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The information contained in this document is solely for the use of the ASEAN
Ports Association (APA) for the purpose for which it was prepared. The APA
Permanent Secretariat takes no responsibility for inaccurate or incomplete
information that may have been submitted to it. The facts published indicate the
result of inquiries conducted and no warranty as to their accuracy is given by the
APA Permanent Secretariat.
This reference material, one in a series of APA port practices manuals, is the
fruition of the collaborative efforts of the 25th APA Main Meeting held in 1999 in
Bali, Indonesia. It is APA’s intent to draft a manual that would provide
yardsticks on efficiency and productivity, particularly in cargo handling,
pilotage and tug operations, as they are adopted and applied at specific areas of
responsibility in APA member-ports.
At hindsight, the survey returns did not yield any definitive standards nor “hard
and fast” rules on the “how-to” of quality port management and/or service
delivery, taking into mind a singular ASEAN perspective. It has to be reckoned
with that the touchstones of efficiency and productivity are the consequences
between the interplay of resources and capabilities, which may be peculiar in an
area and are largely defined by the like-mindedness of the stakeholders
concerned.
In view of the foregoing, it was, thus, decided and agreed upon during the 28 th
APA Main Meeting, held in 2002 in Singapore, for the APA Permanent
Secretariat to just proceed for the time being with the compilation, analysis and
presentation of the canvassed results as captured through the latest survey
instrument. The Permanent Secretariat, however, committed to come up with a
more refined and comprehensive manual, which may afford general reference
for a wider range of users/readers, especially those affiliated with the maritime
industry.
The benefit this manual can offer could only be something relative, depending on
the objectives of the user. Still, further improvements can be incorporated into
this text to gradually and eventually fully satisfy the port information needs of
APA member-ports. So, let us leave it as what it is for the moment and have this
undertaking be a continuing process that would document the best and the
exemplary in ASEAN port operations practices.
This report was prepared by the Permanent Secretariat of the ASEAN Ports
Association which would like to acknowledge the following agencies, groups and
individuals:
BRUNEI DARUSSALAM
1. Ports Department
2. PSA Muara Container Terminal SDN. BHD
INDONESIA
MALAYSIA
PHILIPPINES
SINGAPORE
THAILAND
1. Bangkok Port
2. LCB Container Terminal
3. Laem Chabang Port/TIPS
4. Eastern Sea Laem Chabang Terminal Co., Inc.
VIETNAM
1. Baria Serece
2. Saigon Port
3. Danang Port
I. INTRODUCTION/BACKGROUND …………………………………….. 1
IV. APPENDICES
Background
In its 25th Main Meeting held on December 1-3, 1999 in Bali, Indonesia, the
ASEAN Ports Association (APA) identified a number of projects designed to
establish standards of efficiency and productivity in member-ports. One such
project was intended to come up with a manual on best practices in Port
Operations designed to provide benchmarks for productivity in cargo handling,
pilotage and tug operations.
The survey did not yield sufficient data needed for the manual. Among the
major problems encountered in the analysis of the responses were dissimilarities
in the units of measurement being used by member ports, incomplete or
unrelated responses, and unanswered questions.
The results of the February 2001 Survey were presented and discussed in the
22nd APA Technical Committee Meeting held in Cebu City, Philippines on
January 22-24, 2002. Further amendments were made on the questionnaire to
address the identified deficiencies. The revised questionnaire (Annex A) was
subsequently re-distributed to concerned member-ports in February 2002. The
questionnaire focused on port operational activities such as cargo handling,
pilotage and tug operation as well as aspects of resource/logistics management
such as port documentation, equipment, personnel, security, facilities and
amenities.
As with the results of the first survey in 2001, the following problems were
encountered:
The term “Best Practice” derives from various phrases now being used to refer
generally to processes, procedures and measures designed to improve
performance, in this case, in port operations. There are no generally accepted
criteria by which to judge which is and which is not best practice.
Best practice also depends on one’s viewpoint. A port user such as a shipping
line, a shipper or a consignee would have more stringent measures of
performance compared to, say, a cargo handling operator who must deal with
various constraints such as physical limitations in the port, equipment
limitations, labor laws and policies, port authority regulations, institutional and
other concerns as well as meeting his own profit targets. The major respondent
categories pre-identified in the Survey are as follows: port authority, terminal
operator, port operator, port contractor, port owner/operator and port owner.
Hence, these shall constitute the main perspective for assessing best practices in
the ASEAN ports.
One perspective that would be an important subject for a separate study that
may be integrated in this manual on best practices is that of the port users
(shipping lines, shippers, consignees). A move in this direction was the Port
Users’ Needs and Satisfaction Survey (PUNSS) conducted by the Philippine
Ports Authority (PPA) in 2001. An APA-wide diagnostic survey should yield
results that would be informative and provide some blueprint for documenting
best practices in the ASEAN region.
III.BEST PRACTICES
a. Forklift operator
b. Mobile crane operator
c. Reach stacker operator
d. Prime mover operator
e. Trailer operator
Best Practices Manual on Port Operations Page 3
The foregoing types of labor are common specifically in port/terminals
handling containerized and general cargo, which utilize these types of
equipment on a large-scale.
3. Skills acquisition
Cargo handling and related skills are acquired largely through the
following ways:
a. Experience
b. Formal training
c. On-the-job training
1. Salary
2. Overtime pay
3. Night differential
4. Social security
5. Uniform allowance
6. Transportation allowance
7. Pension plan
8. Medical benefits
9. Death benefits/burial assistance
10. Rice allowance
11. Profit-sharing
12. Productivity benefits
13. Shift allowance
Almost all ports granted the first five benefits: salary, overtime pay,
night differential, social security and uniform allowance. Ports in
Thailand, Philippines, Malaysia and Indonesia gave additional
benefits such as transportation allowance, pension plan and medical
benefits.
1. Prime movers
2. Trailers
3. Forklifts
4. Quay cranes
5. Panamax and post-panamax quay cranes
6. Floating cranes
1. Reach stackers
2. Forklift
3. Top loaders
4. Mobile cranes
The survey yielded the following with regard to processing time for
requests for workers and equipment:
a. Philippines – 1 to 24 hours
b. Malaysia – 17 to 36 hours
c. Thailand – 5 minutes to 6 days
Best Practices Manual on Port Operations Page 6
d. Indonesia – 9 hours to 7 days
e. Vietnam – 8 hours
Nearly all the ports indicated that portworkers and equipment were
available at the time of receipt of requests.
3. Deployment of portworkers
a. Rotation
b. Per Work Schedule
c. First-come/First-serve scheme
The majority of the ports make use of the first two schemes either
exclusively or in combination. The third is practiced in certain ports
in the Philippines and Indonesia.
Cargo Discharging
The two respondent ports that reported dry bulk cargo handling
operations use only the shipping document, either the cargo
manifest or the stowage plan, which is submitted to the Operations
Department, (the entity to which this Office is attached, whether
cargo handling firm or the port operator, was not indicated), upon
vessel arrival.
The three ports surveyed for liquid bulk cargo handling operations
utilize documents either prepared by the cargo handlers, at 67
percent usage rate, or by the shipping lines at 33 percent
frequency. The Operation Planning Report and Out Turn Report,
both emanating from the Cargo Handlers, are submitted to the
Port Operator and Shipping Lines, respectively, within 24 hours
from vessel arrival or upon completion of discharging operations.
On the other hand, the Manifest, which is a Shipping record, is
submitted to Planning, (no indication given regarding affiliation
to any entity), one day before vessel arrival.
Containerized Cargo
Those issued by the Cargo Handlers comprise the Gate Pass (26
percent), Delivery Receipt (26 percent), Gate Pre-Advice (12
percent), Tally Sheet (12 percent), Container Delivery Note (12
percent) and VLUTS (12 percent). The Forwarders/Consignees
provide the Delivery Document (50 percent) and Import Entry
and Transshipment Permit (50 percent). The Terminal
Operators prepare the Convoy Note (50 percent), Wharf Receipt
(25 percent) and EIR (no further description given, at 25 percent).
The Shipping documents are either submitted to the Terminal
Operator, (at an incidence rate of 60 percent), or the Cargo
Handler (40 percent) before cargo delivery or before vessel
arrival. The documents from the Cargo handlers are usually
received by the Terminal Operators (75 percent incidence) before
or upon cargo delivery. Those prepared by the Forwarder/
Consignee are either submitted to the Terminal Operator or the
Cargo Handler, at equal frequency, after cargo delivery or cargo
unloading operations. The documents from the Terminal
Operators are transmitted only to Forwarders/ Consignees upon
delivery or upon presentation of Customs clearance.
General Cargo
Two respondent ports reported using the dry bulk cargo delivery
document, Delivery Order, which is either prepared by the
Customer/Consignee or the Shipping Company and submitted to
the Sales/Business Department, (no data given as to entity
affiliation), upon issuance of delivery clearance or receipt of
cargoes.
The three surveyed ports that process liquid bulk cargo delivery
utilize any one of the following documents: Delivery Order
prepared by the Shipping Lines, Delivery Order prepared by the
Forwarder or the BPRP, (no description given), issued by the
Cargo Handler. The Shipping Company submits the document to
the Planning Operator, (no entity affiliation indicated), six hours
before delivery; the Forwarder transmits his document to the
Stevedoring Company 24 hours before delivery; and the Cargo
Handler hands over its document to the Cargo Owner/Consignee
upon cargo delivery.
Containerized Cargo
Containerized Cargo
General Cargo
For the general cargo loading operations, the documents used are
either prepared by the Shipping or the Cargo Handler at a
reference ratio of 7:4. The shipping documents, each with equal
usage rates, are the Bill of Lading, Delivery Receipt, Ship Tally
Load, Loading List, CEWP, Operation Planning and Shipping
Note. These are normally submitted to the Shipper, Terminal
Operator and/or Cargo Handler before or upon loading
operations. The documents from the Cargo Handler, also with
similar usage rates, are the Delivery Receipt, Tally Sheet, Stowage
Plan and General Report of Loading. These are usually forwarded
to the Shipping Lines a day after vessel arrival in some ports or
after vessel departure in the case of the other ports.
Containerized Cargo
General Cargo
6. Security Measures
c. Connection with the PCG (acronym was not spelled out) system
for information purposes on arrival/departure schedule of vessels,
regularly accomplished before vessel arrival/departure
d. Interfaces with the SRA (acronym was not spelled out) system for
cargo information purposes, which is regularly done before cargo
loading period
e. Attachment to the BOC (acronym was not spelled out) system for
foreign cargo information purposes
g. Connection with the Shipper system for PKK (acronym not spelled
out) purposes and with the Port system 24 hours before vessel
entry.
j. Loops with the Port Authority using its PORTNET system for ITH
purposes.
Ten of the mixed cargo ports have no systems interface with other
computer networks. One of these ports did not respond.
Amenities that are generally made available in all APA ports are
toilets and drinking stations. In some, there are medical/health clinics,
canteens/restaurants/cafeterias, immigration posts, ticket booths,
Best Practices Manual on Port Operations Page 18
reefer facilities, tennis courts, transport services booths, meeting
rooms, prayer rooms, fresh water supply facilities, bunkers, duty-free
shops, lockers, recreational facilities, etc. The types of amenities that
are provided at the ports are generally consistent with the state of the
economic affairs of the country where the ports are located. For
example, Singapore which is recognized as the most economically
advanced member nation of the ASEAN happens to also play host to
one of the most efficient ports in the world with amenities that exceed
the commonly provided ones like recreational facilities.
3. Accreditation/Licensing Of Pilots
For the following set of questions covering tug services, there were 39
respondents, as follows:
In about 57 percent of the respondent ports, that is, 22 out of 39, the
use of tug services is compulsory. Fifteen (15) of these are ports from
the various ASEAN member-countries, except the Philippines which
accounts for the remaining seven (7) that are all inter-island ports.
The other 44 percent is distributed among the following categories:
Not compulsory – 23 percent for a total of 9 respondents; Not
applicable – 5 percent for 2 respondents; and No answer – 15 percent
for 6 respondents.
From the responses taken, the following show what kind of entities
provide tug assistance: Port authority/owner/ operator – 12; Private
tug operator – 12; The Marine Department – 1; and the pilot
association – 1. Four of the respondents said they did not provide
any tug services.
Laem Chabang Johor Port Pontianak Port Palembang Panjang Tanjung Perak Danang Port
2 units <5000GRT (LOA up <3500GRT 2001-7000GRT LOA 70m-100m 3500GT LOA 70-100m
required to 125m) 800 1x 600 HP 1x1160HP 1xmin 800HP 1 tug x 500HP
1x4000 150 U$ U$3/hr 145+.004/GT/hr U$178/hr U$34/hp/hr
4MR/hr
>5000GT 3501– 8000GRT 7001-13100GRT LOA 100m-150m 3501-8000 LOA 120-140m
(LOA>125m) 2 x 1600HP 2x600-3400HP 2x1700+1740HP 2xmin.2400 2 w/1100HP
3600 or 4000 400 U$ U$6.22/hr U$375 + .004/GT/hr 464/hr U$170/hr
RM4/m/hr
8001-14000GRT 13100-30000GT LOA 150-200m 8001-14000 LOA 170-250m
3400HP 2x3400-5000HP 3x1700+1740 2xmin 3000 3 w/1700HP
600U$ U$1340/hr +1160HP 712/hr U$300/hr
U$1280+.004/GT/hr
>30000GT 14001-18000
2x5000-10000HP 2xmin 5000
U$1600/hr 894/hr
26001-40000
3x6500HP
1400/hr
40001-75000
3x7000 HP
1700/hr
Only ten (10) ports responded to this item. With regard to the
responsibility to the client, good service and client satisfaction appear
to be the common denominator. One way of achieving these is having
tugboats that are readily available and sufficient in number and
capacity. Johor Port, however, indicated no liabilities and obligations
to the clients, possibly for the reason that since tug assistance is
provided by its terminal operator, the obligation belongs to that
terminal operator and not to the port itself.
Only four (4) provided answers with regard to the third item which
pertains to responsibilities to others. These range from
responsibilities arising from accidents involving other vessels that are
not connected with port operations to responsibilities of ensuring
profit for the owner.
In certain ports, Johor Port, for example, other tug services such as
escorting, as well as for stand-by and emergency operations are also
provided by tug operators. In Saigon Port, likewise, services for
emergency operations are available.
There were only twelve (12) respondents to this item, four of which
were ports in the Philippines. From the very limited answers given,
there appear to be common documents that are required by some of
the respondent ports (with different document titles). These include
the following:
Country/Port/Entity Method
Brunei Ports Department No guidelines
Kuching, Malaysia Hourly basis
Saigon Port Promulgated by State Pricing
Committee
Pontianak Port, Indonesia Approximately 1 to 1.5
hours/service
Palembang, Indonesia Based on tugging time and
dimensions of vessel
Panjang/General Cargo Port GT of vessel, tug boat horse
power and variable tariff
Port of Tanjung Perak, By Port Corporation based on
Indonesia size of the vessel
Danang Port Based on operating hours and
capacity of tug
1. Containers
2. Bulk (Liquid)
3. Bulk (Dry)
4. General Cargo
5. Loose
6. Palletized
7. Other (Logs, Sawn Lumber, Steel, Bags, Frozen, Lumber,
Sufferance Facilities, Bagged Cargo, RO-RO, Others)
Since the data submitted by the 42 target respondents were for a particular
year, what could be deduced or inferred at this time are the major types of
cargo handling methods currently in practice. The survey results are
tabulated as follows, all of which are shown in Appendix A:
According to total volume, covering all cargo types, the data yielded the
following top ten respondents:
Cargo volumes range from 10.9 million tons to 30.0 million tons. Six of the
respondents which are from Indonesia dominate this ranking. In the absence
of historical data, it is difficult to arrive at any conclusions in terms of traffic
performance.
In terms of container traffic, the following ranking shown below was arrived
at. Once again, Indonesian respondents lead in the trend towards greater
containerization. This ranking must be taken considering that some
respondents submitted only the total cargo data without specifying how much
is in containerized form. In the ranking for total volumes, the Maritime and
Port Authority registered 17.0 million tons and it is likely that all of this is
containerized cargo. If so, it would be ranked first in the list below.