7 Key Challenges in Container Port Operations

Container ports handle millions of tons of cargo annually following global trade patterns. Container operations, cargo handling, in-port vessel operations, vessel husbandry, storage, reprocessing and redistribution of cargo, and inland transport, are some of the main functions of container ports, collectively referred to as maritime logistics.

The goal is to plan and execute these functions efficiently with minimum disruption so that goods travel from point A to B safely, on time, and in a cost-effective manner.

Modern ports are behemoths. Their operations and upkeep are complex and activities are subject to frequent changes.

To compete with other leading ports, they need to have the latest and best infrastructure, software, safety, and security features. It calls for diligent planning with ample safeguards in place to meet unexpected challenges.

Importance of Planning Port Operations

Vessel pre-arrival arrangements and activities when it is berthed in port calls for maximum operations planning. Berth allocation and berthing, security, and planning of the right equipment and labor to fulfill specific tasks and requirements of the vessel within a specific time frame, fall under vessel pre-arrival planning.

It may involve governmental agencies such as the Customs, etc. All this planning is converted to actions as soon as the vessel approaches the port and is then berthed.

Following the departure of a vessel the vital data relating to its arrival, stay at port, and departure are collected, collated logically, and summarized to give key performance indicators [KPI]. Careful analysis of KPIs helps with better planning for future operations and effective execution of these plans.

Operations planning of container ports has to be comprehensive and systematic.

Here, let us take a look at some of the key challenges faced by port operators.

1. Port Congestion

What is port congestion? It is similar to a traffic jam that we experience on the road. Here, we have ships waiting to berth for loading or unloading their cargo or to leave the berth and set sail.

This normally happens during inclement weather conditions, high demand for berthing space, labour shortage on shore E.g. due to a pandemic or politically related, infrastructure breakdown at the port, etc.

An increase in global container volumes also contributes to port congestion. Unless swift actions are taken to address the issues causing congestion, it can only lead to the worsening of the situation.

a. Infrastructure Issues

Port infrastructure includes all the facilities – both tangible as well as intangible, that support the smooth flow of human and cargo logistics. Most modern container ports have infrastructure that meets almost all requirements for the efficient berthing, loading or unloading of cargo, and its storage and re-distribution.

However, others are plagued by problems arising out of lack of space both for berthing of vessels as well as for the storage of goods, outdated equipment, problems arising out of rising water levels or tide patterns, etc.

Bottlenecks in berthing coupled with lack of infrastructure or infrastructure breakdown can have severe consequences, often leading to congestion and delays.

b. Container Volumes

As the global trade volume grows year after year, the volume of containers also increases exponentially. Seaports have to keep up with this increased traffic to retain their customers and avoid business going to competitors.

Keeping port operations streamlined and having an efficient container handling process is crucial here. Sorting out land issues if any, relating to port expansion projects has to be on top of the list.

c. Larger Container Carriers

Very large and Ultra-large cargo carriers have taken over the seas and oceans. The current ultra-large cargo carriers can carry in excess of 24,000 TEUs! The earlier sea cargo vessels had capacities as low as 1000 – 3000 TEUs.

Large container carriers mean more cargo. Most modern seaports have the necessary equipment and space to accommodate such huge carriers, while others are in the process of addressing these challenges.

Measuring 400 meters in length and 61 meters wide, with a capacity of 24,346 TEUs, the MSC Irina Class is the largest vessel currently on the sea. This is followed closely by OOCL G Class which has the same dimensions but with a slightly lower container-holding capacity of 24,188 TEUs.

While there are ports that can accommodate such gigantic vessels, others have to catch up with optimized methods of berthing or infrastructure upgrades. Wider and deeper ship channels, larger cranes, and other infrastructure to support such vessels are required.

Upgrading and updating infrastructure, going for the latest technology that aids port operations, and having realistic backup plans in place to meet any type of breakdown, can, to a large extent, help deal with this situation.

2. Digitalization

Seaports play a key role in the economic development of nations. But for this, they have to stay competitive.

Having modern digital technology enhances the overall operations of seaports. More and more seaports are investing heavily in artificial intelligence [AI], Robotics, the Internet of Things [IoT], cloud computing, etc. that augments their operations.

Advanced digital Platforms [ADP] help with planning as well as addressing current issues effectively. Keeping systems software updated to the latest versions that have enhanced security features can prevent illegal access and cyber fraud to a great extent.

3. Workforce Issues

While digitalization may be a great idea to increase the overall performance of a seaport, human labour and effort cannot be overlooked.

Digitalization and the human workforce must be balanced to avoid labour conflicts while maintaining technology-driven gains. The existing staff may be trained to use these technologies efficiently.

4. Safety and Security

Terrorist activities, theft, pilferage, and smuggling are some of the main threats faced by container ports.

An effective security system must be in place to prevent illegal access to the port premises as well as its computer systems. Policies and procedures must be reviewed periodically and executed efficiently for the safety and security of the port staff and its visitors, the cargo stored within the seaport, and its overall infrastructure.

a. Terrorism

The threat of terrorism to container ports cannot be dismissed as negligible. This is because container ports are the gateway to a nation’s trade and economy and are often easily accessible. Terrorist attacks can cut off maritime traffic completely, thereby affecting a nation’s economy. It brings about global repercussions too.

Strong security systems and planning are crucial. Situational awareness on a global scale can better prepare container ports against terrorist attacks. Preparedness not only means being responsive but also being resilient, in the event of an attack.

b. Cyberthreats and Cyberattacks

Cyber threats and cyberattacks can be equally disruptive. It can bring the operations of a seaport to a halt and worse, cause millions of dollars in loss.

Hackers access sensitive data from the seaport computer systems and then destroy or alter it. They may hijack the systems completely and hold the port to ransom or sell the data to competitors, the underworld, or terrorists.

Besides having the best and latest cyber security systems, seaports must have dedicated teams to monitor and tackle cyber threats. These teams must be in touch with their global counterparts to exchange ideas and be aware of threats.

5. Sustainability

Seaports are one of the biggest polluters of the world’s seas and oceans. Solid, liquid, and gaseous wastes from port operations [including those from ships while in port] impact its surroundings.

Pollutants as a result of diesel usage include hydrocarbons, carbon monoxide, nitrous oxides, and particulate matter. NGOs and other environmental agencies are up in arms against this kind of pollution.

As a result, as well as being part of their CSR [corporate social responsibility] initiatives, many container ports have effective environmental management systems and other programs aimed at having cleaner technologies and minimizing environmental pollution. Greener surrounding areas and involving the local community in environmental projects are mutually beneficial.

6. Complicated Governmental Regulations

Governmental regulations help container ports function smoothly. However, these regulations have to be flexible and easy to follow. They have to be managed and executed properly for the container port operations to remain efficient.

Cumbersome procedures will cause delays and customer frustration sometimes prompting them to move to other ‘user-friendly’ seaports.

Port authorities should engage with the related government bodies regularly for the exchange of ideas, have discussions on current issues, chart out problem areas, earmark such areas where mutual support is the solution, etc.

Impractical and archaic governmental regulations act as deterrents to the progress and development of any seaport.

7. Financial Challenges

Global economic changes and upheavals can affect exports and imports thereby impacting the activities of container ports. Significant drop in container volumes causes a slowdown whereas increased trade demand can result in a significant increase in the volume of goods passing through ports.

Income from leasing and rental of port facilities, taxes, fees and tariffs, subsidies, etc. are used for running the port operations, its maintenance, and provision of security. Every seaport is looking at expansion and modernization as they strive to remain competitive.

This calls for a substantial financial backup. Besides government funding, tie-ups with private partners help in getting the necessary large financial investments.

Global maritime logistics is complex, yet dynamic. It faces several challenges some of which are mentioned in this article. By adopting the best policies and procedures, incorporating the latest and best technologies, and having a skilled and healthy workforce, container ports are able to face these challenges.

It also helps reduce the severity of such challenges, be resilient, and move forward to be globally efficient and be more competitive in the market.

Note: In this article, the words: seaport, container port, and port, are used interchangeably.

You might also like to read-

• What is Cybersecurity in Seaports?
• What are Port Services?
• 6 Reasons That Lead To Port Congestion
• Understanding Supply Chain Resilience
• Understanding Customs Clearance Process in Shipping
• Key Performance Indicators (KPI) in Logistics
• What is Sustainable Logistics?
• Functions of a Warehouse – A Detailed Guide

About Author

Hari Menon is a Freelance writer with close to 20 years of professional experience in Logistics, Warehousing, Supply chain, and Contracts administration. An avid fitness freak, and bibliophile, he loves travelling too.

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