effective cargo and vehicle storage in distribution
TRANSCRIPT
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
MASTER OF SCIENCE
in
MARITIME AFFAIRS (PORT MANAGEMENT)
2002
©Copyright Samuel Alphonse Etsibah, 2002
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DECLARATION
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
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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.
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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.
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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
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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
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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
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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
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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
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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
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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.
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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
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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
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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.
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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.
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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.
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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.
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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
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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
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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
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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.
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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.
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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.
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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
Class of cargo 1.1 1.2 1.5
1.3 1.6
1.4 2.1 2.2 2.3 3 4.1 4.2 4.3 5.1 5.2 6.1 6.2 7 8 9
Explosives 1.1,1.2,1.5
* * * 4 2 2 4 4 4 4 4 4 2 4 2 4 X
Explosives 1.3, 1.6
* * * 4 2 2 4 3 3 4 4 4 2 4 2 2 X
Explosives 1.4 * * * 2 1 1 2 2 2 2 2 2 X 4 2 2 X
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
respectively.
Practical storage equipment capacity
Figure 1: Source: Kalmar, container handling systems,
3 Field t rip, container equipment manufacturer in Sweden.
25
Figure 1 shows the practical storage capacity of various container handling equipment in
TEUs per hectare. It should be noted that the actual storage capacity depends on specific
operational aspects.
v Comparing selection of container equipment to terminal development cost factors
The researcher observes that tractor and chassis system has a very low development cost
and does not require the need for a high quality surfacing. Straddle carriers have a
medium development cost and require a fairly hard terminal surface. Gantry cranes
demand a high terminal development cost because of the high load bearing surface need
for both RTG’s and RMG’s. Lastly the frontend loader system has the highest terminal
cost because of its heavy wear and tear on terminal surfaces.
v Comparing equipment selection based on container equipment cost
It is observed that gantry cranes especially the rail-mounted types are the most expensive
container handling equipment. Tractor and chassis system operation has a high
equipment cost due to the large number of chassis required for effective operation.
Straddle carriers have a moderate equipment cost and can operate between 4 – 6 straddle
carriers per ship shore crane, depending on whether running on a direct or relay system.
Lastly the front-end loader system is the most cost effective container equipment but
only when it is operating at a low cargo throughput.
v Comparing selection based on equipment operational factors
The researcher saw that the tractor and chassis system has good accessibility and causes
low damage to containers. Its operation is however only useful in small and simple
terminal organizations. Front-end loader systems are very versatile equipment because
they can be deployed at all locations of the terminal. Straddle carriers have a high
26
operational flexibility, good container stacking feature and a moderate capital
investment. Yard gantry crane system especially the rail-mounted types (RMG) has
restricted flexibility, but has the advantage of good land usage and also a good
adaptively for automation.
In the words B.Kristensen, (personal communication, June 19, 2002) CMP’s present
container storage area spans 100,000 m2, stores 120,000 TEU’s per year and operates at
an annual container throughput of about 70,000 TEU’s and there are plans to expand this
capacity in the future. CMP possess in Denmark nine straddle carriers and presently used
only for full container loads (FCL’s). CMP has and operates three empty container
stackers. The FCL stacking height in Copenhagen port is two high (one over one) for
both TEU’s and FEU’s but four high for empty container stacking. In Malmö container
operations are done using only reach stackers and one empty stacker. With two straddle
carriers and three container cranes, a capacity of 32-43 tons and six men per shift, the
port makes an average of 25 containers per hour per crane during loading and 30
containers per crane during discharging with the assistance of PIC (Port information
center) container information and EDI systems.
27
Table 3 : Container system selection criteria
RS + TT SC RTG+TT RTG+SHC ASC+TT ASC+SHC DRMG OHBC ASC+AGV
Ship productivity 2 3 2 3 2 3 3 2 1 Gate/truck service 2 3 2 2 2 2 2 2 2
Stacking density 2 2 3 3 3 3 2 3 3
Container Selectivity 1 3 2 2 2 2 2 2 2
Labour cost 1 2 1 1 2 3 2 2 3
Capital cost 3 2 3 3 2 2 2 2 1
Operational costs 3 1 2 2 2 2 2 2 1
Civil Engineering Reqt. 2 3 3 2 1 1 3 2 1
Automation Potential 1 2 2 2 2 3 2 2 3 TOTAL System Rating 17 21 20 20 18 21 20 19 17
Rating : 1 = Modest , 2 = Good , 3 = Excellent
RS = Reach stacker, SC = Straddle Carrier , RTG = Rubber tired gantry crane, SHC= Shuttle carrier, TT = Terminal tractor, AGV = Automatically Guided vehicles ASC = Automatic Stacking crane, DRMG = Double Rail Mounted gantry, OHBC = Overhead Bridge cranes
Source : Adapted from Lecture handouts and Kalmar
3.2.2 Terminal design
In designing container terminals one has to firstly consider factors like the throughput of
boxes by estimating the total length of quayside, container carrying capacity of mother
and feeder vessel especially in cases of transhipment and also compare the cargo
throughput against other modes of transport such as rail, road and lastly the capacity of
the gate system. Secondly designers must consider the storage capacity of boxes by
examining dwell time of containers, the peak factor, and maximum stacking density or
storage capacity. Lastly there is the need to examine quayside or container handling rates
with or without inter-terminal transport.
28
Table 4 : Suitability of pavement for different port operations
(Taking into account cost effectiveness and performance factors.)
Asphalt Conventional In situ Concrete Gravel Type of operation in situ Steel fibrous paving beds
concrete slabs concrete blocks
Container stacking 1 3 6 7 10 Trailer parking area 2 7 7 7 Straddle carrier lanes 1 5 7 7 Straddle marshalling area 4 6 7 7 Fork lift Marshalling area 2 6 6 6 Highway vehicle Mash. Area 8 6 8 8 Mobile crane wk. area 2 7 8 5 Yard stacking cranes 1 3 4 4 10 Maintenance area 1 8 10 5 key : 1 = Avoid if possible 5 = reasonable solution 10 = recommended solution
Source : Adapted from UNCTAD monograph on Port Management, Container Terminal Pavement Management.
Table 4, shows that asphalt pavements are suitable for only highway vehicle marshalling
areas. Conventional in-situ concrete slabs are suitable for trailer parking areas, mobile
crane working areas and maintenance areas. Concrete paving blocks are very suitable for
a wide range of terminals including highway vehicle marshalling areas, straddle carrier
marshalling areas and lanes, container stacking areas and trailer parking areas. Gravel
beds are suitable for only container stacking and yard stacking areas. Lastly rein-
enforced steel fib rous concrete pavements are generally most suitable for most heavy -
duty general operational terminals.
The importance of the strength of pavements and foundation floors during the design of
cargo storage areas cannot be overemphasized. Pavements designs are getting more
attention in port projects today than ever before. Modern container terminals, vehicle
terminals, sheds and warehouses require extensive and adequately strong floor surfaces
29
for stacking of cargo. A poor design of these floor surfaces could create operational
inconveniences, financial resource wastage due to high repair cost since the cost of a
pavement could be as high as 25% of the total investment in a container terminal .In
order to permit a safe working environment in all weather conditions, pavements should
be drained by allowing water to percolate through it or to enter in the drainage system.
The heavy loads from lifting equipment, vehicles and high weight of cargo coupled with
high cargo throughput in ports today require strong and well-designed pavements.
UNCTAD (1987) defines a pavement as “one or more layers of selected material
constructed over natural soil in order to allow activity to take place which cannot take
place on natural soil” This growing concern and importance of good terminal pavements
has led to the proposed need for the concept of pavement management which comprises;
v Selection of a suitable pavement type
v Economic design
v Regular monitoring
v Cost effective maintenance or rehabilitation
v Upgrading or demolition of pavements
The traditional approach of pavement design was first to select the handling equipment
and then design suitable pavements accordingly, but the new approach today is to
consider both the terminal pavement design and equipment selection simultaneously.
Apart from containers corner castings or surface contact of cargoes, the array of various
different heavy equipment exerts heavy loads on the surface of terminals. Development
of better designs and materials has led to the introduction of alternative construction
methods i.e. the Semi-rigid floating pavement block system and the roller compacted
concrete. A Belgian company, Bekaert S.A, has researched into the use of steel fibre
30
reinforced concrete (SFRC) for heavy-duty industrial usage. According to Vand ewalle
(2001) the load requirements on port pavements can be classified into two categories
v Dynamic loads from vehicles and large handling equipment
v Static concentrated or uniform loads from containers and other cargo.
These tensile stresses and vibration from top and under the concrete slabs cannot all be
absorbed by the rod and mesh concrete reinforcement and often causes cracks even in
thick pavements. The usage of SFRC in construction of industrial floors offers a stronger
mechanical anchorage in concrete. Steel fibre wires give concrete great resistance to
shock, high ductility and tensile strength and it compensates for missing properties i.e.
fatigue, endurance and impact toughness.
According to Metetiou & Knapton (1987) the damage (D) to a pavement in terms of
wheel load (W) and the contact stress (P) is given by the formula,
25.175.3 PWD ×∝
This equation implies that the damage to the pavement is proportional to the power 3.75
of the wheel load. Hence the need for a well-designed pavement to absorb these heavy
loads through reinforcement of container pavement strengths.
31
3.3 Transit shed / Warehouse designs
One important factor to consider in the decision to design and site cargo storage facilities
is the issue of access into ports by inland transport or the modal split between road and
rail. Rail and road vehicular traffic on the quay and storage areas interfere with each
other and also the operations in terminals and storage areas are not well planned to
incorporate these activities. UNCTAD (1985) suggest two approaches, first to resist or
prevent any external vehicles access into storage areas for direct delivery through the
introduction of a transfer system by cargo handling equipment to a temporary buffer
zone at a rail, road pickup points. The second approach is to work all cargo through
enlarged transit storage areas to remove the problem of delays in the supply of direct
delivery vehicles.
3.3.1 Dimensions
(Whiteneck & Wilson, 1973, pp.347-380) explain that the size and configuration of
storage areas is dependant on annual tonnage, average transit time of cargo, the holding
capacity, the density or average weight/measurement ratio of cargo, climate conditions,
economies of building materials and type of land transport services. For a shed stacked
with a mix cargo system, the average stacking height is to be considered into the designs.
Consideration should be taken to provide stacking equipment such as racking systems to
take advantage of full height and also the limitation imposed by the floor weight
restrictions. Reserve space capacity of between 30-40% should be provided for safety
reasons and for absorption of increases or variations in peak periods.
32
3.3.2 Types of shed construction
There are various designs of sheds in ports today. These shapes and various material
selections allow a shed to withstand strong winds and other environmental conditions
such as extreme heat or cold temperatures and allow for adequate ventilation. UNCTAD
(1985 pp133-134) lists four main types of sheds, the Portal type, Propped Portal type,
Mansard type and A-frame type. According to Reidsteel (2002) other design types such
as the high bay type, the wide span type, the monoslope or lean-to-storage type and
lastly the multi-span types are also mentioned.
Sheds and warehouse designs
Figure 2 : Source: UNCTAD,Port development handbook and Reidsteel
Standard Portal steel frame warehouse.Spans 6m – 60m
Propped steel Portal frame warehouse .Spans 12m – 120 m
High bay warehouse for racking robotic storage. Up to 40m
Very wide span steel framed warehouse .span 40m – 200m
Mono slope or Lean warehouse spans 4m – 60 m
Multi-span warehouse. Any combination of typical building
33
3.3.3 Roofing and Wall Cladding
Reidsteel (2002) suggests three main roofing methods and these are the single skin
profiled metal sheet wall and roof cladding, the double skin insulated sheet wall and roof
cladding, and lastly the composite sandwich board micro-rib cladding. These sheets
could be made of protective materials such as plain galvanised, plain aluzinc, plain mill
finished aluminium or stucco mill finish. Enamel types like polyester enamel, acrylic
enamel and PFV2 enamel is also used in designs. Roofing and wall cladding could also
be made of plastic coatings such as single sided plastisol PVC coated and the double-
sided plastisol coated types. (Whiteneck & Wilson, 1973, pp.347-380) explains that steel
frames are universally used in transit sheds because they are easily adaptable and
available to any design span requirement even though timber frames are competitive in
cost but needs to be well treated to be durable, minimise shrinkage during intense heat
conditions. Reinforced concrete structures have a low maintenance cost and a high
resistance to fire but they are very heavy and impose permanent heavy loads on
foundations.
Typical mansard warehouse constructed in water
Figure 3 : Source: Picture taken on a field study trip at Harwich port, UK.
34
Instead of ports always breaking down old wharfs and piers and investing heavily in
reclaiming land for shed construction, ports may have to consider the building of sheds
on reinforced slabs resting over strong piles in water to save cost, as shown in figure3.
Reidsteel (2002) suggests three main roofing methods. These are the single skin profiled
metal sheet wall and roof cladding, the double skin insulated sheet wall and roof
cladding, and the composite sandwich board micro-rib cladding. These sheets could be
made of protective materials such as plain galvanised, plain aluzinc, plain mill finished
aluminium or stucco mill finish. Enamel types like polyester enamel, acrylic enamel and
PFV2 enamel is also used in these designs. Roofing and wall cladding could also be
made of plastic coatings such as single sided plastisol PVC coated and the double-sided
plastisol coated types. Shed roofs could be designed with roof lights and Atriums, fixed
aluminium louvers blades and sunscreens or by using translucent sheeting patent glazing
types.
Designs of roofs and wall cladding
Figure 4 : Source : Reidsteel.com,from www.warehouse-building.com/warehouse2.html
3.3.4 Gates and shed Doors
Shed gates and doors provide security and weather protection and should be designed in
such a way as to enhance security and not to create congestion. They could be manually
or power operated, sliding, folding or vertical rolled types. Doors should be big enough
Single skin profiled metal sheet. Wall and Roof Cladding
Double skin insulated sheet. Wall and Roof Cladding
Composite Sandwich. Roofing Micro-rib Wall Cladding
35
for vehicle to enter or fit when fully loaded. It is also recommended that overhangs
should be constructed to doors to protect cargo during delivery operations in bad
weather to minimise delays. Reidsteel (2002) suggested six types of shed doors, the
2.1m walk-through single or double doors with or without panic bars or metal cladding,
the roller shutter roll up doors 5m x 5m electric or manually operated door, the sliding
top hung or bottom rolling doors, the sectional overhead doors with or without vision
panels (electrically or manually operated), the hanger doors with multiple track and slab
doors and lastly the fabric or plastic curtain proprietary doors.
One important factor in designing storage areas is the provision of passageway to
provide unobstructed access to handling equipment and also allow easy identification of
cargo. UNCTAD (1987) recommends that cargo stacking bays should be designed
between doorways and facing each other. Transit sheds generally have more doors than
warehouses and this limits the storage capacity as more aisle or passageways are created
in the storage area. Designers should therefore have prior information on the mode of
transportation to be used, peculiar working and cargo handling methods.
Designs of warehouse gates and doors
Figure 5 : Source Reidsteel, from www.warehouse-building.com/warehouse2.html
Walk through doors. With panic bars ,single or double
Roller Shutter roll up doors.Up to 5m x 5m . Electric or manual operated
Sliding door. Top hung or bottom rolling. Any size, insulated
Sectional Overhead doors. Electric or manual. with or without vision panels
Hanger doors .Electric or manual. Multiple Track and slab
Fabric doors.Plastic curtain door Proprietary doors
36
Many modern sheds in ports including CMP have tailgates and automatically adjustable
truck ramps that are big enough to allow trucks trailers to either fit into these gates or
have adjustable truck ramps suitable for all truck beds to enable an easy and faster cargo
transfer into and out of storage areas.
3.3.5 Platform Levellers
Some sheds need platform levellers for efficient cargo transfer from vehicles into and
out of warehouses. Platforms can be used in conjunction with tailgate transfer systems
but internal columns and aisle ways should be well created not to block the flow of cargo.
According to UNCTAD (1985) platform levellers help to increase the number of
vehicles handled in sheds, increase the pallets and forklift life and reduce the equipment
tyre damage and repair bills. Their choice and design however depends on the height
differential between vehicles and platforms and it is recommended that the gradient
should not exceed 1 in 10.
Typical rail cargo loading platform
Figure 6 : Source: from UNCTAD
37
Designs of windows and natural lighting fixtures
Figure 7: Source: Reidsteel, from www.warehouse-building.com/warehouse2.html
Hap Cheng Hua (1987 pp. 9-10) suggests that designs of sheds should allow if possible
for the maximum inflow of natural light during day time by the use of translucent wall
panels equally distributed in the shed and then later artificial lighting to supplement or
replace natural light. He suggests three types of lighting fixtures, namely incandescent,
fluorescent and mercury vapour.
3.3.6 Ventilation
For safe working conditions of workers and also preservation of cargo adequate
ventilation is necessary in storage areas. UNCTAD (1987, p.11) spells out three basic
types of ventilators, namely the individual round gravity type, the continuous ridge
gravity type and the mechanical positive forced -draft fan ventilator. The choice, size and
location of ventilator will determine the rate of airflow. It is worth mentioning that most
building codes require ventilation flow through the roof and these are guided by local
building installation requirements.
Commercial aluminium windows Roof lights and Atriums Louvres / Sun screens. Fixed
Blade (Aluminium)
Curtain Walling Fire screens (steel) Translucent Sheeting, patent
glazing
38
Designs of shed and warehouse floors
Mezzanine with composite decking and joists at close centres
Floors with pre-cast concrete planks on Reid Steel beams
In situ concrete floors can be supported by steel beams
Metal decking floors. with or without handrail
Lightweight floors on cold rolled joists
Mezzanines can be supported on light braced trestles.
Figure 8 : Source: Source : Reidsteel., from www.warehouse-building.com/warehouse2.html
3.3.7 Floors designs of sheds and warehouses
Reidsteel (2002) continues to state that designers can take advantage of the strength of
structures with thick galvanised or mezzanine composite style decking on reid-joists at
close centres to allow safe, light concrete floors, good for earthquake and hurricane areas.
Other floor types are the mezzanine floor with precast concrete planks on steel beams,
the in-situ precast concrete plank floors, light weight timber or tongue and grooved chip
board floors on cold rolled joists and lastly temporal mezzaines floors supported on light
braced trestles provided the floor is strong enough.
3.4 Vehicle storage and distribution
CMP is currently building the biggest import vehicle terminal in Scandinavia to receive
brand new cars. On completion, CMP Nordic hub port in Malmö will be the base for
Toyota’s Nordic activities. The port is expected to process and store 100,000 cars in
2003,conduct pre-delivery inspection and distribute these Toyota vehicles to other
destinations in the Baltic region. These vehicles are expected to arrive by one big ocean
39
car carrier and 5-6 feeder vessels per week (CMP 2001 annual report). The port already
services vehicle brands like Peugeot, Nissan, Suzuki, Mazda, Volvo and Renault and the
CMP expects a total vehicle import turnover of 200,000 in a few years to come. CMP
intends to distribute these new cars via road, rail and other small feeder services to
various destinations through a well-planned and co-ordinated network of distribution
system.
The United Kingdom government recently sponsored a research programme called the
three-day-car programme aimed at examining the feasibility of building and delivering
cars only to customer order within a short lead-time of three days. According to Gregory,
Miemczyk, Waller (2002) the primary reason for delays in physical vehicle delivery
process is the lack of advance planning information and unreliability of factory build
quality. Vehicle transportation companies have little forward information and require
time to organise economic loads of new cars. The 3 day car programme demonstrates
that it is possible to deliver to dealers , all vehicles built to order within 24hrs and passed
over to transportation companies at almost the same cost without significant
environmental impact. Gregory,J. et al continue to state that cost and environmental
impact studies showed that even though the cost of reducing delivery times from four
days to one day with the current operating practises will increase the cost for each
vehicle on average by 33%. This increase only represents 0.2% of the typical total
vehicle price.
Changes that was done to make the one-day delivery possible are as follows:
v Multi-franchise delivery:
This saves cost by considering only fewer ports and a joint storage and distribution
agreement to avoid congestion in ports.
40
v Increased back loading of transporters after delivery to the dealers
This requires good co-ordination between logistics companies and manufacturers, since
it does not include empty transportation between final deliveries and next pick up point.
v Mix of smaller transporters fleets:
Different sizes of vehicles mixed together to maximise capacity and enable shorter
overall delivery lead times and better use of capacity.
v Integrated production and logistics planning;
Accurate and prompt advanced information of demand and supply of vehicles circulated
to all stakeholders.
v Night-time delivery;
This avoids congestion and reduction in average deliver lead-times, but needs special
insurance arrangements to cover only major damages, which should be communicated
and accepted by concerned parties within 24hrs after delivery. A PDI /warranty
allowance is also made for vehicles with minor damages.
v Differential delivery dates
For efficient vehicle capacity utilisation and route planning, different but coordinated
delivery times should be given to dealers and customers.
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v Trade exchange advantages
As demand volume increases the cost to satisfy demand also increases, the effects of
these unplanned volumes can be mitigated by the emergence of logistics trade exchanges,
which have the potential to “mop-up” excess capacities.
CMP’s vehicle logistics centre (Nordic Hub, Malmö )
Figure 9 : Source: CMP AB (2001) Annual report, from www.cmp.co
Figure 9 shows an artist impression of the Nordic hub that will be the base for Toyota’s
Nordic activities. CMP presently receives annually 45,000 cars in Copenhagen. CMP’s
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
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underground multi-story stacking system is suitable for dense or limited vehicle storage
areas.
Sectional view of Underground Vehicle Storage System (UGSS)
Figure 12 : Source : Trevipark , http://www.cerf.org/pdfs/ceitec/trevipark/ch2.pdf
The construction of a 72 ft diameter dug space underground can hold about 12 cars per
floor and accommodate between 72 and 108 cars with a surface impact of only two
packing spaces. A kiosk is designed above ground level to provide shelter and secure
waiting for vehicle retrieval. The circular rotating design offers better engineering
efficiency of unbraced construction, shorter construction and lower cost than the
rectangular types. Since vehicles are not running when stored, UGSS uses only one third
of the energy required to ventilate a conventional garage. The use of vertical elevation
instead of a ramps and driving lanes permits optimum storage of vehicles and reduction
in land usage and therefore the cost of storage. Heating and lighting costs are also
minimized since all activities are controlled remotely by above ground services. UGSS
has environmental benefits of reduced air, energy and noise pollution, the ground surface
can be landscaped, and the system precludes scratches and dents on vehicles because
they are isolated from each other. This system is currently being used in Italy and two
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under construction in England and Belgium. According to TREVIICOS, the only
limitation with this system is its initial installation and construction cost, which is
relatively higher than the traditional vehicle horizontal storage. This high cost can
however be offset by advantages of low operational cost and capacity optimisation.
According to Bipark (2000), another alternative to vertical vehicle parking is the use of
simple mobile small size double car lift systems with a capacity of 2-3 tons for each set
of small size vehicles called the Total Vehicle Parking Systems (TVPS). This will
however require a lot of investment in small size lifts and it is not suitable for a port with
a high vehicle throughput.
3.5 Mega-floating container terminal
According to Imai (2002) the Japanese have developed the floating technological
concept for the expansion project of Tokyo Haneda airport .In Jsmea winter news,(2002)
there has been further development into the adoption of this new technology for the
design of an offshore mega floating container quay and terminal. This mega floating
terminal is constructed from combined steel plates and iron frames consisting of a
floating body, mooring body and a bridge system to hold the floating body in place.
With the help of a special fendering system the floating body is protected against heavy
oscillation caused by earthquakes.
Mega-floating and moving quay container terminal
Vessel
Bridge
Figure 13 Source: Adapted from Imai 2002
LAND
Floating
Stacking
Area
Moving Quay
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The design is said to have the advantage of its low cost and less time of construction. It
also has a high utilization of immersed internal space. The mega floating terminal design
is very versatile because the whole terminal can be repositioned in case of tide variation.
Lastly the design is unaffected by environmental impacts on ocean currents and marine
ecosystems.
Thoresen (1988) explains that design life depends on the nature of the structure, the
environment in which the structure is situated and the materials used in the design. It is
therefore important to consider assessment of all the factors which act against security of
the structure i.e. corrosion, marine growth, soil strength reduction and fatigue loading. It
is useful to conduct an evaluation of all probabilities that limits or states scenarios likely
to occur during the lifetime of the design and appraisal the economic feasibility of these
designs and other related issues. Due to the unpredictable heavy loads to which port
structures are subjected to, it is expedient to design structures to have a long useful life
by making them economically feasible, simple but robust.
In conclusion, container storage areas should be well planned and designed to
accommodate variation in capacities, time flows, peak periods and optimisation of
human and material resources. As this is done in phases there is a need to adopt an
equipment selection criteria by considering land utilization, terminal future development
factors, equipment cost and other operational factors. The type of pavement and its
design strength, to absorb both dynamic and static loads is important.
Shed cargo storage will be effective if reserve capacity, cargo storage characteristics and
dimension factors are considered from the design stage. Other important design
decisions like type and size of windows, doors, height, floor strength, ventilation are
worth considering. Management of sheds or warehouse should also consider the
effective use of storage space by adopting vertical and horizontal stacking methods and
reducing cargo dwell time in storage areas. Vehicle storage and distribution is a very
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important captive market of CMP and traffic is expected to further increase rapidly next
year as the Toyota project begins. There is a need for CMP to in future look into
improving upon the vehicle fish bone and line horizontal parking into the use of
automated computerized systems, vertical and underground vehicle storage systems.
Further there is a need to use effective logistics methods like cross-docking in the car
distribution to reduce stock pilling and delays.
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CHAPTER FOUR
MANAGEMENT ISSUES ON CARGO STORAGE
The merger of Malmö and Copenhagen ports hopes to exploit the advantages of synergy
and economies of scale to improve efficiency and competitiveness. The creation of a
series of multimodal logistics services i.e. storage, distribution and transport services in
the Öresund region will enable CMP to become a major transport hub and gateway to
the entire Nordic and Baltic regions. This requires management to plan and cooperate,
establish pricing strategies, fair contractual agreements and policies, precise unity of
command in the port and lastly the sharing of human and material resources.
4.1 Cargo storage pricing, strategies and policies
Advancement in technology has given a new phase to cargo storage operations in ports.
The introduction of automatic stacking and retrieving devices, narrow aisle ways,
palletisation, good packaging, container movers and computerized cargo location
systems all help to improve efficiency and productivity in storage areas. Application of
these modern methods alone does not does not guarantee efficiency. There is also a need
for ports to improve strategies, reviewing old pricing and cargo storage policies. Ports
are very essential in terms of international trade and the generation of foreign currencies
for a country or local community through pricing policies in foreign currencies. A good
cargo storage pricing contributes to enhancing the financial performance of port
authorities and all port operators including cargo storage entities. Most port investors or
clients examine and consider critically port tariffs as one of the most important decision
factors in selecting a port storage facility or logistic service. Privatization and
commercialization of ports, warehouses and terminals have led to the generation of extra
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revenue through leases and concessions and it is today progressively becoming an
important revenue center for most ports authorities including CMP.
Efficient management of cargo storage does not only depend on sound planning but also
good supervision and adoption of good working practices. UNCTAD suggests the
following actions to reduce cargo in-transit time in ports;
v Introduction of punitive storage tariffs
v Setting shorter acceptance periods
v Adoption of a more realistic free storage periods
v The use of management information systems i.e. (EDI or XML applications) to
enhance and shorten the time spent in documentation and administrative
procedures.
v The evacuation of overdue cargo out to alternative storage areas for destruction or
auctioning.
v Effective co-ordination to ensure the availability of other modes of transport for
delivery purposes.
According to Canamerio (2002) analysis of port charges should take three factors into
consideration:
a. The charging base
The charging base determines the infrastructure, facility or service to be provided under
a particular charge. This could differ from port to port because of different infrastructure,
facilities and services.
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b. The charging unit
The charging unit (days tonnes, TEUs, FEUs) determines the unit used to measure the
number of facilities or services supplied.
c. The charging levels
Lastly, the level of charges (USD per ton, SEK per container or TEU) thus is the actual
monetary amount charged.
In setting strategic tariffs ports must consider the competitive environment; the
objectives of the organization, capital and operational costs, financial investments and
lastly present and future captive or non-captive traffic. The development and availability
of modern information technology has made many industries to be established at places
of comparative advantage as far as low operational cost is concerned, this shift is making
ports and cargo storage areas an important part of commodity production process.
4.1.1 Cost Performance Value (CPV) approach
Canamerio (2002) explains that this three-pronged pricing approach addresses specific
factors being Cost (C) pricing method which focuses on setting tariffs based on the cost
of providing the services, the performance (P) based pricing approach which aims at
promoting the maximum usage of services in ports, but also acts as a check to prevent
congestion during excessive use of facilities. This pricing approach is suitable for port
services i.e. usage of port infrastructure and storage services and facilities. Lower prices
are charged to encourage or attract the usage of services and facilities while high prices
are charged to prevent long cargo dwell time.
The value (V) based pricing approach tries to attach the appropriate charge on services
provided by the port on the basis of what the traffic can bear as users of these services.
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When setting tariffs based on the value approach, ports have to consider the price
elasticity of the particular cargo, charge higher for high value cargo with low price
elasticity but charge low tariffs for high volume but low value cargo that are very
sensitive to increases in price. Canamerio (2002).
4.1.2 Concession fees
There are cases where there is a need to spread the commercial risk of port cargo storage
facility investment and therefore concession agreements are made to attract traffic. For
instance free-tariff schemes offered to clients for the use of facilities on rental bases or
service contracts for a period of time. In these special concession contracts, asserts are
not sold but are temporally transferred to the operators because of the vested public
interest of these asserts Canamerio (2002). The three options of concessions are firstly;
The exclusive use of facilities, here the operator has the rights to manage and then
control facilities. Secondly the preferential use method where some operators are given
preferential privileges on the use of facilities and services, and lastly the public or
common use of a facility, where the operator serves all clients on an equal and fair bases.
According to Dowd (1984) the three pricing strategies opened to port authorities are;
v Fixed sum strategy
Under this strategy the port authority allows the concessionaire to operate the facilities
for a fixed amount of money, but if the estimated traffic for establishing the contract is
too low, the port subsidizes the concessionaire.
v Mini -Max strategy
Here the port authority grants a concession in exchange for a variable fee, which has a
ceiling and a floor limit, which are very dependant on the yearly traffic. The port
authority may subsidise the concessionaire only when traffic exceeds the forecasted
ceiling.
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v Revenue –sharing strategy
The port authority in this case sets no ceiling on the payable fee by the concessionaire,
but may establish a minimum limit or floor. This enables the port authority to maximize
profits, traffic and employment without necessarily subsiding the concessionaire.
4.2 Application of Management Information Systems (MIS) i.e. EDI and XML
application systems in storage and distribution centers
Despite the general increase and usage of modern communication equipment and
systems like the facsimile (fax), e-mail, voicemail and the use of the Internet, a lot of
key port information, messages still remain on paper or printed format. Port data and
information must be read, interpreted and processed to be useful by operators in cargo
storage and all participants in the logistics chain. Unfortunately manual transfer of data
from one paper printed document formats to another often generate a lot of mistakes
during reproduction or processing, creates expensive correction cost, which slows down
the information cycle time, hence the need for electronic transfer of information. The
most common central information system used in most ports is the Electronic Data
Interchange (EDI). Muller (1999) writes that EDI started as a means to automate and
systemize documentation within the transportation industry, so a lot of EDI systems
proliferated the industry. The lack of communication standards between EDI systems,
resulted in the United Nations effort to make EDI compatible and accepted the American
National Standards Institute (ANSI X12) and the Electronic Data Interchange for
Administration, Commerce and Transport (EDIFACT) systems. CMP presently operates
an EDI system and in conjunction with other in-house developed software systems like
the Port Information Center (PIC).
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Benefits of EDI are as follows:
v It provides more efficient use of equipment and facilities at storage areas.
v It reduces information delays and errors in duplication of data.
v It improves customer services and office productivity.
v It links ports with partners and the whole port community and serves as a reliable
management tool.
v It is very relevant in supply chain automation and lowers inventory cost.
The Extensible Markup Language (XML) however offers a better and rapid data
exchange format and it is expected to replace the EDI in the future. Sperberg-
McQueen,1& Huitfeldt (2001) explain that the limitation of EDI are its lack of security,
inability to achieve wider integration, secondly its high cost of maintaining a worldwide
network as it evident that even using EDI via the Internet requires dedicated lines or
value added network (VAN) to operate efficiently. The third limitation of EDI is that
transaction standards are not very flexible.
XML applications, however allows faster definition and re-deployment of data formats.
It originated from the Standard General Markup Language (SGML) and has migrated
into XML-DTD’s and W3C XML2 schema languages. XML has a very flexible
structured format with no single or dominant standard body like EDIFACT as is the case
in EDI. Some XML applications like the Material Property Data Markup Language
(MatML) focuses on the distribution of materials and addresses the problems of
interpretation and interoperability by the development of a material data base that
1 A senior researcher at University of Bergen, Dr. C.M. Sperberg-Mc Queen, 2 Document type definition, W3C World Wide Consortium
55
permits the storage, transmission and processing of material property via the world wide
web.
The complexity of port operations requires a great deal of synchronization of resources
and information to achieve set goals. There is therefore the need for the sharing of a
common view on an efficient architecture of information sharing and communication.
(Agostino, Bruzzone, Mosca, et al. 2002). Effectiveness calls for the utilization of not
only EDI but also the improved XML systems, as a base for exchange of information.
XML has an advantage in that it describes a higher degree of data portability than any
other data oriented language. By running data on XML, data can be sorted, manipulated
using related technology. XML is human as well as machine-readable, and enables users
to integrate both high and low system information technology.
4.3 Application of cross-docking process in cargo storage and distribution
Warehouses and distribution centers are consistently under great pressure by the storage
demands of customers. To maintain efficiency and profitability, there is a need for ports
to cut down on operational, inventory and overhead costs and cargo dwell time even
when cargo throughput seems to be increasing annually. According to Johnson
(2002)“ Cross docking is an operational technique for receiving, allocating, sorting and
dispatching cargo whist it remains in the dock of a distribution centers.”
The Cross-docking process relies on a consistent cargo supply flow, from the receipt of
cargo, processing of cargo to dispatching operations. In distribution centers the
allocation and storage of cargo is important, therefore the standardization of the supply
chain operations and avoidance of large stockholding through the adoption of the cross-
docking operational concept. This shift to cross docking is possible only through an
accurate information system that can trigger demands from various Electronic Points of
Sale (EPOS) and an automatic transaction on line or via a data warehouse. For cross
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docking to work there is a need for an active cooperative relationship between ports,
shippers, warehouses and freight forwarders to apply a teamwork culture, which enables
the achievement of targets or goals. Set operational storage targets by port managers
must be practical and realistic that could still be improved in the future.
All stakeholders in cargo storage operations should have confidence in the operation of
the cross-docking cargo storage system and adhere to established working procedure for
the achievement of precise timing in receipt and delivery of cargo, avoidance of delays
or congestion and lastly an effective flow of information, which is the key to a
successful cross-docking system.
A simple cross-docking process
Figure 14. Source: Chartered Institute of logistics and transport .UK.
To design and implement a cross-docking system there are two main categories of
requirements to meet. These are first information technology requirements and secondly
operational requirements.
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4.3.1 Information technological need in cargo distribution
Johnson (2001) establishes a need for an integrated data capture and transfer system
incorporated by an EPOS to compile accurate on line information, Electronic Data
Interchange or Extensible Markup Language applications (XML) to ensure that data is
quickly and efficiently transferred through the operating structure after it has been
compiled into a data warehouse. This will enable warehouse management systems
(WMS) to pre-allocate receipt and deliveries of cargo. This also makes suppliers or
shippers avoid bottlenecks in the supply chain and plan for contingencies when any
variation in stock is noticed. The system should also track cargo to reduce potential
conflicts of congestion between demands and supply and also audit the supply chain to
locate where failures occurred and implementation of corrective measures.
4.3.2 Operational requirements of cross-docking
The Cross-docking systems must be designed to be expandable in cargo volume growth
or increased capacities either automatically or manually. This will avoid downtime due
to capacity changes. For cross docking to work there is the need for manpower training
and a conducive working environmental. These changes in handling and storage of cargo
requires adequate training to avoid damaged, delays and accidents. Material Handling
Equipment (MHE) whether manually operated or automated must be reliable, robust and
able to operate throughout a highly intensive period. It must also be flexible and not
designed for only one type of cargo or product but must be able to absorb changes in
customer requirements, such as changes in the cargo types and its packaging.
Lastly there is the need for an effective communication interface between the
distribution network and cross-docking system in ports, allowance for a neat and roomy
operating environment for conducting series of computer simulation to verify system
designs and capacities.
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4.3.3 Optimization of cargo storage and distribution
The storage and distribution of vehicles from the Port of Malmö will require a good
physical distribution network and this make the concept of nodes and links relevant.(Van
Vinh, 2001). A node is the process where cargo is stored and value added in the form of
additional activities or services. Links then provide the channel of flow of cargo to other
new nodes until it reaches the consumer. “The concept of nodes and links within the
premises of cargo storage areas in ports has a relationship with other transport activities”
(Hultkrantz, 1999).
Planungsburo Transport und Verkehr GmbH (PTV) and Obermeyer project management
have together developed a planning programmed instrument system originally for the
distribution and storage of grain and refrigerated products called “DIALOC. ” This
computer-supported instrument programmed in pascal3, possessing a data management
function used for planning external logistics. It provides in its analysis phase the
necessary transparency of storage and distribution cost to determine the best possible
cargo distribution system. The system considers three independent modules, namely
v Cargo distribution analysis
v Cargo dis tribution optimization
v Scenarios and simulation investigation
In its analysis, the electronic data processor records all cargo storage and distribution
activities and compiles them on the basis of cost calculations. In assessing the optimum
storage network structure the storage cost function, which is dependant on size and
dwell-time, throughput is done by adjusting planning requirements both in linear and
digressive cost function with or without fixed cost. The optimization system can then
answer the question of which theoretical storage and distribution system meets
3 A computer programming language
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requirements at the lowest total cost by considering variables like capacities of storage
areas during peaks and off peak periods, the number and location of storage areas, the
selected transport operator and client relationship (Obermeyer, 1993).
Since the total optimization level is theoretical and not always realistic, various
scenarios are considered, i.e. the effects or consequences of increased volume of cargo
storage and distribution on cost, the synergic effects of costs and additional services on
storage and distribution systems of other customers. Obermeyer,(1993 p 8) continues to
explain that more sensitivity analyses can also be done using the DIALOC system to
select and calculate the best storage and distribution system, for example which storage
and distribution cost per ton, or TEU would be economical. Lastly, Obermeyer (1993)
explains that DIALOC system adopts planning module methods for operational research
and statistics calculations, for example graphical processing, linear optimization, out-of-
Kilter algorithms, non-liner modifications and various heuristic procedures. Statistical
processes like regression analysis, correlation analysis and cluster analysis could be also
done us ing this system.
4.4 Value added services and free zones.
The value chain concept defines value, develop valve and deliver value on cargo stored
in ports. According to Ma (2002) “A value chain describes all the links of activities
involved in developing and delivering value.” This is made up of physical and
economical distinct activities such as storage, handling of cargo, assembling of parts and
re- bagging or re-packaging of products, product mixing and contingency protection.
Since these added activities generate cost, the quantification of value added by the port
is the difference between the value of outputs and inputs by these additional activities on
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the cargo. Added value is realized if the value of service is greater than or equal to the
cost to the client (Ma 2002).It should be noted that value is not profit.
If TVA represents Total Added value, TV represents Total Value, Tvol represents Total
Volume and TC is for Total Cost, then
TVA = TV - TC
Where TV (Total Value) = Value per (Vehicle, Ton or TEU) x Tvol
The value added by the ports depends on the value of logistic activity in the value chain
of the cargo owner or producer. Value therefore can be increased if the speed of cargo
movement and safety of cargo is increased and secondly if the cost of storage and
transportation can be reduced in ports. The major problem ports face in value analysis is
the co-ordination of all these necessary functions effectively to offer good quality
services to clients.
4.4.1 Total Cost concept
Total cost analysis is an important decision making approach in logistics activities.
Lu (2000) states that total cost analysis considers the minimization of total system cost
and the recognition of inter-relationships among important variables such as
transportation, warehousing, inventory and customer service costs. Previously, ports
only focused on the movement of cargo from port to port but the present trend is to
consider cargo through the whole logistic chain. Lu (2000) explains that the efficiency of
ports as far as cargo storage is concerned have an effect on the total cargo distribution
cost of its customers. Inefficiency may therefore cause customers to keep large safety
stock to ensure an even flow of production but cost can be reduced through the use of
reliable and efficient transport service, a quick cargo turnaround or transit time and the
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reduction of large safety stock. The major types of logistics cost includes inventory
carrying cost which is made up of capital cost, storage space cost, inventory service and
inventory risk cost, in-transit inventory carrying cost and warehousing cost.
One approach of port logistics total cost analysis is the static analysis which analyzes
cost associated with logistics systems based on the assessment of several components at
the same point in time or output level. These cost management variables affect decisions
and they are so many that models developed to assist in decision processes are
sometimes seen as too abstract from reality. De-Ridder (2000) explains that optimization
of port project cost, is possible if initial value and cost are quantified in a relative way
and also set control systems to monitor project costs i.e. development cost, realization
cost and operational cost.
4.4.2 Free trade zones
The expansion of international trade and investments has led the stage for the
establishment of free ports and free trade zones (FTZ). A free trade zone is a state or
private owned physically isolated area where commercial and industrial activities are
granted a range of incentives i.e. a panoply of tax breaks and waivers from industrial
regulations, exemptions from import and export duties and an assurance of physical
security as defined by the national legislation. National customs have no jurisdiction in
the FTZ except for the control of entry and exit of cargo.
Users of FTZ may be classified under direct or indirect users. Direct FTZ users may
acquire equipment and develop plots of land according to their needs, while indirect
users may acquire rights by signing operational contracts with existing users in the FTZ.
This allows indirect users to try out the FTZ regime without large investments and make
future long-term commitments. The three options of users are users who import or
export cargo, users who carry out off shore activities and users who grant services.
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The establishment of FTZ is aimed at attracting investments into ports, creation of
employment for local economy through the establishment of various manufacturing and
logistics activities i.e. re-packing, selection, labeling, and assembling and other value
added services. The advantage of FTZ is that goods can be kept in bonded warehouses
without time limits. Ports management must ensure that the gains of FTZ are not marred
by serious environmental effects on the national natural resources and human health.
4.5 Issues of possible conflict and preventive measures
One way of preventing conflicts in an organization such as CMP is to identify possible
sources of conflict and take a proactive conflict resolution action. The joint venture
agreement between the ports of Malmö and Copenhagen could have a few differences to
be solved in order for CMP AB to operate harmoniously. In generic terms the following
differences, which could lead to possible conflict of interest, have been identified.
v Land issues
The location and usage of land in the Malmö and Copenhagen harbor areas are very big
issues, in that while the municipality is trying to shift offices, houses and other attractive
sites towards the beach or port area, the port authority is also trying to move these
outside the port to create more space for storage areas and terminals. This puts a lot of
pressure on the little land available and also plans to further reclaim land for other
projects. For instance there is presently a land reclamation exercise for storage of Toyota
vehicles more land will be needed for other uses such as a pre-delivery inspection base
for other vehicle brands i.e. Peugeot, Nissan, Suzuki, Mazda and more land for UNICEF,
SONY and other warehouse and container storage.
63
Secondly according to Swedish law, all projects such as land reclamation; infrastructure
development and expansion need the endorsement from both city authorities and
environmental agencies. This permit often delays the construction of projects since it
takes 1-2 years for approval of a project. To avoid these delays long term planning such
as vision 2010 of Malmö port, effective negotiation and project briefing especially on
issues concerning pollution, traffic congestion and road access issues should be done far
in advance between the city authority and port administration to develop more
harmonious relationship. This will go a long way to quicken time taken for approval of
investment projects.
v General transport policy
The researcher notices a few differences between the Swedish and Danish national
transport policies. These could have a negative effect on some operations of the port and
there is a need to have a common port policy due to the variation in national transport
policies. For instance according to Swedish law, carriage of dangerous goods is not
permitted during the day (working hours) but at night for safety reasons. In as much as
this policy is good it could also cause delays in cargo distribution and therefore create
congestion in future in the port if cargo traffic increases. The government preference and
therefore subsidization of the rail mode makes maritime transport not competitive. It is
not surprising that most cargo is distributed out of CMP via the rail mode. There is a
need to in future develop other new distribution patterns and transport-links to and fro
and within the port .The development of the tunnel under the city to link other
destinations is very laudable. The EU policy against subsidizing some transport modes is
very appropriate and there is a need to reduce or eliminate subsidies of some modes .The
more the rail mode is subsidized the more cargo it taken away from vessels and there
reduces cargo throughput in ports.
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According to Alderton (1999) the Trans–European Transport Network (TEN) policy
which obligates communities to contribute to the establishment of trans European
networks in areas of transport and telecommunication infrastucture should be well
handled not to promote greater advantages for some ports than others. The Common
Transport Policy (CTP) addresses policy issues like improvement and modernization of
ports infrastructure. This should be supported financially by the European Investment
Bank (EIB) in covering among others the improvement of the port activities, land for
cargo storage, sea and inland waterways, creation of a competitive playing field and
lastly the advanced research into the development of ports.
v Differences in legal systems
Until recently Danish law prevented ports to invest abroad: however, changes have
allowed the formation of CMP AB. The differences in tax systems in thes e countries
also vary in that while in Denmark 30% of the profit is paid as tax, in Sweden it is 28%.
Application of environmental laws varies between Sweden and Denmark. There are still
a few differences in operation for instance while in Sweden ports can run agency
services, this is not allowed in Danish law.
v Labor issues
There is a need for uniformity in salary levels between the two ports and the application
of a common labor law to meet the demands of the different labor dockworkers unions.
Further there is a need for employment and training of key personnel to fit vacant
positions, for example the vehicle transfer operations have no dedicated staff and often
rely on staff from other departments. Language and cultural differences could also affect
65
the style and attitude towards work. There is lastly a need to work in close cooperation
with all the labor unions through fair negotiation
v Financing of projects
Delays in approval of projects and reluctance to invest in projects could be costly for the
port and all stakeholders (state, city) since port operation is a very competitive industry.
Financial, social and environmental benefits of projects should be explained explicitly at
the regular meetings with the authorities involved. Dialogue with responsible personnel
is the key word.
In conclusion 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 and pricing
of services to attract new cargo traffic and prevent long periods of cargo 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 port facilities and services.
The need to have and apply management information systems in cargo storage and
distribution centers and to take advantage of the benefits of centralized systems like the
EDI and better still new technological improvements in the usage of various XML
application systems cannot be over emphasized.
Cargo stock management and cargo storage optimization systems, such as the cross-
docking concepts could be 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 and 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 conflict areas such as labor and land tenure issues,
transport policies, legal differences and financing of projects should be resolved
promptly for CMP to totally benefit from this unique joint venture.
66
CHAPTER FIVE
CARGO STORAGE INDICATORS AND ANALYSIS
Port managers take various decisions daily and for them to make the right decisions they
require the use of appropriate parameters, specific statistical data on current pending
issues or issues relating to the future. UNCTAD manual classifies statistical data into
three categories i.e. essential data, important data and useful data. Furthermore
Baudelaire (1986, p.173) states that port statistics could be broken down into general
activity statistics, operational or technical statistics and revenue and cost analysis. This
chapter will try to list some of the key parameters and indicators needed in ports and also
analyze various cargo holding capacities and storage area requirement scenarios with
regards to vehicle and shed cargo storage. The indicators listed in this chapter even
though not completely exhaustive are indispensable tools that could be adjusted to suit
specific conditions and requirements of CMP.
5.1 Efficiency and performance indicators
Efforts to improve efficiency in storage areas is a continuous process and should be done
by assessing the working methods and techniques of CMP.The concept of time is one of
the important factors which is related to most port indicators. According to Oxley (1990,
pp.154-167) efficiency, in the context of warehousing, is giving the customer the service
required in the most effective way by considering speed of delivery, consistency of
delivery, completeness and quality of order, accurate and timely information about
goods and services provided. In addition there is a need for good communication with
supplier, flexible and quick reaction time and an ideal working environment through
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minimum handling and movement of cargo, minimum inventory levels, and the effective
use of all resources i.e. space, equipment and people.
5.1.1 Shed cargo performance indicators
Francou (2002) states that several studies show that about two-thirds of maritime costs
happen in ports; quay operations, handling and storage operations. A lot of responsibility
is therefore on port managers to plan and forecast the smooth and free flow of operations
and take informed decisions based on reliable management tools or performance
indicators. These management tools can be used to analyze for example storage
performances in ports and try to improve efficiency by comparing present and previous
performances. Below are a few useful examples of port storage indicators, quoted from
UNCTAD (1985) Port development, TD/BC.4/175/Rev.1 pp. 220-222.
v Average dwell time (days) ( )
( )storedTonnagetimedwellTonnage ×
ΣΣ
=
Dwell time is the total time a particular cargo stays in a port. This is an important
determinate of the storage space requirements. The average here is not arithmetic
average but a weighted average. It must be noted that even though the formula is simple
it is very difficult for ports to get information on dwell time in ports.
v Effective Storage surface needed =
days
RdwelltimetorStowagefacTonnage
365
×××
Where R is the reserve storage capacity, UNCTAD recommends about 20% allowance.
68
The Stowage factor3 of a cargo is the surface area occupied by one ton of that cargo.
(Reference commodity characteristic table on the Appendix attached)
Capacity depends a lot on the type of cargo and the dwell time of the cargo in the storage
area. Further more, to improve capacity it is always better to reduce the dwell time or
transit time of cargo by either adopting effective cargo delivery / clearing schemes or
application of a punitive tariff policy.
v Holding Capacity = factorStacking
heightstackingAverageareaStorageUsable ×
Cargo throughput is determined by the holding capacity and transit time. Cargo holding
capacity can be increased if ports first consider the effective usage of vertical heights
before considering extensions in land need for cargo storage or expensive land
reclamation.
v Stacking factor = ( )
100
100 stowageBrokenfactorStowage +×
In storage of general cargo in a shed, allowance must be made for un-used space due to
the nature of packaging, boxes, drums, pallets or bags.
v Storage Occupancy (%) = capacityHolding
storageinTonnage 100×
Storage occupancy is an approximated or estimated measure because holding capacity is based on average values.
3 A compilation of stowage factors for various commodities from UNCTAD manual TL/B/C.4/175.
69
v Yearly capacity in tons = timedwellfactorStowage
daysareaSurface
×
× 365
This shows that the higher the dwell time of cargo in port, the lower the storage capacity
of the port for more cargo.
v Storage Equipment Utilization =
hoursmachinetotalPossible
hoursusedmachinecordedRe
v Storage Equipment Availability = hoursmachinetotalPossible
hoursmachineAvailable
Two additional indicators needed are cargo occupancy and in-transit time. Occupancy is
expressed in the quantity of cargo stored at a particular time as a percentage of holding
capacity. This however is an approximated figure because the holding capacity itself is
based on average values. The estimation of on how full a storage area has been must be
done over a particular period and according to Horck (2002) several studies have shown
that if storage is more than 60% over one year the demand must have exceeded storage
capacity on most occasions. There is the temptation by management at this stage to
invest in new storage facilities but it is recommended to rather improve utilization of
existing facilities by the consistent application of these performance indicators to reduce
cargo in-transit time.
In cases where the shed storage is made up of mixed cargo, it is important to calculate
the average of the stacking heights of various cargoes making the mix. Because stacking
heights is a function of cargo type and packaging type, reserve storage capacity must be
provided over the average holding capacity to make for variation in cargo traffic. After
examining the relationship between a typical cargo transit time and port storage capacity,
70
it is found that the longer cargo is kept in a storage area the less the storage capacity of
that storage area as seen in figure15.
Relationship between cargo transit time and storage capacity
0
50
100
150
200
250
300
350
400
0 5 10 15 20 25 30 35
Transit time (days)
Cap
acity
(th
osan
d to
ns)
Figure 15 : Source: Adapted from UNCTAD seminar on systematic methods of improving throughput.(Steps to effective shed management, UN, New York 1987)
It is therefore expedient to shorten as much as possible the cargo transit time in ports to
have maximum storage capacity.
5.1.2 Analysis of shed cargo storage
Assumptions on the simulation, (Table 5)
Cargo density is assumed to be 2 tons/m3, Holding volume allowance of 20%, allowance
for unused cargo space for offices and aisle way is 40%, The cargo stowage factor is 3
tons/m3 and the port shed storage operates at a peak factor of 40%. The existing
projected storage area is 2,000m2. In analyzing the scenarios the term cargo dwell time
and transit time are used interchangeably.
71
Table 5: Shed cargo storage simulation
Shed Storage data Scenario A Scenario B Scenario C Scenario D Scenario E Scenario F Scenario G Scenario H
Annual tonnage handled (tons) 200,000 200,000 250,000 300,000 250,000 500,000 300,000 150,000
Average Transit Time (days) 3 7 14 3 3 3 3 5
Density of cargo ( ton / m3 ) 2 2 2 2 2 1 2 2
Average stacking height (m) 3 2 3 6 3 3 4 2
Holding volume allowance 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
Allowance for unused cargo space 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 60.0%
Broken stowage 20.0% 20.0% 20.0% 20.0% 20.0% 40.0% 20.0% 20.0%
Stowage factor ( t / m2 ) 3 3 3 3 3 3 3 3
Peak factor 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0%
Existing or projected area in ( m2 2,000 2,000 2,000 2,000 2,000 4,000 2,000 2,000
Storage Indicators /Calculations
Holding capacity required (tons) 1,644 3,836 9,589 2,466 2,055 4,110 2,466 2,055
Net Holding volume required (m3) 822 1,918 4,795 1,233 1,027 4,110 1,233 1,027
Gross holding Volume required(m3) 986 2,301 5,753 1,479 1,233 4,932 1,479 1,233
Average stacking area required (m2) 329 1,151 1,918 247 411 1,644 370 616
Average storage area required (m2) 460 1,611 2,685 345 575 2,301 518 986
Turn over time (days) 122 52 26 122 122 122 122 73
Stacking factor (sf) 3 3 3 3 3 3 3 3
Design storage area ( m 2 ) 773 2,706 4,511 580 967 4,511 870 1,657
Maxi Annual capacity (Tons) 504,576 144,165 108,123 1,009,152 504,576 756,864 672,768 134,554
Cargo occupancy rate % 39.6% 138.7% 231.2% 29.7% 49.5% 66.1% 44.6% 111.5%
Source : Developed from UNCTAD (1985) Port management, monograph 7, Steps to effective shed
management, page 4-5.
v Net holding volume required = ocofDensity
requiredcapacityHolding
arg
72
v Gross holding volume required =
Holding volume allowance x Net holding volume required
Analysis of table 5
Comparing scenario A and scenario B
Keeping the annual cargo tonnage constant at 200,000 but varying only the transit or
dwell-time of cargo from 3 to 7 days and a reduction in average stacking height from 3
to 2 m made the cargo hold ing capacity of the port increased by 133% from 1,644 tons
to 3,836 tons. In addition the net holding volume increased from 822m3 to 1,918 m3. The
average stacking area required increased by 250% from 329m2 to 1,151m2 and required
design area increased from 773m2 to 2,706m2 at an increased cargo occupancy rate of 40
% to 139% and a decrease of 71% in maximum annual capacity of shed storage from
504,576 tons to just 144,165 tons. This adds credence to the fact for reduction in cargo
dwell time in ports to increase port storage capacity. The effects of increase in cargo
transit time and average stacking height on shed cargo storage areas is seen from these
two scenarios i.e. reduction in annual maximum capacity of the storage area due to
congestion if storage area is not increased. As a general rule, the lower the cargo
occupancy rate, the better the maximum annual capacity.
Comparing scenario C and scenario D
In these two scenarios annual shed tonnage was increased from 250,000 to 300,000 tons.
Dwell time was drastically reduced from 14 days to 3days and an improvement in
average cargo stacking height from 2 to 4 m. This resulted in a reduction of 74% in
holding storage capacity required from 9,589 tons to 2,466 tons and a reduction in net
holding capacity from 4,795m3 to 1,233m3. The average cargo stacking area was reduced
by 87% from 2,877 m2 to only 370 m2, the average stacking area required was also
73
reduced from 4,027 m2 to 518 m2 and an increase of 83 % in maximum annual storage
capacity from 72,082 to 672,768 tons at only a design storage area of 870 m2 instead of
6,766 m2 at a cargo occupancy rate of 45%.
This therefore shows that efficient use of vertical space through cargo racking systems
and other mechanisms in sheds, goes a long way to improve cargo storage capacities in
ports, and the importance of reducing cargo dwell time in ports. However, the stacking
height of a warehouse is very dependant on the type of cargo and its requirements for
packaging.
Comparing scenario E and scenario F
Here there was first a change in cargo type with this new cargo having a density of 1 ton
per m3. Then at a 100% increase in annual tonnage from 250,000 to 500,000 tons but
maintaining a constant cargo dwell time of 3 days. The cargo was then poorly stacked to
have a broken stowage of 40% instead of 20 % and therefore occupied twice as much
storage area i.e. 4,000 m2. This resulted in an increase in cargo holding capacity from
2,055 tons to 4,110 tons, further more a 100% increase in required gross holding volume
from 1,233 m3 to 4,932 m3. The required average stacking area increased from 575m2 to
2,301 m2 and a drastic 336% increase in shed design storage area from 967m2 to
4,511m2. There was also an increase of 50% in maximum annual capacity from 504,576
to 756,864 tons. Alternatively, if the existing storage area had not been increased from
2000 m2 to 4,000 m2, this would have instead resulted in a lower maximum annual
capacity of 378,432 tons and a high cargo occupancy rate of 132%.
This scenario shows that the capacity of the shed storage area can also be influenced by
the type of cargo being stored, its form or shape i.e. dry, wet cargo, its packaging i.e.
74
bags, boxes or palletized. It is not just enough using vertical height but also ensuring that
there is minimum broken stowage in shed cargo storage.
Comparing scenario G and scenario H
In these two scenarios annual cargo tonnage is reduced from 300,000 to 150,000 tons but
cargo dwell time is increased from 3 to 5 days and also average stacking height is
reduced from 4m to 2 m. There was also an increase in space reserved for other purposes
than cargo storage i.e. offices, aisle ways, handling equipment and empty pallets from
the recommended 40% to 60 %. This worse case scenario results in a 17% decrease in
annual tonnage from 2,466 tons to 2,055 tons, a decrease in net holding volume from
1,233 to 1,027 tons and also a decrease in gross volume required from 1,479 to 1,233
tons. Again it resulted in a 66% increase in average required stacking area from 370m2
to 616m2 and an increase of 90% in average storage area required from 518m2 to 986m2.
There was again an increase in design area required from 870m2 to 1,657m2 and 80%
reduction in maximum annual storage capacity 672,768 tons to 134,554 tons. Lastly this
scenario created an increase in cargo occupancy rate from 45 % to 111 %.
This scenario results emphasizes the need for cargo dwell time reduction in shed storage
and the effective use of space to improve capacity in all cases be it an increase or
decrease in cargo throughput in ports.
5.2 Vehicle storage indicators
Vehicle storage capacity calculations provide information on the link between the
present and future service / capacity levels in a port. It gives an indication on the demand
placed on port vehicle storage space and facilities. The following are some of these
indicators.
75
As seen in UNCTAD (1985) Port development,TD/BC.4/175/Rev.1 pp 223-224.
v Vehicle holding capacity required =)365( daysyearaindaysofNumber
timetransitAverageyearpermovementsVehicle ×
v Vehicle storage area =Vehicle holding capacity required x Area required per vehicle.
v Vehicle storage & Access area = Vehicle parking area x (1.0 + access factor)
v Total Vehicle storage Area
= Vehicle storage & access area x ( )
100
Re0.1 factorsafteycapacityserve+
5.2.1 Analysis of vehicle storage Assumptions on simulation (See Table 6)
The vehicle storage scenario assumes only one size or model of vehicle is being stored
in the port at an average required area of 6 m2, a safety reserve capacity of 20%, an
access factor of 15% and a total parking area of 1,200 m2. The scenario is also based on
the traditional horizontal vehicle storage methods i.e. the fishbone and horizontal line
parking systems used in CMP.
76
Table 6: Vehicle storage simulation.
Using only the traditional horizontal vehicle storage system.
Vehicle Storage Scenario A Scenario B Scenario C Scenario D Scenario E Scenario F Scenario G Scenario H
Data Vehicle throughput per year (vehicles) 60,000 120,000 100,000 150,000 140,000 140,000 200,000 200,000
Average transit time of vehicle (days) 9 3 3 6 7 14 3 3
Area requirements per vehicle( m2 ) 6 6 6 6 6 6 6 5
Access factor ( %) 15.0% 15.0% 15.0% 15.0% 15.0% 30.0% 30.0% 15.0%
Land for vehicle parking ( m 2 ) 1,200 1,200 1,200 2,400 1,200 1,200 2,400 1,200
Reserve capacity safety factor( %) 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 40.0% 20.0%
Number of days in year 365 365 365 365 365 365 365 365
Calculations Req.Vehicle Holding capacity (no.per day) 1,479 986 822 2,466 2,685 5,370 1,644 1,644
Total Vehicle parking area ( m2 ) per day 8,877 5,918 4,932 14,795 16,110 32,219 9,863 7,397
Total required Vehicle storage area ( m2 ) 12,250 8,167 6,805 20,416 22,231 50,262 17,951 10,208
GAP ( Difference needs - existing) 11,050 6,967 5,605 18,016 21,031 49,062 15,551 9,008
Comparing scenario A and scenario B
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.
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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
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93
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
in (degrees ) Bulk Bag others
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)
DRY CARGOES
Ores, minerals,
Chemicals, Alumina 35 0.6 (21) loader / covered Cleaning of conveyors
conveyor and storage area necessary
when alumina handled after
bauxite at common facilities dust filter
Bauxite 28(dry) 0.8 (28)
49(wet)
1.1 (39)
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
in (degrees ) Bulk Bag others
DRY CARGOES
Ores, minerals,
Chemicals, Alumina 35 0.6 (21) loader / covered Cleaning of conveyors
conveyor and storage area necessary
when alumina handled after
bauxite at common facilities
dust filter
Bauxite 28(dry) 0.8 (28)
49(wet)
1.1 (39)
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)
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.
Coke 37 2.4 (85) Unloader / belt open
Conveyor
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
96
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
Liquid Cargoes
Iron pyrites 40 0.7 (25) Unloader / belt open
Conveyor
Kaolin ( china clay) 30 - 35 1.1 (39 ) Unloader / belt covered
Conveyor
1.3 (46)
Lead ore 40 0.4 (13) Conveyor Covered
0.5 (17) Package
Magnesite 35 0.7 (25) Conveyor Covered
Magnanese ore 0.5 (17) Conveyor Covered
0.7 (23)
0.6 (20)
Nickel ore Barrels
0.7 (25) Package Covered
Petro coke 30 -40 1.5 (52) Unloader / C. belt Open
Phosphate (rock) 30-40 1.0 (34) Unloader / C.belt
Open / Closed Dust filter
Potash 32-35 0.9 (33) Unloader / C .belt Closed Dust filter
1.0 (36)
Salt 45 1.0 (37) Conveyor Covered Humidity Controlled
1.1 (37) Package Covered
Barrels
1.4 (41) Package Covered
Sand 30-40 0.5 (19) Conveyor Open
Cases
1.7 (60) Package Open
Sulphur 35 -40 0.9 (31) Precaution against health
Barrel and fire risk
1.0 (36) 1.3 (47) Conveyor covered
Super phosphates 35 1.1 (39) Package covered
97
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
FOODSTUFF AND
VEGETABLE PRODUCTS
Animal meals 1.5 (53) Package Covered
Bananas Cartons
3.9 (138) Pocket conveyor Closed Refrigeration
Barley 16 - 28 1.5 (54) Conveyor Covered
1.7(60) Package Covered
Citrus Fruits Cases, Cartons etc.
2.5 (88) Package Covered Cool store
Cocoa 1.9 (6.7)
Cases
2.5 (87) Package Covered Protection from weevils
Coffee 1.8 (65) Package Covered
Copra 2.1 (73) Conveyor Covered
2.9 (103)
Cotton Bales
2.7 (94) Package
Delicious Fruits Cases, cartons
2.7 (97) Package Covered Cool store
Esparto grass Bales
4.2 (150) Package Covered
Flour 1.3 (45)
Sacks, barrels
1.6 (55) Package Covered
Grapes Cases , barrels
3.9 (140) Package Covered
Maize 30- 40 1.4 (44) Conveyor Protection from vermin and
1.5 (54) ( pneumatic) Weevils
Oats 32 2.1 (75) Bags Enclosed
2.3 (8.0) Package
Oil seeds 1.8 (63)
2.1 (74)
Cases, kegs
2.0 (70) Package Covered
98
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
(degrees ) Bulk Bag others
Continuation
Other vegetables 2.0 (71)
Cases, Barrels, Bales
1.61(57) Package Covered
Potatoes 1.6(57)
1.7 (60)
Cartons, baskets, barrels
2.7 (95) Package Covered
Rice 1.5 (54) Protection from vermin and weevils
kegs
1.9 (69) Package Covered
Rye 30 1.4 (50) Protection from vermin and weevils
1.6(55) Conveyor Covered
Semolina 1.7(61) Package Covered Protection from vermin and weevils
Soya beans 29 1.2 (44) Conveyor Covered Protection from vermin and weevils
Sugar 32 1.3 (46) Conveyor Covered Protection from vermin and weevils
1.3(46)
Sugar, green Baskets
1.5(52) Package Covered
Sugar –Beet 3.8(135) Package Open
Tapioca 1.5(53) Package Covered
Wheat 25 – 28 1.3 (47) Conveyor Enclosed Protection from vermin and weevils
1.5 (52)
ANIMAL PRODUCTS
Bacon Cases
1.7(59) Package Covered Refrigerated in hot climates
Butter Cases, cartons, Kegs.
1.7 (60) Package Covered Refrigerated in hot climates
Bones 2.4 (84) Conveyor Open
Bones, Calcined 2.8 (100) Conveyor Covered
1.8(65)
99
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
Canned meat Cases
1.7 (60) Package Covered Cool store
Cheese Cases, Cartons
1.4 ( 50 ) Covered Cool store or refrigeration
Frozen Products
Beef 2.6 (92) Pocket conveyor Enclosed Refrigeration
Lamb 3.2 (115) Pocket conveyor Enclosed Refrigeration
Whale meat 2.3 (80) Pocket conveyor Enclosed Refrigeration
Cartons
2.1 (75) Pocket conveyor Enclosed Refrigeration
Hides , wet Cartons, bales, bundles
1.8 (65) Package Covered or open Good ventilation
Milk,dry or powdered 1.9 (68)
Cases ,cartons
2.0 ( 72 ) Package Covered
Milk ,condensed Cases, cartons, kegs
1.7 (60) Package Covered
Loose
Skins, dry hides 5.2 (185) Package Covered
Bales
4.2 (150) Package Covered
Pressed bales
2.5 ( 87) Package Covered
Wool Pressed bales Package Covered
1.4 - 2.5 (50 – 90 )
Pressed bales (greasy)
4.2 (150) Package Covered
Pressed bales ( damped)
0.5 (18) Package Covered
Fish products
Canned Fish Cases
1.7 (60) Package Covered
Fish meal 1.8 (639 Package Covered
100
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
FISH
PRODUCTS Fish oil 1.1 (40) Pipeline Tank
Barrels, cases
1.6 (56) Package Enclosed
Frozen Fish Boxes
2.1 (75) Package Enclosed Refrigeration
FOREST PRODUCTS
Cork 4.2 (150) Crane Open
Hardwood 0.9 – 1.4 Crane Open
( 30- 50 )
Paper Rolls
2.5 ( 90) Crane Covered
Bales
1.4 – 2.8 Crane Covered
(50 –100)
Pit props and plywood 2.2 – 3.4 Crane Open
( 80 –120 )
Plywood, chipboard 2.3 (80) Crane Covered
Rubber Sheet
1.7 (60) Crane Covered
Bales ,bags
1.9 (66) Crane Covered
Crepe , cases
2.0 ( 70) Crane Covered
Sleepers 1.3 (45) Crane Open
Softwood 1.4 –2.0 Crane Open
( 50 – 70 )
Wood –pulp Pressed bales
1.7 (60) Crane Open
101
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
METAL
PRODUCTS
Copper Ingot
0.3 (11) Crane Covered
Coils
0.9 (30) Crane Covered Copper
Concentrates 45 0.5 (16)
0.7 (25)
Slabs
0.3 (12) Crane Covered
Iron and steel Pig iron Crane Open for
short periods
Provision for drainage.
0.3 (10)
Billets
0.3 (12)
Bars 0.4 (15) Crane
Covered for long-
term storage.
Scrap Iron and steel 1.0 (35) Steel plates
0.3 (12) Crane open Tin Ingots
0.3 (9) Crane Open
Tin plates 0.3 (12) Crane Covered
Zinc Ingot
0.4 (15) Crane Covered
Zinc Concentrate 40 0.6(21) Crane Covered
VEHICLES Motor vehicles
Unpacked 4.0 - 8.0 Crane Open
(150 – 300 )
Motor Vehicles
Knocked down 1.0 (35)
Source: UNCTAD Port Development handbook for planners
102
Appendix B (i) Refrigerated Cargo Commodity tables: fruits and vegetables
Commodity Recommended temperature
setting °C
Recommended temperature
setting °F
Approximate shelf life
Days
Warmest freezing
point °C
Warmest freezing
point °F
Ethylene production
rate
Sensitivity to
ethylene
Apple -1 to +4 +30.2 to +39.2 40-240 -1.5 +29.3 Very High High Apricot -0.5 +31.1 7-14 -1.1 +30.0 High High
Asparagus +2 +35.6 14-21 -0.6 +30.9 Very Low Medium
Aubergine +10 +50.0 10-14 -0.8 +30.6 Low Low Avocado +4 to +13 +39.2 to +55.4 14-56 -0.3 +31.5 High High
Banana +13.5 +56.3 7-28 -0.8 +30.6 Medium High
Bean - green +7 +44.6 10-14 -0.7 +30.7 Low Medium Beansprout 0 +32.0 49-63 -0.4 +31.3
Belgian Endive +2 +35.6 14-28 -0.1 +31.8 Very Low Medium
Black Radish 0 +32.0 60-120 -0.7 +30.7 Low None
Blackberry -0.5 +31.1 2-3 -0.8 +30.6 Low Low Breadfruit +13 +55.4 14-40 Medium Medium
Broccoli 0 +32.0 10-14 -0.6 +30.9 Very Low High
Cabbage 0 +32.0 90-180 -0.9 +30.4 Very Low High Cantaloupe +4 +39.2 10-14 -1.2 +29.8 High Medium
Carambola +8 +46.4 21-28 Low Low
Casaba Melon +10 +50.0 21-28 -1.1 +30.0 Low Low
Cassava Root 0 to +5 +32.0 to +41.0 20-24 Very Low Low
Cauliflower 0 +32.0 20-30 -0.8 +30.6 Very Low High
Celery 0 +32.0 14-28 -0.5 +31.1 Very Low Medium Cherry - sweet -1 +30.2 14-21 -1.8 +28.8 Very Low Low
Chicory 0 +32.0 14-28 Very Low High Chilli Pepper +8 +46.4 14-21 -0.7 +30.7 Low Low
Chinese Cabbage 0 +32.0 60-90 Very Low Medium
Clementine +4 +39.2 14-28 -0.1 +31.8 Low None Coconut 0 +32.0 30-60 -0.9 +30.4 Low Low
Corn (Sweet) 0 +32.0 4-6 -0.6 +30.9 Very Low Low
103
Commodity Recommended temperature
setting °C
Recommended temperature
setting °F
Approximate shelf life
Days
Warmest freezing
point °C
Warmest freezing
point °F
Ethylene production
rate
Sensitivity to
ethylene
Courgette +7 +44.6 14-21 -0.5 +31.1 Low Medium Cranberry +2 +35.6 60-120 -0.9 +30.4 Low Low
Crenshaw Melon +10 +50.0 21-28 -1.1 +30.0 Medium High
Cucumber +10 +50.0 10-14 -0.5 +31.1 Low High
Date 0 +32.0 165-365 -15.7 +3.7 Very Low Low
Durian +4 +39.2 42-56 Endive 0 +32.0 14-21 -0.1 +31.8 Very Low Medium
Fig 0 +32.0 7-10 -2.4 +27.7 Medium Low
Garlic 0 +32.0 140-210 -0.8 +30.6 Very Low Low Ginger +13 +55.4 90-180 Very Low Low
Grape 0 +32.0 56-180 -2.2 +28.0 Very Low Low
Grapefruit +13 +55.4 28-42 -1.1 +30.0 Very Low Medium Haricot Vert +4 +39.2 7-10
Honeydew Melon +10 +50.0 21-28 -1.0 +30.2 Medium High
Horse Radish 0 +32.0 300-350 -1.8 +28.8 Very Low Low
Kiwano +10 +50.0 180
Kiwi 0 +32.0 28-84 -0.9 +30.4 Low High Kohlrabi 0 +32.0 25-30 -1.0 +30.2 Very Low Low Lemon +12 +53.6 30-180 -1.4 +29.5 Very Low Medium
Lettuce 0 +32.0 8-12 -0.2 +31.6 Low Medium Lime +12 +53.6 21-35 -1.6 +29.1 Very Low Medium Logan +1.5 +34.7 21-35 -0.5 +31.1
Loquat 0 +32.0 14-21 -0.9 +30.4 Lychee +1 +33.8 21-45 -0.5 +31.1 Medium Medium
Mandarin +7 +44.6 14-28 -1.1 +30.0 Very Low Medium
Mango +13 +55.4 14-25 -0.9 +30.4 Medium High Mango -
sour +8 +46.4 20-30 -0.6 +30.9 Medium Medium
Mushroom 0 +32.0 12-17 -0.9 +30.4 Very Low Medium Nectarine -0.5 +31.1 14-28 -0.9 +30.4 Medium Medium
Olive +7 +44.6 28-42 -1.4 +29.5 Low Medium Onion - dry 0 +32.0 30-180 -0.8 +30.6 Very Low Low
104
Commodity Recommended temperature
setting °C
Recommended temperature
setting °F
Approximate shelf life
Days
Warmest freezing
point °C
Warmest freezing
point °F
Ethylene production
rate
Sensitivity to
ethylene
Orange - Seville +10 +50.0 90 -0.7 +30.7 Low None
Orange - Texas +2 +35.6 56-84 -0.8 +30.6 Very Low Medium
Orange - green +7 +44.6 21-56 -0.8 +30.6 Very Low Medium
Papaya +12 +53.6 7-21 -0.9 +30.4 High High
Paprika +8 +46.4 14-20 -0.7 +30.7 Low Low
Passion Fruits cont. +12 +53.6 14-21 Very High High
Peach -0.5 +31.1 14-28 -0.9 +30.4 High High Pear -1 +30.2 60-90 -1.6 +29.1 High High
Pepper - bell +8 to +10 +46.4 to +50.0 12-24 -0.7 +30.7 Low Low
Pepper - chilli +10 +50.0 14-20 -0.7 +30.7 Low Low
Persian Melon +10 +50.0 14-21 -0.8 +30.6 Medium High
Persimmon (Kaki) 0 +32.0 60-90 -2.2 +28.0 Low High
Pineapple - Guatemala +5 +41.0 14-21 -0.8 +30.6 Medium Low
Pineapple - mature +10 +50.0 14-25 -1.0 +30.2 Low Low
Pineapple - ripe +8 +46.4 14-36 -1.1 +30.0 High Low
Pineapple - unripe +13 +55.4 14-20 -1.0 +30.2 Low Low
Plantain +14 +57.2 10-35 -0.8 +30.6 Low High Plum -0.5 +31.1 14-28 -0.8 +30.6 Medium High
Pomegranate +5 +41.0 28-56 -3.0 +26.6 Low Low
Potato - processing +10 +50.0 56-175 -0.8 +30.6 Very Low Medium
Potato - seed +4 +39.2 84-175 -0.8 +30.6 Very Low Medium
Potato - table +7 +44.6 56-140 -0.8 +30.6 Very Low Medium
Pumpkin +12 +53.6 84-160 -0.8 +30.6 Low Low
Radish 0 +32.0 21-28 -0.7 +30.7 Very Low Low
105
Commodity Recommended temperature
setting °C
Recommended temperature
setting °F
Approximate shelf life
Days
Warmest freezing
point °C
Warmest freezing
point °F
Ethylene production
rate
Sensitivity to
ethylene
Salsify 0 +32.0 60-120 -1.1 +30.0 Very Low Low
Spinach 0 +32.0 10-14 -0.3 +31.5 Low Medium Starfruit +8 +46.4 21-28 Low Low
Sugar Apple +7 +44.6 28 Low Sweet Corn 0 +32.0 4-6 -0.6 +30.9 Very Low Low
Tangerine +7 +44.6 14-28 -1.1 +30.0 Very Low Medium
Tomato - green +13 +55.4 21-28 -0.5 +31.1 Very Low High
Tomato - orange +10 +50.0 14-28 -0.5 +31.1 Very Low High
Tomato - pink +8 +46.4 7-14 -0.5 +31.1 Medium High
Tomato - red +6 +42.8 14-26 -0.5 +31.1 Low Medium
Tree tomato +4 +39.2 21-70 -0.4 +31.3 High Medium
Water Chestnut +4 +39.2 100-128
Watermelon +10 +50.0 14-21 -0.4 +31.3 Low Low
Yam +13 +55.4 50-115 -1.1 +30.0 Very Low Low
Zucchini +7 +44.6 14-21 -0.5 +31.1 None None
Source: P&O Nedlloyd
All above mentioned fruits and vegetable products needs fresh air supply during long
storage periods and distance transport. .
According to Nedlloyd, all the above are general recommendations and depend upon the
cultivars, the growing area, time or season of the of the year, routing and storage systems.
A large number of variations are possible when carrying these cargoes as post-harvest
treatments and packaging significantly affect shelf life of these products.
106
(ii) Refrigerated commodity tables: meat, dairy products, fish and others
Commodity Recommended temperature
setting °C
Temperature Range
°C
Recommended temperature
setting °F
Temperature Range
°F
Approximate shelf life (Days)
Bacon - chilled -1 -2.0 / +2.5 +30.2 +28.4 / +36.5 30
Beef - chilled -1.5 -1.5 / 0 +29.3 +29.3 / +32.0 70-95
Butter - fresh 0 -1.0 / +4.5 +32.0 +30.2 / +40.1 30
Butter - frozen -14 or colder +6.8 or colder
Cheese +4 0 / +10.0 +39.2 +32.0 / +50.0
Cheese* +4 0 / +10.0 +39.2 +32.0 / +50.0
Cream 0 -1.0 / +0.5 +32.0 +30.2 / +32.9 10-40
Eggs - fresh +3 0 / +4.0 +37.4 +32.0 / +39.2 14-28
Eggs - frozen -18 -0.4
Eggs - in shell 0 -1.0 / +0.5 +32.0 +30.2 / +32.9 180
Fats 0 -1.0 / +4.5 +32.0 +30.2 / +40.1
Fats - frozen -21 -5.8
Fish - canned +12 +10.0 / +13.0 +53.6 +50.0 / +55.4
Fish - frozen -23 -23.0 / -20.0 -9.4 -9.4 / -4.0 120-240
Fish - salted +6 +5.0 / +7.0 +42.8 +41.0 / +44.6
Fruit Juice concentrate -19 -20.0 / -18.0 -2.2 -4.0 / -0.4
Ham - canned +4.5 0 / +10.0 +40.1 +32.0 / +50.0
Ham - fresh cured -0.5 -1.5 / +0.5 +31.1 +29.3 / +32.9 21
107
Commodity
Recommended temperature
setting °C
Temperature Range
°C
Recommended temperature
setting °F
Temperature Range
°F
Approximate shelf life (Days)
Ice cream -25 -13.0
Lamb - chilled -1.5 -1.5 / 0 +29.3 +29.3 / +32.0 85
Lard 0 -1.5 / +4.5 +32.0 +29.3 / +40.1 180 Margarine 0 -1.5 / +1.5 +32.0 +29.3 / +34.7 180
Meat - frozen, all
types -21 or colder -5.8 or colder
Milk - fresh, all types 0 -1.5 / +1.0 +32.0 +29.3 / +33.8 14-30
Mutton - chilled -1.5 -1.5 / 0 +29.3 +29.3 / +32.0 85
Pork - chilled -1.5 -2.0 / 0 +29.3 +28.4 / +32.0 14-40
Pork - salted +4.5 -1.0 / +7.0 +40.1 +30.2 / +44.6 120 Poultry - chilled -1 -1.5 / +1.5 +30.2 +29.3 / +34.7 14-21
Prawns - frozen -25 -30.0 / -18.0 -13.0 -22.0 / -0.4 120-360
Seafood - iced -0.5 -2.0 / 0 +31.1 +28.4 / +32.0 14-20
Seafood - salted -0.5 -2.0 / +6.0 +31.1 +28.4 / +42.8
Seafood - smoked -0.5 -2.0 / +4.4 +31.1 +28.4 / +39.9 15
Shrimps - frozen -25 -30.0 / -18.0 -13.0 -22.0 / -0.4 120-360
Venison - chilled -1.5 -1.5 / 0 +29.3 +29.3 / +32.0 14
Source: P&O Nedlloyd
*Cheese: temperature may vary with type of cheese; also whether or not it requires
ripening during storage. Some categories may require ventilation during transit storage.
Care must be taken when opening the doors of a refrigerated storage area since 'ripening'
unventilated cheese generates high carbon dioxide levels, and not enough oxygen.
108
Appendix C (i) Container terminal planning chart (CFS) area
109
(ii) General cargo planning chart, storage area requirements
110
(iii) General cargo terminal Planning chart: Berth requirements
Source : UNCTAD
108
Appendix C (i) Container terminal planning chart (CFS) area
109
(ii) General cargo planning chart, storage area requirements
110
(iii) General cargo terminal Planning chart: Berth requirements
Source : UNCTAD
111
Appendix D (i) Port storage capacity planning sequence
Source : UNCTAD
112
Appendix D (ii) Dependency tree for container terminal planning
Source : UNCTAD
113
Appendix D (iii) Overall procedure in port storage project development
Source : UNCTAD