BM_M0110/GSLM52700 Warehouse Planning and Operations Systems

1. BM_M0110/GSLM52700 Warehouse Planning and Operations Systems Yat-wah Wan Room: C317; Email: ywan; Ext: 3166 Office Hour: Wed 3  5 pm, or by appointment

2. Objectives of the Course • the role and effect of warehouses in a supply chain

3. Container Terminals

4. Outline • background • container ports • container terminals • goods and equipment • an example: HIT • decision problems

5. Background

6. Terminology • TEU • twenty-foot equivalent unit, the standard unit to measure container throughput • a 40 ft container = 2 TEU

7. Venues for Container Transfer • container terminal • container yard • feeder ports and river ports • mid-streamoperations • public cargo working areas

8. Questions • How important is containerization? • What are the advantages of containerization? • pre-containerization (00:002:47) • bulk cargo • What are the functions of container terminals? • What facilities and equipment are required in container terminals?

9. Container Ports • world traffic • top 10 containers ports in 2011 • how to rank these ports: • Busan, Dubai, Guangzhou, Hong Kong, Ningbo, Qingdao, Rotterdam, Shanghai, Shenzhen, Singapore

10. Ranking ofContainerPorts • 2010 • 6 of the top 10 busiest container ports in China (units in TEU) • Shanghai (1st, 29.1 m), Hong Kong (3rd, 23.7 m), Shenzhen (4th, 22.5 m), Ningbo (6th, 13.1 m), Guangzhou (7th, 12.6 m), Qingdao (8th, 12 m) • Singapore (2nd, 28.4 m), Busan (5th, 14.2 m), Dubai(9th, 11.6 m), Rotterdam (10th, 11.4 m) • Tianjin (11th, 10.1), Kaohsiung (12th, 9.2 m) • 2011 • throughput of container ports in Taiwan • in decreasing importance: Kaohsiung (9.64 mill TEU), Keelung (1.75 mill TEU), Taichung (1.38 mill TEU)

11. Container Terminals

12. A Container Terminal as a Warehouse • a special type of warehouse • very standardized goods for short term storage • some form of consolidation • flexible layout for the same type of containers • heavy equipment • highly information driven

13. A Container Terminal as a Warehouse • to “define” a container terminal • goods • equipment • information systems • layout • processes • problems

14. Types of Goods • containers • various types, of different size, weight, nature, port of destination, and port of origin, etc. • bulk goods • breaking down and building up at a Cargo Freight Station

15. Vessels • non-self sustained cellular (NSSC) • self sustained cellar (SSC) • self sustained non-cellular (SSNC) • car carrier/RoRo ships • ultimate container carrier (UCC) • lighter/barge

16. import Blocks in a Container Yard export Container Movements in and out of a Terminal container picking up vessel discharging vessel loading container grounding “stochastic” in time and processing order “deterministic” in time and processing order

17. Main-tenancy Yard Gate House Temporary Parking Lot for ITs CFS Offices Block, IT and YC IT and QC Blocks, Ycs, and QCs QCs and container vessel blocks of containers Gate House QC vessel yard crane block Typical Container Terminal Layout

18. Equipment • crane • quay • job crane • rubber tyred gantry crane • front loader • rail-mounted gantry crane • bridge crane • other equipment • automatic guided vehicle • straddle carrier • tractors • reach stackers • scaffold platform • chassis

19. HIT

20. Hongkong International Terminals • relative location • a clearerpicture • terminals: 4, 6, 7, 9, and 50% of 8 East • areas • a total 92 hectares for terminals 4, 6, and 7 • 30 hectares for terminal 8 • 19 hectares for terminal 9 • > 5 km quay length, 14 ship berths, & 9 barge berths • 57 quay cranes, 8 rail-mounted jib cranes, 24 rail-mounted gantry cranes, 184 rubber-tyred gantry cranes , Hutchison Logistic Centre: 377,741 m2

21. Hongkong International Terminals • Example: HIT/COSCO HIT Terminals • operations • key facts, terminal layout, work flow, • virtual tour: guided tour and spots light work flow and information systems • throughput: 10.253 mill TEU in 126 ha (2010) • 1170 TEU/hour • 179,900 TEU/QC/year

22. Web Material for Container Terminals • Singapore Port - World's Busiest Port • Hongkong International Terminals • …. …. ….

23. Decision Problems in Container Terminals

24. Performance Indices • throughput • number per unit time • of container, of each type of container, of move • for terminal, cranes, gate house • utilization • cranes, space (block, stack, slot), berth occupancies • time in system • tractors, vessels, containers

25. berth allocation (allocating vessels to berths) QC allocation (allocating QCs to (bays of) vessels) storage space allocation (determining the numbers of I/B & O/B containers of each vessel in a block) location assignment (determining the exact locations of containers in blocks) RTGC deployment (deploying RTGCs in real time) Operations Decisions in a Container Terminal schedule and stowage plan of vessels IT deployment (deploying ITs in real time)

26. Literature Review papers Related to Container Terminals • Murty, K.G., J.Y. Liu, Y.-w. Wan, R. Linn (2005) A decision support system for operations in a container terminal, Decision Support Systems, 39(3), 309-332. • Stahlbock, R., and S. Voss (2008) Operations research at container terminals: a literature update, OR Spectrum, 30(1), 1-52. • Steenken, D., S. Voss, and R. Stahlbock (2004) Container terminal operation and operations research – a classification and literature review, 26(1), 3-49. • Vis IFA (2006) Survey of research in the design and control of automated guided vehicle systems, European Journal of Operational Research, 170(3), 677-709.

27. Advantages of Containerization • simplify packaging, loading, unloading, and custom checking of goods • reduce transportation times and costs • increase utilisation of vessels and ports

28. Advantages of Containerization • disadvantages of bulk goods in pre-container era • loading, unloading, and stacking operations for each carrier change • manually with low efficiency • high labor cost, 80% of total cost for bulk goods by 1960’s • long vessel porting time • good packaging consuming time and costs • damages • mixing up of goods • custom checking at each intermediate ports • more paperwork and high insurance charge

29. Time Taken for Containerization • not all goods can be containerized • the magnitude of changes • a totally new managing and controlling mechanism • new port design • new loading and unloading operations , replacement of • fork-finger quays replaced by long water front quays • small dollies and trolleys by huge shore and yard cranes • labourers by skilful equipment operators • Job reduction • huge investment in material handling equipment and human resources • new custom practice for eliminating individual consignments

30. Functions of Container Terminal • intermodal interface • temporary storage for containers • paperwork for containers • building up & breaking down of containers

31. Types of Container • ordinary dry container: most common

32. Types of Container • reefer container • temperature control • e.g., for frozen meat and diary products • ventilated container • holes for ventilation • for fruits and vegetables • insulated container • keeping heat from the cargoes

33. Types of Container • open top container • loaded and unloaded from top • for large-size, heave items • flat rack container • bottom part and two small sides • for heavy or odd-size items • platform container • a plain plate without sides • for extra large and/or weight

34. Types of Container • bulk container • for bulk goods • hatch covers on top for loading & unloading • free flowing bulk material container • for carrying powder, fluid, or gas • using pumps for loading and unloading

35. Types of Container • special purpose container, e.g., • dress hanger container • for clothes without folding • pen container • for animals • with net on its sides