YARD PLANNING: A STUDY

NHAVA SHEVA INTERNATIONAL

CONTAINER TERMINAL

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 YARD PLANNING: A STUDY

Nhava Sheva International Container Terminal

YARD PLANNING
Weekly Report submitted in partial fulfillment of the requirements for the degree of

MBA in PORT & SHIPPING MANAGEMENT

Submitted By:
Md Sajjad Alam
Reg. No.-13100081009
MBA (Port and Shipping Management)
School of Maritime Management
Indian Maritime University, Chennai

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 YARD PLANNING: A STUDY

DECLARATION

I, Md Sajjad Alam student of School of Maritime Management, Indian

Maritime University, pursuing Master of Business Administration (Port and
Shipping Management), hereby declare that the weekly report titled YARD
PLANNING is an original work carried out by me availing under the guidance of
my project guide and to me entire satisfaction to this report bears no resemblance
with any other report to any University or Institute or published earlier.

Place:

Date: Md.Sajjad.Alam

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 YARD PLANNING: A STUDY

Table of Contents

1.1 Introduction 5

1.2 Organized Panning service 5

1.3 Yard Planning 6

1.4 Efficient Stacking of container in Terminal 6

1.5 Operation system in container

yard.................................................................................10

1.6 Yard Planning Strategy 11

1.7 Container yard capacity assessment 11

1.8 Policy variables and

Decisions........................................................................................
..14

1.9
Conclusion......................................................................................
.................................15

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1.1 Introduction
Generally terminal means the start or end point for goods in transit. The main function of
a container terminal is to transfer containers safely, promptly and correctly between the
different modes of transport between main line of vessels and feeder vessels or
road/railway transport vehicles.

Container terminals are very complex systems. Due to the dynamic nature of the
environment a large number of timely decisions have to be continuously reviewed in
accordance with the changing conditions of the systems. Basic working parameters of the
terminal (berth loading and unloading, yard loading and unloading, berth and yard
occupancy, number of vehicles at the entrance in the terminal etc.) change continuously.
Thus it is necessary to check and adjust them frequently. For such control, a vast number
of program tools are used, which are in most cases only intermediate tools. Those
programmes are used for decision support and can be defined as an intermediate phase of
planning, forecasting and optimization. The phase of optimization is the last phase of
decision in terminal modeling, because the infrastructure and superstructure of the
terminal must first be defined, which is normally based on yearly container traffic
forecast (by sea and by land). Thus the maritime container terminal must form an
adequate decision model for short-term and long-term businesses and development
decisions.

1.2 Organized Planning Service:

The decision making model can be organized in the maritime container terminal through
the planning service. The model is composed of three modules, which are in continuous
interaction. These are modules of forecasting, simulations and planning with optimization
segment. The module of forecasting is composed of two sub-modules. The first module
analyses the new technologic cognitions in the fields of transport, manipulation and
storage (the development of container vessels, berth cranes, state-of-the-art systems for
container storage etc.), which can be adopted on the existent maritime container terminal.
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 YARD PLANNING: A STUDY

The second module performs phases of forecasting the development of containerization

in the region and the traffic of containers through the terminal. The phase of forecasting is
the key element, because it must foresee the needs and potentials to develop all the
terminal's subsystems (subsystem of berth, subsystem of yard and handover subsystem)
and at the same time enable an adequate planning and simulations application on the
terminal.

The simulation module includes calculations of terminal's productivity parameters. With

the simulation it is possible to set up the infrastructure and superstructure of the terminal
and to define the needed working processes. The module of simulation is also usable in
case of an existent terminal, because with consideration of different number of
manipulation equipment and staff education it is possible to achieve desired level of
optimization. The planning and optimization module is directly connected with modules
of forecasting and simulations. The planning module must consider forecasts and
cognitions acquired by simulations, and only in this way can planners optimize processes
of the system and the structure per each subsystem. Different methods can be used for the
optimization module, but empiric calculations are used very often (queuing theory, partial
and total costs calculations etc.).

1.3 Yard planning:

Operation on the storage yard is the most complicated part at a terminal because both
inbound and outbound container flows are handled in this area simultaneously. Yard
planning hence determines the port efficiency to a great extent, in which the assignment
of storage locations to inbound containers (i.e., storage allocation), the usage of yard
equipment and the retrieval sequence of outbound containers are resolved. In traditional
storage yard, containers are stacked by yard cranes side by side and one on top of another
to form rectangular shaped heaps called blocks, each of which consists of a number of
rows in width, a number of bays in length and a number of tiers in height. The size of
each block varies in different terminals.

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1.4 Efficient stacking of container in

terminals:
Every container terminal uses three main resources: yard, machines, and people. The
efficient use of these resources is the basis for granting customers the service level they
are entitled to. Moreover, the more efficiently a terminal can use its resources, the more
profit can be generated for the shareholders.

Yard management:

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The yard can be regarded as an intermediate stacking area, holding boxes until they are
transported to their next destination. Stacking boxes takes up one of the terminals most
valuable resources: yard space. A yard management system will position a container in a
slot where, ideally, it does not need to be re-handled before leaving the terminal. After all,
reshuffling containers is a very costly activity, both in time and resources, which is
(usually) not billable to a customer.

The yard is a highly dynamic and constantly changing area that needs to be treated as
such. Any Container Terminal System (CTS) that considers the yard as static will put
constraints on the efficiency that could be obtained. Static planning requires preplanning.
This means that for example for the import boxes on an inbound vessel, yard positions
will be planned before the vessel arrives at the terminal. Consequently, parts of the
terminal will be reserved for the boxes on this vessel. This reserved area will thus be shut
off for operations and cannot be used until the discharge of the arriving vessel starts. As a
result important constraints will be imposed on the available space, leaving not a lot of
room for flexibility.

Fig: Block stacking

This dynamic, real-time way of working is fit for the majority of terminals, since it
allows not only an optimal use of the terminal grounds, but a highly efficient and
optimized use of the terminals equipment as well.

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Fig: Linear stacking

Densely stacked yards:

A densely stacked yard may be caused by unacceptably long dwell times. In this case,
tighter contracts with terminal customers might solve the issue. When the dense stacking
is a consequence of the high overall throughput of the terminal, the operator needs tools
to manage this high volume and offer a stable and sustained performance to its customers,
within the constraints imposed by that same customer: last minute changes, changes in
vessel nomination, overall flexibility... This is a reality, not only on dedicated, but on all
terminals.

High Density Planning (HDP):

When the number of containers on the yard is very high and therefore the normal
planning is unsuccessful, High Density Planning offers a more flexible way to continue
planning units automatically. HDP starts from the planning rules used for normal

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planning. Strict adherence to the normal business rules can make it very difficult for a
system to find the right spot in a densely stacked terminal. This for one very simple
reason: no positions are left on the terminal complying with the rules set. The fact that no
position can be found is not a system-related problem, but is caused by the fact that the
resource yard has almost been used completely. In fact, HDP applies the business rules in
the system in a looser way when so dictated by the operational reality on the terminal

1.5 Operation system in container

yard:
The right selection of the operations system is a key factor to a successful terminal. The
decision for an operations system depends, on the following factors:

size of vessels
traffic forecast (annual container volume)
container volume in peak hours
available land area
required stacking density of the containers per ha (configuration of stacking yard)
cost structure (wages, financial facilities, dues)
aimed STS productivity (i.e. TEU / crane / hour)
geographic restrictions of the terminal area
contingent restrictions due to soil conditions
environmental impacts like wind, ice, noise, light and snow
mean dwell time of containers in the stacking yard
TEU factor (e.g. 1,6 implies 60% of all containers are 40 ft long)
percentage of reefer containers
percentage of empty containers
percentage of LCL (Less than Container Load)
the connections to the hinterland transport modes road, railway and inland
waterways

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1.6 Yard Planning Strategy:

1. Traditional Method: The traditional method of strategic capacity planning
usually involves the following activities:
I. Estimating the capacities of the present facility,
II. Forecasting the long range future capacity needs of all products and
services,
III. Identifying and analyzing sources of capacity to meet the future
requirements.
IV. Selecting among the alternative sources of capacity.

Capacity is defined as the maximum or the best operating level. The utilization of
capacity is defined;

Capacity Utilization = Capacity Used / Best Operating Level

2. Modern Method: There are, in a typical business, four levels where capacity
planning is required:
I. High level business planning e.g. to justify capital expenditure, or produce
profit forecasts,
II. Management of the demand and the gross capacity to meet it (Sales and
Operations Planning),
III. Scheduling of individual cells or process areas,
IV. Individual process management e.g. speeds / makes ready times.

1.7 Container Yard Capacity

Assessment:
As a rule of thumb the area required for a container terminal will be about 10-100
ha/berth depending on the generation of the container ship (Thoresen, 2003). The annual
terminal capacity is usually expressed in terms of 20 feet container equivalent units
(TEUs). The annual container TEU movement (CTEU/YEAR) is given by the following
expression (Thoresen, 2003):

CTEU/YEAR = (AT*365*H*N*L*S) / (ATEU*D*(1+BJ)

OR

AT = CTEU/YEAR*(ATEU*D*(1+BJ) / (365*H*N*L*S)

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Where the following are the important parameters for determining the terminal capacity:

CTEU/YEAR = container movement per year

AT = total yard area needed
AN = net stacking area
H = ratio of average stacking height to maximum stacking height
of the containers varying usually between 0.5 0.8. This factor
will depend on the need for shifting and digging of the
containers in the storage area, and the need for containers to be
segregated by destination.
ATEU = area requirement / TEU depending on the container handling
system
D = Dwell Time or average days the container stays in stacking
area in transit
BJ = buffer storage factor in front of the storage or stacking area
between 0.05 and 0.1
S = segregate on factor due to different container destinations,
CMS, procedures etc., varying usually between 0.8 1.0
L =Layout factor due to shape of the terminal area varying usually
between 0.7 for triangular area shape to 0.1 for rectangular area
shape

The area requirement ATEU in m2/TEU is dependent on the container handling system
and the stacking density, the internal layout arrangement and type of equipment used for
stacking the containers, the internalaccess road system, and the maximum stacking
height. Recommended very approximately, the design estimates for area requirements
ATEU, including stacking area, internal road system etc., are shown in table 1 below:

Table 1: Equipment type and stacking area

Sl.No. Handling Equipment Stacking ATEU in m2/TEU with the

and Method Height of following breadth or line of
Container containers
1 2 5 7 9

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1 Chassis 65

1 72 72
2 FLT (Fork Lift Truck)/ RS 2 36
(Reach stacker) 3 24
4 18
1 over 1 30
3 SC (Straddle carrier) 1 over 2 16
1 over 3 12
1 over 2 21 18 15
4 RTG (Rubber tyre gantry) 1 over 3 14 12 10
/ RMG (Rail mounted 1 over 4 11 09 08
gantry) 1 over 5 08 07 06
Source: Compiled by author from different literature

The area requirement ATEU in m2/TEU will also depend on the size of the TEU ground
slot. The ground slot will usually vary between approximately 15-20 m2 per TEU
depending on the container handling and stacking equipment.

The container stacking density is dependent on the container stacking layout (width and
length), the stack height and the stack position. Therefore the arrangement of the
container stacks would directly affect the accessibility and storage of the containers, and
would be of central importance to the throughput and efficiency of the container terminal.
The total number of container slots SL at the stacking area will be;
SL = (AT * N) / ATEU
Where the following are the parameters for determining the total number of container
slots:
SL = total number of container slots at the stacking yard
AT = total yard area
N = primary yard area or container stacking area compared to total yard area
ATEU = area requirement per TEU depending on the container handling system

To determine the TEU/container crane, per berth meter and per stacking area, one should
therefore use the equipment type, dwell time and other factors as indicated above
(Thoresen, 2003).

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1.8 Policy Variables and Decisions:

1. Equipment Type: Depending on the type of equipment, containers can be stacked
at different heights and as a result area per TEU would vary. Equipment such as
RTG / RMG can enhance availability of container stacking area. Moreover, the
rate of clearance and shifting also depends on the type of equipment.
Ports can decide on optimum equipment mix so as to enhance the capacity of
the container yard instead of expending on development of additional area as
container parking yard.

2. Average Stay at Yard: The capacity of the yard increases if the stay time
decreases. This can be reduced with proper planning and structuring demurrage
charges.
Ports can decide on demurrage charges that discourage unnecessary stay of
containers at the yard.

3. Planning Factor: Proper planning can be done if information on container arrival

and shifting from the yard is available well before time. Ideally, the Planning
Factor should be equal to 1. The Dwell Time of containers is a function of the
Planning Factor. It increases if the Planning Factor reduces, i.e. tends to be
less than 1.
Hence, a policy decision can be taken to introduce a system of shifting of
container by appointment, so as to ensure complete planning in advance.
This is expected to achieve just-in-time (JIT) delivery minimizing the dwell
time. The planning factor in case of JIT delivery would be equal to 1 (one).

4. Investment Decision: Capital costs are sunken cost and are irreversible. In
addition capacity expansion projects in ports have long gestation periods.
Improper decisions may lead to superfluous expenditure and low returns.

Thus, ports should invest only after effecting change in processes, optimizing
the equipment mix, establishing clear channel of communication through
implementation of the right ICT (Information Communication Technology)
and ensuring that the Planning Factor is equal to 1

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1.9 Conclusion
The acceptance of new approaches and new technologies is helping the industry to
develop higher-velocity, higher productivity container terminals. The benefits of these
new approaches and technologies can now be validated by real world experience, giving
more credibility to the preceding simulation modeling efforts. We, as maritime facility
planners using these tools, look forward to continue to facilitate the evolution of modern
maritime facilities to meet the needs of the industry.

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