Ports in a Supply Ports in a Supply ChainChain

By:By:Kari ButlerKari Butler

Alexis CrawfordAlexis CrawfordMatt RichardsonMatt RichardsonJoanna SchmidtJoanna Schmidt

Dan ScholzDan Scholz

6. Truck 7. Thread 8. T-Shirt

5. Port B (Shanghai)

1. Raw Materials 9. Retailer 2. Train

10. Customer 3. Port A (New Orleans) 4.

MAP

What are ports?What are ports?

Sites for transshipment of goods from Sites for transshipment of goods from one mode of transport to another.one mode of transport to another.

Provide link between maritime and Provide link between maritime and inland transport.inland transport.

Interface between the sea, rivers, roads Interface between the sea, rivers, roads and railways.and railways.

Work in several directions:Work in several directions:• Account for requirements by both senders Account for requirements by both senders

and receiversand receivers

Imports/ExportsImports/Exports

Why are Ports Important?Why are Ports Important? Transport is an integral part of the entire Transport is an integral part of the entire

supply chainsupply chain 60% of cross border trade moves via water60% of cross border trade moves via water

Competitive position due to supply chain linksCompetitive position due to supply chain links Support raw material acquisition, Support raw material acquisition,

manufacturing and distribution of finished manufacturing and distribution of finished productsproducts

ObjectivesObjectives Create synergiesCreate synergies Converge interests between port community Converge interests between port community

players to guarantee:players to guarantee: ReliabilityReliability Continuous ServiceContinuous Service Good Productivity LevelGood Productivity Level

Raw MaterialsRaw MaterialsCOTTONGroup 1

ConditionsConditionsContainer conditionsContainer conditionsPerishable itemsPerishable items

Export PapersExport PapersCertificate of OriginCertificate of OriginWork permitsWork permitsBill of LadingBill of LadingSED (Shipper’s Export SED (Shipper’s Export DeclarationDeclarationExport licenseExport licenseCommercial InvoiceCommercial InvoiceInsurance CertificateInsurance CertificateExport Packing ListExport Packing ListInspection CertificateInspection CertificateDock & Warehouse Dock & Warehouse ReceiptReceiptDestination Control Destination Control StatementStatement

TransportTransportTRAIN

Group 2

CostsCosts$0.60 and $1.10 per mile$0.60 and $1.10 per mile

InfrastructureInfrastructureDouble-Stacked TrainsDouble-Stacked TrainsCongestion ProblemsCongestion ProblemsMicro-bridge: routing by rail Micro-bridge: routing by rail of a container between a of a container between a port and an inland pointport and an inland point

PortPortNew Orleans, LA

Group 4

Natural DisastersNatural DisastersHurricane Katrina and Hurricane Katrina and Hurricane RitaHurricane Rita

Opened earlier than Opened earlier than expected afterwardsexpected afterwards

Cause bottlenecks at all Cause bottlenecks at all ports and all transportation ports and all transportation connectionsconnections

Effects ripple across the Effects ripple across the worldworld

IAPH and SecurityIAPH and SecurityIAPH (International IAPH (International Association of Ports and Association of Ports and Harbors)Harbors)

Non-profit & non-Non-profit & non-governmentalgovernmentalHeadquarters in TokyoHeadquarters in Tokyo2001 – handled 85% of 2001 – handled 85% of container trafficcontainer traffic2002 – 60% of world sea 2002 – 60% of world sea tradetrade

SecuritySecurityFederal ID systemFederal ID systemContainer InspectionContainer Inspection

Major Trading PartnersMajor Trading Partners

ShipShipGroup 5

InfrastructureInfrastructureCanalsCanals

Provide water linkages between bodies of water separated Provide water linkages between bodies of water separated by land, tunnels, and bridgesby land, tunnels, and bridgesPanama CanalPanama Canal

TunnelsTunnelsBridgesBridgesSpeed of Container Ships and Increased CostsSpeed of Container Ships and Increased Costs

PortPortShanghaiGroup 6

Choosing a PortChoosing a PortEfficiencyEfficiencyPort CompetitionPort CompetitionCosts of a Poor ChoiceCosts of a Poor ChoiceMega-PortsMega-Ports

CapacityCapacityCargo CompatibilityCargo Compatibility

Mexican Grain ImportMexican Grain Import

TransportTransportTRUCK

Group 7

CostsCostsTeamster: $1.25 & $1.30 Teamster: $1.25 & $1.30 per mileper mileNon Teamster: $0.90 & Non Teamster: $0.90 & $1.25 per mile$1.25 per mile

InfrastructureInfrastructureUSUS

Highway Weight Highway Weight RestrictionsRestrictions

ChinaChinaLack of RoadwaysLack of Roadways

FactoryFactoryTHREADGroup 8

Import PapersImport PapersBill of Lading or Transport Bill of Lading or Transport DocumentDocumentInvoiceInvoiceBill covering Freight Bill covering Freight ChargesChargesCertificate of OriginCertificate of OriginImport LicenseImport LicenseConfirmation of Confirmation of Authorization for Special Authorization for Special Customs TreatmentCustoms TreatmentCertificatesCertificates

ManufacturingManufacturing

T-SHIRTGroup 9

Packaging Packaging RequirementsRequirementsPackages must be in Packages must be in correct volume that will correct volume that will remain safe and are remain safe and are acceptable for the acceptable for the packed product for the packed product for the consumer.consumer.Must be recoverable in Must be recoverable in according to specific according to specific requirements.requirements.Packages shall have as Packages shall have as minimal amounts that minimal amounts that are safe of noxious or are safe of noxious or hazardous material hazardous material contained within them.contained within them.IMO (International IMO (International Maritime Organization)Maritime Organization)

Export PapersExport PapersCertificate of OriginCertificate of OriginWork permitsWork permitsBill of LadingBill of LadingSED (Shipper’s Export SED (Shipper’s Export DeclarationDeclarationExport licenseExport licenseCommercial InvoiceCommercial InvoiceInsurance CertificateInsurance CertificateExport Packing ListExport Packing ListInspection CertificateInspection CertificateDock & Warehouse Dock & Warehouse ReceiptReceiptDestination Control Destination Control StatementStatement

IMO (International Maritime IMO (International Maritime Organization)Organization)

Created in Geneva, 1948Created in Geneva, 1948 Focus on improving safety of life at seaFocus on improving safety of life at sea Each government implements treaties differentlyEach government implements treaties differently Measures concerning:Measures concerning:

Safety of containersSafety of containers Bulk cargoesBulk cargoes Liquefied gas tankersLiquefied gas tankers Crew standardsCrew standards

TrainingTraining CertificationCertification WatchkeepingWatchkeeping

Global Maritime Distress and Safety SystemGlobal Maritime Distress and Safety System

RetailerRetailerGroup 10

Tariffs/Free Trade Tariffs/Free Trade ZonesZonesTariff – tax policy to encourage or Tariff – tax policy to encourage or discourage particular types of discourage particular types of consumption or production in the consumption or production in the jurisdiction.jurisdiction.FTZ – areas where tariffs and FTZ – areas where tariffs and quotas are eliminated and quotas are eliminated and bureaucratic requirements are bureaucratic requirements are lowered.lowered.

CustomerCustomer

Professor PagellProfessor Pagell

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"Mineta Underscores Role of Ports in Global Transportation; U.S. Transportation "Mineta Underscores Role of Ports in Global Transportation; U.S. Transportation Secretary Delivers Keynote Address at IAPH Meeting ." Secretary Delivers Keynote Address at IAPH Meeting ." PrimeZone Media NetworkPrimeZone Media Network 07 07 Oct 2005 http://lexis-nexis.com.oasis.oregonstate.edu. 23 Apr 2006.Oct 2005 http://lexis-nexis.com.oasis.oregonstate.edu. 23 Apr 2006.

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Transport and Tourism Division . Transport and Tourism Division . Commercial Development of Regional Ports as Commercial Development of Regional Ports as Logistics CentresLogistics Centres. 2002 Transport and Tourism Division . . 2002 Transport and Tourism Division . Commercial Development of Commercial Development of Regional Ports as Logistics CentresRegional Ports as Logistics Centres. 2002 . 2002

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