Transportation: Port Development

The port is defined according to Patrick, (2008, p.5) as the area near the seashore and with infrastructure capacities for a vessel/shore interface and customs facilities. Knowledge claims consider Bruges Port as being the leader in Northern Europe in the thirteenth century. In the turn to the fifteenth century, Antwerp took over. However, there was a turn in 1585 after the invasion by Spaniards and termination of the Scheldt. Then Amsterdam took over the lead for almost a century. London out did Amsterdam later on. London was favored since industrial capitalism gained more popularity than in other commerce. The Port of Tanjung Pelepas (PTP) was experiencing faster growth than the others were in 2001(Patrick, 2008, p.19).Some quarters argue that London is the front-runner in terms of port commerce. According to (Patrick, 2008, p.19) parameters for contrasting ports range from general landscape where the port is located; the portside area and revenue generated from shipment operations through the port. Analysts project dry that bulk (grain cargo) and crude oil are to shape the direction of development of trade associated with ports.

The extent to which a port has potential to develop with reference to how it applies the strategic resources both tangible and non-tangible to win favor competitively amid its inbuilt limitations is analyzed using the SWOT tool. SWOT stands for Strengths, Weaknesses, Opportunity and Threats. SWOT is a platform for squarely analyzing the four aspects. According to Patrick, ( 2008, p.18) the SWOT analysis within port operations will traverse seaport convenience; ports sea depth and strategic positioning with to international trade routes; logistics solutions especially to ease complication for the proximate processing firms as well as the commodities shipped for them. In addition, mutual coexistence and cooperation with transport operations and other transport modes linking with the port especially railway networks; human resource and the experts who operate the port, the level of embracing information technology and communication means, intra- and extra-competitive abilities and the political cloud surrounding the port administration.

The illustration in Figure1 shows the common development path as well as aspects of developments and the possible interventions adopted by respective port managers.

Phases of Port Development & Factor constraining port development
Figure1: Phases of Port Development & Factor constraining port development

According to Gazeley ltd, (2006, p.2 of 6), the Port of Felixstowe whose owners are the Hutchison Ports (UK) limited leads in the UK as the largest deep-sea container port. Port of Felixstowe covers an approximate area of 324.06 hectares with ship 98000 Twenty Equivalent Units (Port of Felixstowe, 2010). In addition, Twincentric ltd (2003, p.1 of 2) considers the Port as Europe fourth largest and thirteenth, globally. The dealership in particulate commodities that are traded at international level show unstable demand especially since in the 1950s. In 2008 cargo in the international trade formed 28% while in the year 2000 and 2005 were at 981 and 1,200 million tones, respectively. Consequently, containerized cargo in the international trade between years 2000 and 2005 rose from 57.6% to 60%.

Growth trends commerce within China has influenced greatly the world trade. China exceptional growth in population (most populous state) as well as economic development dictates this fact. The Hutchisons Ports parent company traces its ownership based at China. The Port of Felixstowe connects with all other globally reckoned ports. It has more than 360 international operational links with other ports in more than 100 hundred countries. According to Patrick, (2008, p.13), the design and infrastructure laid out on a port are the main indications of its development path. These will depend on investments allotments meant to improve a ports design and infrastructure through investing in the technology of the conveyance machinery used as well as maximizing trade based on diversity of consignments and amount conveyed. Also, considered equally important are technological advancement on how the handled cargo, the intensity of labor input and how the local populace embrace the industry.

According to Gazeley ltd (2006, p.3 of 6) there are noticeable indicators of success within the Port of Felixstowe. The Port boasts of the highest deep-sea container handling considered to form half of the UK cumulated capacity and with Twenty Equivalent Units (TEU) estimated at an excess of about 3million. Two key success indicators for ports according to Patrick, (2008, p.18 – 19) have parameters for evaluated based on choice of location with reference to water depth for the harbor as well as how the port activity cope with traffic all goods passing through. Other outlier factors that affect the growth of a port include personnel deployed, variations in climatic and environmental conditions and embracing new cargo-moving technology. The Port of Felixstowe’s area within the hard surface close to the sea that forms the quay with nine deep-water loads disembarks on a 1.2 miles (19.3KM) stretch. The amount of international trading activity through a port form part of main factors influencing the quantity of goods passing through it. Thus, amount of goods traded passing through a port is measurable using tool based on laden weights of shipmen as well as quantity over the distance covered.

The Port of Felixstowe has a global shipping reputation and estimates to operate on 70 distinct shipping paths while serving over 55 shipping lines. Measures undertaken within the trade industry both national and international may either favor or cause adverse effects on a port. Patrick, (2008, p.13) gives a case in point of the UK inclusion into the European Union as had adverse implications on Liverpool while Felixstowe standing to benefit as the UK had more trade ties with other European Union partners compared with other commonwealth members. While strategizing the ports operations, its managers ought to factor the direction taken by the ongoing regional trade and industrial relations. The Port of Felixstowe leads other Ports in the UK as the mega entry point for Chinese and Far East incoming goods. The Port links with other transportation modes towards the inland determines its rate of expanding and contracting development wise. Intellectual shifts in the activities that mainly generate revenue for the port and logistical also affect its development. For instance, in Europe after the Second World War ports have opted to trade off their storage for other operations such as use for industrial purposes. The Port of Felixstowe services nearly fifty trains on daily basis with up to 15 supply destinations within the UK’s mainland while, its RoRo terminal activities are at four per day that link it with mainland Europe. In order for a port to sustain its development, its management should actively anticipate the future.

Current global trends exhibit rise in per capita consumption, demand for products and energy (Patrick, 2008, p.16). The central issues related to port operations with connection to demand include whether crude supplies will continue to be ferried long distance for processing or opt to do it at a closer point and how ports will adjust to such paradigm shifts and whether any negative implications. The Port of Felixstowe is part of other twenty-eight within the Hutchinson Port Holdings (HPH) network. The twenty-nine HPH ports handled a cumulative Twenty Foot Equivalent Units of over 25 million within six years starting in year 2000 (Gazeley, 2006, p.3 of 6). Ports construct are for lifetime, will require modifications overtime. Patrick, (2008, p.14) points out that, older ports in Britain are disadvantaged as having archaic docks.

The Port of Felixstowe computerized its system in the year 1984 becoming the pioneer seaport in the UK that embraced such kind of information technology in data management (Twincentric ltd, 2003, p.1 of 2). The Port’s management continuously screens this system in a bid to enhance it to stream large amounts of data during transactions. The amount of bill of lading information handled is illustrative of this. Actually, the port has favored use of internet application over other modes of communication at the early years of 1990 (Twincentric ltd, 2003, p.1 of 2). The driving force for the Port of Felixstowe information technology that anchors on the Felixstowe Cargo Processing System (FCPS) that provides harmonious information for their different sectors. These includes shipping operators, terminal operators, customs and other government stakeholders, cargo handling brokers and link inland transport operators. The FCPS offer track and trace services that enable clients to keep abreast with shipment process.

The UK urgently requires another deep seaport container handling services to meet countrywide necessity for another container handling capability and that Felixstowe is fit positioned to meet the requirement (Hutchison Ports Limited, 2010). By 2006, approved proposals geared at expanding from the current Twenty Equivalent Units port capacity to about 5.2million. Other development proposal earmarked for Port of Felixstowe was to increase by half-mile (0.81KM) the existing quay area and down-cutting carbon emissions by 8% through new investment projects in 2009. This means that Port will experience a reduction in carbon emissions from 19.8kg.

The development in the Port of Felixstowe is well above the 1990 container terminal especially with reference to TEUS and Terminal area. The fact that the Port of Felixstowe is struggling with downsizing carbon emissions is an indication of massive pollution through greenhouse gases. The port should demonstrate clearly how it is employing cleaner production concept that calls for zero emissions and pollution prevention. This should include avoiding resource waste. Since the port is reducing by 0.8% emissions and yet activities are increasing than intensity of Carbon emission, this negates carbon emissions reduction efforts.

The Port of Felixstowe is investing in new cargo handling project. This means that the amount of cargo will soon rise to a targeted 263000TEUs. The amount of client dealt with will require diversity of communication means for monitoring shipping. Currently, client communication is via internet with track and trace. This should extend to automatic text messaging alerts to client’s mobile on any new developments within the shipment process.

Ro/Ro ship loading has links with wastage of ship space during loading. Modern technology has come in handy to solve the problem. It is not clear whether the port has adopted the ISO, 9000 (mark of quality). These will harmonies operation with reference to other port.

References

Gazeley ltd. (2006). Felixstowe Portside. Web.

Patrick, A. (2008). Port Management and Operations (3rd Edition), Informa: Publication Info.

Port of Felixstowe. (2010).Terminal Facilities. Web.

Twincentric ltd. (2003). Flexibility and ease-of-use deliver low-cost open solutions to Port of Felixstowe. Web.

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