CONTAINER Terminals Modeling

CONTAINER Terminals Modeling Nam-Kyu Park Professor Tongmyong University, Department of Logistics Management Branislav Dragović Associate Professor University of Montenegro, Maritime Faculty

Necessity of Simulation in Terminal Planning • Container terminal is critical node for logistics flow, but sometimes it does not follow shipping company request like more berths, deep sea, tandem QC, automation and quick administration etc. • The crucial terminal management problem is to optimize the balance between the shipowners who request quick service of their ships and economic use of allocated resources. • Proper performance measurement of terminal is vital issue in modern container terminal planning • Simulation modeling technique • widely used in the analysis of port and terminal planning process and container handling system • used as an important tool for decision-making in planning a ship-berth linkage design and modeling

Table 1:Literature review of a container port and ship-berth link planning by using simulation There are few studies dealing with ship-berth link planning. Researches related to a container port and particularly ship-berth link planning, which use simulation, are summarized in Table 1.

Model development approach • The simulation model covers both the quay and CY, thus becoming a integration model between the quay and CY. • The operation unit in the quay is a ship, but the operation unit in the CY is a container. • Accordingly, author has developed independently both a quay performance analysis model and a CY performance analysis model with ARENA, and then has combined these two models into an integrative simulation model.

Figure 1. Operation procedure on ship-berth link Ship-berth link is complex due to different interarrival times of ships, different dimensions of ships, multiple quays and berths, different capabilities of QC and so on. The modeling of these systems must be divided into several segments, each of which has its own specific input parameters. These segments are closely connected with the stages in ship service presented in Figure 1.

Ship arrival LPC by ship Berth allocation C/C assignment by berth Loading and unloading CY allocation Ship departure • Flow of quay simulation model

CY Simulation Model • 3 types of container cargoes: export container cargo, import container cargo, and transshipment cargo. • At the time of ship berthing, first of all, import container cargoes is to be unloaded, and followed by the unloading of transshipment cargoes. • If the unloading is over, then loading of export cargoes is to be done, and followed by the loading of transshipment cargoes.

Input and Output Variables for Simulation

LOGIC OF ALGORITHM FOR SIMULATION MODEL • Second come • Berths are not available! Wait in queue! • First class prioritiy • Compare priorities • Higher • Berth 4 available!!! • Berths are not available! Wait in queue! • First come • Second class prioritiy • Cranes are available!!! • Service completed • Service completed • There is no crane available! • Wait for crane! • Service completed • Berth 1 • Berth 2 • Berth 3 • Berth 4

Quay Simulation Results • Simulation Input Values by Port Type

Container terminal performance (berth)

Proper throughput calculation table (container yard) • Legend: O - Occupancy ratio (%); T - Throughput (TEU); Nb - No. of berths; L – Length in m; TGS - Total ground slots

Cost Total Cost Minimum Cost Service Cost Waiting Cost Optimal Service Level of Service Economic Implication of Proper Throughput: Cost strategy analysis • The proper service level should be decided by considering the combined costs of both the operating costs of port system and ship’s waiting costs. This leads to a proper throughput calculation.

Service cost* • Service cost items: wages, construction cost of various facilities, additional cost for yard equipment purchase, maintenance cost, depreciation, insurance (other service-related costs) • Facilities: the length and number of berth, CY area and TGS, the number of gate access lane, and level of facility. • Equipment: the number and capacity of Q/C, the number and capacity of T/C, the number and capacity of Y/T, the degree of equipment automation. • Manpower: the number and skill of employees, operator’s ability to make use of resources (management and control capability) * However, cost accounting needs careful calculation, i.e. the idle time in providing services should be considered in the cost analysis. (If the level of service increases, the idle time of both service providers and service facilities is likely to increase.)

Waiting Cost • It is not easy to exactly calculate how much cost the queuing system causes. • Waiting cost items: ship’s waiting cost, cargo backlog cost, and hinterland traffic congestion cost. • Costs at the wharf: THC (terminal handling charge), wharfage, dockage, D/O fee, container cleaning fee, tariff, value-added tax, customs clearance charge, carriage, stevedoring fee, forklift fee, ODCY expenses (rehandling fee, shuttling charge) • Congestion cost: charge for cargo handling beyond capacity, cost for extended service hours.

Quantitative Model • The problem of decision-making (minimization) based on a queuing system hangs on how to balance between the waiting cost and the service level. It can be calculated on the basis of the following formula: Minimise: TC (S) = (I x C1) + (W x C2) where, TC (S) = total system cost based on the service level (S) I = service provider’s total hours during a specific period C1 = cost per unit hour in the hours W = total waiting hours during a specific period C2 = cost per unit hour in the waiting hours

Case Study: SCT terminal • If a container terminal throughput > its proper throughput capacity -> increase ship waiting/backlog-related costs and the social costs • additional construction of ODCY (off dock container yard) • traffic congestion of hinterland roads • increasing contamination • wages increases stemming from additional deployment of workforce • increasing depreciation of various facilities and equipment • risk taking coming from overtime or night work • Nevertheless, many container terminals sometimes try to pursue growth-oriented management in order to improve their productivity, thus causing the problem of lowered service and quality.

In case of 400,000 TEU (Waiting ratio: 0.09, LPC ratio: 0.165, product cost: US$17.81)

Ship and cargo congestion costs of ‘S’ terminal

Relationship between turnover and ship waiting/backlog-related costs

Corporate profit and social costs of ‘S’ terminal

Relationship between corporate profit and social costs of ‘S’ terminal

CONCLUSION • The obtained results have revealed that simulation modeling is a very effective method to examine the proper throughput of container terminal including berth side and yard side. • The proper throughput is to be identified in terms of both operational and economic view • In a result, it is necessary to recognize the the capability of infrastructure is dependent on many factors like operation systems, policy, equipment and infrastructure. • On the context, the regular check will be needed for improving service and reducing cost, as proper throughput varies on situation.

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CONTAINER Terminals Modeling