Future strategy in the Asian Maritime Industries facing

Future strategy in the Asian Maritime Industries facing the challenge of continued growth in Container Shipping Trade Prepared by: Supervisor: Prof. Dr. Hans Lembke Prof. Dr. Juergen Schwill Md. Aminul Islam Technology and Innovation Management University of Applied Sciences Brandenburg 22 March 2001

List of content 1. 2. 3. 4. 5. 6. 7. 8. Introduction Basic concept Analysis of technological changes The future of container handling technology Analysis of growing containerization trade Assessment of technology and trades A case study-Port of Rotterdam Port policies and strategies of port management’s

1. Introduction “ 21 st century with the spirit of challenge” Containerization growth rate 6 -7%, doubling of demands within a ten years and quadruple its volume the next four decades Customers, land-side as well as sea-side, concentrate and gain individual market power Cargo lot sizes and ships are getting larger Shipowners are extending their business within the intermodal chain Competition as a challenge to ports

2. Basic concepts What is maritime industry? Seaports areas where there are facilitates for berthing or anchoring ships and where there is the equipment for the transfer of goods from ship to shore or ship to ship. Source: Patrick Alderton, 1999, Port Management and Operation, p-2

2. Basic concepts Types of port ownership and administration State ownership Autonomous Municipal ownership Private ownership

3. Analysis of technological changes Historical changes in cargo/container- handling The period before 1800 The period 1800 -1850 The period 1850 -1900 The period 1900 -1970 to the present

3. Analysis of technological changes Container handling equipment Ship to Shore Crane Yard Gantry Cranes Straddle Carriers Small Yard Vehicles Reach Stacker Automated Guidance Vehicles (AGVs) The Shuttle Carrier Empty Container Handler

4. The future of container handling technology Core technology focus Integrated container handling technology Robotic Container Handling Companies ”Machines” Reggiane’s ”Octopus” Advanced Robotic Crane for Container Handling Combined container transport concepts Speedport- A fully automated container terminal GRAIL – High density automated container terminal LMTT - Linear Motor-Based Transfer Technology

4. The future of container handling technology Advanced technology for terminal management systems Source: Patrick Alderton, 1999, Port Management and Operation, p-112

4. The future of container handling technology Advanced technology for terminal management systems CTIS – Container Terminal Information System CICOS - Computer Integrated Conventional Operations System Container Tracking Technology Voice Recognition system

5. Analysis of growing containerization trade Container shipping overview Typical design development of large cellular container vessels (dimensions in meters) Source: Lloyd’s list July 1998 , Port Management and Operation, 1999, p-55, 56; The European Container Market-Prospect to 2008, Ocean Shipping Consultants Ltd. , 1997, p-64

5. Analysis of growing containerization trade Asian and non-Asian containerization trades Growth in world container traffic (in million TEUs) Source: Drewry Annual Container Market Review and Forecast 2000; http: //www. drewry. co. uk dated, January 2001

5. Analysis of growing containerization trade Container throughput (in TEUs) of the world’s major ports (top 10) Source: World container ports league, 2000, : http: //www. hafen-hamburg. de dated, January, 2001

5. Analysis of growing containerization trade Globalization and shipping market trends Growth forecast in world container traffic (in million TEUs) Source: Report of the IAPH Ship Trends Committee 2000, http: //www. iaph. or. jp/shiptrends_2000 rep. htm dated, January 2001

6. Assessment of technology and trades Impact on technology Institutional/Organizational impact Social and Economic impact

6. Assessment of technology and trades SWOT analysis The Engineering – Led View The Optimistic View The Sceptical View Source: The European Container Market-Prospects to 2008, Ocean Shipping Consultants Ltd, 1997, pp-68

8. Port policies and strategies of port management’s 1. National port policy 2. Port Management

8. Port policies and strategies of port management’s 1. National policy implications The The need for international policy harmonization need for commercially based policies need for local independence role of private enterprise

8. Port policies and strategies of port management’s 2. Port Management Constraining influences on port management Local area authorities National government Competition from Neighboring ports Customers (shippers) Port Management Customers (shipowners) Pressure groups (environmentalists) Trade unions International regulations Regional trade arrangements Source: Patrick Alderton, 1999, Port Management and Operation, p- 125

8. Port policies and strategies of port management’s Improve Port Productivity Increase cargo handling productivity Increase terminal capacity Increase working time at berths. Source: Patrick Alderton, 1999, Port Management and Operation, p- 137

8. Port policies and strategies of port management’s The port authorities are having to improve in three areas: 1. Equipment decisions, 2. Terminal management systems and 3. Infrastructure

8. Port policies and strategies of port management’s 1. Equipment decision Source: Kalmar container handling systems at seaport, Catalogue of Kalmar Indutries AB, URL: http: //www. kalmarind. com dated, January 2001; UNCTAD, Improving Port Performance-Container Terminal Development, 1999, Port Management and Operations, p-140

8. Port policies and strategies of port management’s 2. Improve Terminal Management system The ultimate goal in the paperless port of tomorrow’s world is to integrate all those involved in freight handling and maritime traffic into the port information network

8. Port policies and strategies of port management’s 3. Development in port/terminal infrastructure “the berth must wait for the ship not the ship for the berth” Increase terminal capacity Optimum number of berths, berth size and layout Multipurpose berth Combined container transport systems

8. Port policies and strategies of port management’s Developing a conceptual model for berth resources Equipment CTRMC Web-Server Terminal Port labor Maintenance Computing resource NETWORK CALS/EDI Server Port Authority Source: Dong Won Yi, 2000, Developing a conceptual model for sharing container terminal resources, Journal of Maritime Policy & Management; p- 166

8. Port policies and strategies of port management’s Improve Logistics and/or Intermodal Transport Improvement of Land-management Improvement of Port Management Environmentally Sensitive Port Development Port Promotion

Recommendation there is a need for an international harmonization of policies based on the financial viability of ports consistent with more local decisions and a greater role for private enterprise focus more on those activities based on the economies of scale or scope, this may cover both the provision of facilities and services might be achieve by a program of performance benchmarking, which provide up to date information on technologies and systems performance in leading ports/terminals around the world the port authority might see itself as a leader in setting ‘dissatisfactions’, not as a defender of the status quo the port authority should seek out areas for improvement, not wait for the complaints of shippers or shipping lines

21 st century with the spirit of challenge “World peace through world trade. World trade through world ports”