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The Challenges of
Container Terminal
Development
Ashebir Jacob, PE September 10, 2013
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State of Containerization
Since its inception, the container shipping industry has done their best to increase the efficiency of goods movement Larger, more efficient vessels
Double-stack trains
More efficient terminals
– Faster quay cranes
– Higher throughput density per unit area
– Lower cost per move
Computers & software
– Elimination of paper documentation
– Terminal operating systems
The internet
Container handling automation
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State of Containerization
Changes taking place in our industry: Globalization
Bigger ships
Growing (and shrinking) container volume
Rising cost of infrastructure development
Volatility in the investment climate
The environment, especially emissions (CO2)
New levels of security along with new threats
The world economy affecting the import/export balance
Volatility of fuel prices
Never have so many things been changing at once!
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The Business Case for Automated Terminals
They must be competitive to survive!
From a business standpoint, why do container
terminals exist? To provide economic benefit to a region
– Public ports
To ensure the competitiveness of a steamship line
– Steamship line owned and operated terminals
To make money
– Private terminal operators
What do these all have in common?
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The Business Case for Automated Terminals
So, why an automated terminal?
Predictability and reliability in: Capacity
Productivity
Cost
Over the economic life
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The Business Case
Environmentally Sustainable (lowest energy consumption)
Efficient (delivering capacity, speed and reliability at lowest cost)
E3
Economical (meeting the business case)
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What were the technical
challenges?
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What was the Challenge?
Quay Crane
To unload and load the vessel Safe
Fast
Accurate
Reliable
Maintainable
Durable
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What was the Challenge?
Horizontal Transport
Safe Accurate Reliable Maintainable Durable
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What was the Challenge?
Automated Stacking Cranes
Safe Fast Accurate Reliable Maintainable Durable
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What was the Challenge?
Computer Hardware and IT Network
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What was the Challenge?
TOS (Terminal Operating System)
• Core planning application of the terminal operations
• Multiple modules for planning and inventory
management - Berth planning
- STS allocation
- Work queues
- Inventory management
- Reporting
- Billing
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What was the Challenge?
We have cleared the hurdles!
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What challenges remain?
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What is One of These Projects About?
The Four “P’s”
Planning (detail planning)
Project (project implementation)
People (skilled project team)
Process (realization process)
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What Challenges Remain?
Planning
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What Challenges Remain?
When the investors make the decision to move from
“planning” to building a “project”, there are plenty of
challenges
What is the “project”?
To deliver an automated container handling system that can satisfy
the goals of the business case over the required economic life
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What Challenges Remain?
The business case will have required performance
parameters
Capacity
Productivity
Cost
In addition to the business case parameters, the
“project” will occur in an environment that contains a
unique set of opportunities and constraints
Land area and shape
Environmental requirements
Labor
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Planning and Layout – Tailoring to Fit the BC
So, the planner is like a tailor
He must try to fashion the terminal to fit the business case perfectly
One size does not fit all!
CAPACITY
Annual
throughput
PRODUCTIVITY
Vessel
Gate
Rail
COST
Facilities
Equipment
Labor
Energy
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Planning and Layout – Tailoring to Fit the BC
The planning goal is a bunch of numbers:
Capacity:
– 4 million TEU’s per year
– 35% rail
Productivity:
– Vessel: 150 gross / 200 net mph
– Gate: 30 minute turn time
– Rail: 24 hour turn time
Cost
– Infrastructure: $750M
– Equipment: $400M
– Labor: $75 / box
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Planning and Layout – Tailoring to Fit the BC
Layout begins with
“where to put the rails”?
Quay cranes
– Productivity
– Hoist, trolley configurations
– Single/dual trolley
– Single/tandem hoist
– Lashing platform
– Hatches
– OOG
– Worker access
– Horizontal transport system
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Planning and Layout – Tailoring to Fit the BC
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Planning and Layout – Tailoring to Fit the BC
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Planning and Layout – Tailoring to Fit the BC
“Where to put the rails”? ASC’s
– How many ASC blocks?
– How many cranes per block?
– End-loaded / side-loaded
– Width, height, length of blocks
– Reefer / hazardous bays and access
– Maintenance and emergency access
IY
– Rail tracks
– Wide span gantry cranes
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Simulation
To accurately confirm that the operational assumptions
work on the desired layout and determine:
the number of yard cranes and transport equipment
the quay crane productivities
the road truck service levels
To identify bottlenecks in an early stage of design
Support specifying of equipment and Terminal Operating
System
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Planning and Layout – Tailoring to Fit the BC
Once we know “where to put the rails”, we can locate
everything else around them
Gate
- Queuing and holding
Buildings
Maintenance
VACIS / RPM
OOG staging
Reefer services
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Infrastructure Design
Once we have planned a terminal that satisfies the
business case and we get a “go” from the investors
Design basis that meets the operational requirements
Construction document
Construction of infrastructure
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Development Philosophy
The infrastructure for an automated terminal is
fixed for its economic life
An automated container terminal will be designed
to perform under high utilization
It is critical to predict performance and operating
cost for the life of the infrastructure
Stacking area flat and drainable
Power source redundancy, 100% fault free, reliable
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ASC Runway
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Project
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Project Organization
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Managing & Controlling to “Go-Live”
Schedule Control Continuous redefinition of must have and nice to have
Change impact analysis and adjust realization schedule
Cost Control Budget cost shall reflect the level of unreliability of some of the past
costs
Take a holistic realization budget view
Change impact analysis and adjust realization budget
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Complex Schedule Management
• Design
• Specification
• Procurement
• Construction
• Fabrication
• Delivery
• Commissioning
• Testing
• Integration
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People
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A Project is NOT Managed by Robots
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Find the Right Team
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Developing the Team
Internal Project Management - Schedule control
- Cost control
- Reporting
- People Build a star team, not a team of stars
Establish shared ownership for the (good and bad) results
Develop team members to fullest potential
Make the work interesting and engaging
Develop a self-managing team
Motivate and inspire team members
Lead and facilitate constructive communication
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Building a Team
• Executive
• Project Manager
• Planning
• Operations
• Maintenance
• Civil Infrastructure
• TOS
• IT / Integration
• Finance
• Scheduling
Building a successful automated terminal is a team effort
The Composition and Skills
of the Team Are Critical –
Every Individual Is Critical
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Development Challenges
A program manager who can lead a team of experts:
- Infrastructure designers
- Terminal operation
- Maintenance
- Finance
- TOS implementation
- IT systems
- Equipment
The Right Program Manager
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Development Challenges
Not having a project executive with excellent
leadership skills
- Allow spirited discussion
- Build consensus when it is appropriate
- Make well informed decision
Approaching development and operation the same as
conventional terminal
Not looking at issues in systemic way
- Don’t solve one problem and create multiple other problems
Not willing to change familiar approach
Implementing what other terminals implemented
without appropriate investigation
No Shift in Paradigm
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Process
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Interface Management
It is all about interfaces – there are no standards
Locations and dimensions
Loads
Power supply
Data communication
User interfaces
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Interface Management
Function – Scope – Responsibility – Timing – Testing
There are no simple solutions for a complex world
Keep interfaces lean and straightforward
Will be more complex where it has direct and measurable
advantage to performance
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HT
safety ASC safety system
Reefer monitoring
Truck driver kiosk
ASC Remote
operator GUI
Maintenance
management
X-ray
TOS
Testing – Training – Take Off
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Contract Management
The project has to deal with many contracts and
contractors
They are at different locations
Each contactor has its own methods
More people are involved
Usually our order is not the only order in their book
Be clear with the terms, establish a project term base
Use state-of-the-art communication and
documentation tools
Establish a reporting and escalation structure
Find the balance between being rigid and flexible
Always be cooperative
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Contract Management
What you say is what you get heard write
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Contract Management
Specification RFP Proposals
Commercial contract
Submittals
Design drawings
Inspection reports
Risk analysis IT architecture
Test procedures
Function specifications
UI definitions
Factory test reports
Structural calculations
Acceptance test reports
Technical correspondence Commercial correspondence
Meeting notes
Design reviews
Operation manuals Maintenance manuals
Shipment & unloading procedures
Interface specifications
Progress reports
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Integration Management
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Integration Management
THIS IS WHERE PROJECTS TYPICALLY SUCCEED OR FAIL
An automated terminal is a highly integrated system of
components that must fit together perfectly
The only standard is the container
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Testing – Training – Take Off
Operations and maintenance take the lead!
Operations has to run it
Maintenance has to keep it running
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Testing – Training – Take Off
Four major types of testing: Equipment testing
IT testing
Live Equipment Testing (LET)
Operational testing
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Testing – Training – Take Off
Operation Testing
Last testing phase to prepare for “go-live”
Test under real-live circumstances
Operations in the lead, IT/EQ to support
Three types of testing:
- Flow testing (gate-yard, vessel-yard, rail-yard, etc.)
- Volume testing
- Mini-terminal testing
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