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WORLD MARITIME UNIVERSITY Malmö, Sweden
EFFECTIVE CARGO AND VEHICLE STORAGE IN DISTRIBUTION CENTRES: A CASE STUDY OF
COPENHEGEN MALMÖ PORT (CMP)
By
SAMUEL ALPHONSE KWAME ETSIBAH GHANA
A dissertation submitted to the World Maritime University in partial fulfilment of the requirements for the award of the degree of
I certify that all material in this dissertation that is not my own work has been identified
and that no material is included for which a degree has previously been conferred on me.
The content of this dissertation reflect my own personal views and are not necessarily
endorsed by the University.
……………………………… ………………. ( Signature) …………………………………………………( Date ) Supervised by :
Capt. Jan Horck Lecturer, Port Management World Maritime University, Malmö Sweden
Assessed by :
Dr. Bernard Francou Associate Professor, Port Management World Maritime University, Malmö Sweden
Co-assessed by: Dr. Jean-Michel Mancion
Former Professor, World Maritime University Port Management France
iii
DEDICATION To my parents Rev. Lt. Col Alphonse Etsibah and Mrs Gertrude Etsibah, my lovely wife
Mina and son Kojo, to my extended family and the entire Etsibah family, who had to go
through difficult times during my absence and yet never failed to support me physically
and in their prayers.
iv
ACKNOWLEDGEMENTS
I agree with Saint Paul when he said, “I can do all things through Christ who strengthens
me” Holy Bible New International Version (Philippians 4:13)
This phase has been the source of motivation of the author throughout this research and
he is personally grateful to God Almighty for bringing him this far.
This research would not have been successful without the enormous support and
contribution of firstly the authors’ sponsors, secondly all members of staff and lecturers
of World Maritime University.
I am very indebted to my research supervisor Captain Jan Horck for his advice and swift
responses, contacts and arrangements for me to conduct interviews with key personnel in
Copenhagen Port, Lund University and various places in Malmö during the preparation
of this research material. Endless thanks goes to Professor Bernard Francou, for his
guidance, very useful criticism and comments in preparation of this material especially
the cargo storage simulations.
I admire the dedication and support of all the University library staff, especially Cecilia
and Susan and to Inger Battistta for proof reading my scripts.
Lastly my immeasurable thanks goes to Mr Anders Mattson and Mr.Göron Sjöstrom both
from CMP AB, Professor Lennart Grip, Professor Evert Larsson and Professor Abelardo
Gonzalez all from Lund University for their immerse input and assistance.
v
ABSTRACT Title : Effective cargo and vehicle storage in distribution centres.
A case study of Copenhagen Malmö Port. Degree : MSc The role of ports has changed over the years from only services to vessels and cargo to a
logistics platform with a number of related services and activities. One important activity
of ports is cargo storage and distribution function. There are several reasons why cargo is
stored in ports. They include high cargo throughput, achievement of economies of scale
during shipping, to maintain reliable source of supply and obtain discounts in excess
quantity purchased.
This research presents import cargo storage issues in warehouses, refrigerated cargo
storage, container, vehicle storage and distribution using the cross-docking concept. This
research also examines the features of container storage equipment, in relation to land
utilization, selection criteria and suitability of pavement or floor design strengths.
This research puts emphasizes on the effective use of storage space, through good
innovative designs such as vertical cargo stacking methods, underground and vertical
vehicle storage systems, adoption of floating container terminals and sound management
practices to reduce cargo dwell time. By analysing various cargo storage formulae,
performance indicators and the creation of scenarios, the researcher clarifies the effects
variation in storage parameters have on holding port cargo capacity, and required cargo
storage area.
The researcher examines the positive effects of free zones, value added services and a
good storage pricing strategy and policy. The use of modern information technological
systems i.e. EDI and XML applications are also explained.
Lastly, cargo security issues and dangerous cargo storage and segregation methods in
ports are mentioned.
Key words: Warehousing, Vehicle storage and distribution, Storage area designs,
Capacity optimisation, Storage information technology, Storage indicators
vi
TABLE OF CONTENTS
Declaration ii
Acknowledgements iv
Abstract v
Table of contents vi
List of tables ix
List of figures vi
List of abbreviations vii
Chapter One: Introduction 1
1.1 Objective study 3
1.2 Scope of study 3
1.3 Research Methodology 5
1.4 Limitations 6
Chapter Two: Cargo storage in ports
2.1 Reasons for cargo storage 7
2.2 The role and importance of cargo storage in distribution 9
2.3 Estimating storage needs in port 11
2.4 Refrigerated cargo storage 12
2.4.1 Modified storage atmosphere system 13
2.4.1.1 One-shot injection 13
2.4.1.2 Membrane system 13
2.4.2 Controlled storage atmosphere 14
2.4.2.1 Pressure swing absorption system 14
2.4.3 Packaging 14
2.5 Dangerous cargo storage and compatibility 15
2.5.1 Security issues in ports 19
vii
Chapter Three: Technical issues 22
3.1 Container terminal 22
3.2 Equipment selection criteria at container terminal 23
3.2.1 Features of container handling systems 23
3.2.2 Terminal design 27
3.3 Transit shed / warehouses designs 31
3.3.1 Dimensions 31
3.3.2 Types of shed construction 32
3.3.3 Roofing and wall cladding 32
3.3.4 Gates and shed doors 34
3.3.5 Platform levellers 36
3.3.6 Ventilation 37
3.3.7 Floor designs 38
3.4 Vehicle storage and distribution 38
3.4.1 Effective use of vehicle space 42
3.4.1.1 Vertical vehicle drive-on storage system 42
3.4.1.2 Computerized vehicle storage system 44
3.4.1.3 Underground vehicle storage system 44
3.5 Mega-floating container terminal 46
Chapter Four: Management issues on cargo storage 49
4.1 Cargo storage pricing, strategy and policies 49
4.1.1 Cost performance value approach (CPV) 51
4.1.2 Concession fees 52
4.2 Application of information systems in cargo storage and distribution 53
4.3 Cross-docking in cargo storage and distribution 55
4.3.1 Information technological needs in cross-docking 56
4.3.2 Operational requirements of cross-docking 57
4.3.3 Optimisation of cargo storage and distribution 58
viii
4.4 Value added services and free zones 59
4.4.1 Total cost concept 60
4.4.2 Free zones in port 61
4.5 Issues of possible conflict and preventive measures 62
Chapter Five: Cargo storage indicators and analysis 66
5.1 Efficiency and performance indicators 66
5.1.1 Shed cargo performance indicators 67
5.1.2 Analysis of shed cargo storage 70
5.2 Vehicle storage indicators 74
5.2.1 Analysis of vehicle storage 75
5.3 Container storage indicators 78
Chapter Six : Conclusions and recommendations 82
References 89
Appendices
Appendix A Selected commodity characteristics tables 93
Appendix B Refrigerated cargo commodity tables 102
Appendix C i. Container terminal planning chart (CFS) 108
ii. General cargo planning chart 109
iii. General cargo terminal chart 110
Appendix D i. Port storage capacity planning sequence 111
ii. Dependency tree for container terminal planning 112
iii. Overall procedure in port project development 113
ix
List of Tables Table 1: The nine classes of dangerous cargo 16
Table 2: Dangerous cargo segregation 17
Table 3: Container system selection criteria 27
Table 4: Suitability of pavements for different port operations 28
Table 5: Shed cargo storage simulation 71
Table 6: Vehicle storage simulation 76
List of Figures
Figure 1: Practical storage equipment capacity 24
Figure 2: Sheds and warehouse designs 32
Figure 3: Typical mansard warehouse constructed in water 33
Figure 4: Designs of roofs and wall cladding 34
Figure 5: Designs of warehouse gates and doors 35
Figure 6: Typical rail cargo loading platform 36
Figure 7: Designs of windows and natural lighting fixtures 37
Figure 8: Design of sheds and warehouses floors 38
Figure 9: CMP’s vehicle logistics centre (Nordic hub,Malmo) 41
Figure 10: Vertical vehicle drive on storage system (VVSS) 43
Figure 11: Computerized vehicle storage system ( CVSS) 43
Figure 12: Sectional view of underground vehicle parking system
( UVPS) 45
Figure 13: Mega-floating and moving quay container terminal 46
Figure 14: A simple cross-docking process 56
Figure 15: Relationship between cargo transit time and storage
capacity 70
x
Appendices
Appendix A. Selected commodity characteristics for Port Planning 93
Appendix B. Refrigerated cargo commodity tables 102
Appendix C. (i) Container terminal planning chart 108
(ii) General cargo planning chart 109
(iii) General cargo terminal planning chart 110
Appendix D. (i) Port storage capacity planning sequence 111
(ii) Dependancy tree for container terminal planning 112
(iii) Overall procedure in port storage project development 113
List of abbreviations ACIS Advanced Cargo Information System
AEI Automatic Equipment Identification
ANSI American National Standards Institute
CAS Controlled Atmosphere Systems
CERF Civil Engineering Research Foundation
CDPD Cellular Digital Packet Data
CFS Container Freight Station
CMB Copenhagen Malmö Port AB
CPV Cost Performance Value Approach
CTP Common Transport Policy
CVSS Computerized vehicle Storage System
EDI Electronic Data Interchange
EDIFACT Electronic Data Interchange for Administration, Commerce
and Transport
EPOS Electronic Points of Sale
FEU Forty Equivalent Units
FTZ Free Trade Zones
IDS Intrusion Detection Systems
IMDG International Maritime Dangerous Goods
MAS Modified Atmosphere System
MatML Material Property Data Markup Language
MHE Material Handling Equipment
MIS Management Information Systems
PDI Pre Delivery Inspection
PIC Port Information Center
PTV Planungsburo Transport und Verkehr GmbH
RFIT Radio-Frequency Identification Technology
RMG Rail Mounted Gantry Crane
RTG Rubber Tyred Gantry Crane
SFRC Steel Fibre Reinforced Concrete
SGML Standard General Markup Language
TEN Trans–European Transport Network
TEU Twenty Equivalent Units
TREVIICOS Trevi Icos Corporation
TVPS Total Vehicle Parking System
UGSS Underground Vehicle Storage System
UNCTAD United National Conference on Trade and Development
VAN Value Added Network
VVSS Vertical Vehicle Drive-on Stacking System
WMS Warehouse Management Systems
XML Extensible Markup Language
1
CHAPTER ONE
INTRODUCTION
Seaports continue to play an important role in the promotion of international trade by the
generation of commercial and industrial activities, that have a direct effect on the
enhancement of economic progress of a nation or region.
Copenhagen Malmö Port AB (CMP) was established on 1st January 2001, a merger of
two different harbors with long histories, in two different countries i.e. Denmark and
Sweden with different corporate cultures. Each port holds a 50% stake in this newly
Swedish-registered limited liability company, employing about 441 people with its head
office in Copenhagen (Denmark). This cross border co-operation in activities between
these two sites just 13 nautical miles apart, makes CMP a novelty in the region and the
world. According to the CMP annual report (2001) the aim of the port is to be one of
Northern Europe’s most leading ports in quality cargo handling, market position,
environmental and potential innovation or development.
In the words of Karsson1 (CMB, 2001), the Öresund region is deemed to be the ideal
base for Nordic warehousing and distribution centers to the ports hinterland of over 3.5
million people with considerable purchase power and more than 50,000 businesses. With
an aggregate cargo turnover of 15million tonnes per annum, it is important for CMP to
manage effectively its cargo storage activities in order not to create congestions during
periods of increasing annual cargo traffic.
1 Chief executive designate CMP AB
2
The failure of ports to provide adequate storage capacity before increases in cargo traffic
has often created congestion problems, consequential loss in traffic and therefore
reduction in revenue. Inadequate storage area problems could be avoided not only
through reclaiming of land for extensive building of cargo storage areas, but also by the
effective use and management of cargo storage areas, through good storage area designs,
monitoring of cargo dwell time, efficient floor utilization, vertical stacking heights and
lastly the use of information technology systems.
What cargo?
Copenhagen Malmö Port (CMP) handles and stores all kinds of cargoes including oil
and gas products, paper and timber products, bulk sugar, fresh fruits, chemicals, vehicles,
steel and scrap iron, both for export and import purposes at various terminals. This
research only focuses on the study of imported shed-cargo, vehicle storage and
containerized cargo.
Are cargo storage methods of any importance in this era where ports are termed to be
logistics platforms and distribution centers? Are the methods of cargo storage in ports
effective and efficient? These are questions this research work will try to answer.
It is a well known fact that ports worldwide are developing very fast, but this
development is still not as fast as the increases in cargo traffic or throughput, hence the
need for optimization of cargo storage systems and consistent port infrastructure changes
to meet changing trade patterns.
3
1.1 Objective of study
The main objectives of this research will be
Ø To identify and compare func tions and techniques of various cargo storage and
equipment utilization.
Ø To analyze methods of improving space utilization, holding capacity, dwell time
reduction and other performance indicators.
Ø To examine present designs of cargo storage areas and propose alternative
designs for the future.
Ø To suggest other types of information technology usage, as tools in enhancing
efficiency in cargo storage, cargo distribution and cargo security.
1.2 Scope of study
Chapter one introduces the topic and outlines the general situation of cargo storage in
ports and the need for effective storage methods. It gives a brief background of the
operations of CMP AB and the main objective of this research. It also outlines the
research methodology used.
Chapter two discusses cargo storage in ports, looking at the role and importance of cargo
storage and distribution centers in ports. It will look at the need for cargo storage
estimations, refrigerated cargo storage systems, segregation of dangerous cargo and
cargo security needs in ports.
Chapter three looks into technical issues on cargo storage. It examines effective
container storage methods, equipment selection at terminals, features of container
terminal systems, pavement designs and suitability. It will also look at sheds and
warehouse floors, windows, roofs and door designs. Lastly the chapter will examine
4
vehicle storage and distribution systems, alternative vertical underground as well as
above ground level vehicle storage and computerized vehicle storage systems in ports
Chapter Four examines management issues on cargo storage by looking into storage,
pricing policies and strategies, the application of information technology, free zones and
value added services. The chapter will discuss cargo security issues in ports and the need
for cross docking and optimization systems for storage and distribution. The chapter will
lastly examine the possible conflict and prevention measures in CMP AB.
Chapter Five looks into port storage indicators and various capacity scenarios, analysis
of shed cargo, horizontal vehicle storage, and containerized cargo storage. It will also
examine the relationship between cargo transit time or dwell time and storage capacity.
Lastly the chapter will look in efficiency and port performance indicators.
In Chapter Six the researcher makes recommendations based on the conclusions on the
previous chapters.
1.3 Research Methodology
To achieve the set objectives the qualitative research methodology and the analytical
case study approaches was adopted.
Research methods listed below were considered.
Ø Literature review:
As a first step, the researcher used not only books and library material from the World
Maritime University, but also from Malmö City Library and the library of Lund
5
University. The researcher also took a lot of information from various Internet sites on
the World Wide Web.
Ø Interviews
A number of interviews were conducted with staff in various ports visited during field
trips in Le-Havre in France, Malta Freeport, London, Felixstowe and Harwick Port in
United Kingdom, Rotterdam and Amsterdam in the Netherlands. Mr Brain Kristensen
General Manager on containers, Mr. Anders Mattson General Manager on roro /cars and
Mr. Göran Sjöstrom, General Manager of logistics/warehouses all from Malmö
Copenhagen Port (CMP) granted me audience during my research and this enabled me
to understand and to analyze issues concerning the research topic. The researcher also
received very useful comments from professors at Lund University, namely Professor
Lennart Grip, Prof Abelardo Gonzalez of the Faculty of Architecture and Professor
Everth Larsson of the department of industrial management and logistics.
Ø Data processing and analysis
All data received from various sources including books, magazines or journals
conferences, the internet, reports and papers were processed and analyzed to sift out
reliable and relevant information for the research work.
Ø Comparison
Comparison was done between port operations; the information received enabled the
development of simulations, conclusions and recommendations.
6
1.4 Limitations
The scope of this research work required adequate time to conduct interviews and
studies on the field. This dissertation was done under limited time constraints, and there
is definitely room for more research in the area.
This dissertation focuses mainly on containerized cargo, shed or warehouse cargo and
vehicle storage operations of the import trade. Malmö Copenhagen Port (CMP) is being
used as a general case study, even though some suggestions, example and ideas have
come from other ports visited during field trips in Europe.
7
CHAPTER TWO
CARGO STORAGE IN PORTS
A lot of commercial ports worldwide are undergoing reforms towards increased
autonomy to enable them respond favorably to a growing competitive pressure. This has
led to an evolution of cargo storage methods, cargo storage information technology and
logistical systems. M.Ircha’s1 research shows that there is also a lot of modification in
cargo handling technologies and operations in ports worldwide prompting a lot of new
thoughts into the expansion of land sizes and optimization of cargo storage areas
(personal communication, May 20, 2002).
2.1 Reasons for shed cargo storage
Ma (2001) explains that warehousing is a process of storing products, e.g., raw materials,
semi-finished or finished products at different times and space during all the phases of
the logistics process. He continues to explain that warehousing and inventory are closely
related aspects of logistics, in that while warehousing refers to the storage process of
products, inventory deals with the quantity of products stored. The four major reasons
why warehouses are needed are as follows:
a. First, when the rate of cargo delivery in ports is higher than the direct delivery by
transport modes, there is a need for storage of excess cargo (high cargo
throughput).
1Dr. M. Ircha, Professor of Civil Engineering, Brunswick University Canada.
8
b. To achieve economies of scale during shipment of cargo and the production of
products, many industries import or export more cargo that needs to be stored.
This is why many warehouses are often located where mostly various modes of
transportation starts or ends.
c. To obtain discounts on excess quantity purchased, imported or exported,
warehouses are needed to contain the excess cargo.
d. And lastly, to maintain a reliable source of supply to growing demand especially
in cases of fluctuation in delivery times and prices, warehouses are needed.
The sizes of warehouses are dependent on the customer service level (Ma (2001).
Naturally the higher the service level the more the warehouse space needed.
Two main factors which determine the size and shape of warehouses
a. Product Characteristics: The type, weight, number, shape, size and packaging of
cargo have an effect on the size of the warehouse.
b. The stock layout and handling systems: The type and layout of handling systems
are important factors, others of equal importance, are equipment space, utilization ratio,
the number and size of aisle space and offices.
Instead of ports using the old system of manual stock registers, the usage of a
computerized system, barcode label technological systems and special warehousing
software, e.g., Intelli-Track Warehousing Management Systems, have improved the
monitoring and accuracy of inventory, increased labor productivity, reduced cargo
pilferage and improved customer services.
9
2.2 The role and importance of cargo storage and distribution centers.
There are two main types of cargo storage methods in ports.
a. Open space cargo storage which applies to cargo that is not sensitive to
degradation by environmental conditions e.g., rain, wind, heat from sun or out-
door cold conditions like snow.
b. Closed space cargo storage, which keeps cargo in a specially built covered area
to protect it from being damaged by harsh environmental conditions.
Cargo storage can further be divided into two categories of storage periods, transit (short
term) storage and long-term storage. Transit storage areas are often located close to the
quay apron in ports while long-term storage (warehousing) is located away from
sensitive port activities.
A shed can be explained as a building used for the purpose of receiving, storing and
handling of various types of cargo in transit, while a warehouse is a building designed
and used for the storage of cargo over a longer period.
Usable storage area in a shed is the difference between the total storage area and
deductible areas like pillars, offices, safety spaces, aisle ways and areas used for
machinery, inspection, weighing, sorting or repacking and security checks.
Lost space is space that can no longer be used due to occupation by pallets, dunnage,
cargo separation schemes and in some cases awkward cargo shapes.
Cargo storage areas, sheds or warehouses, need to be efficiently managed to improve the
cargo turn round, reduce dwell time and thereby reduce congestions in ports. Ports must
establish a good cargo -flow pattern by adopting a uni-directional traffic pattern, avoiding
10
of crossing points in cargo delivery and storage by segregating import cargo from export
(UNCTAD, 1987).
In a personal communication (May12, 2002) with G. Sjöstrom3, he explained that CMP
has about 20 warehouses, fifteen in Malmö and five in Copenhagen. These warehouses
are of different sizes, shapes and ages. The oldest one, built in 1929, has four floors and
a capacity of 24,000 m2, but currently only the ground floor 6,000 m2 is being used
because of the long transfer time and heavy operational costs due to using elevators to
store cargo on these top floors. Secondly there are numerous pillars, which prevent
storage of large or long objects and fast maneuverability of forklifts.
Horck, (2002) explains that a typical general cargo berth in a port could use as much as
60% of its land area for storage purposes. There is therefore an absolute need for port
authorities to arrange for a sound operational storage policy.
Transit storage, acts as a buffer between ships loading, unloading and internal transport
arrangements. The reasons for a transit or short-term storage is to permit cargo
consolidation, allow for administrative formalities at port, e.g., customs inspections,
accommodate the imbalance between quantity of cargo carried by ship and other modes
of transport, to provide for cargo held up by weather and delays and to serve as an
insurance against the risk of delays to ships.
Transit storage also provides a safety stock to protect shipper’s interest against political
and economic developments, allowing for strategic stock piling of vulnerable goods and
materials. The storage operation however could be a bottleneck and a complicated
process if there is no control of cargo-flow and efficient space allocation. This could
result in a lot of time wasted in searching for space for the storage of consignments, poor
3 Logistics, Forwarding and Transport Manager, CMP AB
11
utilization of machinery and human resources, bad equipment flow patterns, damages to
cargo and delays due to cargo congestion or poor coordination of inland transport
delivery services.
A good way to increase storage capacity of ports is the effective use of vertical space
coupled with the operation of appropriate selected equipment in both open and closed
storage areas.
2.3 Estimating storage needs in a port.
In estimating the demand for storage facilities in ports it is expedient to first find out the
following:
a. Type of storage needed: Here factors like customer demands, type of cargo and
its packaging, time cargo will be stored, special cargo storage requirements like
ventilation or temperature control, the need for weather protection, need for
cargo segregation and security.
b. The dwell time of expected Cargo: This is how long the cargo is expected to stay
in the storage area.
c. The Space Needed to Store Cargo: It is important to consider the dimensions of
both the cargo and storage areas, the stowage and stacking factors i.e. how high it
can be arranged without damage to lower cargo, its container and pavement
floors. Other things to consider are the usable storage area, the broken stowage
allowance and lastly the type of segregation between consignments.
Horck (2002) also stipulates that ports must have policies that discourage cargo owners
from keeping cargo in transit storage areas for longer periods. Contingency plans should
be set, to cope with unexpected volumes and peak periods which create unusual
12
pressures on storage facilities. The contingency plan could, for example, be made for
between 2-3 years, thus long-term storage and 2-4 weeks for a transit storage facility.
When drawing the contingency plan, the management should also consider the expected
fluctuations in cargo storage service levels.
2.4 Refrigerated Cargo Storage
The storage of a wide variety of refrigerated cargoes in ports requires various unique
temperature settings. These cargoes could range from frozen food e.g. fish, meat and ice
cream, requiring a temperature setting of approximately -250C, to flower bulbs requiring
a temperature setting of about 20C and many different types of cargoes falling in
between. The storage of fully frozen cargo such as meat and fish products in ports
requires a constant controlled low temperature. This is not difficult to achieve as
compared to fresh fruit storage or other sensitive cargo.
CMP has a refrigerated storage facility in Malmö built in 1995 for the storage of fresh
fruits i.e. apples from South America and New Zealand,4 but this operation ceased in
1999 due of lack of cargo in Malmö Port. This is because shippers of fruits reduce costs
by concentrate on just a few discharging ports in Europe, Rotterdam and Hamburg for
redistribution to other destinations by road. This practice has made the investment in the
7,000 m2 cold storage facilities and the “Diana” remote cold storage computer system in
Malmö redundant.
Generally the segregation of different refrigerated cargo and the retardation of the
respiration rate of fruit and vegetables is an effective means of prolonging shelf life. One
way of achieving this is to modify the composition of the refrigerated air surrounding the
cargo through the control of the critical mixture of nitrogen (N2), carbon dioxide (CO2)
4 Interview Göran Sjöstrom General Manager Logistics CMP , May 2000.
13
and oxygen (O2) in the cargo storage atmosphere. According to P&O NedLloyd, the two
systems used in preserving refrigerated cargo at storage areas are the Modified
Atmosphere (MAS) and the Controlled Atmosphere Systems (CAS)5.
2.4.1 Modified Atmosphere Storage System (MAS)
This works when the cargo storage atmosphere is different from that of ambient air. An
appropriate set temperature is created at the beginning of the storage period and
expected to be maintained without further measurement or active control.
Two procedures involved in these are the one-shot gas injection or the membrane system.
2.4.1.1 One - shot gas injection
This procedure involves the filling of the refrigerated storage area with a pre-determined
mixture of gases at initial the storage point. There is control over the oxygen level by
using the respiration of the fruit, which reduces the oxygen level, and a controlled fresh
air inlet value to increase the level. Carbon dioxide can be absorbed by the inclusion of
ethylene, potassium permanganate and lime or similar absorbents.
2.4.1.2 Membrane system
This is the introduction of compressed fresh air over a membrane so that the fast flowing
gases such as oxygen, water vapor and carbon dioxide permeate the walls of the
membrane. Slow flowing gases such as nitrogen and ethylene then pass straight through
the membrane. This purging action can allows the flushing out of unwanted gases such
as ethylene and carbon dioxide. It should be noted that a large number of Modified
Atmosphere system cargoes require raised levels of carbon dioxide which cannot be
achieved as a result of this action. Because of the dryness of the nitrogen and the purging 5 Retrieved on 6th July 2002, from P & O NedLloyd Internet website
14
action, humidity control is not possible. It therefore could be said that this system
produces a nitrogen blanket and not an exclusive fresh fruit cargo storage air
environment.
2.4.2 Controlled Atmosphere storage (CAS):
P & O Ned Lloyd explains that this system controls the atmospheric air in the cold
storage area by containing lower concentrations of oxygen and higher concentrations of
carbon dioxide than the ambient air. This air is regularly measured and its composition
maintained during the storage period of fruits.
2.4.2.1 Pressure swing absorption systems:
This system applies the selective absorption characteristics of certain minerals under
pressure. By using more than one absorbent oxygen, nitrogen and carbon dioxide can be
separated from ethylene continuously. Instead of purging the appliance, the gas within
the cold storage container envelope is processed to obtain a humidity control by the
raised levels of carbon dioxide to enable the system to have a fully controlled
atmosphere. This system tends to be more complicated and contain more components
than the membrane system. .
2.4.3. Packaging
Good packaging is an important element in temperature-controlled cargoes, because it
protects cargoes from damage and contamination. Good design and high quality of
materials need to be used to ensure that cargo withstands the refrigeration process and
transit. Perishable fruits and vegetables require packaging that allows refrigerated air to
circulate around the products to remove the gases and water vapor produced by their
respiration.
15
Packaging materials must therefore be able to:
a. Protect products from damage as a result of stacking height and weight of
cargo.
b. Prevent odor transfer.
c. Withstand very cold temperatures.
d. Prevent dehydration or reduce the water vapor transmission rate.
e. Act as a barrier preventing oxidation.
f. Withstand condensation and maintain its strength.
g. Be able to withstand shocks occurring during interposal transport.
h. Be shaped to fit on pallets or directly into the container for stowage.
Often refrigerated cargoes are carried in cartons or pallets and must be capable of being
stacked to the maximum height allowed in the sea container; this is approximately 2.5 m
in a hi-cube container but it is not possible to stack sensitive cargo i.e. fruits without the
use of racking systems to the maximum height in bigger and taller land based storage
areas.
2.5. Dangerous cargo storage and compatibility
The International Maritime Dangerous Goods (IMDG) Code was developed as a
uniform international code for the transport of dangerous goods by sea covering such
matters as packing, container traffic and stowage, with particular reference to the
segregation of incompatible substances. The storage and transportation of dangerous
goods is extremely hazardous and it is even more so if the regulations are not complied
with. CMP has a designated secured open storage areas in both Malmö and Copenhagen
for the storage of dangerous cargo in containers. The classes of dangerous cargo and
their segregation requirements are listed in Table 1 and Table 2.
16
Table 1. The Nine classes of dangerous cargo
IMO Class Description of Dangerous Cargo Class 1 Explosives 1.1 Substances and articles that have a mass explosion hazard. 1.2 Substances and articles that have a projection hazard but not a mass explosion hazard. 1.3 Substances and articles, which have a fire hazard and either a minor blast hazard or a minor
projection hazard or both, but not a mass explosion hazard. 1.4 Substances and articles, which present no significant hazard. 1.5 Very insensitive substances, which have a mass explosion hazard. 1.6 Extremely insensitive articles which do not have a mass explosion hazard. Class 2 Gases: Compressed, Liquefied or Dissolved under Pressure 2.1 Flammable gases 2.2 Non-Flammable gases 2.3 Toxic gases Class 3 Flammable Liquids 3.1 Low flash-point group of liquids (flash-point below -18C.) 3.2 Intermediate flash-point group of liquids (flash-point of -18C. up to but not incl. +23C.) 3.3 High flash-point group of liquids (flash-point of +23C. up to and incl. +61C.) Class 4 Flammable Solids or Substances 4.1 Flammable solids 4.2 Substances liable to spontaneous combustion
4.3 Substances that, in contact with water, emit flammable gases.
Class 5 Oxidizing Substances (agents) and Organic Peroxides
5.1 Oxidizing substances (agents) by yielding oxygen increase the risk and intensity of fire
5.2 Organic peroxides - most will burn rapidly and are sensitive to impact or friction
Class 6 Toxic and infectious Substances
6.1 Toxic substances
6.2 Infectious substances
Class 7 Radioactive Substances
Class 8 Corrosives
Class 9 Miscellaneous dangerous substances and articles *
MHB Materials hazardous only in bulk **
17
* Marine pollutants which are not of an otherwise dangerous nature are listed in Class 9 ** The regulations for materials hazardous only in bulk are not applicable to these materials when they are carried
in closed freight containers, however, many precautions may have to be observed Table 2. Dangerous cargo segregation
Source: IMO IMDG Code retrieved from http//www.ponl.com
Flammable gases 2.1 4 4 2 X X X 2 1 2 X 2 2 X 4 2 1 X
Non-toxic, non-flammable gases
2.2
2 2 1 X X X 1 X 1 X X 1 X 2 1 X X
Toxic gases 2.3 2 2 1 X X X 2 X 2 X X 2 X 2 1 X X
Flammable liquids 3 4 4 2 2 1 2 X X 2 1 2 2 X 3 2 X X
Flammable solids**) 4.1 4 3 2 1 X X X X 1 X 1 2 X 3 2 1 X
Substances liable to spontaneous combustion 4.2
4 3 2 2 1 2 2 1 X 1 2 2 1 3 2 1 X
Substances which, in contact with water, emit flammable gases
4.3
4 4 2 X X X 1 X 1 X 2 2 X 2 2 1 X
Oxidizing substances (agents) 5.1
4 4 2 2 X X 2 1 2 2 X 2 1 3 1 2 X
Organic peroxides 5.2 4 4 2 2 1 2 2 2 2 2 2 X 1 3 2 2 X
Toxic substances 6.1 2 2 X X X X X X 1 X 1 1 X 1 X X X
Infectious substances 6.2 4 4 4 4 2 2 3 3 3 2 3 3 1 X 3 3 X
Radioactive materials 7 2 2 2 2 1 1 2 2 2 2 1 2 X 3 X 2 X
Corrosives 8 4 2 2 1 X X X 1 1 1 2 2 X 3 2 X X
Miscellaneous dangerous substances and articles 9
X X X X X X X X X X X X X X X X X
18
Numbers and symbols relate to the following terms as defined in this section: 1 1 - Away from 2 2 -Separated from 3 3 - Separated by a complete compartment or hold from 4 4 - Separated longitudinally by an intervening complete compartment or hold from
X X - The segregation, if any, is shown in individual schedules See subsection 6.2 of the introduction to class 1 for segregation within class 1. **- Including self-reactive and related substances and desensitized explosives
Table 2. shows the general requirements for segregation between the various classes of dangerous goods.
Since the properties of substances or articles within each class may vary greatly, the
individual dangerous cargo schedules should always be consulted for particular
requirements as far as segregation issues are concerned, as these take precedence over the
general requirements. According to Hall7 (2002) Malmö port has as a regulation three
types of transport document for dangerous cargo and these are the Dangerous Cargo
Declaration Forms (DCDF), Container Packing Certificate (CPC) and Transport
Emergency Card (TEC). CMP also has a 12 points contingency action plan for accidents
involving dangerous cargo at the Nordö terminal. An accident report is filled copied to
the freight forwarder and the rescue section of Malmö Fire Brigade. Section 6 of the
byelaws for Malmö port states:
“Dangerous cargo may be brought and stored only if advance notice has been
received and approved based on the details of notification by the port and
during transport, handling and storage . Special regard shall be made for local
condition such as proximity to housing areas and out of environmentally
sensitive areas and the port has the right to refuse the entry of any particular
dangerous cargo if the safety of the port will be endangered.” (Port regional
seminar, 2002, p 24) 7 Harbor master of Malmö port
19
2.5.1 Cargo security issues in ports
The terrorist event of 11th September in the USA and subsequent escalation of conflict in
various countries has drawn the attention to the urgent improvement of security from
both the International and national points of view. This is in order to avoid a maritime
tragedy of a similar kind where either a vessel or its cargo is used as a terrorist weapon. It
therefore comes as no surprise for UNCTAD to sign an agreement with a US-based SAVI
Technology8 to develop an advanced logistics management, monitoring and security
system. This data network works in combination with web-based software to enable users
access real-time information on status and movement of cargo by truck, and ocean
transportation vehicles.
Many Ports in Asia and Africa already use ACIS, advanced cargo information system
modules like Rail Tracker, Port Tracker and Road Tracker. These systems use Radio
Frequency Identification Technology (RFIT) to help provide real time measurement and
location of cargo positions.
By fitting RFID tags on containers corrective actions and contingency plans can be taken
on any unauthorized cargo entering storage areas. The installation of an array of new
digital cameras in cargo storage areas to capture images of cargo, container and chassis
numbers of vehicles for encryption and automatic conversion into data format which is
then transferred to a central network unit will help ensure security in ports. (World Cargo
news April 1998 p. 29.)
Other useful cargo tracking and routing systems as stated by Muller (1999, pp 294) are
the uses of satellite communication systems for instance the OmniTRACS mobile system
or the EUTELTRACS systems.
8 Chew Wai Yee, Singapore- UNCTAD and SAVI move to bring sys tems to developing world.
20
These are two-way satellite messaging systems installed on vehicles and cargo handling
equipment to provide reliable, low-cost, real time communication on cargo information
and status to a central network management unit by the use of transponders. The use of
wireless data technology like Cellular Digital Packet Data (CDPD) can help enhance
security in cargo storage areas as it has the advantage of high speed. It is cost efficient
and works from any location in the port. Muller also emphasizes, that the Automatic
Equipment Identification (AEI) is another way of communicating cargo data through
radio frequency technology. Most terminals use small handheld mobile sets with barcode
scanning capacities to communicate with a host computer in a warehouse or container
terminal. The tags attached to the container may contain detailed information on cargo.
This system reduces paper work and can be incorporated into a broader EDI system.
Lastly the usage of linear barcode technology can give more accurate and fast way of
identifying cargo. This system can hold information on cargo and its status between 40 to
100 characters. Barcode and data radio technology eliminate keystroke mistakes through
fast scanning of containers and cargo packages and also linking up long distance data
transfer and disposal of packaging.
Alderton (1999,p.115) suggests that ports should consider conducting a security
vulnerability assessment by examining the type of security system in force, e.g., physical
examination of security tools like fencing, lighting, Intrusion Detection Systems (IDS)
and barriers. Ports also need to examine the route of access/egress, the response
time/distance for security personnel, proximity to international borders and lastly specific
local security problems. On the issue of port security assessment, Hailey (2002, p.3)
states that even though IMO believes that ports should assess their own ports according to
IMO standards, there are threats from the US government to mandate the assessment of
security measures in foreign ports and if a port does not meet the US expectation, vessels
arriving from that port will be denied entry into US ports. The responsibility therefore
21
lies on the vessel owners, ports authorities or cargo storage facility owners to ensure
adequate anti-terror measures. Already bilateral container security initiatives have been
signed between France, Belgium and the Netherlands.
Conclusion
In conclusion, there are various reasons why cargo is stored in ports, the size of storage
areas depends largely on the level of customer services, the product characteristics, the
layout of the port and the cargo handling systems used in ports. There is a need for good
management practices in port storage areas, the development of cargo and vehicular
traffic schemes, segregations systems and efficient management of cargo turn-round or
the reduction of dwell time in port.
The designs of cargo storage areas must suit its purposes, bearing in mind usage of
storage equipment to avoid the excessive loss of unusable storage areas. Ports need to
look into development of cargo storage policies to cater for contingencies but discourage
long periods of cargo storage.
Appropriate packaging and storage methods and adequate space should be provided for
all kinds of cargoes including dangerous cargo. For cargo safety and security reasons
there is a need to install in storage areas security systems to monitor the flow of cargo, by
using modern cargo security appliances and also the use of equipment identification or
detection technology.
22
CHAPTER THREE
TECHNICAL ISSUES ON CARGO STORAGE
Culliane (1999) states that containerisation has undergone two main phases. The first in
the 1980’s where ports handled four generations of ship sizes until the Panamax limits of
13 boxes across on a 32.2 m wide deck was reached. The second phase emerged through
the logistical organisation and move towards integrated distribution systems coupled
with a growth of ship sizes beyond the Panamax limits. The general demand for
containers for carrying cargo is still growing worldwide resulting in a higher through
puts in many ports. This increase requires improvement in container handling equipment,
efficient receipt delivery as well as adequate storage capacities in ports.
3.1 Container terminal
M.Bieschke1(personal communication, April 9, 2002) suggests that since container
storage is the main functions of container terminals, Port managers and planners are to
consider the following issues when organising storage at a container terminal;
v Equal capacities of all functional units
v Equal time-averaged flows at even high percentages (about 80%)
v The functions’ ability to absorb peak situations
v The optimisation of individual functional units in an effective cost and timely
manner.
1 Michael Bieschke, consultant , member of planning team in Altenwerder Port of Hamburg.(HPC)
23
This according to him this must be done by planning in phases cargo handling volumes,
kind of storage needs, transport modes and calculation of the required storage space.
Other important factors like fast decision taking with the aid of information technology
systems, detailed cargo planning and consistent cross checks of systems and lastly a
good cargo handling equipment selection are worth mentioning.
3.2 Equipment selection criteria at a container terminal
Bieschke (2002) states that the choice of equipment for a container terminal depends on
the terminal development factors i.e. the size and design layout of the terminal area, the
planned capacity and technical conditions such as stacking density or payload allowance
on the terminal surface and required capacity of port gate operations. Also the equipment
cost should be taken into consideration i.e. both capital and operation cost of equipment,
the equipment maintenance factors such as the availability of spare parts and other
consumables, cost of maintenance, training needs of personnel and other technical
requirements. According G.Crook,2 (personal communication, May, 2002) factors like
manning requirements, operating factors, performance factors and equipment automation
issues should be considered in the selection criteria too.
3.2.1 Features of container handling systems
UNCTAD (1985) explains that assuming a terminal operates on a 50:50 import and
exports balance basis then, comparing the various container handling systems against
various factors i.e. land utilization, equipment /terminal cost and equipment operations,
the following can be concluded.
2 Chief, Logistic and transport section UNCTAD
24
v Comparing land utilization factors of container handling systems
The researcher observes that a tractor and chassis system has a very poor utilization of
180 TEU/hectare, the front end loader system having a poor land utilization of
275TEU/hectare, a direct and relay straddle carriers system has a fair land utilization
factor of about 385 TEU/hectare each, and lastly, a yard gantry crane system has a good
land utilization of about 750 TEU/hectare.
However according to C.Sonnentheli (personal communication, February 10, 2002) at
Kalmar3 the maximum practical operational capacity of container equipment could be a
bit higher. The practical storage capacity of reach stacker is about 500 TEUs per hectare,
straddle carrier and rubber tired gantry cranes 750 TEUs and 1000 TEU’s per hectare
role is to organise first and last points of rest.4 In the words of A.Mattson (personal
communication, May 18, 2002) the discharging and transfer of these vehicles from the
quay to the PDI centre and from PDI to other transport companies using the rail or road
modes for distribution to various destinations. The PDI is operated by a different
4 General Manager on Roro /cars together with Göran Sjöstrom General Manager Logistics CMP.
42
organisation and CMP is therefore not responsible for the security of vehicles when they
enter the PDI zone. However in case of any discrepancy i.e. damages a “Damage report”
is immediately filled, sign by the responsible party and forwarded to the insurance
company and PDI center for repairs and claims settled. Incidents of this nature are rare
and occur just 1% of the time in CMP. One important principle in designing of vehicle
storage systems is to consider ground area needed to handle increases in throughput
without impeding operations hence, the need for effective space utilization.
3.4.1 Effective use of vehicle storage space
It is important to mention that CMPs’ vehicle storage area is all created from reclaimed
land, which is very expensive to acquire. There is therefore the need to utilize this land
effectively. One method of effective vehicle is the usage of vertical space in ports.
During the researchers’ field trip study in Netherlands ports he saw the construction and
use of vertical storage structures either on temporarily or permanent bases.
Three advanced vehicle storage systems that could be adopted by CMP are the vertical
drive-on parking, the automated or computerised vertical parking system and lastly the
underground vehicle storage system.
3.4.1.1 Vertical vehicle drive-on storage system (VVSS)
In this system, the vehicles are stored safely in a port when they are driven unto a built
solid vehicle stacker or structure two or three tier high. The height depends on the
strength of the floor and reinforced foundation. A careful soil analysis should be first
conducted to determine the amount of weight the soil can carry before construction of
VVSS. This system has the advantage of improving the vehicle storage capacity in ports.
Its operation is very dependant on the efficiency of the parking gate system and the
effective manoeuvrability skills of the drivers who store the vehicles up the tiers or
43
floors in well defined parking cells in between solid pillars. The vehicles could then be
secured and storage cell numbers recorded. The adoption of segregated vehicular and
human traffic schemes helps to avoid collisions and accidents during storage operation
since speed of operation is very vital. This system requires good lighting or lumination,
good ventilation to avoid concentration of dangerous fumes from the exhaust pipes and
reflective vehicle parking signals and marking system. VVSS also requires good weight
distribution and effective vehicle storage planning. VVSS can use vehicle air capsules
covering to ensure continuous filtered airflow that keeps the vehicles dry and protected
from dust and other environmental conditions such as corrosion from salty seawater.
Vertical vehicle drive -on storage system (VVSS)
Figure 10 : Vertical vehicle drive -on storage system (VVSS)
Figure 11 : Computerized vehicle storage system (CVSS) Source: Adapted from a field study trip in Amsterdam/ Rotterdam ports and www.cvss.nl/GB/automatic.htm
44
3.4.1.2 Computerized Vehicle storage system (CVSS)
According to Luiken, (2002) this system was first developed by CVSS BV in the
Netherlands and serves as an alternative to the vertical drive on system or vehicle
vertical stacker. This automated vehicle storage system also stores vehicles in tiers but
unlike the VVSS where drivers are required to drive the vehicles manually to and down
the vehicle stacking structure, CVSS stacks vehicles automatically using a remote
computerized system immediately vehicles are driven unto “drive-in boxes” or lifts. The
drivers then leave the vehicles and CVSS selects the appropriate storage space and
records automatically the cell numbers for easy retrieval. During retrieval operation the
vehicles are placed in a driving out position to avoid delays and unnecessary
manoeuvring. The advantage of this system is that there is no need for so many drivers,
no extra fuel cost, it is ecologically sound, reduces noise levels and also eliminates
exhaust fumes emission, making it environmental friendly.
CVSS also saves the time in searching for vehicles and avoids minor accidents i.e.
scratches and dents caused during vehicle manoeuvring. Another benefit is that CVSS is
simple, has space saving advantages of more than twice as many vehicles as compared
to the traditional horizontal ground level vehicle storage. It is a highly secured storage
system sealed from theft and burglary.
To enable this system to operate fast, the gates could be installed with security cameras
and a fast computerised gate system to synchro nizes with the frequency of traffic flow in
and out the vehicle storage area.
3.4.1.3 Underground vehicle storage system (UGSS)
Trevi Icos Corporation (TREVIICOS) in Boston and the Civil Engineering Research
Foundation (CERF) have developed an underground vehicle storage system called the
Trevi automatic parking system (Trevipark). According to TREVIICOS (2000) this
45
underground multi-story stacking system is suitable for dense or limited vehicle storage
areas.
Sectional view of Underground Vehicle Storage System (UGSS)
It is seen from the calculations that in this scenario when there was a 100% increase in
yearly vehicle throughput from 60,000 to 120,000 vehicles, but a reduction in transit
time from 9 to 3 days, This resulted in a 33% decrease in daily required vehicle holding
capacity from 1479 to 986 vehicles. The total required daily parking area was decreased
from 8,877 m2 to 5,918 m2 and the total vehicle storage area also decreased from 12,250
m2 to 8,167 m2. This shows that even though vehicle throughput was doubled, storage
77
area required was less because of a good short three days transit time of the vehicles in
the port.
Comparing scenario C and scenario D
In these two scenarios there was a 50% increase in the yearly throughput from 100,000
to 150,000 vehicles, an increase in transit time from 3 to 6 days and again an increase in
vehicle parking area from 1,200 m2 to 2,400 m2 resulting in a 200% increase in required
vehicle holding capacity per day from 822 vehicles to 2,466 vehicles. Again it resulted
in an increase in daily total parking area from 4,932 m2 to 14,795 m2 and a 200%
reduction in total required vehicle storage area from 6,805 m2 to 20,416m2. Alternatively,
maintaining a three days dwell time at the same 50% increase in vehicle throughput
would have resulted in a required daily holding capacity of only 1,233 vehicles and a
total parking area and vehicle storage area of 7,397 m2 and 10,208m2, respectively.
Comparing scenario E and scenario F
At the same yearly vehicle throughput of 140,000 vehicles but an increase in transit time
from 7 to 14 days, a 100% increase in vehicle access factor from 15% to 30% resulted in
a 100% increase in required vehicle holding capacity from 2,685 to 5,370 vehicles, again
an increase in total daily required vehicle storage area from 16,110 m2 to 32,219m2 and
an increase of 126% in total required vehicle storage area from 22,231m2 to 50,262 m2.
This shows the importance of controlling the transit-time of vehicles in ports and
improving upon the vehicle access factor in storage areas.
78
Comparing scenario G and scenario H
In these scenarios the annual vehicle throughput is kept constant at 200,000, but the
vehicle transit time is reduced from 6 day to 3 days and also at a 50% reduction in access
factor from 30% to 15%, again a 50% decrease in vehicle storage area because of
efficient space utilization methods i.e. vertical or underground vehicle storage methods
or storage of smaller vehicles reduced the required land area from 2,400m2 to 1,200m2.
The scenario further reduces reserve storage capacity by 50%. This results in a required
daily vehicle holding capacity of 1,644 vehicles and also a reduction in total daily
ground vehicle parking area from 9,863m2 to 7,397 m2 and therefore a decrease in total
required vehicle storage area from 17,951m2 to 10,208m2. The positive effects of
maintaining a short vehicle transit time in ports and the effective use of land or parking
space is seen to have increased vehicle storage capacity of the port.
5. 3 Container storage indicators
Just as in the shed cargo storage, consideration is also given for space used by aisle ways,
offices, customs and peak factor allowance, it is also important to consider these
allowances in container storage in ports as well as stacking heights and dwell time.
According to UNCTAD (1985) Port management, monograph 7, p. 5-6
v Holding capacity (TEU’s) = Container movement per year x days
timetransitAverage
365
It should be noted that the number of times the content of a store are turned over during
one year is = timetransitAverage
days365
79
v Net transit storage requirement = Holding capacity required x area required 4 per TEU (square metres per TEU)
Again its should be noted that the area requirement is dependant on operational methods
and maximum stacking height.
v Gross transit storage area = heightstackingimumaverageofRatio
requiredareastoragetransitNet
max
v Container storage area =
Gross transit storage area required x ( )
100
Re0.1 factorsafteycapacityserve+
v CFS design storage area 5 =
CFS average storage area x ( )
100
Re0.1 factorsafteycapacityserve+
v CFS stacking area = Holding capacity required x 29 x Average stacking6 height of general cargo.
Since one TEU has a stowage capacity of 29m3 and holding capacity required is
= CFS movement per year x days
timeDwell
365
4 The projected area of one container is 15m2 per TEU 5 The dwell time and stacking height are the main factors that dictate the design of a container freight station. 6 Where 29 is the cubic capacity of an ISO container of the IC type being 29m3 assuming all containers are full.
80
Net stacking area (NSA) = heightStacking
requiredcapacityHolding 29×
v Design stacking area = NSA x (1+0.4) x (1+ 0.20)
Design stacking area (DSA): (with an access factor of 40% and 20% peck factor)
According to Baudelaire (1986 p 186-187)
v Yard capacity (per year) = FD
KWHL
×
×××
Where L = Number of ground slots H = Average stacking height W = Area utilization, recommended value is 75 % K = Number of days yard is in operation, usually 365days D = Dwell time F = Peak factor, recommended value of 40%
In the words of Inoue (2001) the progressive shift from break bulk operations to
containerization, the development and usage of bigger vessels, as well as pressure of
urban squeeze have all contributed to the conversion of a lot of physical structures of
ports into storage areas with modern cargo handling capabilities. Dwell time, capacity
optimization, quality of services, timely cargo information, and minimum inventory
levels are very vital in ports. Port managers must bear in mind that port storage
indicators, diagrams and formulae are auxiliary tools for their work and a means of relief
from tedious time-consuming calculations. They are not substitutes to experience and
sound management. Management requires good understanding or knowledge of efficient
cargo storage methods, proactive planning into the future and the creation of efficient
cargo storage systems in ports.
82
CHAPTER SIX
CONCLUSIONS AND RECOMMENDATIONS
Cargo storage in ports is an indispensable activity. It is even more significant now that
ports are described not just as an interface of sea and land but a logistic platform that
performs a lot of cargo related activities. This evolution in ports makes cargo dwell time,
storage capacity optimization, efficient cargo storage services and systems, effective
information technology and cargo security issues very vital. There are several reasons
why cargo is stored in ports. Whatever these reasons are, cargo storage in port should
not be at the expense of effective flow of activities. The size of storage areas depends
largely on the level of demanded customer services, the product characteristics, the
layout of the port and the cargo handling systems used in ports. The need for good
management practices in port storage areas, the development of cargo and vehicular
traffic schemes, cargo segregations schemes and efficient control of cargo turn round in
port cannot be overemphasized.
The designs of cargo storage areas must first suit CMP customers, who are the main
purposes of cargo storage. The selection and usage of storage equipment should be done
to avoid the excessive loss of usable storage areas. Appropriate packaging, effective
storage methods should be employed in ports. Ports need to provide adequate land space
for all kinds of cargoes including dangerous cargo. For cargo safety and other security
reasons there is a need to install in storage areas security systems to monitor in and out
flow of cargo using modern cargo equipment identification or detection technology.
83
It is imperative that container storage areas be well planned and designed to
accommodate variation in capacities, time flows, peak periods and optimization of both
human and material resources. This is recommended to be done in phases.
The need to establish, select and analyze cargo storage equipment selection criteria ie
land utilization, future terminal development factors, equipment cost and other
operational factors can not be over emphasized. Pavement designs and its strength to
absorb both dynamic and static loads is an important factor in cargo storage because it
determines the maximum tonnage of cargo that can be stored.
Even though CMP does not operate most of its warehouses or sheds but leases them out
to various customers, shed cargo storage will be more effective if at the design stage
cargo reserve capacity, cargo storage characteristics and dimension factors are
considered. Other important design decisions like type and size of windows, doors,
height, floor strength, and ventilation are worth considering too.
Vehicle storage and distribution is a very important captive market of CMP. Annual
vehicle throughput is expected to increase rapidly in 2003, as the Toyota vehicle
distribution project begins in Malmö. The aim of CMP becoming a major hub in the
Nordic region will require good management practices in terms of making good cargo
storage policies, good pricing of services to attract new traffic and preventing long
periods of vehicle dwell time which create congestion in ports. Strategies like the
adoption of incentive schemes and concessions will go a long way to attract customers to
use the port facilities and services.
The need to apply management information systems in cargo storage and distribution
centers and the benefits of a centralized port systems like the EDI or better still
84
advantages of technological improvements i.e. XML applicable systems cannot be over
emphasized.
Cargo stock management and cargo storage optimization systems such as cross-docking
and just in time logistic concepts could be adopted and practiced in ports to prevent
piling of cargo and cargo distribution delays. The economical benefits of adding value to
cargo in ports and free trade zones such as re-packaging, sorting, labeling assembling
need to be developed in CMP to attract more investment and creation of jobs for the
local economy.
In a proactive manner all possible areas of conflict such as labor wage variation issues,
land tenure issues, differences in transport policies, legal jurisdiction matters and
variation in investment financing policies of projects should be resolved promptly for
CMP to totally benefit from this unique joint venture agreement.
Appropriate management tools or indicators are needed by port administrators to make
informed cargo storage decisions. Dwell time, capacity optimization, quality of service,
timely cargo information, and minimum inventory levels are very vital in ports. The
shorter the cargo dwell time and effective use of storage space, the better the storage
capacity of ports.
Port storage indicators, diagrams and formulae are auxiliary tools to assist port
management but these indicators are not substitutes to experience, sound management
practices.
Effectiveness as explained by the author, is the production of good results by comparing
actual and normative performances. Efficiency is explained as conducting a task
successfully at a minimum cost without excessive wastage in resources.
85
Both effectiveness and efficiency must be established during the total life cycle of cargo
storage processes in ports. In expressing effectiveness in storage areas, all storage
concepts must be acceptable within its operational environment. Cargo storage systems
must be usable in terms of functionability and available by having adequate capacities to
maintain relatively fast distribution frequencies. Efficiency as far as cargo storage
concepts and system designs are concerned should be low in total cost and reliable in
technical integrity i.e. construction and productivity.
General recommendations
1. CMP needs to look into development of cargo storage policies to cater for
contingencies and to discourage very long periods of cargo storage in the port.
2. Investment strategies like the adoption of cargo storage incentive schemes and
concessions agreements will go a long way to attract customers to use the port
storage facilities and services either exclusively or by preferential use of facility.
3. CMP needs to consider the creation of more value added service to shed cargo,
containers and even vehicle storage.
5. Cargo security issues are very important in ports these days; therefore the author
recommends a regular cargo storage vulnerability assessment as proposed by
IMO and improvement in the cargo identification system such as Automatic
Equipment Identification devices (AEI), also proposed by IMO. The use of radio
frequency identification technology and digital cameras in storage area to capture
images i.e. container numbers, specific cargoes or vehicle chassis numbers and
transfer them into data format in a centralized information unit, monitored by the
port authority.
86
6. There is a need to improve upon the information technology system used in cargo
storage areas in the port from only domestically built systems i.e. the PIC system
to a more advanced international EDI and XML compatible applicable systems.
7. Designs of cargo storage facilities and structures should be flexible and responsive
to customers’ needs.
8. Cargo stock management and cargo storage optimization systems and cross-
docking concepts may be adopted and practiced in CMP to prevent piling of cargo
and vehicle distribution delays.
Recommendations on shed cargo storage at CMP
1. The management of sheds or warehouse may also consider the effective use of
storage space by adopting efficient cargo space utilization, vertical stacking
methods and reduction of broken stowage and cargo dwell time.
2. The economical benefits of added value services on cargo such as re-packaging,
sorting, labeling, assembling and operational advantages of free trade zones need
to be fully developed at CMP.
3. The use of Bar code technology in shed storage area as used in Helsingborg and in
other Swedish ports is encouraged. Barcodes can be used both as a security and
stock-monitoring tool.
4. There is a need for a review of the use of the redundant cold storage facility in
Malmö Port by attracting customers or investment to use this facility.
87
Recommendations on container storage at CMP
1. CMP presently has its outdoor cargo storage floors or pavements made of asphalt.
This limits the pavement load capacity since excessive loads could easily cause
damages. The author recommends the strengthening of the current container
terminal pavement by using the reinforced steel fiber concrete technology and use
strong pavement blocks, which has advantages of durability and low maintenance
cost.
2. CMP may consider the use of straddle carriers in container operations in Malmö
Port in the future instead of the reliance on reach stackers. As container cargo
throughput increases the author recommends the feasibility of investing in
automatic container stacking cranes and shuttle carrier systems.
3. Container stacking methods could be further improved at CMP to enhance storage
capacity. The author recommends therefore the improvement of the present two
high FCL stacking and four high empty container stacking to three high and five
high full and empty container stacking respectively.
Recommendations on vehicle storage at CMP
1. There is a need for a team of dedicated staff who will only be responsible for
vehicle transfer from the quay to vehicle storage and PDI centers and vice versa.
2. There is a need for CMP to in future consider the improvement of the present car
fish bone, line horizontal vehicle storage and consider feasibility of other technical
vehicle storage designs i.e. the use of vertical automated computerized systems,
88
vertical drive-on and underground vehicle storage systems as vehicle throughput
begins to increase.
3. Even though there is a lot of cooperation between CMP and other transport
companies, there is still the need for more coordination between CMP, logistics
and transports companies. The circulation of vehicle distribution information on a
fast and reliable information technology system i.e. XML and advanced planning
by all parties will further improve the efficiency in vehicle distribution and shorten
lead-time.
89
References
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Appendix A
SELECTED COMMODITY CHARACTERISTICS FOR PORT PLANNING Source: UNCTAD Port Development handbook for planners
PHYSICAL CHARACTERISTICS HANDLING CHARACTERISTICS
Bulk Stowage factor commodity Method of Class of Special requirements
Commodity angle of repose cubic metres/ton (cu.ft/ton) Handling stowage
Cement 40 * 0.7 (23) Conveyor, Totally Exclusion of moisture,
0.9 -1.5 screw, pneumatic enclosed dust filter
1.0 (34)
Drums, casks
1.1 (40)
* The angle of repose of cement is difficult to define as it depends upon the amount of air in the cement. With a constant supply of air, the angle of repose can be as low as 7 degress but when the cement is consolidated and has little or no air in it, the angle of repose approaches 90 degress.
94
Appendix A (continuation)
PHYSICAL CHARACTERISTICS HANDLING CHARACTERISTICS
Bulk Stowage factor commodity Method of Class of Special requirements
Commodity angle of repose cubic metres/ton (cu.ft/ton) Handling stowage
in (degrees) Bulk Bag others
Continuation
Chrome ore 35 0.4(14)
Cases
0.4 (15)
Coal 30 -45 1.4 (48) Unloader / belt open For certain grades,
Conveyor Fire precautions.
Gypsum 1.1 (38) Unloader / belt covered
Conveyor
1.2 (44)
Ilmentite Sand 40 0.4 (13 ) Unloader / belt open
Conveyor
Iron ore 30 - 50 0.4 (1.4 ) Unloader / belt open Dust filter for certain
Conveyor grades
LIQUID CARGOES
Crude oil 1.2 (42) Pipeline Tank
Oil products 1.2 (43) Pipeline Tank
Latex 1.0 (37) Pipeline Tank
Drums
1.5 (52)
Vegetable oil 1.1 (39) Pipeline Tank
Barrels, drums
1.8 (64)
Molasses 0.8 (27) Pipeline Tank
Baskets, casks
1.4 (50)
Wine Casks, tanks
1.8 (63)
Wine Casks, tanks
1.8 (63)
95
Appendix A (continuation)
PHYSICAL CHARACTERISTICS HANDLING CHARACTERISTICS
Bulk Stowage factor commodity Method of Class of Special requirements
Commodity angle of repose cubic metres/ton (cu.ft/ton) Handling stowage