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PORT PLANNING

Lecture Objectives

LO: Evaluates the importance of port and terminal planning

CONTENT

• Various definition of port planning.
• Port planning – Influencing factors
• Port development policy – governmental role, regional needs, competition.
• Port Planning classification.
• Strategic port planning.
• Approach to port planning.

What is planning?? Importance!!

It helps the organization in the following ways:

• Making Objectives Clear
• Planning Provides Direction
• It Reduces Risk and Uncertainty
• Planning is Economical
• Planning Provides the Basis for Control
• Planning Facilitates Decision Making
• Planning Improve Efficiency of Operations
• Planning Improves Morale
• Effective Co-Ordination
• Planning Encourages Innovation and Creativity

Port types and/or classification

By traffic type By specialization (^) By governance

Sea ports Multipurpose ports Public service ports

Inland waterway ports (^) Container ports Tool ports

Sea – inland ports Dry bulk ports Landlord ports

Lake ports (^) Liquid bulk ports Private service ports

General cargo ports^ Private industrial ports

 Port planning is an area where several topics related to port investment, capacity, design, operations, strategy, and policy are dealt with simultaneously.  It also links port activity with both maritime and inland transport systems as well as with the wider logistics and supply chain system.

 The core objective of port planning is to seek a balance between shortages in capacity and over-capacity at adequate cost, price and service levels.

 This involves decisions related to operational productivity and optimisation, network and demand modelling, design and layout configuration, market research and development, project appraisal and economic valuation, investment financing and analysis, competition and pricing, and public policy and development.

Port Planning

Port planning – Influencing factors

 Increase of world trade  Unitization of cargo requiring high investments  Changes in ship size  Joint ventures and mergers of companies  Increased demand for information  Privatization trends  Increase of investments in ports  Necessity to optimize the integral transport chains

Construction of new infrastructure

Need to engage significant financial resources which requires multi-annual budgeting

Port planning – national level

Planning objectives

Port system efficiency enhancement

Strengthening social and territorial cohesion Improving of the overall system sustainability Contribution to economic development and competitiveness

National transport / port policy and/or strategy

Port Planning

Port Reform

• Governments and port managers can select from among a variety

of strategies for improving organizational and operational performance, including:  Modernization of Port Administration and management.  Liberalization or deregulation port services.  Commercialization.  Corporatization.

 Privatization.

https://ppiaf.org/sites/ppiaf.org/files/documents/toolkits/Portoolkit/Toolkit/module3/port_reform.html 13

Classification of Plans

• Based on Importance:

• Plans can be strategic, tactical, or operational.
  • Strategic plans are important, future-oriented plans that form the hub of fulfilling the vision. Usually, they concern the entire organisation.
  • Tactical plans are required to implement strategic plans. Examples, are redesigning the shop floor layout or closing a few non-performing outlets of a retail chain.
  • Operational plans are related to day-to-day functioning such as production, delivery, or purchase operation. Take for instance, the plan of Cargo/containers to be stacked in the yard which is an illustration of operational plans.

Classification of Plans

Three different types of port planning by port authorities can be

distinguished :

• Short-term planning
  • current allocation of the port’s resources and services.
• Medium-term planning
  • involves both financial and strategic planning
• Long-term planning
  • embodied in the development of port master plans or strategic port

plans.

Port planning in its context

General layout of a container terminal

The strategic port planning process

A typical strategic port planning process consists of five different building blocks or phases in the development.

Formulate a mission or strategic intent

Assess the gap between abilities and ambitions

Create resources to fill the gap

Strategy formulation and implementation

Evaluate the effectiveness of chosen strategies