effective cargo and vehicle storage in distribution

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WORLD MARITIME UNIVERSITY Malmö, Sweden EFFECTIVE CARGO AND VEHICLE STORAGE IN DISTRIBUTION CENTRES: A CASE STUDY OF COPENHEGEN MALMÖ PORT (CMP) By SAMUEL ALPHONSE KWAME ETSIBAH GHANA A dissertation submitted to the World Maritime University in partial fulfilment of the requirements for the award of the degree of MASTER OF SCIENCE in MARITIME AFFAIRS (PORT MANAGEMENT) 2002 ©Copyright Samuel Alphonse Etsibah, 2002

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Page 1: EFFECTIVE CARGO AND VEHICLE STORAGE IN DISTRIBUTION

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

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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

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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

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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

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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 **

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* 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

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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

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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.

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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

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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.

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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)

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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

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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.

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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

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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.

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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.

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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

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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

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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.

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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.

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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

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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.

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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

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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

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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

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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

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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

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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.

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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.

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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

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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

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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

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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.

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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

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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.

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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.

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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.

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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,

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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.

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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

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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

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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.

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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.

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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.

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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

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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.

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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

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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.

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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.

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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

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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.

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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.

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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.

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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,

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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.

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Appendix A

SELECTED COMMODITY CHARACTERISTICS FOR PORT PLANNING Source: UNCTAD Port Development handbook for planners

PHYSICAL CHARACTERISTICS HANDLING CHARACTERISTICS

Bulk Stowage factor commodity Method of Class of Special requirements

Commodity angle of repose cubic metres/ton (cu.ft/ton) Handling stowage

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.

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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)

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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

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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

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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

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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)

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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

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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

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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

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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

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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

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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

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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.

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(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

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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.

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Appendix C (i) Container terminal planning chart (CFS) area

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(ii) General cargo planning chart, storage area requirements

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(iii) General cargo terminal Planning chart: Berth requirements

Source : UNCTAD

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Appendix C (i) Container terminal planning chart (CFS) area

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(ii) General cargo planning chart, storage area requirements

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(iii) General cargo terminal Planning chart: Berth requirements

Source : UNCTAD

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Appendix D (i) Port storage capacity planning sequence

Source : UNCTAD

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Appendix D (ii) Dependency tree for container terminal planning

Source : UNCTAD

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Appendix D (iii) Overall procedure in port storage project development

Source : UNCTAD