Evolution In Ports

1. The Ports Corporation
Aqaba - Jordan
The Evolution of Ports in a Competitive World

2. Impacts of Globalization on Ports: technological changes (1/5)
Containerization of world trade
Future containership designs
Impact on port operations:
Reduction of ship’s time in port and at berth
Reduction of personnel requirements for cargo handling
Raise of berth productivity
Increase of capital intensity of port operations
Source Drewry
0
20
40
60
80
100
120
1970 1975 1980 1985 1990 1995 2000
Empty Full Total
Containerization of world trade
(in Million TEU)

3. Impacts of technological changes (2/5)
Future containership & Gantry Crane designs

4. Impacts of technological changes (3/5)
Need for container port productivity improvements

5. Impacts of technological changes (4/5)
 Impact of increasing port productivity on voyage cost per
TEU
‫الواحدة‬ ‫الحاوية‬ ‫نقل‬ ‫كلفة‬ ‫قلت‬ ‫الميناء‬ ‫إنتاجية‬ ‫زادت‬ ‫و‬ ‫السفينة‬ ‫حجم‬ ‫زاد‬ ‫كلما‬

6. “Production” process and time spent in the port

7. Growing role of information technology
Port requirements for large cruise ships
Other technology impacting port services : podded drive propulsion systems, self unloading bulk
carriers, Sat Information System, Mobile Text Messages with costumers…
Impacts of technological changes (5/5)

8. Environmental Security and safety concerns
Growing environmental concerns:
Oily ballast water discharge
Water pollution, air pollution, aesthetics (appreciation of
beautiful arts), noise.
Issue of sub-standard ships
Port State Control
Regional cooperation
Security Measures:
Compulsory Requirements

9. PORT OPERATIONS AND SERVICE
TO CUSTOMERS
•Which markets ?
•What concerns ?
•Which strategy ?
•What expectations ?

10. PORT OPERATIONS AND SERVICE TO CUSTOMERS
 Tramping
 Lines
•Operationwise: Usual offer (propose) to shippers.
•Regulationwise
- Open to the public
- Published schedule
- Permanent ports of call
WHICH MARKETS ?

11. Lines
• Mainly involve:
- general cargo
conventional
containers
roro
• Generally eliminate :
- specialised trades
THE SHIP MAKES THE DECISION
WHICH MARKETS ?

12. WHICH MARKETS ? Lines ’ concerns
• ROUTES
Three east/west routes
Some north/south routes
Multiple regional routes
• FINANCIAL STAKES
• OPERATORS
10 Shipowners control 50% of the capacity
20 control 72%
12 asian shipowners control 33%

13. THE MAIN OPERATORS OF CONTAINER VESSELS
(October 2002)(October 2002)
Source : www.alphaliner.com
0 50 ,0 00 10 0,0 0
0
15 0, 0 0
0
2 00, 00
0
2 50 ,00
0
3 00 ,0 0
0
3 50 ,0 0
0
400 , 0 0
0
45 0,0 0
0
50 0,0 0
0
55 0, 0 0
0
6 0 0, 00
0
65 0, 00
0
7 00 ,0 0
0
7 50 ,00
0
8 00 ,00
0
Pacific International Lines-(40)-Singapour
CSAV Group-(40)-Chili
Yang Ming Line-(70)-Taiwan
Hyundaï-(50)-Korea
Hapag-Lloyd Group-(40)-Germany
China Shipping Group-(54)-China
Zim (87)-Israel
OOCL-(50)-China
Mitsui OSK Line-(70)-Japan
K Line-(80)-Japan
CP Ships Group-(83)-Canada
NYK-(73)-Japan
CMA/CGM-(85)-France
COSCO Container Lines-(135)-China
APL/NOL-(70)-Singapour
Hanjin/Senator-(50)-Korea
Mediterranean Shg Co-(120 M.V)-Swiss
P & O Nedlloyd-(100)-UK/NL
Evergreen-(160)-Taiwan
Maersk-Sealand+SCL-(250)-Denmark

14. LINES ’ CONCERNS
Financial Stakes
 Increasing Costs
 Variable costs
 Logistics
 Ship
 Voyage
 Structure
 Decreasing Revenues

15. FINANCIAL STAKES
Costs
Variable costs = 43 %
 Port operations 10% Maximum
 Agency fees
 Inland transport
 Empties repositioning
 Logistics = 13 %
Some logistics costs are considered as variable
Containers
2.5 times the ship ’s capacity
i.e. 3500 x 2.5 = 8750 boxes => USD 20M
2 sets are needed during the ship ’s lifetime
i.e. 8750 x 2 = 17500 boxes => USD 40M

16. FINANCIAL STAKES Costs
 Ship = 23 %
=> Daily costs – Crew +
Supplies + Maintenance +
Insurance
=> Financial costs –
 A 5500 teu ship value is USD
52 M when built in Asia
Return on capital stocks +
Resale value

17. FINANCIAL STAKES
Costs
Voyage = 14 %
=> Port expenses = Pilot - Tugs - Linesmen - Port dues
 => Suez & Panama
 => Fuel-oil
 Structure = 7 %
 Management staff
 Running costs
 Data processing
 Control of equipment
 Marketing

18. PORT OPERATIONS AND SERVICE TO CUSTOMERS
Shipowner’s Strategy
•What ambition ?
• What target ?
• How to compete ?
What Ambition ?
•Thinking global
• Looking for a niche (suitable place) where nobody came
before ! ... alone …but for how long ?
What target ?
• Reducing the slot-cost
• Increasing the net income per box

19. Reducing the slot-cost
The Ship
 The Route
 A Tailor-made Welcome
 Alliances
……………………………………………………………………………………
The Ship
• Capacity teu / tonnage
4 000 teu -> 11,25 USD / TEU
5 500 teu -> 10,90 USD / TEU
6 000 teu -> 10,50 USD / TEU
8 000 teu -> 10,20 USD / TEU
10 000 teu -> 9,40 USD / TEU
• Speed: more knot/day -> -> Less days (20-40 knots/hr … High Speed
Ships For New Container Ports).
• Number of ships: A fixed day call depends on the number of ships as
well as the transit time
• Origine of ships: shipyard / second hand / shipbroker

20. TRANSHIPMENT
MUCH MORE MOVES !
A
B
200
800
A
B
200
800 + 2 x 200
= 1200
A
B
200
800
C
2 x 800 + 2 x 200
= 2000

21. WHAT EXPECTATIONS ?
Reducing the slot-cost
 A Tailor-made Welcome
• Rapidity
• Reliability
 Navigation Equipment
 Assistance to the ship
 Port Operations Facilities
• Competitiveness
 Port Expenses: Negotiable Tarif System !!!
 Inland costs

22. Reducing the slot-cost
Alliances / Cooperation
=> Slot agreements
=> Consortium
⇒ Coordinated services
Increasing the net income per box
=> Where is the cargo ?
⇒ Which inland network ?
 what about the Port Aurthority in this matter ?
 How to talk to a customer ? => => The Customer should make
his free site visits and introduce his comments, notes, questions
and demands.
PORT OPERATIONS AND SERVICE TO CUSTOMERS

23. • Equipment
• Organisation
PORT OPERATIONS AND SERVICE
TO THE CUSTOMERS
WHAT OPERATIONS ?
• Men
• Future

24. MEN
• Number
• Training
• Skills
WHAT OPERATIONS ?

25. WHAT OPERATIONS ?
ORGANISATION
• Internal: social facts
• External: port operators,customs, health control, other professions
EQUIPMENT
• Terminals: ports must improve the draft limitations to recieve larger ships
which will reduce the transport cost (slot cost). This will improve the port
competitivness.
• Interfaces/ Information Technologie + Security
• Cranes
Fast Container Scanning
Sycho – Scan System

26. FUTURE
• Port Reforme & Régulation
• Private involvement
(Concessions & Lease
Contracts)
• Hi-Tech involvement
(equipment, IT Systems)
• New méthode of how to talk
to a costumer.
• Commitments & Security
• Ability to receive large
ships.
RESULTS ASSESSMENT
• Traffic evolution
• Professional Press
• Feedback from local agents
PORT OPERATIONS AND SERVICE TO CUSTOMERS

27. Thank you for your kind attention