Transcript Maritime transport sector infrastructure imperatives

Maritime Transport Sector
Infrastructure Imperatives
June 2006, CSME
Roland Malins-Smith
Dominant influence on infrastructure
has been containerization
• Origins of containerization – trucker Malcolm
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McLean, 1956
Precipitated globalization by reducing the cost of
maritime transport
Simple, effective way of moving goods which
protects them, speeds up handling, permits
inter-modal exchange, permits economies of
scale with ships, speeds up delivery time,
reduces inventories and costs
The end game – dramatically increase port
productivity
Impact of containerization
• Introduced a new class of vessels – the container ship
• Introduced new handling methods & organization at
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ports
Dictates changes in port layout
Requires investment in specialized port equipment
Increases labor productivity, leads to reduction in work
force
Today we take containerization for granted, but it has
been quite a change for the Caribbean, and the
adjustment of our port infrastructure is an ongoing
exercise
Caribbean network of mainline and
feeder services developing
• Larger ships being used from Far East, Europe
• Smaller ships moving containers from:
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Florida
Kingston Jamaica
Manzanillo Panama
Cartagena Colombia
Freeport Bahamas
Caucedo Dominican Republic
And secondary transshipment points such as
• San Juan, St Croix, Point Lisas, Port of Spain, Vieux Fort
Transshipment is major business
for ports such as Kingston
• Will move over 2.2 million teus in 2006
• Now investing US$250 million to grow to
3.2 million within 4 years
• Expects to have 2,100 ship calls this year
• Building another 475 meters of berth and
additional 161 acres of container terminal
space
For Transshipment ports, success
requires high productivity and low
unit costs, achieved with:
• Measured investment in berths and terminal
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storage areas
Container gantry cranes, RTGs, straddle carriers,
container stackers, yard trucks and chassis
Effective and experienced management
Industry specific software
Motivated work force, stable labor environment.
Objective: Rates of 25-35 moves per gang hour
State of port infrastructure in CSME
a mixed bag – difficult to generalize
• Some ports such as Kingston have spent considerable
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sums, making rapid progress
Most Caribbean ports have modest programs for
acquiring / using container handling equipment
Some are in urgent need of berth renovation and
expansion, dredging and terminal construction –
Paramaribo and Georgetown
Given state of infrastructure, fair to say that port
productivity can be improved with further investment
and with pro-active management of existing facilities
From operator’s standpoint,
infrastructure issues:
• Berthing competition between cruise and container ships
• Where volume warrants, investment in cranes can intensify use of existing
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facilities
Insufficiency of “moving” equipment between ship and storage area
Preventive maintenance programs preserve equipment
Communications equipment sometimes lacking
Organization of container storage areas and pre-staging to increase
productivity
Use of available software
Rationalization of working hours, gang size, charges
Container turn time, demurrage, storage regimes
Training to avoid poor handling methods, improve safety
Container truck scales increasingly useful
Effective and experienced management the key element
Ships and services – no shortage of
opportunities for CSME
• As a by-product of containerization, comprehensive regional
network of services exists
• Most if not all ports linked with day of the week sailings
• Over 15 container shipping lines offer regular services
• 6 actively canvass intra-regional business
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Tropical Shipping – www.Tropical.com
Bernuth Marine – www.Bernuth.com
Seaboard Marine – www.Seaboardmarine.com
Crowley Liner Services – www.Crowley.com
CMA/CGM – www.cma.cgm.com
Seafreight Line – www.seafreightagencies.com
Current schedules can be found on the websites. CSME exporters who
generate container size shipments are familiar with these services
Some issues remain
• Handling cost, a function of productivity, remain
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relatively high, for reasons already given
Minimum costs and charges associated with
container activity make LCL shipments very
expensive
For primary products, refrigerated services
usually come in 40’ container sizes
Knowledge of existing services and opportunities
could be improved
Thank you !