
A port serves as a safety haven for ships and a cargo loading/unloading area; as a trade and transport link; as a hub center for sea, land, and air; as a bunkering supply station for fuel and diesel oil; and as a commercial, economic, and industrial zone, with banks, brokers, and agents of all kinds.
4.1.1 Port Management Services and Operations
There are approximately 9000 seaports globally, 3500 of which are medium to large in size. They all serve as the strategic transshipment links between inland and maritime transportation, and domestic and international trade. Because of their distinctive char- acteristics, market position, size and trade specialization, ports are classified into various categories. The general rule is that the larger the port’s size, the more terminals a port has, and the more operational services and market segments it encompasses.
Seaports are complex entities, and their success formula lies in their ability to adapt in the modern business world. Prior to computerization, this was a laborious process that, because of communication and visibility hindrances, involved a wide margin of error. Modern ports now use efficient and interactive software that provide real-time operational organizing for all the port and terminal activities, including berthing, port operational schedule, allocation, and utilization of resources including loading/unloading equipment.
Ports typically function under a regulating system known as the port authority or port management. This is an agency—government or state, public or semipublic—legally established to operate ports and typically controlled by boards or commissions. The rapid evolution of globalization has brought about changes to the administrative role of ports
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within their national boundaries, their strategic role within the supply chain, and last but not least their operational role in terms of cargo handling.
Their navigational channel operations are in synchronicity with the superstructure and infrastructure that will enable the commodities to be effectively handled and trans- ported in an intermodal or multimodal manner. Figure 4.1 demonstrates the different port functions and components of performance.
Twenty-first century ports are not immune to competition; hence, they are rapidly growing by utilizing their competitive advantages, which vary in terms of
• Economy
• Cargo volume and segments (dry bulk, wet, containers, Ro-Ro’s, cruise ships, etc.)
• Culture, vision, and strategy
• Geographical location
• Legal and regulatory framework
• Layout, structure, and size
• Market and trade agreements
• Technology and innovation
• Working practices and corporate culture In this manner, each port is unique.
The most noteworthy of a port’s functions is its ability to adjust its cargo unloading/
loading and carrying capacity to accommodate all of the market whims, fluctuations, and unexpected developments.
Contribution
Labor
Capital equipment Cargo handling
Berth occupancy
Revenue Expenditure
Maritime
transport Port
navigation services
Cargo handling
services
Cargo transit storage services
Hinterland transport
Supply chain performance
Monetary units per ton
FIGURE 4.1 Port performance indicators.
4.1.2 The Harbormaster’s Department and Functions
Harbormasters are designated civilians or naval officers, in charge of implementing the maritime rules of a specific port. Their overall duties include navigational safety includ- ing traffic and pilotage directions, security, marine environmental protection, and the operational and technical integrity of the port facilities.
In the United States, harbormasters are designated public servants, whose topographi- cal zone of authority may vary, from a mega-port to a small harbor. Private dockmasters are an exception to the rule, as they usually supervise smaller docks or recreational boats.
Regardless of the port’s size, they supervise harbor patrol officers and port employees, such as dockworkers and maintenance workers.
Harbormasters also play the role of legal enforcement administrators and have the authority to investigate incidents and accidents pertaining to safety, security, and envi- ronmental pollution, as well as immigration and customs formalities and clearance issues.
Harbormasters notify the authorities and hand over to them any persons suspected of committing a crime of any nature.
On the basis of the ship’s size and type, harbormasters assign suited berths for each ship calling at the port. They provide the “Notice to Mariners,” that is, all the safety navi- gational instructions to the ships’ masters, covering each and every level of their passage- way within the port, such as traffic obstructions, requirements for pilotage, locks if the port is tidal, berth shifting, mooring permitting and oversight, severe weather forecasts or other hazards, special aids to navigation instructions, lighthouse information, and so on.
Ports provide navigation aids and vessel traffic services (VTSs) as parts of their traffic con- trol management. The three main types of service that VTSs offer include (i) Information Service, (ii) Traffic Organization Service, and (iii) Navigational Assistance Service.
4.1.3 Terminal Manager
The terminal managers administer all aspects of port operations in a specific terminal, including the receipt, storage, and distribution of cargo by rail, sea, or road. Their activities encompass ship’s loading and unloading, the operations of cargo handling equipment such as mobile cranes and other heavy plants, and the cargoes’ ship–port warehouse distribu- tion. They are in charge of stevedores (longshoremen) and union issues, as well as resource allocation management. They work with a team of vessel planners, supervisors, and port workers to ensure safe and efficient terminal operations and customers’ satisfaction.
4.1.4 Vessels’ Planning
Planning is carried out by the port’s Senior Planner who supervises the Central Planners in assigning ships to berths aiming to avoid bottlenecks and promote safety, efficiency, and productivity. As different ships carry a wide range of cargoes, this dynamic team of experts ensures that all cargo shipments, including HAZMAT cargoes, are properly handled and certified and compliant to all mandatory regulations (safety, security, envi- ronment, quality, etc.). They acquire the ship’s stowage plans and layout at an early stage, in order to coordinate the advance planning. For container ships, they consult the master plans to verify each container’s slot, that is, the “bay, row, and tier,” method which uses numerical coordinate systems where each container is numbered and its dimensions and
precise location onboard the ship are registered. Hence, these records will enable liner companies to discharge the right container at the right port and truck its stowage space onboard the ship (and at the port), at any given time. These records remain with the port, the carriers, and the freight forwarders for future reference, in case of damage of the container box or the cargo, or any incident investigation.
The planners also verify that the cargoes’ actual type and weight match with the data on the bills of lading. Finally, they supervise the berths’ preparedness status and ensure that the cargo handling equipment is in an operating condition and geared up for the ships’ operations.
4.1.5 The Four Stages of Port Management and Operations
There are four principal stages pertaining to the ships’ stay at port, from the time of arrival at the port entrance, until the time of its departure. They entire protocol of port management and the breakdown of the time ships spend at port is defined in Figure 4.2 and is duly analyzed herewith.
The first stage gives the option to the ship to be served without having to enter the port, whereas the other three stages are analyzed in a chronological order.
Stage 1. Ports’ Off-Port-Limits (OPL) Operations
Seaports offer OPL operations services to the ships in transit that are not sched- uled to visit the particular port of call for loading or discharging operations but are in need of specific port-related services. OPL services help ships achieve time efficiency and minimum deviation, low cost, and economies of scale.
Total time in port
Pre- and post- berthing waiting time Operational timeat berth
Pre-berthing waiting
time Pre-
berthing waiting time Departure after registering
Time at berth
Operational time at berth
Alternatively working and nonworking periods Start of
operations Arrival
at berth Return
to port Arrival
at port Leaving port after registering
Code: (1) (2) (3) (4) (5) (6) (7) (8)
Finish of
operations Leaving
berth Leaving port Sailing delay
*
Free berth available Proceeds to berth
FIGURE 4.2 Breakdown of ship’s time in port. (From UNCTAD, 1985. [UNCTAD/
ship/185] Nov. 1. Manual on a uniform system of port statistics and performance indica- tors. Available at http://r0.unctad.org/ttl/docs-un/unctad-ship-185-rev2/en/UNCTAD_
SHIP_185_Rev2e.Pdf [accessed on July 12, 2013].)
Since the ships’ contractual obligations do not permit a deviation, ports can extend their time-efficient services to the OPL.
The OPL services are prearranged by the liner company’s operations depart- ment and the ship’s master, typically by VHF. The “rendezvous” position or meeting point is typically within a designated mileage, for example, 3–5 nautical miles or a specific latitude and longitude off port boundaries.
Designated service boats/launch boats or even helicopters for emergency ser- vices are employed by the port authorities. The services provided could be classi- fied into the following categories:
a. Procurement, that is, the victualing of stores, spare parts, food supplies, and so on.
b. Passengers’ drop-off, where each launch boat can accommodate about 20 persons, and charge per boat trip, instead of number of passengers, thus achieving economies of scale.
c. Crew changes.
d. Embarking and disembarking of vetting inspectors, marine surveyors, regu- latory auditors, and repair teams.
e. In case of an accident or a medical emergency onboard, a helicopter can be employed to pick up the victims and deliver them to a designated hospital.
This service can spare the shipowners a deviation claim on behalf of the charterers and prevent any navigational delays, while ensuring that the best possible medical and safety measures are taken.
Port OPL services are quite common, yet they are most frequent at ports that are situated in major navigation passages such as Singapore, Malta/Gibraltar, South Africa, and so on.
Stage 2. Port Operations and Berthing Management
This stage involves the ship’s navigation and berthing at the port. From this stage onward, the port authorities will handle the ship’s navigational, berthing, loading, and unloading operations, taking into consideration its commercial and contractual status, that is, depending on whether the ship is a liner or a tramp.
a. For liner ships, the port typically has a contract with the liner company, which is the ship’s owner and manager. Large liner companies typically have a multiple year contract with the port, and their employees handle their fleet operations while being present at the port. Liner ships perform the same repeated and predetermined schedule at the same designated ports of call, in order to load or unload the cargoes of their numerous clients (charterers, freight forwarders). The liners’ service network may include 8–12 ports of call per ship, while the port stay duration time may vary according to the cargo volumes per port, port traffic, and so on. Figure 4.3a and b demon- strate container ships operating liner services, namely, “Evergreen Lines” and
“MSC” lines.
Since liner companies represent multiple charterers/freight forwarders, they assume a leader’s position and thus can better control and manage port operations for their entire fleet. Their undisputed authority and proce- dural repetition simplify the port operations and standardize the paperwork exchanged between the owning company, the port, and the ship’s master. For
example, there is a standardization of the navigational instructions e-mailed to the ship’s master, the berthing instructions, port tariffs, and so on, which saves time and enhances the endeavor’s effectiveness.
b. The tramp ships, on the other hand, trade in the spot market and conclude busi- ness usually with one or two charterers at a time. The charter party terms and conditions will stipulate the number of ports of call and the time allowed for loading or discharging. The agreement and decision-making process about each port of call will have to be decided between the shipowners and the charter- ers (freight forwarders), depending on the contractual duration and the level of authority that the owners wish to grant to the charterers. The communication protocol as to the port operations will depend on the charter party type that will be selected as a contractual agreement, that is, (i) a voyage C/P accom- modates a single loading–unloading voyage; (ii) a time charter, for example, a 2-year contractual arrangement; and finally (iii) a bareboat charter, where the charterers have the commercial control of the ship and legally become the ship’s disponent owners (see Section 4.4). Figure 4.4a and b show tramp ships, namely, M/V Anemos, a Supramax bulk carrier managed by “Aegean Bulk”
of Greece, and M/V Polska Walczaca, a conventional Panamax bulk carrier of nine holds, managed by “Polsteam” of Poland.
(a)
(b)
FIGURE 4.3 Container ships operating in liner services. (a) “Evergreen Lines” container ship at the Port of Haifa, Israel. (b) “MSC” lines container ship at the Port of Haifa, Israel. (Courtesy of the Port of Haifa, Israel.)
Services Prior to the Ship’s Arrival Berth Request
Prior to the ship’s estimated arrival, its agents or managers (operations department) should submit an online request to the port, providing the following information:
− Vessel’s name and previous names
− Ship’s main particulars, for example, flag, ownership/management, charterers, deadweight (DWT), length overall (LOA), net tonnage (NT), gross tonnage (GT), draft, and so on
− Estimated date and time of arrival
− Estimated date and time of departure
− Cargo type and volume
− Cargo operations specified, that is, loading or discharging
Modern ports provide to the ship’s registered and designated users—
typically her agents or operators—online access to efficient, user-friendly berth request applications, enabling them to verify and monitor current status and amend or cancel their berth requests.
(a)
(b)
FIGURE 4.4 Tramp ships at the Port of Haifa, Israel. (a) M/V Anemos, a Supramax bulk carrier managed by “Aegean Bulk” of Greece. (b) M/V Polska Walczaca, a Panamax bulk carrier managed by “Polsteam” of Poland. (Courtesy of the Port of Haifa, Israel.)
Notice of Arrival—72 Hours Prior to Ship’s Arrival
At least 72 hours prior to the ship’s arrival at port, the ship’s operators, master, or agent should submit to the port, a Notice of Arrival, with particulars that pertain to the ship and its managers, cargo type and quantity, any operational information, and so on.
Special Provisions for “Cargoes of Particular Hazard”
Ships navigating in the United States and carrying cargoes of particular hazard should comply with the US 33 Code of Federal Regulations 126.3.
The shipowners or operators or agents should forward an Advance Notice of Arrival to the US Coast Guard under copy to the port. As stipulated in 33 CFR 126.16, ports should install light alarms at designated areas, which, in case of an emergency, are activated by the responsible operator.
Cargo Manifest
The cargo manifest with all cargo information should be produced, pre- pared, and duly approved by the shipowners, masters, or agents, in line with the port requirements. It should be submitted to the port opera- tors prior to the ship’s arrival. A bank guarantee or other documentation pertaining to the payment of port expenses or disbursements should be readily available. After the completion of cargo operations, a statement reflecting any and all modifications of the manifest should be prepared and sent to the port.
Services During the Ship’s Arrival Pilotage Services
The use of pilots is mandatory in certain ports, terminals, canals, and inland waterways with tidal fluctuations, draft restrictions, heavy traf- fic, or hazardous waterbeds owing to reefs, and so on. The idea here is to avoid a ship’s hydrodynamic problems (e.g., the suction effect caused by the ship’s maneuvering in restricted water) or lack of visibility, which may lead to the ship’s grounding, allision, or collision. Figure 4.5a–c illustrate the towing operations during a ship’s entrance at port, mooring opera- tions, and the ships’ berthing arrangements.
Ports offer this service as an enhanced alternative to electronic navi- gation charts that provide weather and oceanographic information, yet do not have the local knowledge and experience that pilots deliver. The utility of pilots can be verified by the maritime accident statistics, where accidents, human error, claims, and legal cases have occurred even when pilots were not mandatory and were not used.
Berthing/Unberthing, Mooring/Unmooring, and Anchoring Operations The ship’s maneuvering for berthing/unberthing and its mooring/
unmooring and anchoring entail ship-to-port collaboration and naviga- tional proficiency by everyone involved, including tugs, mooring teams, and rope runners, among others. The ports’ policies typically stipulate that the berthing operations are on a first come, first served sequence, yet special provisions can be made for different reasons. While ports aim for high berth occupancy rates, delays and traffic are common problems. The berthing process may vary depending on the weather conditions, as well as the docks, berths, or the terminals’ characteristics. For safety reasons, appropriate berthing is mandatory in order for ships to commence their cargo operations, to be discussed in the next level.
(a)
(b)
(c)
FIGURE 4.5 Towing operations, mooring and ships at berth. (a) Towboat maneuvers container ship managed by “Zim London.” (b) Mooring operations at berth: M/V Norwegian Jade managed by Norwegian Cruise Lines. (c) Ships at berth; (top left) pas- senger ferry Nissos Rodos managed by Hellenic Seaways, Greece; (bottom right) chemi- cal tanker Bentley I managed by Bentley Marine, USA. (Courtesy of the Port of Haifa, Israel.)
Stage 3. Ship Operations at the Berth/Terminal
After the ship has met the navigational and documentation prerequisites, the operations stage involves the vessel’s actual purpose of visiting the port, which may include loading, unloading, bunkering, victualing, and other operations.
This is a critical point for the performance of the port, the ship, and the ship- pers. Teamwork is necessary in order to meet common goals such as holds’ or tanks’ cleaning, loading and discharging the cargo, cargo handling and stowage
(a)
(b)
(c)
FIGURE 4.6 Cargo handling operations. (a) Loading dry bulk cargo, Italy. (Courtesy of M.G. Burns.) (b) Loading timber cargo. (Courtesy of M.G. Burns.) (c) Rolling cars onboard Ro-Ro Fides managed by Grimaldi Lines of Naples, Italy. (Courtesy of the Port of Haifa, Israel.)
supervision, bunkering operations, and so on. All parties play an equally sig- nificant role in monitoring and measuring the results in terms of time, safety, profitability, and efficiency. Figure 4.6a–e illustrate cargo handling operations, namely, (a) grain loading operations, (b) ship loading at grain elevators, (c) cargo hold cleaning (manually), (d) rolling cars onboard car carriers, and (e) container handling operations.
Ship’s Cargo Handling Equipment
To ensure operational safety, the ports’ protocols typically require a permit from the ship’s master that will authorize them to examine and evaluate the opera- tional efficiency of the ship’s cargo handling equipment, while making available for inspection, the respective certification.
Cargo Operations
Once the Notice of Arrival has been tendered and accepted, the vessel is officially an arrived ship. The master is obliged to commence the freight operations within a specified time while safeguarding the areas around the cargo operations.
The charter party agreement between the shipowners and the charterers and eventually their instructions to the port will stipulate who will undertake the freight operations; who will provide the cargo handling equipment; up to what extent third parties, for example, stevedores (longshoremen), will be used; and
(d)
(e)
FIGURE 4.6 (Continued) Cargo handling operations. (d) Loading dry bulk cargo, Israel.
(Courtesy of the Port of Haifa, Israel.) (e) Container handling for CAI International, a major container leasing company. (Courtesy of the Port of Haifa, Israel.)