Recommendations to enhance the loading and unloading container procedure at quayside in vietnam container shipping joint stock company green port

7 1.4 Definition of quayside, quayside operation activity, loading and unloading cargo process at quayside………8 CHAPTER II: PROCEDURE OF LOADING AND UNLOADING CONTAINER AT QUAYSIDE IN GRE

PREFACE

I declare that this report is my own unaided work It has not been submitted before

If violated, I am solely responsible for and bear the punishments of the Institution and University

Student Name and Signature

Vu Thi Thuy Tien

ACKNOWLEGEMENT

Firstly, I would like to express my sincere gratitude to my advisor - Master Tran Hai Viet for the continuous support of my study and related research, for his patience, motivation, and immense knowledge His guidance helped me in all the time of research and writing of this thesis I could not have imagined having a better advisor and mentor for my study

TABLE OF CONTENT

PREFACE………i

ACKNOWLEGEMENT ii

TABLE OF CONTENT iii

LIST OF ABBREVIATIONS……….v

LIST OF TABLES……….vi

LIST OF FIGURES……… ………vii

INTRODUCTION……… viii

CHAPTER I: LITERATUREREVIEW 1

1.1 Overview of seaport 1

1.1.1 Concept of port 1

1.1.2 Classification of Ports 2

1.1.3 Functions of Port 2

1.1.4 Economic meaning of Port 2

1.1.5 Factors and trend effect the port development 3

1.2 Main areas in Port 6

1.3 Main contents of container 7

1.4 Definition of quayside, quayside operation activity, loading and unloading cargo process at quayside………8

CHAPTER II: PROCEDURE OF LOADING AND UNLOADING CONTAINER AT QUAYSIDE IN GREENPORT ………10

2.1 Overview of Greenport ………10

2.1.1 Facilities ………10

2.1.2 Quay system……… 12

2.1.3 Channel of port 13

2.1.4 Organizational Chart 14

2.2 Procedure of loading and unloading cargo at quayside in Green Port 15

2.2.1 Ship arrive at Green Port 15

2.2.2 Ship arrive at alternative port 23

CHAPTER III: EVALUATION ABOUT THE PROCEDURE AND RECOMMENDATIONS TO ENHANCE THE LOADING AND UNLOADING CARGO PROCEDURE AT QUAYSIDE IN GREEN PORT 26

3.1 Evaluation the advantages and disadvantages of procedure 26

3.1.2 Disadvantage 27

3.2 Recommendations to enhace the loading and unloading container procedure at quayside in Green Port 29

3.2.1 Suggestion for information technology 29

3.2.2 Suggestion for facilities and machinery 29

3.2.3 Suggestion for human resources……… 30

3.2.4 Suggestion for administration formalites 30

CONCLUSION 32

REFERENCE 33

LIST OF ABBREVIATIONS

PL-TOS Portlogics-Terminal Operation System

LCL Less Than Container Load

ISO International Organization of Standardization

WTO World Trade Organization

RF Reefer Container

DG Dangerous container

TEU Twenty-foot equivalent units

CFS Container Freight Station

C/O Chief Officer

FTZ Free Trade Zone

EDI Electronic Data Interchange

C.O.R Cargo Outurn Report

ROROC Report on receipt of cargo

OT Open Top Container

OPS Operations Plan Layout

CMC Container Movement Card

MC Monitoring and control

CHE Container handling equipment

HHC Hand Handling Container

VHF Very High Frequency

LIST OF TABLES

Table 2.1.1: Ship-shored facilities………11

Table 2.1.1: Container Yard Equipment……… 11

Table 2.1.2: Quay system……… 13

Table 2.1.3: Organizational Chart……….14

Table 2.2.1.1: Plan of loading and unloading container at quayside in Green Port 15

Table 2.2.1.1: Steps of loading and unloading container in alternative port………23

LIST OF FIGURES

Picture 2.1: Green Port Layout………10 Picture 2.1.2: Channel of port……… …14

INTRODUCTION

In the current integration trends, the world economy is changing constantly, which step into the phase of diversity integration and this trend takes place strongly In this general situation, Vietnam has achieved a large number of noticeable achievements, specially joining the World Trade Organization (WTO) in November 2006 This has enormous implication for Vietnam’s economy, especially in foreign trade activities,

in which contains port operation service, play an important role for the development

of Vietnam economy

Mentioning to transport activities, we have to mention to the transportation because most of activities of forwarding export and import cargoes chose this method of transport Port is an integral part of the transport system of inland cargoes transport

in the international trade, 80% of goods are transported by sea Port, which not only serves for the travel needs for mankind, but also is a place to exchange goods for domestic and export demand, that contributed to boost the economic growth

Nesessation

In reality, there are many topics, newspapers, and special subjects related to seasport such as: investment in building seaport, investment in operating infrastructure of seaport, developing port services… However, there is no document, topic about the port operation in seaport and having some suggestions to enhace the efficiency of operation activities in these operation areas, especially in Hai Phong Port area In a seaport, it has many port operation areas, in which is quayside Therefore, reseasrching about loading and unloading cargo process in port operation activities in Hai Phong Port area will be more practical

With the general situation of the economy, Green Port – one of the subsidiaries of VICONSHIP has steadily related to the process of economic integration in the world Green Port is on stream in September 2004 with mainly containerized cargoes And I chose Green Port as an ideal place for me to do my research related

to loading and unloading cargo process

During practice and learn at Green port, with the knowledge of a student of the Global Maritime Affair, with the desire to contribute significantly to the

the loading and unloading container procedure at quayside in Vietnam Container Shipping Joint Stock Company - Green Port”

Research Object

This research will help to learn more details about the problems associated with the unloading and loading cargo at quayside On that basis, bring out the most objective assessment of the quality of service that company provided

Research Scope

This dissertation’s information is collected within the 1- month internship, from August to September During this period, I had chance to observe loading and unloading container procedure in Green Port and gain knowledge and experience to complete this dissertation

Methodology of the research

For the research, I use both primary and secondary source to collect informaiton Firstly, with primary source, observing the operation at quayside in Green Port to collects informations Secondly, with secondary source, informations are selected that related to operation activities in Green Port, researches, books, journals related

to quayside operation, loading and unloading container in quayside

Limitation of the research

During the process of researching this topic, there are some limitations in carrying out this dissertation To begin with, researching and evaluating loading and unloading container need to take a long time Because of time shortage, this dissertation is not conducted well Information is seleted by observing and researching in the appointed time, thus, the lack of information is unadvoided Next, during observing the real process of loading and unloading container, it is not easy

to oberserve all process because it is really dangerous and it hard to go nearby, thus, the degree of accuracy of data is not totally perfect Besides, with the limataion of knowledge, giving some suggestion to enhace the efficiency of loading and unloading cargo at quayside in Green Port is really hard

Research Findings

This dissertation provides information related to understanding of quayside, studying of operation activities in quayside, especially loading and unloading container activity and brings out some suggestions to enhace the loading and unloading container procedure at quayside

Structure of research

There are 3 main chapters:

Chapter 1: Literature review

Chapter 2: Procedure of loading and unloading container at quayside in Green Port Chapter 3: Some recommendations to enhance the loading and unloading container procedure at quayside in Green Port

Port land is the land that is limited to bulidquay, warehouse, yard, workshop, head office, service facility, traffic system, communication system, electricity, water, other building and installed equipment

Water is the area that is limited to establish the water region in front of quay, returning area of ship, anchorage area, transshipment area, welcome and disembarkation areas, quarantine area and other constructrion

Seaport has one or more ports The harbor has one or more quays Port consists of crane, warehouse, factories, office building, service facility, transportation system, communication system, electricity, water and so on Quay is a fixed structure that belongs to quay, used for ships anchor, loading and unloading cargoes…

The infrastructure of seaport contains port infrastructure and public infrastructure seaports The infrastructure of port including, water area in fornt of quay, warehouse, yard, factories, office building, service facilities, transportation systems, utilities, channels of ocean port and other constructions were built, and fix installed at the port land and water area in fornt of quayside

Public port infrastructure contains channel of seaport, maritime signaling system and other constructions Channels of port is a limited area in from sea to the port, and that

is confirmed by the maritime signaling system and other construction to ensure that ships and other transportation mean is safe when sailing in side and outside of seaport There are some other definitions about port:

(1) Port is where for ships anchor or where to serve ship and carriage cargoes on that ship, and it is considered as an importation traffic hub in transportation system and logistics

(2) Port is not the beginning or the end of a transporting process, which is a rotating movement of goods and passengers

(3) Seaport is a logistics center

1.1.2 Classification of Ports

- According to the basic functions of seaport, it contains: commercial port, passenger port, industrial port, fishing port, and military port

- In term of exploitation: general port and specialized port

- In term of nature: natural port and artificial port

- According to the technical quality of the erection of ports: close port and open port

- In term of the scope of port management: national port, city port and private port

- Size: Seaport type I that is a particularly important port, has large scale to serve for the development of society and economy of a country Seaport type II that is

an importation port, have medium scale to serve for the development of society and economy of regions and localities Seaport type III has small scale and only serve for business activities

1.1.3 Functions of Port

Article 61, chapter 4, Vietnam’s Maritime Code 2005 regulates the function of ports:

- Ensuring the safety of sailing in side and outside of seaport

- Providing means of transportation and needed equipment for ships anchor, loading and unloading cargoes

- Providing transport services, unloading, storage and preservation of goods in port

- Allow ship and other transportations shelter and repair, cure or conduct to many necessary services in emergency situation

- Providing other services for vessels, human and goods

1.1.4 Economic meaning of Port

As a fact that seaport is a vital link in the chain of national transport system and international economic, seaport have a significant economy meaning and that show some following aspects:

- Contribute to improve the economic structure of backward area, speed up the development of industry, agriculture and import - export goods

- Have meaning in the growth of the national fleet

- As one of the important sources through export many services on the spot that bring foreign currency to the nation, and improve the balance of payments

- Seaport is a factor to enhance the activities of many enterprises, other services like agency broker, supply, expertise, travel and others

- Seaports have a vital meaning for the construction of the city’s port, create the center of industry, trade, services and tourism, handle with job for the port citizens

The economic significance of port depend on the position of port construction

as well as national development in all aspects of economic and culture of the country

1.1.5 Factors and trend effect the port development

A, Impact of the process of globalization to develop port

National governments have a close cooperation in order to create community and organization of free trade Cultural consumption has spreadall around the world through the media and the products of many multinational companies This is globalization – a process being developed at high speed Cheap and effective transport

is a form of factor from globalization, but the influence of globalization in the development of port is much bigger than this

The most significant effect of globalization is the growth in world trade Despite experiencing a global economic depression in 2008 – 2009, the level of increase in global trade activity was 5% in 2001, forecasted to grow only 3,7% in 2012 However, value of global trade in dollar term went up by 19% in 2011, to a record with 18,2 trillion USD, surpassing the peak of 16,1 trillion in 2008 The main reason is the rise

of the price of materials The value of trade services rose to 11% (4,2 trillion USD) The forecast for 2012 of WTO was based on the assumption of global economic growth at 2,1 %

World trade patterns have changed significantly by the process of globalization in production and consumption Many factories have shifted toward to the Far East, where the distributions of cheap labor force and young generation in instead of locating in some locations in Europe and North America as before Due to the low cost

of transportation, goods after manufactured and that were transported backward to Western market, which brings to high profit The own manufacturing process can be divided into many parts and be located in many different countries, semi-finished products are transferred from one country to another country for assembly and then transported to other continents to consume The process make the international maritime center shifted to Asia and that led to the growth of many harbors in Asia area

as the largest and the most efficient port in the world

The globalize market leads to the global competition Prices of good tend to be fell by the international competition The pressure of price also impacts on the transport industry In the middle of the 19th century, the international maritime faced with the rising transport cost through the development of the unified transport system, typically container transport system As a result, time of ship in port went down from several days or even weeks to a few hour Besides, port decreases the number of labor force because of the standardization of operating cargoes process Realizing the efficiency economy can be achieved due to the advantage of economic scale, larger vessels are also more built with the less participation of crewmember Efficient port operation rose significantly due to the use of information technology and computer systems, which contributed to the efficient port management

Port is a link of a global supply chain Choice of port is base on the cost of port services Selecting port is not only the own decision of the ship owner but also that consider to the total cost of entire supply chain For example, Rotterdam port becomes

an important port in Europe because of having a deep - water port, effective yard system, roads system, railways and inland waterway connect with the Europe center conveniently

In recent years, many ports in the world have become multinational companies For example, Singapore port has become the Singapore Port Group (PSA Corporation), which take part in invest in building, owning, exploiting many ports in Europe, India, China and East Asia Other famous multinational enterprises are DR world and Huchison Whampoa Business has muti-national porthave trend to increase

expectation on upgrading standards and enhance the efficiency of port operation services The development of a port affects other ports and this process can be copied and increases the implicit competition between ports

B, The impact of international transport on the port growth

- Containerization

Container started being used in all over the world since the early 60s and container transport continues to grow in liner business form and increasingly consolidating its role in international transportation This requires more investments in container port and handling equipment Container transport is the premise basis for developing forms of multi – modal transport Moreover, container impulses the use

of Inland Clearance Depot (ICD), it means that customs procedures and the closure

or gutted cargoes from container will be carried out in another place, not in port This thing reduces congestion and improves the possibility of port’s container yard The process also helps to standard the management of administrative formalities in port: control documents and cargoes through port; prepare administrative formalities and other tasks of the port management Containerization is a crucial step to conduct automated documents and port operation

- Multi-modal transport and inter- modal

Forms of multi-modal transport and inter – modal are developed and that related to transport by land, railway, waterway and airway Containers are transported under standardizing documents through different forms of transport that allow offering general transport costs The shipping passage is unimpeded through port and it will

be easier in procedures and documents

- Mechanization and automation in handling activity in port

The mechanization and automation extensively to accommodate with modern ships that makes the handling productivity increase substantially Besides, this thing will put port into the competitive position and affects the commercial development Some countries, which have no modern port system (causes the increased handling costs, rising turnaround time that lead to going up of port’s cost) will face the

limitation when developing trade, compare with other nations that have the same imported cargoes but they have a modern port system and work effectively

- The trend of shifting vessel to river mouth to ensure the vessel’s draught

Because of the growing trend of the vessel’s tonnage, the inland ports are becoming unfavorable for the landing of many larger tonnage ships Therefore, to become a major port in region, ports have attended to shift to river mouth or inshore, where have better fairway depthand also close to international transport routes

- The category of vessels becomes more plentiful

Number of vessels is growing significantly in functionality and size For instance, bulk carriers can be divided into several types with different names such as: Handy size, Handymax, Panamax or Capesize… With tankers and liquefied gas are classified into many categories that known as Coater tanker, Aframax, Suezmax… Container ships also are increasing in variety and size

- Formation of free port and free trade area

Within 50 years, free trade areas, which is abbreviated as FTZ (Free Trade Zone) is growing strongly in the developed countries and developing countries In 1970, there was only a few nations accept to open many free trade zone, until 1977, there were 850 free trade zones in global The developments of rail system and information technology that reduce the number of documents in trade and developing Ro-Ro transportation also have impact on the development of seaports

1.2 Main areas in Port

Currently, port consists of two operating area, water and land area These two areas are where providing many kinds of available services in port However, the main operation areas are really important that including quay area, warehouse and yard area, operation area, and port’s gate area These exploiting areas are invested, set and fit up with modern facilities, machine, and equipment for operation activities in port Depending on subject at port (vessel, passenger), these operating areas have different

features, structure and facilities On the other hand, they all have one thing in common that providing various types of service for ships, cargoes, and passengers

1.3 Main contents of container

A, Definition of container and cargo transported by container

Definition of container: In January 6th, 1964, the International Standarzing Organization (ISO) gave a general container definition Until now, many countries in the world are applying this definition of ISO According to ISO, container is a transport tool, which have some features: fixed shape, durable, can be used many times, with special structure to facilitate the carriage of one or multiple transport vehicles, cargoes have not to handling on the way, and having own equipment to facilitate handling cargoes or change from this tool to another ones Besides, containers have special structure that convenient for loading and unloading cargoes, and they have a capacity of not less than 1m3

The size of container that follow Series 1 of ISO standard, are built base on container

10 feet International standard containers have a length of 20 feet or 40 feet (TEU) Containers that have a non – standard size mainly have 45 feet length The width of a standard container is 8 feet The height of standard containers is 8 feet or 8 feet 6 inches Currently, the world often use container with a height of 9 feet 6 inches ISO has issued another series of container size

Tare weight of a container is weight of empty container, and it not includes goods and materials inside that container Payload is the volume of carried goods inside a container Gross weight contains tare weight and payload The majority of shipped goods in containers use most of capacity of containers, not tonnage of containers Strength of container is located in the right angle of container, and container is manufactured to be overlapping without out of shape or broke

Standardize general container cannot transport all kinds of goods To make sure that each type of goods is transported in the most influence way, containers have been manufactured and developed on the basis of standard containers These containers including open top, open side, bulk container, tank, and reefer Specially, reefers have been manufactured with the chiller and freezer so it needs outlet in ports and ships to preserve the goods inside the container under appropriate temperature

Container ship is the kind of ship that transport container cargoes often called liner The time in port is short, loading and unloading cargoes is really fast, returning time is small

The main type of container ship contains: Cellular container ship, roll –on roll – off, reefer Currently, the transportation of container goods by sea is increasingly dominant The volume of transported container goods account for 50% of the transported good around the world

B, Definition of container port

Container port is where loading and unloading cargoes from means of waterway transport (ship, barge…) or means of transport by road, rail to Container yard (CY) Container port is usually a part of the larger seaport, including many ports that serve other types of vessel (bulk, tanker, passenger ship ) However, container port is just

an independent port that located in an advantage position that serves the transport of container goods

1.4 Definition of quayside, quayside operation activity, loading and unloading cargo process at quayside

A, Quayside

This is kind of quay for general cargoes, which is built to allow the majority of many kinds of ship arriving At quayside, it has road traffic system to send or withdrawal goods directly from ship Therefore, the width of quay is large enough to lays out and installed machinary, equipment for loading and unloading container cargoes, and to build way for ship owner’s truck to receive or delivery cargoes directly from the ship Equipment for loading and unloading at the quayside contains: RTG (Rubber-Tyred Gantry Crane), Multi-function Crane…

B, Quayside operation activity

Quayside is one of the most important operation areas of a seaport Operation activity

at quayside is using available resources in port such as technical infrastructure related

to number of quays, length, width of quay, hanlding equipment, human resources… combine with the conditions of draught, depth of channel, and other factors as well as

the coordination with functional department in port, many offices to organize for ship arrival at quayside, handling cargo and ship dispatching

C, Loading and unloading cargo process at quayside

Loading and unloading cargo process is a manufacturing process of port In this process, worker of port will conduct to loading and unloading option to create productivity of handling cargo The process is loading and unloading cargo from this mean of transportation to another mean of transportation by using available infrastructure that have specialist responsibility for loading and unloading cargo such

as mobile habor crane, transportation vehicle Besides, this process is built for each different period The change of loading and unloading cargo process is based on the change in the basis of building up this process

CHAPTER II: PROCEDURE OF LOADING AND

UNLOADING CONTAINER AT QUAYSIDE IN GREENPORT

2.1 Overview of Green Port

Picture 2.1: Green Port Layout Source: Bui Hung Viet – Deputy director of operation center

Green Port is a subsidiary company of Vietnam Container Shipping Joint Stock Company (VICONSHIP) The quay is located at latitude 20º51 'N, 10643' E, near Chua Ve Zone in Cam River downstream

September 2004, Green Port started operating and up to now has experienced more than 10 years of operation Green Port performs tasks of seaport operation such as stevedoring export/import cargoes and providing many logistic services to shipowners and cargo owners at port

2.1.1 Facilities

Greenport has a total area of 8 ha with a quay length of about 340 m At the quayside, there are 5 mobile harbor cranes including 2 TUKAN and 3 LIEBHERR with a lifting capacity of 40 to 45 tons, untaken ~ 20 cycles/ hour

Table 2.1.1: Ship-shored facility

70T) LIBERHERR crane Unit 1(With capacity

40T)

2(With capacity 40T)

40T)

1(With capacity 40T)

Source: viconship.com

Greenport can contain a maximum of 6500 TEU, optimal 5500 TEU The port cans contain from 800 to 1000 refrigerated containers with more than 700 reefer plugs There are main types of equipment in Container Yard (CY):

Table 2.1.1: Container Yard Equipment

Transfer Speed

Source: Bui Hung Viet – Deputy director of operation center