Port Operations & Port Productivity Container Terminals

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1 Puerto Rico May 8th, 2009 Port Operations & Port Productivity Container Terminals Gina Acosta DP World Antwerp

2 PORT / TERMINAL EVOLUTION - ANTWERP

3 PORT / TERMINAL EVOLUTION Rotterdam Antwerp Le Havre HINTERLAND Price Congestion Pollution Satellite / Inland Terminals

4 ROLE OF PORTS IN LOGISTIC CHAINS DC Port Port DC Inland terminal DC Satellite terminal Terminal as a nodal point in the Logistic Chain Active role of terminals in the Logistic Chain Vertical Integration High Information flow Low Terminalization of Supply Chains Degree of Synchronisation Source: Rodriguez and Notterboom (2007)

5 TERMINAL SYSTEM Administration Building Container Repair Maintenance Workshop Truck Gate CFS Facility MT Container Stacks MT Container Stacks R A I L Stacking Area Vessel /Barge

6 TERMINAL SYSTEM Transfer to Gate QUAY YARD GATE Productivity Capacity Productivity Horizontal Transfer A B C D Discharging Operation Quay Transfer Operation Storage Operation Delivery Operation Productivity is measured in Containers/Moves Capacity is measured in TEU

7 TERMINAL- INTERDEPENDENT SYSTEM Quay Capacity Yard Capacity Gate Capacity Labour Capacity Equipment Capacity Customer Demand 350 boxes 300 boxes/ hour 400 boxes/ hour 250 boxes/ hour 325 boxes/ hour 250 boxes/ hour Service Provided System Constraints

8 MARKET FORCES QUAY MARITIME CUSTOMERS YARD G A T E HINTERLAND INLAND CUSTOMERS Contractual Non Contractual Intra and inter-port competition Higher productivity & reliability-shipping Lines Just in time delivery / Low inventory levels Value Added Services Develop full logistic corridors F B DK NL D PL CH CZ P E I TR

9 FACTORS AFFECTING PRODUCTIVITY Capacity of the subsystems within the terminal Equipment Processes Flow of information / Data integrity Labour / Unions

10 Quay and Crane Productivity Quay Productivity Containers handled over the quay / length of quay (period) Ship Productivity Gross Moves per Hour (GMPH): Containers moved to/from a ship/ Hours between first and last lift (period) Net Moves per Hour (NMPH): Containers moved to/from a ship / Hours between first and last lift minus idle time (period) Crane Productivity Gross Crane Rate: Containers moved over the quay per crane/ Hours between first and last lift (period) Net Crane Rate: Containers moved over the quay per crane/ Hours between first and last lift minus idle time (period)

11 Yard Capacity / Productivity Yard Capacity Dwell time Twenty Foot Ground Slots (TGS) Storage Capacity TEU Peaking Factor Surge Factor Maximum Stacking Height Optimum Stacking Height Number of inland transport units loaded (truck / rail / barge)

12 Gate Performance Main KPIs: Gross Truck Turnaround Time Net Truck Turnaround Time

13 PRODUCTIVITY GAINS EQUIPMENT UPGRADES / CAPACITY INCREASE (High level of investment) QUAY Faster and more efficient cranes Twin Lift / Quad Lift / Tandem Lift YARD Automatic Stacking Cranes (ASC) GATE OCR MORE EFFICIENT USE OF EXISTING INFRASTRUCTURE OR EQUIPMENT (Processes Lower level of investment) QUAY Dual Cycling QUAY / YARD Straddle Carrier Pooling GATE: Vehicle Booking System (VBS) BETTER EXCHANGE OF INFORMATION BETWEEN THE DIFFERENT STAKEHOLDERS

14 TECHNOLOGY UPGRADES Crane Lifting (TEU Ratio) (a) Twin Lift (b) Quad Lift (c) Tandem Lift

15 TECHNOLOGY UPGRADES (a) Automatic Stacking Cranes (ASC) (b) OCR

16 DUAL CYCLING Import storage Import storage Export storage Export storage Single Cycle Dual Cycle Reduce unproductive/empty crane moves Reduce empty trips of horizontal transfer equipment Optimization of equipment

17 STRADDLE CARRIER/ ITV POOLING Increase Productivity of loading and discharge Optimize equipment utilization (Minimize equipment idle time) Reduce equipment requirements

18 VEHICLE BOOKING SYSTEM (VBS) N. of trucks :00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 Pre S-VBS 10:00 11:00 Hourly slot 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 Post S-VBS 20:00 21:00 22:00 23:00 Smooth the peaks and troughs in truck arrivals (Service improvement) Manage differences of information or documentation problems in advance Reduce truck operating costs, congestion and pollution

19 RELEVANCE OF PRODUCTIVITY GAINS SHIPPING LINES Vessel turn around time (High operational savings) Schedule integrity TERMINAL Equipment Optimization Higher number of boxes moved (Increased earnings) Operational savings (e.g. Labour) INLAND CUSTOMERS Better organisation of supply chains Lower levels of inventory Lower transportation costs COMMUNITY Terminal efficiency relevant for a country s competitiveness and economic development Lower congestion and pollution on the roads

20 CONCLUSIONS Capacity constraints, increase throughput and clients demands at the water and land sides are moving port operations inland (extended gateways) Terminals serve two different sets of clients. High productivity must be kept at the waterside to be competitive but it is in the hinterland where strategies and solutions for capacity, productivity and services are focused. Productivity gains can be achieved through different mechanisms. However, start by analyzing your processes, information flow and your clients requirements before additional investments are executed.

21 Q &A Thank you very much for your attention

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