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An investigation into the operational challenges at the Durban Container Terminal.

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INTRODUTION

BACKGROUND

A terminal is generally separated into three operational sections, the wharf operation, the yard operation and the hinterland operation, the hinterland is constituted. The yard part of the terminal is used for short-term storage of containers before they are loaded onto or unloaded from a ship.

OPERATIONAL CHALLENGES

  • Berth Depths
  • YardCapacity and Configuration
  • Crane Breakdowns
  • Underutilised Crane Capability
  • Ship to Shore Crane Maintenance
  • Stack Windows- Uneven Traffic Flow
  • Equipment Allocation
  • Customer Requests and Experiences
  • Stack Inaccuracy-Dumping of boxes
  • Equipment Breakdowns
  • Workforce
  • Adverse Weather Conditions-Wind

Each operating area in the terminal is assigned a certain number of equipment (straddle carriers) for use for a specific shift. Operators rely on the terminal's operating system strategies to instruct the equipment operator on the container location where the containers should be placed in the yard.

AIM OF THE STUDY

High Absenteeism- There is generally high absenteeism at DCT, the unavailability of labor sometimes leading to the shortage of employees to man the gangs required to handle the volume of throughput. This becomes an operational challenge as container volumes cannot come in and out of the terminal.

PROBLEM STATEMENT

OBJECTIVES OF THE STUDY

RESEARCH QUESTIONS

SIGNIFICANCE OF THE STUDY

Lessons from the study will be transferred to other Transnet port terminals in the container sector. Therefore, any solution implemented by DCT can be replicated across Transnet port terminals across the country.

ASSUMPTIONS OF THE STUDY

BRIEF RESEARCH METHODOLOGY

LIMITATIONS OF THE STUDY

Nevertheless, according to the researcher, it was considered not related to the problem under investigation.

ORGANISATION AND STRUCTURE OF THE STUDY

Congestion in the container terminal limits the efficiency of the port and its throughput rate. Terminals consider transshipments as an added value for their customers (shipping). Transshipment handling is usually priced well below the normal container handling fee. The study was carried out at the Durban Container Terminal (Pier 2). The study covered all the critical departments involved in the Durban Container Terminal Operations.

The questionnaire was designed keeping in mind the objectives of the research and the literature related to the questionnaire. In order to identify the nature of the challenges facing the Durban Container Terminal, participants were asked to make seven statements. The majority of participants (82%) positively reported that an improved incentive scheme can have a positive effect on operational efficiency, with 83% indicating that it can/will improve operational efficiency by introducing new equipment (distance carriers).

A significant change in the operating model may have a negative impact on the productivity of the terminal. The purpose of the study was to investigate the operational challenges at the Durban container terminal.

Figure 1: Detailed layout of DCT, Naicker & Allopi 2015
Figure 1: Detailed layout of DCT, Naicker & Allopi 2015

CONCLUSION

LITERATURE REVIEW

DEFINITION OF KEY CONCEPTS

Operations Management and Supply Chain Management

Congestion in the container terminal is an important problem that reduces the productivity of the yard location. The study population is employees of Transnet Port Terminals based at the Durban Container Terminal.

Container Operations Industry

Container Terminal Resource Outputs

Challenges in Container Terminals

South Africa Container Terminal Challenge

Container Terminal Logistics

NATURE OF THE CHALLENGES FACED BY THE DURBAN CONTAINER TERMINAL

  • Berth Depths
  • Yard Design and Layout
  • Underutilised Crane Capability
  • Operator Performance(DAV and OLE)

It determines the size of the vessel that can call at the terminal, the draft further determines the extent to which the terminal is used. The yard is a temporary warehouse where containers are stored for a short time within the terminal area. The feed to the crane from the yard as well as the evacuation of containers under the quay crane are other operations that determine the efficiency of the terminal operation.

Research shows that only 5% of staff have committed to the 28 crane movements per hour.

FACTORS HINDERING EFFECTIVE OPERATIONS AT THE DURBAN CONTAINER TERMINAL

  • Equipment Maintenance
  • Performance Management Tools
  • Management Style and Labour Relations
  • Berth Planning
  • Yard Planning
  • Equipment Allocation
  • Incentive Bonus Payments and Overtime
  • Customer Demands

These activities rely on the researcher to become an exclusive interpreter of the information received from the participants in the study (Alfoldi and Sinkovics, 2012). Therefore, it could be concluded that all the mentioned challenges were supported by the majority of the participants. The literature points to the fact that the design of the yard varies from port to port.

Based on the findings, it may be possible that the objectives of the study have been achieved.

The RELATIONSHIP BETWEEN OPERATIONAL FACTORS and EFFECIENCY AT THE DURBAN CONTAINER

Equipment Utilisation and Efficiency

According to Esmer (2008), the equipment used in a container terminal is very costly, therefore the use of equipment is of extreme importance. Underutilization will result in an increase in the return of the investment made, but simply an increase in operating expenses for the management of the port (Esmer, 2008).

Shift Patterns and Efficiency

Performance Bonus and Efficiency

The questionnaire was designed in accordance with the purpose of the study to ensure validity. When asked if the underutilized crane capacity is a setback for DCT, 84% of participants agreed or strongly agreed with the statement. The researcher also refers to literature reviewed to support the study's recommendations.

This chapter presents the findings after the analysis of primary and secondary data.

CONCLUSION

RESEARCH OBJECTIVES

RESEARCH PHILOSOPHY

Qualitative Research

In qualitative research, the research is mainly focused on the approach to arrive at the facts. The main style of the positivist scientist is the experiment, which provides the opportunity to evaluate a cause and the result of the cause relationship vessels through observation (Sekaran & Bougie, 2013). Qualitative research can be described as a series of informational activities that aim to discover the precise meaning behind the behavior and actions of others.

Quantitative Research

In the positivist approach, hypothesis is established and confirmed through the data analysis method to enable the researcher to draw critical conclusions (Sekaran and Bougie, 2013). The data collected is readily available and this allows the researcher much more time to think about research objectives and issues. It also gives the researcher much more time and focus to analyze and interpret the data.

Definitions and their interpretations may be representative of the views of the researcher and therefore not objective.

The RESEARCH METHODOLOGY USED

RESEARCH DESIGN

LOCATION OF THE STUDY

POPULATION

POPULATION SAMPLE

STRATEGIES FOR DATA COLLECTION

A formal application of the intention to conduct an investigation at DCT was made to the CEO of Transnet Port Terminal. The one condition or comment from the Office of the Managing Director is that the result of the investigation must be reviewed by the appropriate General Manager before it is distributed. The respondent's answers remained confidential as the respondent's identity had no influence on the feedback received.

The choice to participate or not to participate was also made clear to the respondents, so that they had the freedom to abandon the survey at any stage.

QUESTIONNAIRE DESIGN

Construction of the Instrument

PILOT STUDY

In addition to the graphical representation of the data, the results were further linked to the reviewed literature. The present study found that operator performance is a major challenge in DCT, as 87% of participants agreed or strongly agreed. It was found that 84% of participants indicated that incentive payments negatively affect operational efficiency.

The majority of participants (86%) positively indicated that the distribution and allocation of equipment contributes significantly to operational inefficiencies in DCT. A frequency distribution of the total scores of all seven response statements related to factors impeding the efficient operation of the Durban Container Terminal showed that 78% scored 17 or less, representing more than three quarters. Two-thirds (66%) of participants were found to agree that shipyard design negatively contributes to operational efficiency.

Figure  4.1:  Distribution  of  statements  regarding  the  nature  of  the  challenges  faced  by  the  Durban Container Terminal
Figure 4.1: Distribution of statements regarding the nature of the challenges faced by the Durban Container Terminal

ADMINISTRATION OF THE QUESTIONAIRE

ETHICAL CONSIDERATIONS

VALIDITY

RELIABILITY

DATA ANALYSIS

CONCLUSION

INTRODUCTION

RESPONSE RATE

Therefore, a centralized berth planning system operating outside the Terminal operating system is unrealistic (Cubillos, 2013). Regarding the current shift pattern, more than half of the participants (58%) mentioned that the current shift pattern negatively affects the efficiency of Operations. This view is adapted from that of Zhen, Jiang, Lee, Peng and Chew (2013), who state that one of the most.

The frequency distribution of the total scores from all seven statements relating to the relationship between operational factors and efficiency at the Durban Container Terminal showed that 72% scored 17 or less, indicating that approximately three-quarters of the participants responded positively to all statements (Table 3). . The literature shows that customers are generally concerned about themselves and not so much about the profitability of the container terminal. After these meetings, both parties should be given time to strongly involve their constituencies in the strategic direction of the business.

CRONBACH’S AlPHA

ESTABLISH THE NATURE OF THE CHALLENGES FACED BY THE DURBAN CONTAINER

The results showed that the majority, a significant number of participants, consider shipyard design to be a major challenge for DCT (74%). Participants were asked if equipment allocation contributes to operational inefficiencies in DCT, 91% of participants responded positively to this statement as a challenge for the company. The frequency distribution of the total scores of all seven statements showed that 74.5% scored 13 or less, which means that three quarters of the participants agree or strongly agree with all statements (Table 2).

Yard design is a major challenge for DCT Crane & SC Breakdowns are a major challenge at DCT Underutilized crane capacity is a setback for DCT Equipment maintenance is a major challenge at DCT Yard and wharf planning are major challenges at DCT Equipment Allocation is a contributor to Operational.

ESTABLISH THE FACTORS HINDERING EFFECTIVE OPERATIONS AT THE DURBAN CONTAINER

This means that the incentives should not be entirely in the hands of the operators, even if the company is not doing well. Chapter four presented the results of the study. The analysis focused on the research objectives of identifying the nature of the challenges faced by the Durban Container Terminal, identifying the factors that hinder effective operations at the Durban Container Terminal and assessing the relationship between operational factors and efficiency at the Durban Container Terminal. The literature reports that cranes are the most expensive equipment in a container terminal, so their use reduces the cost per container handled.

The literature relieves that stack congestion is a significant obstacle that reduces the productivity of a shipyard site. Operators need to be educated and reminded of who is in charge of the equipment, and a terminal-wide awareness campaign should be undertaken. It must be comprehensive, so that not only certain areas of business will benefit from it, but all operational areas of the company will benefit from it, i.e.

Figure 4.2: Summary of responses regarding the factors hindering effective operations at the  Durban Container Terminal
Figure 4.2: Summary of responses regarding the factors hindering effective operations at the Durban Container Terminal

ASSESS THE RELATIONSHIP BETWEEN OPERATIONAL FACTORS AND EFFECIENCY AT THE DURBAN

CONCLUSION

INTRODUCTION

FINDINGS FROM THE STUDY

The literature also reports a lack of well-thought-out maintenance plans and their implementation to ensure effective maintenance of equipment in support of operational requirements. It is mentioned in the literature that the simpler things are kept at the purchasing stage of the equipment, which results in the least amount of problems encountered later while operating and maintaining the equipment. The literature shows that despite the introduction of an incentive payment, operators' performance is still below target, making the incentive ineffective as only some operators achieve the desired objectives.

The literature shows that power in the public sector has shifted from management to the workforce, it also shows that the two parties generally see each other as enemies instead of seeing each other as strategic allies.

CONCLUSIONS FROM THE STUDY

Leadership style and the relationship between management and workers were identified as areas requiring the most attention. The skills necessary to accurately diagnose and repair equipment must be acquired and retained. This exercise will be led by the Terminal Manager and the Chief Planning Officer.

Material allocation is identified as an operation that does not have a depot at DCT.

RECCOMENDATIONS FROM THE STUDY

CONCLUSIONS FROM THE STUDY…

RESEARCH CONCLUSION

SCOPE FOR FUTHER RESEARCH

RESEARCH CONCLUSION

Gambar

Figure 1: Detailed layout of DCT, Naicker & Allopi 2015
Figure  4.1:  Distribution  of  statements  regarding  the  nature  of  the  challenges  faced  by  the  Durban Container Terminal
Figure 4.2: Summary of responses regarding the factors hindering effective operations at the  Durban Container Terminal
Table  4.3:  Frequency  distribution  of  overall  scores  for  responses  regarding  the  factors  hindering effective operations at the Durban Container Terminal
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