Tài liệu Recommendations to relieve container cargo congestion at the port of hai phong joint stock company – chua ve terminal

MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: DO KHANH LY DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS RECOMMENDATIONS TO RELIEVE CONTAINER CARGO CONGESTION AT THE PORT OF HAI PHONG JOINT STOCK COMPANY – CHUA VE TERMINAL HAI PHONG – 2015 MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: DO KHANH LY CLASS: GMA 02 DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS RECOMMENDATIONS TO RELIEVE CONTAINER CARGO CONGESTION AT THE PORT OF HAI PHONG JOINT STOCK COMPANY – CHUA VE TERMINAL Supervisor: MSc. Hoang Thi Lich Division: Global Studies and Maritime Affairs Faculty: Economics HAI PHONG – 2015 Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal PREFACE It is believed that container has made the remarkable revolution in maritime industry. Indeed, thanks to container shipping, an amount of cargo trading all around the world has been rising up. In the present age, along with the development of science and technology, container which is carried on mega ships is no longer impossibility. And container shipping service has brought huge profits for the economy. Vietnam is a country which has got a favorable natural condition with more than 3200 km of coastline. Therefore, maritime transport brings many opportunities and benefits to the country, especially in container shipping. Although having a natural advantage along with a growing development of seaports, instead of being able to gain significant profits from container transportation, Vietnam has to spend an amount of money in dealing with container cargo congestion at port. The storage of congested container at port causes the loose of not only an expense but also profits when a container cannot be used for lease. Obviously, it can be seen that container cargo congestion is an alarming problem nowadays. Therefore, understanding and finding feasible solutions for this problem is a compelling task. This report is written with the aims to have a more thorough glance at container cargo congestion problem. I hereby declare that this report is my own work which has not been published before. If violated, I am solely responsible for and bear the punishments of the Institution and University. Student name and Signature Do Khanh Ly Do Khanh Ly – GMA 02 Page i Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal ACKNOWLEGEMENT Firstly, I owe my deepest gratitude to my advisor MSc. Hoang Thi Lich for the continuous support of my dissertation, for her patience, encouragement, guidance, and immense knowledge. She helped me to develop my research as well as many difficulties during the time I carried out my dissertation. It is an honor for me to extend my special thanks to staffs at Container Team in particular and all staffs at Chua Ve terminal in general. They have instructed me enthusiastically as well as provided information related to my report. Without their assistance, I would not have fulfilled my dissertation. Do Khanh Ly – GMA 02 Page ii Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal Table of Contents PREFACE .............................................................................................................. i ACKNOWLEGEMENT ....................................................................................... ii LIST OF ABBREVIATIONS ................................................................................v LIST OF FIRGUES ............................................................................................. vi LIST OF TABLES .............................................................................................. vii INTRODUCTION .................................................................................................1 1. Necessity of the research ............................................................................1 2. Research object...........................................................................................1 3. Research scope ...........................................................................................2 4. Research findings .......................................................................................2 CHAPTER 1: LITERATURE REVIEW..............................................................3 1.1. An overview of congestion at port ..............................................................3 1.2. Types of congestions at port .......................................................................3 1.3. Causes of cargo congestion at port ..............................................................5 CHAPTER 2: CONTAINER CARGO CONGESTION AT THE PORT OF HAI PHONG JOINT-STOCK COMPANY – CHUA VE TERMINAL .............9 2.1. Introduction of Chua Ve Terminal ..............................................................9 2.1.1. General information about Chua Ve Terminal ........................................9 2.1.1.1. General information about the Port of Hai Phong Joint-Stock Company......................................................................................................9 2.1.1.2. General information about Chua Ve Terminal .................................9 2.1.2. Main services ....................................................................................... 10 2.1.3. Infrastructure ........................................................................................ 11 2.1.4. Organization ......................................................................................... 13 2.1.5. Personnel.............................................................................................. 15 2.1.6. Business activity results of Chua Ve Terminal in 2013 and 2014 .......... 16 2.1.7. The total container throughput of Chua Ve Terminal in recent years .... 17 2.2. Container cargo congestion at Chua Ve terminal ......................................... 20 2.2.1. Container cargo congestion at gate ....................................................... 20 2.2.1.1. The real situation ........................................................................... 20 2.2.1.2. Causes of cargo congestion at gate ................................................ 21 Do Khanh Ly – GMA 02 Page iii Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal 2.2.2. Container cargo congestion at quay ...................................................... 21 2.2.2.1. The real situation ........................................................................... 21 2.2.2.2. Causes of cargo congestion at quay ............................................... 22 2.2.3. Container cargo congestion at yard ....................................................... 22 2.2.3.1. The real situation ........................................................................... 22 2.2.3.2. Causes of container cargo congestion at yard .................................23 2.2.3.3. The negative influence of accumulated containers ......................... 25 2.3. Evaluation ................................................................................................... 28 2.3.1. Strong points ........................................................................................ 29 2.3.2. Weak points ......................................................................................... 31 CHAPTER 3: RECOMMENDATIONS TO MINIMIZE CONTAINER CARGO CONGESTION AT THE PORT OF HAI PHONG JOINT STOCK COMPANY – CHUA VE TERMINAL .............................................................. 34 3.1. Recommendations for Chua Ve terminal ..................................................... 34 3.1.1. Applying information technology ......................................................... 34 3.1.2. Port facilities ........................................................................................ 34 3.1.3. Skills of staffs....................................................................................... 35 3.1.4. Controlling environmental issue ........................................................... 35 3.1.5. Co-ordination with authorities and enterprises ...................................... 36 3.2. Recommendations for governments and involved authorities ...................... 36 3.2.1. For the government .............................................................................. 36 3.2.2. For the involved ministries and parties ................................................. 38 CONCLUSION .................................................................................................... 40 BIBLIOGRAPHY ................................................................................................ 41 APPENDIX I APPENDIX II Do Khanh Ly – GMA 02 Page iv Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal LIST OF ABBREVIATIONS ISO International Organization for Standardization DIN Deutsches Institut fur Normung UNCTAD United Nations Conference on Trade and Development CFS Container Freight Station L.O.A Length of Ship Overall TEU Twenty-foot Equivalent Units CY Container Yard RFID Radio Frequency Identification Do Khanh Ly – GMA 02 Page v Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal LIST OF FIRGUES Figure 1: General layout of Chua Ve terminal ........................................................ 10 Figure 2: The diagram of organization at Chua Ve terminal ................................... 13 Figure 3: Financial indicators of business activity .................................................. 16 Figure 4: The container throughput at Chua Ve terminal from 2011 to 2014 .......... 17 Figure 5: The comparison between Tan Vu terminal and Chua Ve terminal in terms of container throughput from 2011 to 2014 ............................................................ 18 Figure 6: The geographic location of Chua Ve terminal and Tan Vu terminal ........ 19 Figure 7: Facilities at Tan Vu terminal ................................................................... 20 Figure 8: The number of container stagnated at Chua Ve yard since 2006 to 2014 .22 Figure 9: The number of containers stagnated at Chua Ve terminal since 2006 2014....................................................................................................................... 23 Figure 10: Accumulated containers placed outside at Chua Ve yard ...................... 25 Figure 11: Damaged containers at Chua Ve yard ................................................... 26 Figure 12: Yard layout of Chua Ve terminal .......................................................... 27 Figure 13: Block AD ............................................................................................. 27 Figure 14: Block BE .............................................................................................. 27 Figure 15: No. 03/TB-KB form according to the Circular No. 15/2014/TT-BTC ... 30 Figure 16: Cargo dispatching announcement of Chua Ve terminal ......................... 31 Do Khanh Ly – GMA 02 Page vi Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal LIST OF TABLES Table 1: Storage area at Chua Ve Terminal ............................................................ 11 Table 2: Berth at Chua Ve terminal ........................................................................ 11 Table 3: Equipment at Chua Ve terminal ............................................................... 12 Table 4: Labor structure at Chua Ve terminal......................................................... 16 Table 5: Business activity results of Chua Ve Terminal in 2013 and 2014 ............. 16 Table 6: Labor handling capacity at Chua Ve terminal from 2011 to 2014 ............. 32 Table 7: Comparison between Tan Vu terminal and Chua Ve terminal in terms of infrastructure ......................................................................................................... 35 Do Khanh Ly – GMA 02 Page vii Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal INTRODUCTION 1. Necessity of the research Located near the international maritime lane, maritime transportation plays a crucial role in foreign trade activities of Vietnam. Recent years, thanks to open door policies of the government and rapid growth of the national economy, especially acceding World Trade Organization (WTO) on November 2006, the amount of cargo trading between Vietnam and other nations in the world has been increasing significantly, especially container cargo. In the present age, during the process of economic integration of the country, Hai Phong Port is considered as an important port in bridging trade between the Northern cities and other provinces and cities as well as between Vietnam and other nations in the world. With its strategic location along with strong growth of seaborne trade, instead of gaining significant benefits from container shipping, the Port of Hai Phong Joint Stock Company has been faced container congestion which affected detrimentally to business activity of the company as well as the society. Regarding to Chua Ve terminal – a branch of the Port of Hai Phong Joint Stock Company, the terminal is specialized in handling container cargo. Recent years, Chua Ve terminal has been suffered consequences from container cargo congestion at gate, quay and yard. This problem causes a loss of revenue including storage charge and other cost related to cargo storage, a time-consuming stay of ships and cargo at port meanwhile “time is money” in maritime field and so on. Container cargo congestion not only influences directly to Chua Ve terminal but also national economy and society in general. Therefore, the topic “Recommendations to minimize container congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal” is chosen in order to have a deep glance at this problem, understanding thoroughly reasons and find feasible solutions for container cargo congestion at Chua Ve terminal. 2. Research object Container cargo congestion at Chua Ve terminal – a branch of the Port of Hai Phong Joint Stock Company Do Khanh Ly – GMA 02 Page 1 Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal 3. Research scope - The Port of Hai Phong Joint Stock Company – Chua Ve terminal - Period: 2006 - 2015 4. Research findings - Finding workable solutions for Chua Ve terminal so that they can utilize their capacity by circulating container cargo smoothly. - Besides, seeking for appropriate responses towards cargo congestion for enterprises as well as involved parties. Do Khanh Ly – GMA 02 Page 2 Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal CHAPTER 1: LITERATURE REVIEW 1.1. An overview of congestion at port Congestion at port can present numerous ways of appearance. It could be witnessed either in congestion costs or in queue which are increasingly accumulated, being featured visually (Meersman, Voorde, & Vanelslander, 2012). A port typically experiences internal bottlenecks in which they are resulted in a queue; for example: loading and discharging quays, locks, etc. (Blauwens, De Baere, & Van De Voorde, 2010) In fact, there is no common norm to define cargo congestion at port so far. According to Dr. Usman Gidago, congestion in ports is an issue related to delays, queuing and additional time of voyage and dwell of ships or cargoes at the port (M. Alderton, 2008). From this point of view, it can be seen that cargo congestion at port is a part of port congestion in which flow of cargo is interrupted or delayed by some factors. 1.2. Types of congestions at port According to Dr. Usman Gidago, there are some main types of port congestion in African ports (Gidado, 2015): - Ship berth congestion: is primarily caused by many ships at berth or at anchorage waiting for available berth. - Ship work congestion: is mainly caused by delays in procedure for loading and discharging ship. This can lead to a dwell of ships at port to complete cargo operation work. - Vehicle gate congestion: is primarily caused by congestion or delay of landward access to the port. If there is any problem occurring on the way to the port, it could result in queuing of truck coming in and out of the port gate. This will affect the flow of cargo significantly. - Vehicle work congestion: is mainly caused by low efficiency when loading and unloading cargo. Do Khanh Ly – GMA 02 Page 3 Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal - Cargo stack congestion: is principally caused by either a stay of cargo at a storage area beyond allowed hours or days or above a maximum capacity of a storage space. - Ship entry/exit route congestion: happens when there is any stoppage on the marine side access to the port. In the chapter 4 of the book “Maritime Logistic: Contemporary Issues”, port congestion is divided into various categories based on the location and structure of the port (Meersman, Voorde, & Vanelslander, 2012) - Maritime access route: in default of capacity restrictions; for example, in order to access the port, ship have to adapt its speed depending on tide. - Locks: congestion may happen if the numbers of ships which want to use the lock excess the lock capacity. - Berths: in a case of available berth is occupied another ship. - Loading and unloading: when all berths are employed, there coud be a shortage of loading and unloading equipment. - Storage area: in storage area, bad configuration or unexpected moves may impose a waiting time on cargo or ships. - Custom inspection: the procedure of custom inspection may result in congestion at the point where cargo arrive or depart. The security checks may worsen the flow of cargo. - Hinterland loading and unloading: the employment of specific hinterland mode of transport may cause disruption or delays, influencing the port operation as well. In case of truck use, gate area is often the bottleneck at the port. - Hinterland connections: if hinterland infrastructure is utilized excessively where the port is located in crowded city, there is probably delays in delivering cargo at the port. In above classification of port congestion, it can be said that there are two main types of port congestion including cargo congestion and ship congestion. In terms of Do Khanh Ly – GMA 02 Page 4 Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal cargo congestion, there are three main types of congestion depending on the location and structure of the port. - Cargo congestion at gate: this type of congestion related to vehicle gate congestion. In case of truck carrying container cargo enter or depart from the port, if there is any delay or interruption of landward access to the port, container cargo will also be congested. - Cargo congestion at storage area: it could be either a stay of cargo at storage area beyond allowed time or excess a maximum capacity of storage area. - Cargo congestion at quay: this type of congestion related to loading and unloading process when there is a shortage of handling equipment. 1.3. Causes of cargo congestion at port Obviously, it is important to identify causes of delays so as to find appropriate solutions to solve. According to Professor Patrick M. Alderton, there are some causes of port congestion related to freight congestion at port (Alderton, 2008) (1) Planning - Inadequacy of inland transport, both in capacity and efficiency, in relation to trucks, wagons, highways and port access routes. - Failure to keep traffic forecast updated to reflect changes in the pace of major economic developments, - Failure of port management and planning authorities to make adequate plans in time for port management. - Inflexibility in development plans to allow later changes in mode of traffic flows. - Political and social interference which bear on decision-making processes. (2) Management - Lack of continuity in senior port management positions. Do Khanh Ly – GMA 02 Page 5 Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal - Senior port management chosen without regard for the qualifications required by the job and the adequate provision for upgrading knowledge. - Too little training for other staffs, particularly of the middle management and operating levels. - Lack of direct authority of management to effect remedial actions. (3) Labor - Poor labor relations, leading to insufficient restrictive practices. - Problems caused by too much or too little labor, according to circumstances. - Insufficient deployment of labor. - Failure to adapt working practices to local circumstances, such as the climate. - Lack of training of dockworkers, especially in the use of sophisticated equipment. (4) Co-ordination - Lack of cooperation between different organizations working in the port area. private and governmental - Inadequate consultation between the port authority and users of the port in respect of operations and development. (5) Traffic - Irregular traffic due to erratic import and export policies, especially with regard to bulk purchasing and the granting of import licenses. - Cargo stowed at port of loading without regard to efficiency of discharge. - Form of packaging and cargo presentation unsuitable for efficient handling at port. Do Khanh Ly – GMA 02 Page 6 Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal - Consignees without adequate financial resources physical facilities to take cargo. (6) Operations - Inappropriate policies which leads to transit facilities being used for longterm storage where space is inadequate, thus reducing berth throughput. - Lack of inland or port warehousing facilities, causing cargo to remain too long in the port transit facilities - Lack of reserve capacity to deal with recurring surges of demand placed on ports. - Pilferage and smuggling resulting in tight controls which impede a free and efficient movement (7) Maintenance Inadequate maintenance policies which result in a high proportion of equipment being out of service due to: - Absence of preventative and running maintenance - Lack of qualified maintenance personnel - Lack of adequate stock of spare parts - Insufficient standardization of equipment types (8) Clearance procedure and documentation - Late arriving document - Faulty document - Outmoded documentation requirement and processing method - Outmoded clearance facilities for vessel and cargo - Importers allowed to order shipments without sufficient funds to take delivery on arrival Do Khanh Ly – GMA 02 Page 7 Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal (9) Dynamic effects - Emergency diversion and transshipment of cargo destined for another port, which can bring temporary peaks in quantities of cargo, which a port has to handle - Period of exceptionally bad weather (10) - Function and location of the port Impossibility of improving back-up land accesses in ports because adjacent lands have been occupied by urban developments - Activities carried out in the port area, not related directly to cargo handling, which may conflict with higher port throughput. - Special difficulties which may occur with traffic of landlocked countries - Dislocation of traffic by decisions of neighboring countries if ports are serving regional trade Do Khanh Ly – GMA 02 Page 8 Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal CHAPTER 2: CONTAINER CARGO CONGESTION AT THE PORT OF HAI PHONG JOINT-STOCK COMPANY – CHUA VE TERMINAL 2.1. Introduction of Chua Ve Terminal 2.1.1. General information about Chua Ve Terminal 2.1.1.1. General information about the Port of Hai Phong Joint-Stock Company Established in 1874, with more than over 140 years of development, Port of Hai Phong has become one of the leading port operators in the North of Vietnam. Located in the triangle economic zone Hanoi – Hai Phong – Quang Ninh, a welldeveloped area with good infrastructure in transport, Port of Hai Phong is the most popular destination for the export and import activities not only of those provinces but also of the whole Northern part of the country. Port of Hai Phong’s main premises are Hoang Dieu Terminal, Chua Ve Terminal, Tan Vu Terminal and Bach Dang Terminal From 1st July, 2014, Hai Phong Port has transformed its legal form from Limited Liability Company into Joint-Stock Company. The company operates under the international name “Port of Hai Phong Joint-Stock Company” 2.1.1.2. General information about Chua Ve Terminal Business name: Chua Ve Terminal – Port of Hai Phong Joint Stock Company Address: No. 5 Chua Ve Street, Dong Hai 1 Ward, Hai An District, Hai Phong Phone: 0313.765784; Fax: 0313.765784 Chua Ve Terminal is a branch directly under Hai Phong Port which was established in 1997. Before 1995, Chua Ve Terminal had two areas. In the first area, departments, transaction and port operation places were built. In wartime and subsidizing period, port mainly operated general cargoes, aid and exported agricultural product. In the second area, in a period of war, military cargo and building materials were operated. Do Khanh Ly – GMA 02 Page 9 Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal Until 1995, because of requirements of separating Chua Ve Terminal into two enterprises: Chua Ve Stevedoring Enterprise and Doan Xa Stevedoring Enterprise. Chua Ve Stevedoring Enterprise remained the organization, infrastructure, transporting vehicles and handling equipment. After the period of two years 1995 and 1996, being invested by Ministry of Transport and Hai Phong Port, Chua Ve Enterprise had basically changed in terms of scale. The enterprise built yard with 70,000 m2, operation building, CFS warehouse as well as equipped facility and equipment for operation. In July 2007, Chua Ve Terminal was officially put into operation after renovation and construction. Until now, Chua Ve Terminal is one of the biggest container terminals in the North of Vietnam with the handling capacity of 500,000 TEU/year. Chua Ve Terminal is the international standardized modern container terminal, operating on the basis of application of information technology, having professional staffs in the field of management of container port operation. Chua Ve Terminal constantly improves and enhances customer service quality. Figure 1: General layout of Chua Ve terminal 2.1.2. Main services - Container handling service at berth - Yard leasing, forwarding, container stuffing and de-stuffing, reefers storage, cargo inspection and quarantine. Do Khanh Ly – GMA 02 Page 10 Recommendations to relieve container cargo congestion at the Port of Hai Phong Joint Stock Company – Chua Ve terminal - CFS warehouse service: Consolidation and distribution - 120 tons electronic weigh bridge for containerized bulk cargoes. - Handling equipment and vehicle repairs. Container cleaning and repair - Container and other cargoes transportation by road 2.1.3. Infrastructure Table 1: Storage area at Chua Ve Terminal STORAGE CFS storage 3 300 m2 Container yard 202 110 m2 CFS storage is served to consolidate and break bulk cargo with 3 300 m2. Container yard is 202 110 m2. Table 2: Berth at Chua Ve terminal BERTH Numbers of berth 05 Total length of berth (meters) 848 Depth alongside (meters) -8.4 L.O.A (meters) 175 Do Khanh Ly – GMA 02 Page 11