PORT ROLES AND
MANAGEMENT CHALANGES
By Murdjito
Laboratory of Sea Infrastructure and Port
Study Group Sea Transportation
Department of Naval Architecture
Faculty of Marine Technology ITS Surabaya
Surabaya, February
2013
References
Yi-Chih
Yang, Introduction of Port
Management, Department of Shipping
and Transportation Management,
National Kaoshiung Marine University
Constantinos I. Chlomoudis, The Need
for A New Phylosophy of Port
Management, Department of Maritime
Studies, University of Piraeus
World Bank, Alternative Port
Management Structures and Ownership
Models, Module 3
New challenges for Port Management
A
port is essentially a point where goods
are transferred from one mode of transport
to another. In an era of economic
globalization ports are evolving
rapidly from being traditional land/sea
interfaces to providers of complete
logistics networks.
This means the ports had to face many
challenges due to unpredictable
environmental changes and trends in
the shipping, port and logistics
industries
Port functions
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
Integrated View of Port
Element
Evolution in Port Function
Impact of bad service
quality in Port
Port
congestion
Chronic service failures
Main problems contributed to the
gradual deterioration of service quality
labor practices Antiquated
work practices and methods
restrictive
needed to be transformed and renegotiated to
adjust to modern bulk handling methods, unitized
handling and containerization rapid
modernization of port handling equipment
centralized
government control in the port
sector many ports failed to respond
adequately to the increased demands
1980s increasing introduction of market-oriented
policies on a worldwide basis open the way for
decentralized port management and for reduced
government intervention in port affairs
inability
or unwillingness of many
governments to invest in expensive
port infrastructure or the "misinvestment" in infrastructure
To define the conditions for
successful hub port
Location
(proximity to major
world routes)
Quick turnaround time
Quality service with efficiencies
and productivity
Reasonable costs
Ability to accommodate super
larger ships-deep water,
advanced equipment
Excellent
networks covering
neighboring feeder ports
Existence of logistics cluster
supporting value-added logistics
activities
No burdensome paper works
Intermodal infrastructures-access to
rail, air and road distribution networks
Local market producing freight volume
Emerging Challenges and issues for
most ports
Globalization of world economy
bolsters the increasing importance of
international trade and the roles of
ports
International trade platform of
global ports
Diversified supply chain for
port network
Developing tendency of Mega size
Gantry Crane
Evolution of Container Handling
Technology
Developing trend of Mega size ship
Forecast of Global Ocean cargo
volume
Static of Global Strategic Alliance
A shipping lines perspective of how
to select a hub port
Port Characteristics
Categories of Port Modal
Port Regulator
Regulatory
activities within a port
will generally be related to duties
and responsibilities such as
enforcing regulations and
providing pilotage services and
vessel traffic management, most
of which will have been
established by statute.
Port landowner
They key tasks a port landowner will need
to undertake include:
Managing and developing the port estate
Conceiving and implementing policies and
development strategies
Supervising major civil engineering works
Providing and maintaining channels,
breakwater, locks, truing, basins, berths,
piers and wharves.
Providing or arranging road access to the
port complex
Port operator
Operations
may include a range
of valueadded activities and free
trade zones related activities
within the port estate
Port Administration
Models
A number of factors influence the way port
are organized, structured and managed
including:
The socio-economic structure of a country
(e.g., market economic, open borders);
Historical developments (e.g., former
colonial structure)
Location of the port(e.g., within an urban
area, in isolated regions);
Types of cargos handled(e.g., liquid and
dry bulk, containers).
Basic port management
models
Public-Private Roles in Port
Management
The public-private balance of Risk
and Regulation
Division of responsibilities
between the public and private
sectors
port
development had collateral consequences
and effects on public interests in land use,
environmental impact, job creation and economic
stimulation for economically blighted areas
Largescale government involvement in port
operations was self-defeating and destructive
of private initiative the role of government in
a market economy should focus on the provision
of "public goods"
public sector mainly acts as planner, facilitator
and regulator, whereas the private sector acts as
service provider, operator and developer.
Focused of Port Management
Increased
service levels for
infrastructure users;
Increased efficiency in operations;
Improved allocation of limited public
funds
Roles of port in public and private goods
Ports
produce a combination of public and private
goods.
Public goods include nondivisible and non-consumable,
coastal protection works necessary to create port basins.
Private goods are both consumable and divisible and their
use entails a minimum of economic externalities.
value
of private goods can be captured in market
transactions between private parties. A substantial
portion of the value of public goods, on the other
hand, cannot be captured in arms length
transactions Public goods create positive
externalities when they are used
Ports represent a mix of public and private goods
generate direct economic benefits (private goods) through
their operations as well as additional indirect benefits
(public goods) in the form of trade enhancement
Examples of Economic multiplier
effects of ports
Petro-chemical industry
Value Added Services
Repair and maintenance
Packing and repacking
Labeling
Testing
Telecommunications
Banking
Customs
Inland
transport
Architecture of port
logistics
Architecture
of port logistics
operation contain Nautical
Facilitating System, Cargo Handling
System, Storage System and Inland
Access.
Port logistics IT extend
aforementioned scope of port
operation to international inbound /
outbound and domestic factory /
market.
Framework of Value Added
Service
Ports
are becoming part of so-called
integrated logistics chains.
Value Added Service can be divided
into Value Added Logistics and Value
Added Facilities.
Value Added Logistics has two major
components: General Logistics
Services (GLS) and Logistics Chain
Integration Services (LCIS).
Overview of VAS in Port
Logistic Centre Evolution
What We Know
Today... Will Be
Surely Be
Different
Tomorrow!
