Jürgen Sorgenfrei, Vice President Consulting, MWP Management & Logistics Consulting, Hamburg

Part 1: Development of Ports 1

Chapter 1: History of Ports: The Ten Aims of a Port 3

1.1 Ancient Egypt 3

1.2 Roman Empire 7

1.3 Constantinople 12

1.4 Venice and the Mediterranean Merchant Trade 15

1.5 Imperial China: Early Ming Dynasty 16

1.6 Hanseatic League 20

1.7 Historical Drivers of Port Development 28

Chapter 2: Driver of Port Business 31

2.1 Economic Drivers 33

2.2 Political Drivers 35

2.3 Logistical Drivers 38

2.4 Technical Drivers 40

2.5 Financial Drivers 44

2.6 The "Port Model" 45

2.7 Impact on "Port Master Planning" Process 49

Chapter 3: Major Commercial Ports 51

3.1 Classification of Ports 51

3.2 Container Ports 56

3.3 General Cargo Ports 61

3.4 Liquid Bulk Ports 65

3.5 Dry Bulk Ports 67

3.6 RoRo Ports 68

3.7 Ferry Ports 72

3.8 Passenger Ports 73

3.9 Cruise Ports 75

Part 2: Ports in Maritime Supply Chain 79

Chapter 4: The Role of Ports in Supply Chains 81

4.1 Definition "Ports" 81

4.2 Port Functions 83

4.3 Port Customer Groups 84

4.4 Port Cluster 86

4.5 "Port" Terms in Common Use 87

Port versus Terminal 87

Container Port 89

General Cargo Port 90

Bulk Port 90

RoRo Port 90

Ferry Port 90

Passenger Port 91

Cruise Port 91

Universal Port 91

Dedicated Port/Terminal 91

Main Port 93

Major Port 93

Minor Port 94

Hub Port + Feeder Port 94

Gateway Port 96

Way Port/Zero-Deviation Port 97

Transhipment Port + Transit Port 97

Regional Port 100

Sea Port 101

Deep Water Port 101

River Port 102

Inland Port 103

Dry Port 103

Free Port 103

State Port/Service Port/Public Port 104

Autonomous Port 104

Tool Port 104

Landlord Port 104

Private Port 105

Industrial Port/Factory Port 105

Home Port (Cruise) 105

Commercial Port/Noncommercial Port 106

Statistical Port 106

Big Port 106

Chapter 5: Trade & Transportation 107

5.1 Macroeconomic Relations 107

5.2 Drivers of Global Trade 116

Political Alliances and Free Trade Agreements 116

Deregulation and Privatization of Public Services 117

Distribution of Natural Resources 118

Globalization of Sourcing and Production 119

Spreading Out of Buyer Markets 120

Environmental Awareness 121

Innovations 122

Integrated Supply Chain Logistics 122

5.3 Antitrade Movements/Protectionism 123

5.4 Transport Value and Affinity 125

5.5 International Commercial Terms 131

Chapter 6: Ports in Transportation Chain 137

6.1 The Role of Ports in Supply Chain 137

6.2 Port Hinterland 143

Loco-Potential 147

6.3 Ports and Shipping Networks 148

Shipping Networks 148

Port Networks 154

6.4 Port Costs in Transportation Chains 161

Chapter 7: Cargoes 165

7.1 Port Cargo Categories 168

Liquid Bulk 171

Dry Bulk 173

General Cargo, Break Bulk, Heavy Lift, Oversized 174

Container 177

RoRo Cargo 179

All Cargoes 180

7.2 Cargo Measurement 183

Linear Measure or Unit of Length: Two-Dimensional 184

Solid Measure or Cubic Measure: Three-Dimensional 185

Weight Measure/Ton Deinitions 185

Billing Systems: Weight + Volume 187

Arabesque: Additional "Ton" Definitions 189

Unit Measure 191

Twenty-Foot Equivalent Unit (TEU) 191

Intermodal Transport Unit (ITU) 193

Flat or Flat Rack 193

RoRo Unit or RoRo Flat 193

Car Equivalent Unit (CEU) 194

Verified Gross Mass (VGM) 195

7.3 Errors in Port Cargo Measurement 195

Workflow Difficulties 196

Ineffective Enforcement 196

Perception that Weight Is Peripheral 196

Using Different Standards to Measure 197

Statistical Consequences 198

Part 3: Port Management 203

Chapter 8: Frame Conditions 205

8.1 Port Business Environment 205

8.2 Basic Management Concepts 208

8.3 Port Labor Organization 217

8.4 Cultural and Religious Influence 220

Chapter 9: Port Commercialization and Privatization 223

9.1 Background for Port Reform 223

9.2 Commercialization 225

9.3 Privatization 227

The French Example 228

9.4 Ways to Privatize 229

Chapter 10: Port Governance 233

10.1 Port Authorities 233

10.2 Sphere of Activity: The PA-Paradox 238

10.3 Objectives of a Port Authority 243

10.4 PA Task Overview 248

Executive Management 248

Strategic Planning 249

Engineering and Real Estate 251

Access Channel and Turning Basins 252

Finance and Administration 253

Legal 257

Human Resources 259

Origination/Business Development 259

Public Affairs and Economic Analysis 260

Port Security and Emergency Operations 261

Terminal Operations (Optional; Often for Smaller Ports) 262

10.5 Port Policy and Regulation 263

10.6 Intraport Competition 266

10.7 Case Studies 269

Port of Rotterdam Authority, The Netherlands 270

The Maritime and Port Authority of Singapore, Singapore 274

Port of Los Angeles, USA 277

Chapter 11: Port Operator 283

11.1 Classification 284

11.2 Terminal Operator 288

11.3 Port Facilities Operator 292

11.4 Port Service Operator 294

11.5 Global Container Terminal Operator 296

11.6 Terminal Operators Growth Path 310

Chapter 12: Port Cost Analysis 313

12.1 Port Dues 316

12.2 Cargo Fees 323

12.3 Miscellaneous 325

12.4 Port Costs Benchmarking 326

Chapter 13: Cargo Demand Forecasting 331

13.1 Port Master Plan 332

13.2 Demand Forecasting Models 335

13.3 Case Studies 341

Chapter 14: Financing Port Development 345

14.1 Financial Planning 348

14.2 Public-Private Partnerships 353

Principles of Port Investment Finance 354

Financing Structure 355

Debt 356

Equity 357

14.3 Alternative Port Financing and Management Schemes 357

Chapter 15: Lobbying 361

15.1 Mission of Port Lobbying 362

15.2 Players and Target Groups 363

15.3 Advocate of Port Policy 369

15.4 Port Marketing 372

Part 4: Subjects with a Major Impact on

Port Business 377