The maritime activities that are performed at a port not only impact on the port environment but mostly influence the transportation activities beyond the port boundaries, influence the manufacturing facilities located in the surrounding areas and impact import and export etc. The export competitiveness is influenced by port-related services. This logistics service in Bangladesh is costlier than other neighbouring countries, even more than many developed countries.
Ports in Bangladesh is unable to provide appropriate services and lagging other regional ports because of lack of capital and understanding the modern port. Bangladesh ports are costliest among the other ports in countries who are competing with Bangladesh in logistic market. On the other hand, national competitiveness depends upon the competitiveness of logistic services. A major part of logistic services extends by port operations. The delay in providing services and other inefficiency pushes the cost of ships who call on our ports. Bangladesh needs efficient port management. There is a process going to invite overseas port management companies for investment, upgrade and operation of a part of the port.
As technology advanced and ships size increased, the need for large investments in port infrastructure became evident. Few ports can modify their physical, technological and organisational conditions to efficiently serve with new generation ships. This kind of vessel navigates through the principal international trade corridors, calling at the main world ports. Bangladesh needs an efficient and competitive port management involves intra-port distribution, communication, cooperation.
A key factor of international competitiveness is the efficiency of the intermodal transportation system that allows connections that increase the advantages of free trade areas and regions and enhance the advantageous location of ports.
International transportation gives special attention to competitive factors such as ports’ infrastructure, quality and spectrum services provided, ports’ capacity to manage large cargo volumes in a timely manner, cost, and efficiency. Furthermore, hubs and transshipment terminals continuously improve their network to fulfill new roles in global supply chains due to the tremendous growth of containerised cargo at main transportation routes.
Today, the top world-class ports consider the capacity of intercontinental distribution as a critical factor for attracting businesses. In that regard, a network model will have a direct impact on cargo flows and supply chains, and suggested evaluations include considering the economic potential of the region and hinterland, the port growth previsions, revisions of transportation systems including infrastructure, connectivity, and other system integration. In recent times, ports have extensively and structurally transformed to adjust the new economic environments.
The port operation system consists of the Aquatorium, Berthing and Infostructure System. The berth system has four major sequences of activities. Those are: (1) Ship operation, (2) Quay transfer operation, (3) Storage operation, (4) Receipt/delivery operation. The performance and efficiency of the port is fully dependent on the balancing and harmonisation of these activities as they are interlinked and interdependent, Therefore, the slowdown of one will inevitably affect the speed of others. Similarly, improvements made on any one operation will not bring fruit unless the same is matched by corresponding improvements made on other operations and all are tied together by a computerised container terminal management system. Information is the precondition that smoothens the operations between all the partners of the supply chain.
The perceived attractiveness of this port to its users is assessed based on six factors: port connectivity, facilities, costs, service quality, policy and management, and green port management practices. Different stakeholders need different services from the port. Shippers want to know where the goods are. Shipping agencies need to know the nature and volume of cargo to prepare the call and handling operation. The master of the ship needs information on the port condition and cargo to be loaded. The port needs information on cargo, and time of arrival to schedule operation.
Customs and freight forwarders need information to finish formalities in advance for quick clearance of cargo. In this case, IT is the only solution, which enables easy communication, correct and timely flow of information among the players. In the case of Chittagong Port there is no network information system between the port and users. Every organisation has a stand-alone computer operating system.
Even intranet networking systems are not developed within the organisation. In Bangladesh, all the documents are set to upload online but in practice port hand everything manually and there is no effective container terminal Management System (CTMS) in place to manage and control the operation.
The port users study the network solutions to access and route to assess most effective means to improve efficiency in the supply chain. Moreover, global distribution allows users to see beyond the boundaries of the port and address issues related to movement through the entire distribution system. Analysis of cargo growth trends, inbound and outbound flows, efficiency of the transportation system, and institutional and regulatory influences are all keys to identifying opportunities for improvements to the logistics activities. Other factors, important in our consideration, are traffic congestion, integration of supply chains, information processes, and cargo security. The modern logistic activities provide the link for the efficient flow of the traffic of goods and smooth the operations and handling of cargo. Bangladesh ports are far behind to provide these services.
The demand for new services has triggered the introduction of new concepts to understand their integration in supply chains. Within the global maritime and multimodal transportation network criteria, only major ports can handle enough cargo volume to make the ship operation profitable. Faster and bigger ships benefit shippers, shipping lines, and multimodal operators because in transit inventory costs decrease, and smooth the progress of global production. The time saved due to ease of container handling and ships’ increased velocity allowed less ships rotation time in ports. In accordance with this, larger and faster ships meant reduced fleet size and economies of scale.
All main ports that concentrate large flows of merchandise destined to various continents and regions of the world are located at the top of this global port network. This kind of port is called a ‘hub’ because of its characteristics as logistics centers of concentration, processing, consolidation and distribution of flows of merchandise and information.
Logistics companies now-a-days developed a model of supply chain with an information network of consignments for efficient and cost-effective inventory etc. The supply chain now promotes a supply model of business to customers (B2C) to reduce the cost of warehouses at the destination point to reduce cost and time. Such a supply chain model needs a modern port having a global network. Bangladesh needs investment, technology and global network of ports and logistics.
Ports are competitive if they can facilitate international trade with shipping lines and provide flexible, efficient and secure services. The developed countries having sufficient investment capability and technology also handover the operation of the ports to overseas efficient port management companies for better and competitive services in the greater advantage of competitiveness of goods and services. Bangladesh can follow other countries or maintain an old-fashioned expensive port management.
The writer is the CEO, Bangla Chemical. E-mail: [email protected]
