Report on Return From Tour Abroad

Management of Container Freight Stations

Prepared by

Navukkarasu J Senior Assistant Manager (General) Central Warehousing Corporation, RO-Navi Mumbai.

Page2 

Page3 

Preface

Port of Singapore has become the most potential destination for investment and

modernization since because of its strategic location in the southern East Asia. Its pace

gathered momentum right from 18th century when the East Indian Company started to use

Singapore port for trading purposes. The story of Singapore port got to modernize with the

establishment of Singapore Harbour board. From Trading station the journey of Singapore

port evolved itself as the World’s busiest port. The Port of Singapore Authority was formed

on April 1, 1964 to take over the functions, assets and liabilities of the Singapore Harbour

Board. On August 25, 1997, a parliamentary bill was passed to corporatize the Port of

Singapore Authority, and PSA Corporation Ltd corporatized on October 1, 1997. PSA

Singapore Terminals is the world’s largest container transshipment hub, handling about one-

fifth of the world's total container transshipment throughput, and 6% of global container

throughput. It has a network of 200 shipping lines serving 600 ports in 123 countries. The

report encapsulates the study of Container Freight Station and Port operations taking place in

Singapore. The presentation of the report is designed to be descriptive and informative. The

objective of the report on the whole, is to provide thematic picture of the development of the

Singapore Port and its Operations.

Page4 

Acknowledgements

I would like to express a deep sense of appreciation to our Managing Director,

Central Warehousing Corporation for inculcating in us, a passion for excellence in all our

activities.

I am thankful to Director (Personnel), for giving me the opportunity to attend the

training program at Port of Singapore.

I would also like to express my sincere gratitude to my Regional Manager, Navi

Mumbai, for his guidance and encouragement.

My sincere thanks are due to the Training Mananger, PSA for his invaluable guidance

during the course of the training.                                     

Page5 

Chapter Title Page No.

Preface 03

Acknowledgements 04

Abbreviations 06

Milestones in the PSA Corporation 07

Bibliography 58

1 The PSA Corporation 08

2 The Terminals 11

3 Infrastructure at PSA 15

4 Technology front PSA 18

5 Container Terminal Operations 19

6 Containers 20

7 Container Freight Stations 21

8 Conventional Terminals-PSA 28

9 Keppel Distrpark

• PSA’s Advanced Transhipment Management 40

10 PSA Success factors 54

11 Accolades 55

Page6 

Abbreviations

CFS Container Freight Station

PSA Port of Singapore Authority

OH Outer Harbour

RMGC Rail Mounted Gantry Cranes

RMQC Rail Mounted Quay Cranes

LCL Less than Container Load

ICD Inland Container Depot

CITOS Computer Integrated Terminal Operations System

Page7 

Milestones in the PSA Corporation

1981 Achieved 1 million TEUs in a single year for first time.

1982 Singapore became the world’s busiest port by shipping tonnage.

1984 First version of PORTNET@ a one-stop 24-hPSA’s paperless electronic link.

1991 Keppel Terminal started operation. Singapore Port Institute established.

1996 Established first overseas project in Dalian Container Terminal, China.

1997 PSA corporatized and is named PSA Corporation Limited.

2000 Pasir Panjang Terminal officially opens.

2003 PSA International Pte. Ltd. Becomes the main holding company for the PSA Group.

2003 COSCO-PSA Terminal (CPAT) launched at Pasir Panjang Terminal.

2005 JV with Mediterranean Shipping Company (MSC) to jointly manage and operate a

container terminal at Pasir Panjang Terminal.

2007 Entered joint venture with NYK and “K” Line to operate Singapore first dedicated

car terminal called Asia Automobile Terminal at Pasir Panjang Terminal.

Page8 

The PSA Corporation

Sea Port Operator providing Container Terminal Operations, Logistics & related services in key ports around the World.

Operates Container Terminals in 28 Ports in 16 Countries….. and growing The Port of Singapore Authority Institute, PSA Corporation is one of the worlds’ best

ports in terms of infrastructure, technology, quick turn-around of the vessels, highest volume handling. The PSA Corporation has handled 25.36 million TEU’s in 2009 which is the highest ever handled at the port so far.

PSA constantly innovates through automation and the use of intelligent systems to

enhance its customers' hubbing operations and competitiveness. Its operations are managed on a network of more than 300 advanced servers. Applications such as Computer Integrated Terminal Operations System (CITOS®) and PORTNET® have given PSA the edge to achieve greater levels of productivity and efficiency.

The port operations are carried out at four container terminals namely Tanjong Pagar,

Keppel, Brani, Pasir Panjang, with a total of 54 container berths. They operate as one seamless and integrated facility. To complement PSA’s global port and terminal business, PSA provides a comprehensive range of ocean and harbour PSA’s marine services, terminal-related logistics services and port IT services.

Page9 

Profile: Singapore Terminal

2009 Volume Growth -13.1% 4 Container terminals 2009 Volume (TEUs) 25.14m 54 Berths Container handling per day 68,876 600 Ha of lands Vessel calls per day > 60 172 Quay Cranes 526 Yard Cranes

Page10 

Core Business – Transhipment

It is where containers are transported by a vessel to an intermediate port like Singapore. Here, the containers are transferred to another ship bound for its final destination. With its strategic location, Singapore has an unrivalled connectivity. There are daily sailings from the Singapore port to every major port in the world.PSA has developed itself as Advanced Transhipment Hub which drastically reduces delivery lead time of manufacturers thus it has helped in increasing their business thus win-win situation for both.

The Port of Singapore handled 25.87m TEUS in 2009, of which PSA handled 25.14m.

Container terminal operators need to ensure that cargo is not damaged as goods can cost

up to hundreds of thousands of dollars per TEU. With so many containers being moved around the terminal each day, PSA meticulously plans and ensures that the containers are not lost or damaged. PSA also provides facilities and services for cargo that needs special attention, are time-sensitive, or require special temperatures that need to be stored in refrigerated containers (reefers).

Page11 

The Terminals

The port operations are carried out at four container terminals namely Tanjong Pagar,

Keppel, Brani, Pasir Panjang, with a total of 54 container berths. They operate as one

seamless and integrated facility.

Pasir Panjang Terminal is PSA's most advanced terminal. It is equipped with berths

up to 16 metres deep and with quay cranes able to reach across 22 rows of containers to

accommodate the world's largest container ships. The terminal's bridge crane system allows

each operator to handle up to six cranes.

Page12 

Brani Terminal

Keppel Terminal

Page13 

Tanjong Pagar Terminal Terminal

Multipurpose terminal:

Pasir Panjang Automobile Terminal (PPAT) is PSA's vehicle transshipment hub and Singapore's first dedicated car terminal. It started operations in January 2009. PPAT has three dedicated berths and is supported by an open car yard and a multi-level car storage yard, which together provide some 20,000 car park slots.

Multi-Purpose Terminal Sembawang Wharves handles break-bulk and specialized

cargo including heavy equipment, steelworks, and cables. Sembawang Wharves also offers long and short-term warehousing and open storage facilities.

Page14 

Strategically built terminals provide the niche to PSA. This unparallel connectivity has made PSA to handle 29 m TEUS.

Page15 

Infrastructure at PSA

PSA constantly innovates through automation and the use of intelligent systems to

enhance its customers' hubbing operations and competitiveness.

All the terminals are sufficiently equipped with handling equipments like Rail

Mounted Quay Cranes, Rubber Tyre Ganty Crane, Reach Stacker, and Empty Container

Handlers. The movements of containers from the wharf to yard and vice versa are taken care

by large number of fleets. Keppel terminal and Pasir Panjang terminals are provided with

over bridge RMGCS to handle containers in the yard. Each terminal is supported by bid area

of yard for storage of containers.

• Quay Crane (QC) Crane used for ship-side operations

• Rubber-Tired Gantry Crane (RTG)/ Transtainer (TT)

These yard cranes have rubber tires at the bottom of their legs.

• Electric Rubber-Tired Gantry Crane (E-RTG) E-RTGs are powered by electricity, which substitutes diesel as an

energy source. Elevated conductor bars are used as a medium for the transmission of electric power to the moving E-RTG.

All rights reserved. No contents can be reproduced without PSA permission. 27

PSA SINGAPORE TERMINALS

• Rail-Mounted Gantry Crane (RMG) These yard cranes move on rails at the bottom of their legs.

• Overhead Bridge Crane (OHBC)/ Bridge Crane (BC)

These yard cranes sit on raised concrete structures. The operator sits at a remote location in a building far away. This equipment is only in use at PPT.

• PSA Prime-Mover (PM)

Prime-Mover or Tow-Head Chassis or Trailer

Page16 

QUAY CRANE

CONTAINERS LOADED ON A PRIME MOVER

WHARFSIDE SUPERVISOR CABIN DOUBLE STACK TRAILER

Page17 

ELECTRIC RUBBER TYRE OVERHEAD BRIDGE CRANE GRANTRY CRANE

LASHING TRANSTAINER

Page18 

Technology Front PSA

PSA constantly innovates through automation and the use of intelligent systems to enhance its customers' hubbing operations and competitiveness. Its operations are managed on a network of more than 300 advanced servers. Applications such as Computer Integrated Terminal Operations System (CITOS®) and PORTNET® have given PSA the edge to achieve greater levels of productivity and efficiency. Flow-Through Gate System The Flow-Through Gate system, introduced in 1997, is a fully automated system that identifies container trucks and gives drivers instructions within 25 seconds. It handles an average traffic flow of 700 trucks per peak hour, and 8,000 trucks per day.

Flow diagram of PSA PORTNET

Page19 

Container Terminal Operations

CONTAINER TERMINAL OPERATIONS

Page20 

Containers

STANDARDS OF A CONTAINER

CONTAINER LOCKING SYSTEM The port handles the following types of containers:

TWNETY FOOTER CONTAINER

OPEN TOP CONTAINER

FORTY FOOTER CONTAINER

DOOR OPEN CONTAINER

FORTY-FIVE FOOTER CONTAINER

REEFER CONTAINER

TANK CONTAINER

HI-CUBE CONTAINER

FLAT RACK CONTAINER DG CONTAINER

Page21 

Container Freight Stations

Pictorial presentation of PORT & CONTAINER FREIGHT STATION

Page22 

Basic Functions of a CFS

• To receive, sort and consolidate export/import break-bulk cargo from inland transport

(trucks, trains, barges, marine craft, etc);

• To pack export cargo into containers ready for loading onboard a vessel;

• To unpack import containers and thereafter sort and separate the unpacked cargo into

break-bulk consignments for subsequent delivery to consignees;

• To deliver import cargo to inland transport such as trucks, trains and marine craft;

• To store import and export cargo temporarily between the time of unloading and loading

while various documentation are completed.

Export Cargo

• Receive break-bulk cargo from inland transport according to shipper’s instructions, check

and create records;

• Move cargo into temporary storage (covered or open area);

• Present stored cargo to customs for inspection, if required;

• Arrange for empty container;

• Check condition of container and whether suitable for the cargo; Move cargo from

storage area to container;

• Stuff cargo into container according to shipper’s instructions;

• Secure cargo in the container during stuffing;

• Lock and seal stuffed container with appropriate labels;

• Arrange for loaded LCL container to be moved to the yard for loading onto the vessel.

Import Cargo

• Arrange to move loaded LCL container from container yard to CFS for unstuffing;

• Unstuff cargo from container - check and sort out according to different consignment;

• Create relevant documents;

• Move cargo into covered or open storage area for subsequent delivery to consignees;

Present stored cargo to customs for inspection, if required;

• Load cargo into consignee’s transport with relevant documents;

• Arrange to move empty container to container yard or elsewhere.

Page23 

Unstuffing Operation Process

• Open the container’s door with care and caution.

• Check quantity and condition of packages of cargo unstuffed by Operations Assistants.

• List out damaged cargo.

• Sort them into consignments by marks and no., description of contents, etc.

• Place sorted cargo onto pallets.

• Move pallet loads of cargo to storage area as planned.

• Clear up container and unpacking area by cargo handlers/workers.

• Close container’s door and record job completed by foreman.

• Arrange to return container to storage area.

• Damaged cargo to be surveyed at designated survey bay.

Cargo Release Process

• Ensure each cargo consignment is released to the rightful owner.

• All handling and CFS charges are paid before the cargo is released.

• Encourage consignees to take delivery of cargo as soon as possible.

Stuffing Operation

• Receive Booking List from Shipping Agent/Operator.

• Plan storage space by CFS.

• Receive Container Loading List from Shipping Agent/Operator.

• Receive cargo and Shipping Note from consignor before the closing day.

• Instruct consignor to offload cargo into storage area.

• Receive empty container for cargo stuffing.

• Allocate stuffing team.

• Stuff cargo according to the Loading Plan provided by Shipping Agent/Operator.

• Record the actual packages of cargo stuffed in the container by Operations Assistant.

• Ensure cargo is properly stuffed and dunnage provided.

• Close container’s door and record job completed by foreman.

• Clear up container stuffing area by cargo handlers/workers.

• Arrange to move container to container yard for loading onto the vessel.

Page24 

Basic Container Stuffing Process

DOs

• Distribute the load in the container.

• Place heavy cargo on the bottom and lighter ones on top.

• Block and brace cargo to prevent movements in any direction.

• Fill in voids between cargo and container sides.

• Use block stacking to protect bagged cargo from shifting.

• Close and seal container doors carefully.

DONT’s

• Stuff incompatible goods together.

• Stuff odour-releasing cargo together with odour-absorbing cargo.

• Putting wet cargo together with moisture-sensitive cargo.

• Pack sharp-edged cargo with cargo which is easily damaged by them.

• Mix food products together with toxic products.

• Store heavy cargo with fragile cargo.

CARTONS WELL STRAPPED AND WOODEN BEAMS KEPT TO SEPARATE THE CARGO

UNSTUFFING PROCESS CARRIED

OUT IN THE ASSIGNED AREA

Page25 

UNFAVOURABLE PACKAGE COMPACT STOWAGE

GAPS TO BE FILLED A BETTER SOLUTION

RISK OF DAMAGE TO CARTONS IMPROPER LOADING

Page26 

MATERIAL HANDLING SYSYTEM Forklift Trucks – A fleet of 2 or 3 tonnes capacity forklift trucks for transport of cargo to and from the containers and to assist in Stuffing/unstuffing the cargo. Pallet Trucks – A number of pallet trucks for Loading/unloading and stuffing/unstuffing the cargo. • Powered or hand-operated. • Low cost operation. • Limited in lifting capacity. • Not practical to travel long distance. Portable Conveyors – Useful for handling bulk cargo or large number of small packages.

Heavy-duty Lift-trucks – Front-end loaders or reach-stackers for lifting containers from and to container trailers. Cargo Pallets – To use for handling and storing small packages during the storage period in CFS.

Others – portable ramps, dunnage, securing materials, etc.

Page27 

CONTAINER SHIP OPERATIONS

• Container handling system - 4 main processes: – Ship operations – Quay transfer operations/wharf side operations – Container storage yard operations – Receipt/delivery operations • Ship operations – involves the movement of containers between the vessel and the wharf. First set of activities start with discharging of inbound containers and last stage in loading of outbound containers.

Mode of operations • Ship Operations – 3 main modes of operations – Quay cranes or shore cranes – Ship cranes – Roll-on-roll-off (Ro-Ro) operations Documents – Crane Sequence – Discharging List – Loading List

SHIP CRANE OPERATION RO-RO OPERATIONS Some basic working rules •Put on personal protective equipment (PPE) – safety helmet, safety shoes, hand gloves, reflective vest, safety belt/harness, life jacket, etc. •Always stow containers according to the approved plan. Never deviate from it. •Avoid stacking heavy containers above light containers and at the top of a stack. •Check all cell guides are clear of obstacles. •Remove all lashing gears/devices from the container before discharging. •Always reject damaged containers when loading. •Never use defective lashing gears/devices. •Place all unused lashing gears/devices in proper racks or bins provided. •All lashings must be well secured. Any loose lashings will affect the stability of containers. •Never stand under a suspended container on the path of movement of the container spreader. •Lashing workmen shall stand at least 2-container distance from the working container.

Whatever mode of Ship Operations is used in a port, it is important to keep the activities in the process flow steadily and without delay/stoppage.

Page28 

Conventional Terminals-PSA

CONVENTIONAL TERMINAL INFRASTRUCTURE

Page29 

PSA’S Transformation to world’s busiest port The rise of Port of Singapore was due to three main factors: – First, was its geographic position. It was in easy reach of the vessels from China, Thailand and Indonesia. It also lay on the natural shipping route between India and China, and when the steamships arrived, it was the logical choice as a bunkering station. – The second factor was its status as a free port, there being no harbour, port, dock, or light dues while customs duties were levied only on opium, alcohol, tobacco and petroleum. – The third factor was a result of the commercial policy of the Government which permitted the mercantile interests a complete freedom of trade. KEPPEL WHARVES (A PSA Experience) • Keppel Wharves was the main and largest gateway in terms of the volume of cargo handled and her wide range of facilities. • On an average it handled 500,000 tonnes of general cargo per month and the no. of vessels berthed average 300 per month. • Primary function of Keppel Wharves was to provide a comprehensive and complete range of cargo and related services to cater for vessels berthed alongside its 4.8 km of marginal wharves. • Keppel Wharves employed its own labour force and operated its own fleet of mechanical equipment and ear.

• Main services provided by Keppel Wharves are: – Berth allocation – Stevedoring Services – Provision of mechanical equipment – Receiving and storage of inbound and outbound cargo – Removal and releasing of cargo • Related services provided by other service departments of PSA are: – Bunkering and supply of fresh water – Pilotage and tug services – Warehousing services

Page30 

– Telephone services – Security – Fire protection. • Wharves Operation • Ensure proper and efficient handling of cargo in order for fast turnaround of vessels. • Practised no shut-out and no overlanded of cargo. • Prevention of damages to any cargo. • Provided full protection of cargo in covered transit sheds, warehouses and open storage area. • Accountable of all cargo received and delivered. • Logistics

• Recruitment of daily-rated workers, training and optimum deployment of such manpower resources to the varying needs of supply and demand situation. • Provision of a comprehensive range of mechanical equipment including forklift trucks, mobile cranes and lorries of various capacities to meet the customers’ requirements. • Ensure proper servicing and preventive maintenance programme were carried out to prevent breakdown of equipment.

Keppel Wharves – Gang Deployment

• Keppel Wharves provided its own stevedoring workers. Only on occasional shortages, contract workers were used. Prior to the formation of the Integrated Gangs two types of gangs were available for working on a vessel.

– Stevedore gang for working on board vessels – Wharf gang for working on the shore FACTORS CONTRIBUTING TO A TERMINAL PERFORMANCE

• Efficient and high performance port workers.

• Ability to berth vessels on arrival and quick dispatch thereby reducing demurrage of shipping.

• Have sufficient supporting services and facilities – good and serviceable mechanical equipment, adequate covered and open storage, etc.

Page31 

• Innovative and enterprising management, well aware of changing requirements of shipping and customer needs and demands.

• Simple procedures and work arrangements to avoid unnecessary delays and cumbersome transactions or documentation.

• Rates and charges comparable to the quality and extent of services rendered.

DELIVERY OF CARGO 1. Shipping Agent submits cargo manifest record through Portnet. 2. Cargo records download to MPT server. 3. Agent nominates cargo to consignee through Portnet. Each BL or cargo record is given a Unique Cargo Identification Number (UCI No.) 4. When cargo is nominated to the consignee, consignee is given the UCI No through Portnet. 5. Consignee confirms through Portnet where the cargo is lying and proceeds to the warehouse with his lorry. 6. Consignee locates his cargo by checking the marking of the cargo. 7. After loading the cargo on lorry, he proceeds to the FAST Centre. FAST is abbreviation for Freight Auto Service Terminal which is something like an ATM where a port user transacts his documentation for delivery and shipment of cargo instead of processing his document manually at the service counter. 8. The consignee inserts his PSA Entry Pass into the FAST machine and keys in his “PIN”. 9. He keys in the UCI No. and the cargo markings will be shown for him to confirm whether the markings are in order. If in order, he keys “OK”. The FAST will issue a Delivery Note. 10. With the Delivery Note, he will proceeds to the Out-Gate for checking by the police. 11. Police will check on the quantity of the cargo and the markings against the actual cargo and allow the lorry to proceed out of the port if everything is in order.

SHIPMENT OF CARGO 1. Shipping Agent submits cargo details through Portnet. 2. Cargo records download to MPT server & UCI No. generated by system. 3. Shipper checks the warehouse to deposit cargo and bring his cargo to the warehouse. 4. After off-loading the cargo, shipper to transact at FAST. 5. After obtaining the Unloading Advice, shipper to proceeds to the Out-Gate with the Advice to the police for checking. 6. After checking, he leaves the port.

Page32 

Planning of Conventional Vessel Operation

Allocation of berth • Vessel Draft (Coastal or Deep water Berth) • Special Requirement

For Loaders

Location off Cargo for Loading Local Cargo Transhipment Cargo

For Dischargers Availability of Covered & Open Storage Space Other Special Requirement

require portside or starboard side to wharf

STORAGE OF CARGO

1. Covered Storage Transhipment and Local cargo to be segregated

Types of Cargo and Quantity Tonnage of dirty cargo Tonnage of edible cargo Other cargo Small packages Attractive cargo Dangerous cargo - segregation of DG

2. Open Storage

Types of Cargo Containers Vehicles Steel cargo - steel plates, deformed bars and pipes Dangerous cargo Reefer cargo - fruits and vegetable Heavy-lift

Page33 

Automatic Container Spreader

- Mandatory for auto container spreader to handle containers at MPT. Must be tested by certified Engineer under Workplace Safety and Health Act.

- Fast and safe without the need of workers climbing on the containers to lock and unlock containers.

Transit and Storage operation at Conventional Terminal

Definition of Transit areas

- Receiving, storing and handling various types of cargo in transit – from vessels or from shippers

- Normally constructed adjacent or near to a ship berth

Purpose of Transit area

- Provide buffer area to harmonize the faster ship shore flow with slower shore-land movement - Provide safe storage for cargo while awaiting customs clearance, shipping documents

processing, etc. - Provide protection to the cargo

Need for Transit area

Two main activities occurring at the same time:

a) Cargo loading and discharging on one quayside b) Receiving and delivering of cargo on the landside

Effective transit and storage operations will provide: a) An efficient flow of cargo in and out of the port b) Faster turn-around time of vessel c) Prevent congestion

Managing Transit and Storage Operation

- Space is effectively utilised and cargo properly stacked/stored - Systematic storage layout - Working rules on cargo stacking - Simple and well controlled cargo location system, - Proper stock-taking and cargo removal system - Suitable handling and stacking equipment

Page34 

- Adequate supply of manpower - Use of performance indicators - Institute security measures

TRANSIT STORAGE FORK LIFT HANDLING A CONTAINER

Systematic storage layout

- All space be properly allocated and marked: -to facilitate easy location or tracking of cargo -to provide well-defined areas for stacking

- Avoid hindrance -import cargo be stored at landward side -export cargo at quayside

- Cargo be stored according to shipments and commodities, followed by marking and types of packing. Markings face outward and upward for easy identification.

- Passageway, aisle and roadway be provided for forklift trucks, stackers, trailers, cranes, etc

Stacking and Stowage

- General cargo e.g. cartons, bales, bags, etc need to be sheltered from heat and rain are stored in covered sheds.

- Others e.g. motor vehicles, steel pipes/plates, huge machinery, timbers/planks, containers, etc can be stored in open areas.

- Stacking height – depends on nature, characteristics and weight of cargo. -Palletized cargo, cartons, bales and bagged cargo – 3 or 4 pallets high. -Cases and crates – 2 pallets high. -Combustible cargo – not more than 5m high and at least 1m from wall

Page35 

- Pallets of cargo – stack two in a row, side by side. Aisle of about ½m on both sides to allow easy checking

- Homogeneous cargo – block stacking - Fragile cargo – should not stack next to heavy cargo or wooden cases/crates, and not more

than 2-tier high - Stacking Pattern:

-Bagged cargo cross-stacked on pallet -Topmost tier of cartons be cross-stacked -Top surface be level -Stack according to instructions/signs

Cargo Location

- Design a cargo location scheme - Pre-defined lots allocation to various cargo consignments - Different shipments be segregated - All consignments indicated in the plan/board

Cargo Handling Equipment

- Provide forklift trucks, stackers, freight-lifters or heavy forklift trucks to port users - Types and number of equipment depend on volume and types of cargo handled - Forklifts

- 3.5T, 10T and 42T - Solid or pneumatic tyres - Electric, fuel or gas/LPG

Use of performance indicators _ Performance indicators may be prepared on monthly basis _ May cover: Volume and types of cargo handled % of cargo delivered or cleared with certain period Quantity of packages short shipped and short landed Quantity of packages still lying in storage area after certain no. of days Time waited by port users for supply of forklift trucks or other equipment Security Measures _ Ports around the world face a common problem on theft and pilferage of cargo _ Attributed to 3 main groups – a) individuals or petty thieves b) organized groups c) Computer thefts and frauds

Page36 

_ Institute stiff penalties for offenders _ Port declares as protected area where security personnel have special powers – right to search without warrant _ Entry passes to persons with legitimate business _ Security personnel conduct frequent checks _ CCTV at control room and shed office _ Out/exit gates – thorough checks _ Documentation process with built-in controls to countercheck

TRANSIT STORAGE TRANSIT STORAGE OPEN STORAGE CAR CARRIERS

Page37 

Warehousing Services in Free Trade Zone (FTZ)

Purpose of a Warehouse

_ To provide a back-up storage to cargo from transit shed _ To provide a storage and working area for port users/traders to sort, bulk-break, repack, remark, grade and manipulate dutiable and quota-restricted cargo for re- export Advantages of warehouses within FTZ

_ No duties need to be paid on cargo so long as they remain in FTZ _ Cargo in FTZ may be destroyed, exhibited or transferred to another zone _ Users in FTZ allow to store and break bulk cargo without customs formalities or payment of duty _ Storage of imported cargo with payment of duties obviates necessary tying-up of working capital _ Cargo subject to quantitative import restrictions may be stored pending re-export _ Sampling of cargo for purpose of classification and duty assessment before brought inland _ Cargo stored not subject to time limit. Can wait for favourable market condition to re-export

Types of Warehouses _ Common User Warehouse _ Leased Warehouse _ Modular Leased Warehouse _ Bonded Warehouse _ Sea-Stores Warehouse

Common User Warehouse _ Situated at the rear of transit shed _ Cargo removed to warehouse to free storage at transit shed. Warehoused cargo able to store longer period and at lower storage rates. _ Specific bays allocated to cargo with label showing ex-vessel and transit shed no. _ Port users can request to remove cargo to warehouse for lower storage rates _ Documentation – storing order _ Facilities – cargo pallets, forklift trucks, etc

Leased Warehouse _ Whole warehouse leased out to port users - a period of 3 to 5 years at competitive rates _ Leasee can operate own equipment and gears

Page38 

_ Some traders leased whole warehouse to display samples of their goods to prospective local and international buyers _ For dutiable cargo – no payment of customs duty

Modular Leased Warehouse

_ Warehouse partitioned into modules of 500 sq m to 1,000 sq m _ Port users can lease modules for 1 to 3 years. _ Modules structured by high walls and mesh wire nettings reaching the ceiling of warehouse – for security _ Can set up a small office inside modules

Bonded Warehouse _ Designated area approved by Comptroller of Customs & Excise Dept. for storing imported dutiable cargo _ Cargo can be re-packed but quantities must be retained _ Each consignment must be stacked separately and with sufficient space to allow Customs Officer to inspect packages

Sea-Stores Warehouse

_ Provide port users or ship chandlers for storing dutiable stores for ships _ Such warehouse normally located away from transit sheds _ Size is smaller than normal warehouse _ Some ports allow prohibited goods intended for ship stores to be stored for eventual supply to ships _ Similar to bonded warehouse, declaration is required for all sea-stores packages and proper records be maintained

General Design Of A Warehouse _ Size and capacity of warehouses vary around ports – depending on types and volume of cargo handled, storage duration, stacking height, etc _ Basic objective – provide sufficient storage and safe custody of cargo _ Recent years – warehouse with higher bays, sophisticated materials-handling equipment, broadband connectivity access and more distribution networks.

_ New design – consider current and future needs. Include space configurations, business trend, automation/computerization, cargo handling technology, safety/security system and energy-efficient fixtures.

Warehousing Systems

_ Warehouses designed with different modes of operations: _Manual warehouses _Semi-automated warehouses _Fully automated warehouses

Page39 

CUSTOMS EXAMINATION CARGO STACKED IN CBWH Cargo Location System

_ Warehouse storage area – divided into sections _ Each section with location and bay no. _ Location – use alpha-numeric Eg Section A / Stack 12 / Bay 8 / Bin or Rack 36

Extent of Automation _ Capital cost or budget available _ Manpower costs and availability _ Speed and volume of operations required _ Availability of land space

Page40 

Keppel Distripark

KEPPEL DISTRIPARK

Page41 

The infrastructural facilities of CFS are maintained by PSA Corporation besides deployment of handling and Transportation equipments. PSA also provides a comprehensive range of ocean and harbour marine services, terminal-related logistics services and port IT services.

In Keppel Distripark, part of the area was converted into slotted rack of seven layers with 13 meters height. The cargo after Devanning is stacked in the uniform sized pallets and stored in the allotted slot in the rack, through automation system as per the details fed into the computer, with the help of LPG operated Rack Stacker Forklift. In the similar way, the cargo is brought from the specific slot and taken to the ground floor where it is attended by maximum of four labourers. Break-down of machinery is a very scenario as the equipments are periodically taken to their well equipped service station, for preventive maintenance.

Keppel Distripark Operations:

- Non Vessel Operating Common Carrier (NVOCC) Ops -Consolidation & de-consolidation;

- Central Distribution Centre (CDC); - Multi-country Consolidation; and - Transloading. - FCL (Full Container Load)

• Transhipment -Thru’ Bill of Lading • Local: − One Ocean/Master Bill of Lading − One consignee

- LCL (Less Than Container Load) • One Ocean / Master Bill of Lading with multiple “House Bill of Lading” • Consists of cargoes for transhipment and/or local delivery to multiple destinations

KEPPEL DISTRIPARK MULTI LEVEL STORAGE

Page42 

PSA’s Advanced Transhipment Management

Page43 

Page44 

Page45 

Page46 

Advantages of Hubbing at PSA

1) Shorter lead-time

• Superior connectivity with many carrier choices • 2-10 days lead-time from Singapore to most destinations in Asia/AUS

2) Eliminate warehousing and trucking cost

• “Virtual unlimited capacity warehouse” in Singapore • Containers stored at PSA’s yard in the FTZ for on shipments • No double-handling • No road trucking or unstuffing/stuffing required

3) No fear of Supply Disruptions in Singapore

(From strikes, natural disasters, etc.) 4) Secure vessels’ slots

• Higher probability of securing required vessel space

5) Minimise delays due to payment issues

• Reduce lead processing time by shipping products in advance to SIN while waiting for LC from Customers.

6) Reduce need to manage multiple warehouses

• Lower inventory requirement by hubbing raw materials for regional plants in SIN instead of in multiple warehouses. PSA Box care

PSA Offers

– Full depot facilities for MT containers in the FTZ (Ondock Depot) – Accept haulier Local Returns and Delivery – Assign containers to be serviced direct from vessels berthing at PSA – Nominate serviced containers for 2nd carriers berthing at PSA – Round the clock operations for accepting/releasing MT Containers

Page47 

Key Benefits

• Better inventory control through CITOS Integrated E-depot System • Connectivity and Tight Connection • Seamless Integration with Terminal Operation and Processes with Carrier • High quality of PTI and RF repairs • Fast turnaround time, no requirement to truck out to local depot • Flexible use of boxes for local demand or Re-position

Depot Services

- Basic Services • Containers Survey • Normal and Chemical Washing • Structure and Reefer Machinery Repair • Pre Trip Inspection • Storage

- Customized Services • Assembly and dismantle of Hangertainer • Bundling and unbundling of Flat-Racks • Securing of tarpaulin for OT container • Maintenance programs for RF Machinery • Pre-cooling rights reserved. No contents can be reproduced without PSA permission. 1

PSA Reefer Care Total Integrated Service

• Dedicated Team of Specialist • Ship Operation - CITOS • Reefer Yard Planning - RYPS • Reefer Yard Operations - iRMS • Reefer Monitoring - iRMS • Technical Services

RF Services • Computer integrated Operations System (CITOS) • Computer directed loading, discharging and movement of reefer containers • Integrated Reefer Management System – Plug/unplug using handheld terminals – Data updated immediately via wireless transmission • On receipt of RFs (plugging & unplugging) – Power Off Duration for Reefers • Integrated Reefer Management System – Handheld terminals - Wireless transmission Real-time updates of temperature by monitoring staff – Temperature update 4 hourly

Page48 

– Customers may access information & RF temperatures thru’ PORTNET – Malfunction / Abnormalities will be attended immediately – Auto fax / Notification system • Automatic Reefer Remote Monitoring System – Real time detection of RF Anomaly • RF Malfunction • High Box Temperature • Stagnant Box Temperature – Data logger history records – Immediate attention for alarm activation

Technical Services • Survey of containers • Structure Repair • Reefer Machinery Repair • Pre Trip Inspection • Washing Value Added Services • Customised power-off duration or monitoring intervals • Hot or Cold Treatment • Data Downloading • CA Boxes - Oxygen, Nitrogen and Carbon Dioxide Levels • Super Freezer probe reading • Cold Wave RFs • Check for Humidity / Ventilation / Sticker Info • Topping up of Freon

Box Care services at PSA

Page49 

Handling & Storage of DGs

IMO Classification / Labelling / Packaging & Related hazards & Legislation

_ Classification of DGs _ International Maritime Organization (IMO) _ Local Classification

What is a Dangerous Goods?

Any substance or material in a quantity or form which poses an unreasonable risk to health safety and property when transported in commerce

IMO is a specialized agency of UN, it _ Improve safety of international shipping _ prevent marine pollution from ships _ liability and compensate issues

IMDG Code

Purpose: _ To provide a universal code covering matters related to the carriage of DGs _ Basic requirements of IMDG Code Proper description & classification Proper packaging, marking & labelling Proper handling & stowage Proper documentation

How to classify?

- The 9 classes have been established by UN Committee to ensure that all 4 modes of transport (road, rail, air and sea) classify the goods in the same way.

- Based on physical and chemical properties – by testing the DG based on UN test procedures, a shipper/ manufacturer should establish which of the 9 hazard classes their DG fit into.

The IMO 9 Classes

• Class 1 – Explosives

Page50 

• Class 2 – Gases • Class 3 - Flammable Liquid • Class 4 - Flammable Solid ; Substance Liable to Spontaneous Combustion;

Substances which in contact water, emit Flammable Gases • Class 5 - Oxidising Substance and Organic Peroxides • Class 6 - Toxic and Infectious Substances • Class 7 - Radioactive Material • Class 8 - Corrosive Substances • Class 9 -Miscellaneous Dangerous Substances and Articles

MARKING AND LABELLING OF PACKAGES

Importance

- Ensure that the substance, material or article can be readily identified during transport. - Especially in case of an accident involving these goods, in order to determine emergency

procedures Marking of Packages

• Unless otherwise specified in the code, the following are required to be marked on at least one side of the package :

• Proper Shipping Name • UN Number

All markings _ should be visible and legible _ should be such that this information will still be identifiable on packages surviving at least three month’s immersion in the sea _ should be displayed on a background of contrasting colour on the external surface of the package _ should not be located with other package markings that could substantially reduce their effectiveness _ Intermediate bulk containers of more than 450L capacity should be marked on two opposing sides Labelling of Packages

• Where articles or substances are specifically listed in the DG List, • Danger class label should be affixed for the hazard as shown in column 3 of the DG List

Page51 

• Subsidiary risk label should be affixed for any risk, if any indicated in column 4 of the DG List (Marine Pollutant, if any)

• Should conform to section 5.2.2.2.2 of the IMDG code book • A label must not be less than 100mm x 100mm • Have a line of the same colour as the symbol, 5 mm inside the edge and running parallel

to it • Should be such that this information will still be identifiable on packages surviving at

least three month’s immersion in the sea PLACARTING AND MARKING OF CARGO TRANSPORT UNITS Placarding

Generally, all four sides of a freight container should be placarded with the IMO class and subsidiary risk, if any.

However, placards are NOT required for some entries: _ Explosives of IMO Class 1.4, compatibility group S _ Dangerous goods packed in limited quantities _ Excepted packages of radioactive material (class 7) _ Cargo transport units carrying substances and articles of more than one division in class 1 need to affix the highest risk placard only.

Marking of Cargo Transport Unit

_ Display of Proper Shipping Name must be marked on at least both sides of : _ Tank transport unit containing DG E.g. Isotanks _ Bulk containers containing DG E.g. Freight Containers _ Any cargo transport unit containing packaged DG of a single commodity for which no placard, UN Number or marine pollutant mark is required. Alternatively, the UN Number may be displayed.

Display of Limited Quantity:

_ Containers containing DGs in limited quantity need not be placarded. _ Marked with “LIMITED QUANTITIES” or LTD QTY” not less than 65 mm on 4 sides of containers

Display of UN Number to be marked on 4 sides:

_ On tank transport unit e.g. Isotanks _ Cargo transport unit containing a single DG weighing more than 4000 kg gross mass

Page52 

PSA Operational Safety & Health (OSH) Management System Philosophy & Approach Safety management is an integral part of our management strategy to:

• Provide a safe & healthy work environment • Provide excellent customer service • Not just “compliance with regulations” but “essential to good business management”

WHAT IS SAFETY TO OUR ORGANISATION?

It means: Control Of Accidental Loss

ACCIDENT COST ICEBERG/ INJURY & ILLNESS COSTS

• Medical • Compensation Costs (Insured Costs) •Building damage •Tool and equipment damage •Product and material damage •Production delays and interruptions •Legal expenses •Expenditure of emergency supplies and equipment • Interim equipment rentals • Investigation time •Wages paid for time lost •Cost of hiring and/or training replacements •Overtime •Extra supervisory time •Clerical time •Decreased output of injured worker upon return •Loss of business and goodwill

Osh Management System

OSHMS provides a structured and comprehensive framework to enable companies to manage OSH in a systematic and holistic approach

PSA Safety Policy

We are committed to promoting a safe and healthy work environment for our employees and port users.

Page53 

PSA Safety Philosophy:

1. All Accidents can be prevented. – Accidents are caused by substandard acts and substandard conditions. – Take preventive measures to eliminate them.

2. Safety is Everyone’s Responsibility.. – Every level of staff has their own safety responsibilities. – A team approach to safety is essential.

3. Working safely is a Condition of Employment.

- Safety is part of work conduct. - Recalcitrant offenders will be penalized.

4. We must be Proactive in Improving Safety.

- Safety can be enhanced through culture of improving safety. - Participate in proactive programmes like safety suggestions, QC projects and “near miss” reporting.

5. We can Work safely and productively at the Same Time. - Place equal emphasis between safety and work efficiency. - Set targets for safety and productivity.

6. We must Train and Equip People to Work Safely. - Training of employees is the manager’s responsibility. - Update workers through regular safety briefings and dialogues.

Legislation, Procedures & In-House Rules

- Workplace Safety & Health Act (MOM) - Maritime Port Authority Act (MPA) - Environmental Pollution Control Act (NEA) - Work Injury Compensation Act - ILO Issues - Training Requirement - Risk Management & Safe Work Procedures - Work Instructions & Guidebooks - PSA Safety & Traffic Rules

Business Impact of Sustainable Safety Culture

- Good Human Resource Practices - High Profits - Better overall Performance

Page54 

PSA Success factors

• Advanced Transhipment Management

• Good connectivity & sailing frequencies

• Consistent efficiency and reliability

• Greater stock and status visibility as a key node in supply chain

• Commitment to Customers

• Global Footprint- 28 port projects in 16 countries

• Terminals Operated as one Integrated Facility

• Manages Complexity in Transhipment

• Manages Complexity in Operations

• Unparalleled Connectivity and Frequency of Sailings

600 ports in 123 countries via 200 carriers

• Choice of carriers

• Global Market Access

• Faster Time to Market

• Higher Shipping Frequency

• Daily sailing to Asian Destinations

• Weekly sailing to China

• Singapore is the World’s busiest Container Port

• Inventory aggregation at a single location

Page55 

PSA’s Accolades

TERMINAL OPERATIONS

• Lloyd’s List Asia Awards • Best Container Terminal Operator of the Year 2009, 2008, 2007, 2005, 2004, 2003, 2001,

1999 • Asian Freight & Supply Chain Awards • Best Global Container Terminal Operator 2008, 2007, 2006, 2005 • Best Container Terminal Asia for 20 years • Best Seaport Asia for 21 years • Seatrade Asia Awards • Container Terminal Award 2009, 2008 • Singapore International Maritime Awards • Singapore International Maritime Centre (Corporate) Award 2007 • Supply Chain Asia Logistics Awards • Container Terminal of the Year 2009, 2008, 2007 • Asia Logistics Awards • Container Terminal of the Year 2006, 2005, 2003, 2002

INNOVATION

• National Infocomms Awards 2006 • Most Innovative Use of Infocomm Technology in the Private Sector • Computerworld Honors Laureate 2002 (USA) • CIO (ASEAN & HONG KONG) Award Winner 2001 • Singapore Innovation Award 2001 • Seatrade Awards 2001, 2000, 1999, 1998 (UK) • Computerworld Smithsonian Laureate 2000 (USA) • Salzberg Concept Medallion Award 1994 (USA) • Innovative Application of IT Award 1989 USA)

BUSINESS EXCELLENCE

• Singapore Quality Award 1999

Page56 

PEOPLE DEVELOPMENT

• Singapore May Day Award 2001 • National Productivity Award (Individual) 2001 • National Productivity Award (Company) 2000 • People Developer Award 2001, 1998 • People Excellence Award Winner 2001

The training programme offered by the institute from 22nd to 26th Nov, 2010 covered the

following topics.

In short to exemplify the PSA operations here are their uniqueness to showcase to the rest of the

world:

• Broad range of container-centric solutions and value-added services.

• Excellent connectivity.

• Wide choice of carriers.

• Quick access to global markets.

• High shipping frequency

Sl.No Topic 1 Introduction to PSA 2 Port Tour- Pasar Panjang 3 Roles and functions of MPA 4 Container Terminal Operations and Processes Part -I 5 Container Terminal Operations and Processes Part -II 6 Container Freight Station operations 7 Container ship operations 8 Introduction to PSA conventional operations 9 Conventional Terminal processes

10 Planning of Conventional ship operations 11 Transit and storage operations at conventional terminal & warehousing within FTZ 12 Value added services 13 Use of contract services 14 Training in PSA 15 Visit to Keppel Distripark 16 Handling of Dangerous goods 17 PSA Safety management systems

Page57 

The training was imparted by the Lecturers from the PSA Institute, other departments

of the Port and Distriparks.

During the training programme, field trip was arranged to visit all the terminals and

Distriparks of the PSA Corporation Ltd., to show how the operations are carried out and

infrastructure maintained.

The training programme as a whole was much useful to gain knowledge and if

implemented in to subject to the local condition and constraints, the operations can be carried

out smoothly and efficiency achieved to derive customers satisfaction.

RO, Navi Mumbai (J.NAVUKKARASU)

Page58 

Bibliography

• Study materials provided by PSA during the training on Management of Container Freight Stations

• Port of Singapore – Maritime reports 2008 & 2009.

• Wikipedia-Port of Singapore Pte Ltd.,

• Hoovers.com- Port of Singapore Pte Ltd.,

Page59 

PORT CITY OF SINGAPORE

SHIPS AT THE PORT

PORT ENTRY GATES