Thursday, July 14, 2011

PURPOSE OF CONTAINERIZATION PORT: Logistics & Port Industry

In the 1930s, Malcolm MacLean, New Jersey modified trucks to become “container” and loaded into container ship. As of 1 October 2010, the cellular fleet numbered 4725 (of containerships) with the total capacity of 13.8 million teu (Container Forecaster 4Q10, page 27). What an amazing invention!

The development of container port is driven by some key factors:
• Globalization – international trade
• Containerization
• Technology advancement
• 90% trade by sea
• Cost efficiency
• Customer demand – more and faster
• ISO of containers started in 1960s.

I would suggest two critical success factors: facilities and technology. Facilities are to do with the physical movements of containers while technologies are to deal with the intangible management of information. In my opinion, if RFID is being adopted in port management it would be revolutionized.

Ports are trying to integrate vertically or to embrace total logistics. If this trend continues to development, I think the survival of small companies in the future will be in question. Another issue faces by port is concerning with the extent of in-housing or outsourcing of its business activities. How could ports draw lines to separate core and non-core activities?

Finally, I think the potential risk for containerization port would be the invention of a replacement for container. Would there be a change from “Containerization Port” to “Replacement Port”?