BMM 0110GSLM 52700 Warehouse Planning and Operations Systems

BM_M 0110/GSLM 52700 Warehouse Planning and Operations Systems Yat-wah Wan Room: C 317; Email: ywan; Ext: 3166 Office Hour: Wed 3 5 pm, or by appointment 1

Objectives of the Course ö the role and effect of warehouses in a supply chain 2

Container Terminals 3

Outline ö background ö container ports ö container terminals ö goods ö an and equipment example: HIT ö decision problems 4

Background 5

Terminology ö TEU ö twenty-foot equivalent unit, the standard unit to measure container throughput ö a 40 ft container = 2 TEU 6

Venues for Container Transfer ö container terminal ö container yard ö feeder ports and river ports ö mid-stream operations ö public cargo working areas 7

Questions ö How important is containerization? ö What are the advantages of containerization? ö pre-containerization (00: 00 2: 47) ö bulk cargo ö What are the functions of container terminals? ö What facilities and equipment are required in container terminals? 8

Container Ports ö world traffic ö top 10 containers ports in 2011 ö how to rank these ports: ö Busan, Dubai, Guangzhou, Hong Kong, Ningbo, Qingdao, Rotterdam, Shanghai, Shenzhen, Singapore 9

Ranking of Container Ports ö 2010 ö ö 6 of the top 10 busiest container ports in China (units in TEU) ö Shanghai (1 st, 29. 1 m), Hong Kong (3 rd, 23. 7 m), Shenzhen (4 th, 22. 5 m), Ningbo (6 th, 13. 1 m), Guangzhou (7 th, 12. 6 m), Qingdao (8 th, 12 m) ö Singapore (2 nd, 28. 4 m), Busan (5 th, 14. 2 m), Dubai (9 th, 11. 6 m), Rotterdam (10 th, 11. 4 m) ö Tianjin (11 th, 10. 1), Kaohsiung (12 th, 9. 2 m) 2011 ö throughput of container ports in Taiwan ö in decreasing importance: Kaohsiung (9. 64 mill TEU), Keelung (1. 75 mill TEU), Taichung (1. 38 mill TEU) 10

Container Terminals 11

A Container Terminal as a Warehouse ö a special type of warehouse ö very standardized goods for short term storage ö some ö flexible form of consolidation layout for the same type of containers ö heavy equipment ö highly information driven 12

A Container Terminal as a Warehouse ö to “define” a container terminal ö goods ö layout ö equipment ö processes ö information systems ö problems 13

Types of Goods ö containers ö various types, of different size, weight, nature, port of destination, and port of origin, etc. ö bulk goods ö breaking down and building up at a Cargo Freight Station 14

Vessels ö non-self sustained cellular (NSSC) ö self sustained cellar (SSC) ö self sustained non-cellular (SSNC) ö carrier/Ro. Ro ships ö ultimate container carrier (UCC) ö lighter/barge 15

Container Movements in and out of a Terminal import vessel discharging vessel loading “deterministic” in time and processing order Blocks in a Container Yard export 16 container picking up container grounding “stochastic” in time and processing order

Typical Container Terminal Layout Maintenancy Yard Gate House Temporary Parking. Blocks, Lot for ITs Ycs, and QCs Block, IT and YC Gate House CFS Offices QCs and container vessel blocks of containers block yard crane QC IT and QC 17 vessel

Equipment ö crane ö quay ö job crane ö ö other equipment ö automatic guided vehicle rubber tyred gantry crane ö straddle carrier ö tractors ö front loader ö ö rail-mounted gantry crane ö scaffold platform ö chassis ö bridge crane 18 reach stackers

HIT 19

Hongkong International Terminals ö relative location ö ö ö terminals: 4, 6, 7, 9, and 50% of 8 East areas ö ö ö a clearer picture a total 92 hectares for terminals 4, 6, and 7 30 hectares for terminal 8 19 hectares for terminal 9 > 5 km quay length, 14 ship berths, & 9 barge berths 57 quay cranes, 8 rail-mounted jib cranes, 24 rail-mounted gantry cranes, 184 rubber-tyred gantry cranes , Hutchison Logistic Centre: 377, 741 m 2 20

Hongkong International Terminals ö ö Example: HIT/COSCO HIT Terminals operations ö ö ö key facts, terminal layout, work flow, virtual tour: guided tour and spots light work flow and information systems throughput: 10. 253 mill TEU in 126 ha (2010) 1170 TEU/hour ö 179, 900 TEU/QC/year ö 21

Web Material for Container Terminals ö Singapore Port - World's Busiest Port ö Hongkong International Terminals ö …. …. …. 22

Decision Problems in Container Terminals 23

Performance Indices ö throughput ö number per unit time ö ö ö for terminal, cranes, gate house utilization ö ö of container, of each type of container, of move cranes, space (block, stack, slot), berth occupancies time in system ö tractors, vessels, containers 24

Operations Decisions in a Container Terminal berth allocation (allocating vessels to berths) schedule and stowage plan of vessels QC allocation (allocating QCs to (bays of) vessels) storage space allocation (determining the numbers of I/B & O/B containers of each vessel in a block) location assignment (determining the exact locations of containers in blocks) RTGC deployment (deploying RTGCs in real time) 25 IT deployment (deploying ITs in real time)

Literature Review papers Related to Container Terminals ö ö Murty, K. G. , J. Y. Liu, Y. -w. Wan, R. Linn (2005) A decision support system for operations in a container terminal, Decision Support Systems, 39(3), 309 -332. Stahlbock, R. , and S. Voss (2008) Operations research at container terminals: a literature update, OR Spectrum, 30(1), 1 -52. Steenken, D. , S. Voss, and R. Stahlbock (2004) Container terminal operation and operations research – a classification and literature review, 26(1), 3 -49. Vis IFA (2006) Survey of research in the design and control of automated guided vehicle systems, European Journal of Operational Research, 170(3), 677 -709. 26

Advantages of Containerization ö simplify packaging, loading, unloading, and custom checking of goods ö reduce transportation times and costs ö increase utilisation of vessels and ports 27

Advantages of Containerization ö disadvantages of bulk goods in pre-container era ö ö ö ö ö loading, unloading, and stacking operations for each carrier change manually with low efficiency high labor cost, 80% of total cost for bulk goods by 1960’s long vessel porting time good packaging consuming time and costs damages mixing up of goods custom checking at each intermediate ports more paperwork and high insurance charge 28

Time Taken for Containerization ö ö not all goods can be containerized the magnitude of changes ö ö ö a totally new managing and controlling mechanism new port design new loading and unloading operations , replacement of ö ö ö fork-finger quays replaced by long water front quays small dollies and trolleys by huge shore and yard cranes labourers by skilful equipment operators ö ö ö Job reduction huge investment in material handling equipment and human resources new custom practice for eliminating individual consignments 29

Functions of Container Terminal ö intermodal interface ö temporary storage for containers ö paperwork for containers ö building up & breaking down of containers 30

Types of Container ö ordinary dry container: most common 31

Types of Container ö reefer container ö ö ö ventilated container ö ö ö temperature control e. g. , for frozen meat and diary products holes for ventilation for fruits and vegetables insulated container ö keeping heat from the cargoes 32

Types of Container ö open top container ö ö ö flat rack container ö ö ö loaded and unloaded from top for large-size, heave items bottom part and two small sides for heavy or odd-size items platform container ö ö a plain plate without sides for extra large and/or weight 33

Types of Container ö bulk container ö for bulk goods ö hatch ö covers on top for loading & unloading free flowing bulk material container ö for carrying powder, fluid, or gas ö using pumps for loading and unloading 34

Types of Container ö special purpose container, e. g. , ö dress ö for ö pen hanger container clothes without folding container ö for animals ö with net on its sides 35