PORT OPERATIONS

AND MANAGEMENT:
AN OVERVIEW
Vijay Hiranandani

INTRODUCTION
Sea ports are historic, commercial and
infrastructural assets that form the
backbone of national and regional
economies.
OUTLINE:
Main features and operations of ports
Importance of ports
Evolution of ports
Types of ports
Port management

Grain Terminal, Tilbury docks, UK.

http://www.portcities.org.uk/london/server/show/conMediaFile.1821/Three-OCLcontainer-ships-at-Tilbury-during-theAugust-1970-docks-strike.html

MAIN FEATURES & OPERATIONS OF PORTS:

Ports reflect national heritage, local commercial
attitudes, practices, and laws that differ widely
between nations.
Ports require long-term, expensive, and
specialized investments and resources that
represent a substantial chunk of national
economy.
Ports are large civil engineering undertakings
and a collection of activities entailing huge sunk
costs.

The advent of intermodalism has caused ports to

compete for cargoes. This has jolted businesses to
increase port efficiency and value-added activities in
recent years.

Value-added activities range from

cargo loading and discharging,
industrial services in ports,
combining and separating cargoes,
up-to-date information on inventory and cargo
movements,
stuffing/de-stuffing containers,
loading cargo in crates and crates on pallets,
shrink-wrapping, labeling, weighing, repackaging.

Civil engineering features:

Sea and land access
Infrastructures for ships berthing & unberthing
Road and rail networks
Industrial area management
Administrative functions:
Control of all modes of vehicles entering and
leaving the port
Environmental control
Dangerous and hazardous cargo control
Safety and security within the port area
Immigration, health, customs, and commercial
documentary control

Hong Kong Port Container Terminal

http://my.hktdc.com/photolib/showhk.asp?id=0700036

Operational functions:
Facilitating arrival and departure of ships
Providing navigational aids and Vessel Traffic
Separation (VTS) facilities
Pilotage, tugging and mooring activities
Use of berths, sheds, etc
Loading, discharging, storage and distribution
of cargo
Facilitating supply chain logistics and
management

WHY ARE SEAPORTS IMPORTANT?

Seaports are a haven with facilities for berthing and
anchoring ships and providing equipment for transfer
of goods from ship-shore, shore-ship & ship-ship.
Ports function as
distribution centers;
industrial zones;
energy supply bases;
mercantile trading centers with banks, brokers,
and traders;
urbanization and city redevelopment centers;
life activity bases in rural ports;
maritime leisure bases in cruise passenger ship
terminals;
private yacht marinas;

Genoa, Italy.
http://www.travel-mall.net/dbimg/location6.jpg

Ports form a vital aspect of the national

transport infrastructure.
Ports form the main transport link with their
international trading partners and are a focal
point for national and regional motorways and
railways.
Ports are a blessing for national prosperity
they provide a gateway for trade and attract
commercial infrastructure such as banks,
shipping agencies, freight forwarders, stevedores,
etc.
Ports create a hustle and bustle of industrial
activity.

Ports are a focal point with shallow waters

where ships converge thereby making them
vulnerable to maritime accidents.
Ports are places where valuables are
concentrated and where cargo can be damaged
or stolen during handling.
Ports are places where repairs and/or planned
maintenance is carried out on ships.
Ports are places where
costly delays can occur,
ships are surveyed,
most shipping services agents, brokers, etc are located,
cargoes come from, and
customs and government policies are implemented.

Hamburg Port, Germany

http://www.maritimemarket.ru/images/hamburg.jpg

EVOLUTION OF PORTS
Ports have evolved over time
Their development phases can be classified as
follows:
First Generation Port:
Existed before and until 1960s
Comprised of a basic cargo interface
between land and sea transport
Isolated from transport and trade
activities
Resembled an independent kingdom

Second Generation Port:

During 1960s 1980s
They were developed transport,
industrial and commercial service centres
Offered various types of industrial and
commercial activities
They reflected sophisticated port
policies and development strategies
Provided industrial facilities within the
port area
Well developed network of transport
infrastructure
They integrated different activities
and zonal relationships

Third Generation Port:

From 1980 onwards
Arose from global containerization, intermodalism, and booming trade requirements
They are hubs of international production
and distribution
Combine traditional, specialized and
integrated activities
Well-planned infrastructure and
information processing facilities
Offer value-added services
User friendly
Offer simplified customs procedures
More environmentally conscious

Nagoya Port, Japan

http://www.iaphworldports.org/gallery/img/Nagoya2_jpg.jpg

DIFFERENT TYPES OF PORTS

Hub, center or mega port a major port dealing
with international trade. Example: Rotterdam in
The Netherlands.
Feeder port to feed and distribute cargo from
major ports. Example: Port Riga in Latvia provides
feeder service to Hamburg in Germany.
Entrepot or transit port serves as a transit
port. Example: Batumi seaport in Georgia is a
transit port for Kazakh and Azerbaijan.
Domestic port provides a natural outlet for
surrounding hinterland. Example: Jafarabad port

An aerial view of Rotterdam Port in The Netherlands

http://www.skyscrapercity.com/showthread.php?t=164137&page=4Rotterdam

PORT MANAGEMENT A BRIEF

Ports last longer than ships and this requires the
port management to avoid any costly blunders.
Ports are classified according to their ownership
or administration. Basic types are:
State owned ports
Autonomous ports
Municipal owned ports
Private owned ports
There is an impetus to increase private
ownership of ports.

Ports are governed by various types of boards

such as
Representative Board consisting of persons
representing interests concerned with port
operation
Board of Experts consisting of members with
proven expertise
Two Tier Boards consisting of one tier to run
the port on day-to-day basis and other tier to
plan and implement major policies

Port management aims to:

Operate with overall cost-leadership
Minimize user payment by ensuring quick
ship turnover in port
Minimize through-transport costs
Minimize port costs
Maximize benefits
To port owners
To the town, region or nation
Generate employment

amburg Port, Germany

tp://www.iaphworldports.org/gallery/img/mainporthamburg.jpg

CONCLUSION
Ports have historical, commercial and
infrastructural significance.
They form the backbone of national and
regional economies.
Supporting efficient port operations and
management is vital for national prosperity.

References
Alderton P.M. (1999). Port Management &
Operations. London: LLP
Grammenos Costas Th. (2002). The Handbook of
Maritime Economics and Business. London:
Informa Professional.