Integrated Port Passenger Terminal Building in the

Port of Iloilo City, Iloilo

by

Cris Edward F. Monjardin

Bachelor of Science in Civil Engineering
Mapua Institute of Technology, 2013

A Thesis Submitted to the School of Graduate Studies

in Partial Fulfilment of the Requirements for the Degree

Master of Science in Civil Engineering

Mapa Insitute of Technology

Nov 2014

Chapter 2
Review of Related Literature

2.1 Ports and Port Sites

Ports are points of convergence between two domains of freight circulation
(sometimes passengers); the land and maritime domains. The term port comes from the
Latin portus, which means gate or gateway. Ports are bound by the need to serve ships, and so
access to navigable water has been historically the most important site consideration. Before the
industrial revolution, ships were the most efficient means of transporting goods, and thus port
sites were frequently chosen at the head of water navigation, the most upstream site. Many major
cities owed their early pre-eminence to this fact, such as London on the Thames, Montreal on the
St. Lawrence River or Guangzhou on the Pearl River. Ship draft was small, so many sites were
suitable. Sites on tidal waterways created a particular problem for shipping because of the twicedaily rise and fall of water levels at the berths, and by the Eighteenth Century the technology of
enclosed docks, with lock gates was developed to mitigate this problem. Because ship transfers
were slow, and vessels typically spent weeks in ports, a large number of berths were required.
This frequently gave rise to the construction of piers and jetties, often called finger piers, to
increase the number of berths per given length of shoreline (Notteboom, 2013).

2.2 Port Functions and Traffic

The main function of a port is to supply services to freight (warehousing, transshipment,
etc.) and ships (piers, refueling, repairs, etc.). Consequently, it is misleading to consider a port
strictly as a maritime terminal since it acts concomitantly as a land terminal where inland traffic

originates or ends. Ports are becoming increasingly regional in their dynamics, which represents
a new development from their traditional local function, namely as industrial complexes. For
instance, the port of Hong Kong owes its wealth to its natural site and its geographical position
of a transit harbor for southern China. A similar function is assumed by Shanghai for central
China with the Yangtze river system. Singapore, for its part, has been favored by its location at
the outlet of the strategic Strait of Malacca and is therefore a point of convergence of Southeast
Asian transportation. More than 90% if the traffic it handles is strictly transshipments. New York
has traditionally acted as the gateway of the North American Midwest through the Hudson / Erie
Canal system, a function which Western European ports such as Rotterdam or Antwerp perform
with their access to the Rhine system (Rodrigue, 2013).

2.3 Port Authorities and Port Holdings

Due to the growing level of complexity of port operations, public port authorities were
created at the beginning of the 20th century. For instance, the London Port Authority, the world's
first, was established in 1908 by consolidating all the existing harbor facilities. Such
a management structure became a standard that was adapted to many other ports. For North
America, in 1921, the States of New York and New Jersey created the Port Authority of New
York and New Jersey, which has become one of the world's most diversified port authority with
a portfolio including port facilities, bridges, airports and public transit systems. Administratively,
port authorities are regulating infrastructure investments, its organization and development and
its relationships with customers using its services. Port Authorityis an entity of state or local
government that owns, operates, or otherwise provides wharf, dock and other marine terminal
investments and services at ports (Roso and Lumsden 2010).

The main rationale behind the setting of many port authorities was their ability to manage
more efficiently port facilities as a whole rather than privately owned and operated terminals.
Since port facilities were becoming more complex and more capital intensive, it was perceived
that public agencies would be better placed to raise investment capital and mitigate the risk of
such investments. Port authorities tend to be vertically integrated entities as they are involved in
most of the activities related to port operations, from the construction and maintenance of
infrastructure to the marketing and management of port services. Yet, their activities were
limited within their jurisdictions, an attribute that became increasingly at odds with the
transformations of the maritime shipping industry through globalization (Slack, 2013).

2.4 Regionalization and Transshipment Hubs

The current port development phase underlines that ports are going beyond their own
facilities to help accommodate additional traffic and the complexity of freight distribution,
namely by improving hinterland transportation. Port regionalization is such an outcome and
indicates a higher level of integration between maritime and inland transport systems,
particularly by using rail and barge transportation, which are less prone to congestion than road
transportation. The development of global supply chains increased the pressure on maritime
transport, port operations, and on inland freight distribution, which in turn has incited
active container transloading activities in the vicinity of port terminals. Inland accessibility has
become a cornerstone in port competitiveness since it can be serviced by several road, rail and
barge transportation, notably in Europe. Port regionalization is characterized by strong functional
interdependency and even joint development of a specific load center and logistics platforms in
the hinterland. This leads ultimately to the formation of a regional load center network,

strengthening the position of the port as a gateway. Cargo at ports always required some
transshipment to smaller ships used a feeders to smaller ports. For obvious reasons, it is
impossible to connect directly all possible port pairs, so transshipment is required to insure
connectivity within the global trading system. With the growth of container volumes, many
gateway ports were facing the challenge of handling export, import and transshipment
containers. This went on par with the growing share of transshipments in regard to the totality of
maritime containerized traffic, from around 11% in 1980, 19% in 1990, 26% in 2000 to about
29% in 2010. The number of times a container is handled at a port is also increasing, underlining
the setting of complex containerized transport chains as well as the growing difficulties of
transferring cargo into large containerships (Kasarda and Lindsay 2011).

2.5 Guidelines for Ferry Operations

U.S. Customs and Border Protection (CBP) Technical Design Standards for all Seaport
Passenger Processing Facilities, including Cruise Terminals, Ferry (Passenger/Vehicle),
Seaplane Processing Facilities, and Private Craft Facilities are currently under revision. These
standards apply to all new facilities and facility renovation projects.
In the interim, all transportation lines and/or port operators must contact the local CBP office
to coordinate required CBP project approval(s) and assistance in determining project specific
requirements. This early coordination with CBP will help ensure the proposed facility meets all
CBP operational, security, and safety requirements necessary for CBP approval, occupancy, and
operations.
2.5.1 Processes

Upon notification, the CBP Field Office will contact the CBP Headquarters Office of Field
Operations, Facilities Division, with the following information to be provided by the requesting
transportation line and/or port operator in coordination with the CBP Field Office:

Location of project

Type of operation and CBP areas affected

Estimated project commencement date

Estimated project completion date

Frequency of vessels/crafts

Number of arrival passengers per hour (maximum)

Passengers expected (year 1)

Passengers expected (10-year projected)

Anticipated functional space required

Number of passport control booths

Project staffing implications/requirements

Information Technology (IT) implications

Security considerations

Scheduled, charter, or seasonal arrivals

Port(s) of Embarkation (foreign) from where aircraft/vessels will arrive

Special interests, if any

Port Operator/Transportation Line Project Coordinator POC, title, address, e-mail and
telephone number

Upon receipt of this information and once a project has been approved by CBP, OFO
Facilities Division work with the Office of Administration, Asset Management (AM), and the

Field Office to begin coordination and development of all project specific requirements to
include functional space, security, operational, and other requirements. (US Department of
Homeland and Security, 2010)

Figure 1

Figure 2

2.6 Factors affecting seaport capacity

One of the most important dynamic problems that decision makers face in todays
maritime ports is where and how to upgrade the existing port capacity for rising port demands
due to continuous growth in containerized trade and the tendency for bigger ships to visit ports.
Academia and corporate interests in capacity planning and capacity management have risen
considerably in recent years. To establish the field further, the purposes of this paper are three
fold. It (1) identifies consequences of capacity shortage at seaports and corresponding supply
chains; (2) offers a conceptual framework to summarize the research in the field concerned with
the factors influencing seaport capacity using a holistic approach after reviewing academic and
industry-related papers; (3) and finally, concludes by suggesting promising research tracks on
factors affecting capacity. In Particular, we explore the specific roles of deterministic simulation
and stochastic simulation as future research directions in this rapidly changing and challenging
maritime domain. This study is significant as there is limited literature on this subject concerning
factors affecting capacity and studies carried out so far on capacity improvement mechanisms are
constrained principally by the lack of integrated points of view. (Islama and Olsena, 2012)

2.7 Land Productivity of Seaport Terminal

When considering the terminal performance, attention is mostly directed toward
production factors such as labor, capital and technology within the confines of the physical
terrain. Operations on seaport terminals can be further enhanced by optimizing processes and
technical upgrades. The role of the general environment, however, often remains neglected.
(Pallis, 2014)

2.8 Transportation Terminals

All spatial flows, with the exception of personal vehicular and pedestrian trips, involve
movements between terminals. Transport modes require assembly and distribution of their traffic, both
passenger and freight. For example, passengers have to go to bus terminals and airports first in order to
reach their final destinations, and freight has to be consolidated at a port or a rail yard before onward
shipment. Terminals are, therefore, essential links in transportation chains with many representing
substantial infrastructure and capital investments. The goal of this chapter is to examine the spatial and
functional characteristics of transport terminals. They occupy specific locations and they exert a strong
influence over their surroundings. At the same time they perform specific economic functions and serve
as clusters of specialized activities (Bowen, 2010).