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THE PORT INDUSTRY - Coggle Diagram
THE PORT INDUSTRY
HUB PORTS AND LOGISTICS CENTER
HUB PORTS
Ports are losing thier bargaining power and have been forced to provide deep water, quality services, productivity, efficiencies, infrastructures including rails and roads, all of which are frequently demanded by shipping lines with bargaining power created by great amounts of container volume.
Definition of the conditions for success as hub port
■ location (proximity to major world routes)
■ quick turnaround time
■ quality services with efficiencies and productivity
■ reasonable costs
■ ability to accommodate super larger ships – deep water, advanced equipment
■ excellent networks covering neighbouring feeder ports
■ existence of logistic cluster supporting value-added logistics activities
■ no red tapes and no burdensome paper works
■ advanced information technology
■ intermodal infrastructures- access to rail, air and road distribution networks
■ local markets producing freight volume.
A shipping line’s perspective of how to select a hub port
No or little deviation from the main routes
Central location in the area to allow feeder network to serve in a respectable time
Modern and large port infrastructure allowing competitive productivity and immediate availability of berths/cranes
Limited paperwork requirements from local authorities
Competitive costs
Hub port with local markets is of course a plus
Regional hinterland via intermodalism is an extra plus.
Policy guidelines for ports and governments can be outlined as follows:
■ redefine port governance and organizations to tackle emerging issues
■ privatization and promotion of partnership between public and private sectors in order to enhance efficiencies and productivity
■ launching port development projects such as expanding container terminals, deepening approach channel and depth alongside quay, purchasing advanced quayside equipment, assigning more number of quayside cranes to a vessel.
■ deregulation for shipping, logistics, private sector involvement
■ establishing port cluster by:
• exploring free port system
• introducing free trade zones for international logistics industry,
• developing industry complexes around ports
• and concentrating logistics related industry including shipbuilding, ship-equipment, ship-spare parts, maritime training centre, exhibition and conference centre, research institutes etc.
■ developing intermodal infrastructures such as railway, roads, inland waterways, inland container depots
■ strengthening marketing strategy
■ introduction of information technology such as edi and e-commerce
■ increase of partnership with local community and other government organizations such as customs organization.
LOGISTICS CENTER
Globalization has been the most influential phenomenon among the major trends in the world economy over the last two decades. It has been recognized as an inevitable technologically driven process that has dramatically increasing commercial and political relations between people in different countries
One of the major trends in port industry is to develop logistics related zones such as free trade zones or international logistics zones to accommodate value-added logistics activities and to attract global logistics companies. The advantage of special logistics-oriented zones is that they attract foreign investment and create new employment. In addition, successful logistics zones are able to secure freight volume which may be generated by established logistics companies, and to develop their ports as hub ports.
Challenge and emerging issues
globalization of manufacturing and outsourcing
A port is essentially a point where goods are transferred from one mode of transport to another
increasing competition towards hub ports
rapid growth in volume of world seaborne freight
increase of productivity and efficiency in ports
Development of Container Ports
There are close to 600 container ports across the world with an estimated combined handling capacity of
380 million TEU.
Ports can be broadly classified into three types of ownership.
global container terminal
operators controlled close to 55 per cent of total capacity
public sector operators 24 per cent.
Global container terminal
operators controlled close to 55 per cent of total capacity
Hub and spoke network in liner service
the hub and spoke system in liner service has been introduced as larger containerships have been adopted in major sea transport routes such as Europe-Far East-American West
coast.
, low transport costs along with information technology development have made it possible
for companies to globalize their manufacturing
Port reforms, privatization, new roles