The seaport is the gateway to trade, and

governments and international agencies are focusing

more attention on the development of their maritime
terminals, particularly in efficiency, technology and
strategic geographical location.
The seaport links into a transport chain providing
door-to-door service.
Customs examination is undertaken at the
consignor/consignee premises, or at the nearby
container freight station/dry port/freight village/free
trade zone
 Port privatization is growing, as governments
globally contract out the ownership and
management of their ports, particularly those
dealing with containers.
Privatization is associated with greater port
efficiency, facilitated by IT, substantial investment
in new construction and berth provision, and a
target-driven management culture
 Governments view the development of trade as key
to their nations wealth through improved social and
economic standards and related investment
 The growth of trade from India, Brazil, China and
Russia is driving port modernization.

Over 75% of Indias international trade by value

and 95% by volume is carried by sea.

Low port productivity and poor logistics serving the

hinterland have resulted in 11% of landed cost being
nearly double the global average. Slow cargo turn-
round times contribute to this low percentage.
 To redress this situation, the Indian government in
2005 approved a US$174.4 million project to
expand facilities at the port of Jawaharlal Nehru,
near Mumbai, western India.

The two-phase project will increase the berth

draught from 12.5 m to 15 m and provide a fifth
container terminal.

The overall annual capacity of the five terminals

will rise from 2.5 million TEU to 7 million TEU
 Seven Chinese container ports feature in the top 20 container
terminals.
In China the construction of the 3 million TEU capacity of
Yang Shan Ports continued in 2006 to provide spare capacity
for the predicted traffic growth in the Yangtze river delta to
cope with the strong growth in iron ore and coking coal
shipments from Australia to serve the steel mills of China; an
investment programme is under way in the Australian ports.

Dalrymple port will increase its coal capacity to 80 million

tonnes and iron ore to 80 million tonnes. Newcastle, Port
Waratah, the worlds largest coal port, plans to raise annual
capacity from 89 million tonnes to 120
million tonnes.
 Containerization is a growth market with larger
vessels of 10,000 TEU capacity, double the capacity
recorded in 1988.

This growth has had a profound impact on port

container investment and accelerated the switch
from bulk cargo shipment of reefer and fruit carriers
to containers
 Port capacity in Egypt increased with the
commissioning of the Suez Canal Container
Terminal in October 2004 with an annual capacity
of 500,000 TEUs.

In 2004 the Maasvlakte 2 berth plan for long-term

development of Rotterdam is now well underway
and should increase port land by 1,000 and port
capacity by 100 million tons
 In 2002 the port of Rotterdam installed three container
cranes in the southern side of the Delta terminal, each
having an outreach of 67.5 m, making them suitable for
loading and unloading ships 22 containers wide.

The lifting height is 40 m, with a maximum lifting

capacity of 77 tons. Around 50% of Rotterdam
European Combined Terminal is automated. In Antwerp
a large container terminal was opened at Deurganckdok
in 2005 and the port handled 6.06 million TEU in 2004.
 Logistics is driving port expansion, primarily of
railborne services.

Examples include the DarwinAdelaide rail link,

opened in 2003; double stack container trains
commenced operation in 2004 between Shanghai
and Beijing; and the ports of Rotterdam, Dunkerque,
Antwerp, and Le Havre continue to develop
international barge operations served by the
extensive network of rivers and canals, particularly
the river Rhine.
 Liquefied natural gas is a market growing 8% annually.
Currently the world fleet is 170 ships with 100 on order.
Shipment was expected to rise from 10 million tonnes to 77
million tonnes in 2009.

There are new terminals at US Louisiana and Rotterdam, the

latter covering a 60 ha site which will become the most
important port for LNG in north-west Europe.
The larger tankers are capable of holding 250,000 m3 of
LNG. LNG

carriers require either a berth in a conventional port or a

sophisticated offshore installation where they can be attached
to a pipe network.
 Many shipping economists think that as container
tonnage size continues to increase above 10,000 TEU
and beyond the range of ports of call will decline.

In answer to this possibility mega tonnage shipowners

may well select mega container parks which can
generate the trade volume to fill the larger tonnage and
may rely on more feeder services to serve the hub port.

Hub ports require a wide range of frequent services,

especially feeder services.
 Dubai port has been transformed by new roads,
distribution centres and industrial plant, all gathered
round one of the worlds busiest ports.

It is the sixth largest container port in the world and in

2004 handled6.42 million TEU.

In the UAE there are 11 seaports and 6 airports, all with

satellite links to 230 countries. Supporting this activity
are Free Zones embracing the Hamriyah water berths
for petrochemical bulk handling and general cargo
berths. The flag ship ports are Jebel Ali and Port Rashid.
 Jebel Ali has become the transhipment point for
goods serving many other points in the Gulf and
ports on the Indian subcontinent.

The ports of Dubai have become a major global hub

for the Gulf region, thriving from free zones
attracting global investors and entrepreneurs.
 The Port of Singapore (PSA) (Table 17.1) remains a
leading world port and primarily a transhipment hub
port in the region.
The PSA International Singapore state-owned and
operated port has received continuous investment in
facilities and IT in all areas of its business
 The range of special expertise includes:
bunkering;
cargo and damage reports;
Cargo and ship broking;
container agency;
commercial diving services (underwater repair);
crew managers member of IMEC;
crew manning agents;
cruise liner agency;
 cruise liner operations management/transit/turn-
round;
flag registration;
freight forwarding services;
hub accounting and documentation services;
Malacca Singapore Straits Advisory Services;
off-port limit services;
tanker and LNG agency;
 tramp and bulk agency;
transshipment operations;
P&I representative; (Protection and indemnity
insurance)
project logistics transportation;
Ship repairs and dry dock supervision;
warehousing and storage; and seamens
travel services.
 Transhipment is generating new port development.
This is a key factor in port selection by the
shipowner/shipper, with particular emphasis on port
productivity and dedicated cargo transhipment
services, as found in Port Said and the ports at either
end of the Panama Canal
 Above picture illustrates the flows of economic impacts
generated by the seaport, airport and retail estate activity
throughout the region's economy. As this figure shows,
economic activity at the seaport or airport or a real
estate tenant initially creates business revenue. This
revenue is in turn used for several purposes:

To hire employees to produce the goods and provide the

services;

To pay stockholders dividends, retire debt, and invest;

To buy goods from other firms, creating indirect jobs;

and

To pay taxes.
 As can be seen from Exhibit E-1, the flow of
economic impacts throughout an economy creates
four separate and non-additive types of impacts.
These are:

Employment impact;
Personal earnings impact;
Business revenue impact; and
Tax impact.
 Direct jobs are those jobs with local firms providing support
services to the seaport. These jobs are dependent upon this
activity and would suffer immediate dislocation if the
seaport activity were to cease.

Seaport direct jobs include jobs with railroads and trucking

companies moving cargo to and from the marine terminals
and private terminals, members of the International
Longshoremen's Association (ILA) , the International
Longshore and Warehouse Union (ILWU) and non-ILA and
non-ILWU dockworkers, steamship agents, freight
forwarders, ship chandlers, warehouse operators, bankers,
lawyers, terminal operators, and stevedores.

 Induced jobs are jobs created locally and throughout the

national economy due to purchases of goods and services by
those directly employed.

These jobs are with grocery stores, the local construction

industry, retail stores, health care providers, local
transportation services, local and state government agencies
providing public services and education to those directly
employed, and businesses providing professional and
business services in support of those directly employed.

These goods and services would also be discontinued if

seaport activity were to cease.
 Indirect jobs are those jobs generated in the national
economy as the result of local purchases by the firms
directly dependent upon seaport activity.

These jobs include jobs in local office supply firms,

equipment and parts suppliers, maintenance and repair
services, insurance companies, consulting and other
business services.

If port operations were discontinued, these indirect

purchases and the associated jobs and income would also
be discontinued.
 Related jobs are with manufacturing and distribution firms -- such
as steel fabrication firms using the steel imported through the
marine terminals, the construction industry consuming
construction materials moving via the deepwater ports,
manufacturers producing or consuming containerized cargo, retail
outlets and distribution centers handling imported containerized
cargo, and firms producing and consuming dry and liquid bulk
cargoes such as petrochemical firms.

Related jobs are not dependent upon the seaport marine terminals
to the same extent as are the direct, induced and indirect jobs. It is
the demand for the final product, i.e. steel products create the
demand for the employment with these shippers/consignees, not
the use of a particular seaport or marine terminal. It is to be
emphasized that the employment with firms counted as directly,
induced and indirectly dependent upon the port activities are
excluded from the related jobs to avoid double counting