Ports and Terminals

What is the difference between a port and a terminal?

nobx — Fri, 06 May 2022 18:59:24 +0000

The terms “port” and “terminal” are often used as common words to refer to a location where cargo and vessels are handled. However, for clarity, we are talking in this article about commercial ports handling cargo and do not refer to fishing ports, ferry ports or marinas.

To better understand what the words “port” and “terminal” mean, we should start with what they do and what services they provide. Since ports can be classified in various types, the easiest is to start defining what a terminal is. I’ll elaborate in a separate post on the types and roles of ports and how they are classified. However, we’ll stick here to the basics when defining the meaning of the concept “port”.

What is a terminal?

A terminal is a facility where cargo is handled. Remember we are focusing on cargo in our definition. Let us further assume we are talking about marine terminals and facilities capable of receiving ocean-going vessels. Cargo handling then means discharging cargo from these vessels or loading cargo on the vessels. Another word for loading and discharging is “stevedoring”. The word stevedoring is de- rived from the Spanish word “Estibador”. An “estibador” is a person who loads or discharges a ship.

After discharging cargo from the ship, machines usually transport the cargo to a storage area. The cargo remains there until another means of transport – a truck, a train, a barge – comes to collect the cargo for the onward transport to the consignee, the importer of the goods. I just described the import cycle: from the vessel to the hinterland.

Looking at the export cycle, the sequence is the other way around. First, goods travel from the producer or exporter by truck, train or barge to the terminal, where they stay until they are loaded on a vessel, sailing the ocean to the Port of Discharge, the POD.

What types of terminals exist?

The cargo, or the commodity type, handled at the terminals classifies the terminal or determines its type. The following list contains an overview of the most common commodity types:

Containers
General Cargo
Dry Bulk
Liquids
RoRo cargo
Cars/Vehicles
Project Cargo

Based on this list, we can make a classification of the terminals. Some terminals may handle multiple types of commodities and are called mixed or multi-commodity terminals. Typically, General Cargo will also handle Project Cargo.

Often Car terminals are also called RoRo terminals. However, I prefer to call terminal handling cars a car terminal and not a RoRo terminal because RoRo and Cars are not the same. The processes on the terminal are different, and the types of vessels are different. In my book, Roro refers to cargo on wheels like on a Mafi, trailers (with or without tractor), and heavy machinery on wheels (self-propelled or towed/ pushed).

We’ll discuss the types in more detail in a separate post and clarify how processes work on these terminals, what differences we can identify and where we can observe similarities.

What is a port?

As Wikipedia says, the most straightforward definition for a marine port is, “A port is a maritime facility comprising one or more wharves or loading areas, where ships load and discharge cargo and passengers. From

Since we focus on cargo handling, we can leave out the concept of “passengers”. Wikipedia talks about wharves, while we call them terminals, which is a more widely accepted concept in the above definition.

The definition says a port is a maritime facility, but it can also be located in-land and connected to the sea by a river or canal. Some examples: Antwerp, Ham- burg. The port provides vessels access to the terminals’ cargo handling facilities as a maritime facility.

The Wikipedia definition leaves out an essential element: the connection to the hinterland. The rail or road network connecting the port to the consumers, the im- porters, producers, and exporters is crucial. At least in a gateway port. How else would cargo get from the port/terminal to the hinterland? A gateway port is a hub in the export and the import cycle. On the other hand, for a transhipment port, the cargo connections to the hinterland are less important.

A port is, in general, managed by what is called a Port Authority. The port manager could be a public, a private or a mixed entity and may provide services to vessels or any other stakeholder doing business with the port.

Earlier, we mentioned already that there are several types of ports. Some types may also act as terminals, meaning that they are involved in cargo handling. When considering a landlord port type, the port authority is not involved in handling cargo. For the service port, cargo handling or stevedoring is a core activity.

Conclusion: what is the difference between a port and a terminal?

The core activity of a terminal is stevedoring or cargo handling. There may be several terminals operating in a port, classified by the type of commodity they process. Unless it is a service port, a port is usually not involved in cargo handling. Instead, a port provides services to the terminal operators, grants a concession, and enables and maintains marine and land access. A port or, better, port authority may be a regulator and may provide marketing services for the whole of the port community. In addition, port authorities may provide services to vessels.

As you understand, there are a few conditional statements in the conclusion. These conditional statements apply specifically to ports or port authorities. I’ll get into more details when discussing the various port models.

landlord port and terminals

Glossary of Acronyms for Ports and Terminals

nobx — Wed, 04 May 2022 17:49:08 +0000

Acronyms leading to confusion

Let’s contribute to creating a common understanding of terminology for ports and terminals and get rid of the confusion by explaining or spelling out what the acronyms in our business mean. There are so may abbreviations used, and often they lead to confusion. When working on new projects and new designs, having a common understanding of concepts is a crucial success factor.

Here is a list. There is a PDF for download included. The list is not a complete dictionary but contains a starter set of acronyms.

Acronym	Meaning
AAPA	American Association of Port Authorities
A-Check	A check or Administrative check refers to the administrative tests done in the system before actual operations are carried out.
ACS	Access Control System
AGV	Automatic Guided Vehicle
AIS	Automatic Identification System
ASC	Automatic Stacking Crane
ATA	Actual Time of Arrival
ATD	Actual Time of Departure
BAPLIE	EDI message containing the bayplan of a vessel
BAS	Berth allocation System
BI	Business Intelligence
BL or B/L	Bill of Lading: Bill of Lading refers to the freight shipped; the contents of a shipment
Bulk Cargo	Refers to Cargo that is not in packages or containers; shipped loose in the hold of a ship without mark and count. Grain, coal and sulphur are examples of typical bulk freight.
CALINF	EDIFACT Message: Call information message; Vessel call (or truck call)
CCS	Cargo Community System
CCTV	Closed Circuit TV
CDM	Collaborative Decision Making
CFA (C/F agent)	Clearing and Forwarding Agent for whom the order is made
CFS	Abbreviation for “Container Freight Station”. A shipping dock where cargo is loaded (“stuffed”) into or unloaded (“stripped”) from containers.
Chassis	A frame with wheels and container locking devices to secure the container for horizontal movement
CHE	Cargo or Container Handling Equipment
COARRI	EDIFACT Message: Container Arrival Message – Discharging and loading confirmation message
CODECO	EDIFACT Message: Container Departure Confirmation; contains Container Gate-In / Gate-Out Report
Consignee	The consignee (receiver) of the goods, i.e. the person or company to which commodities are shipped.
COPARN	EDIFACT Message: Container Pre-Arrival Notice
COPINO	EDIFACT Message: Container Pickup inland message that is used by the inland carrier to notify the Terminal
COPRAR	EDIFACT Message: Container discharge/loading order message
COREOR	EDIFACT Message: Container Release Order
COS	Crane Operating System
CRS	Container Repair Station
CUSCAR	EDIFACT Message: Customs cargo report (Customs cargo report message)
DGPS	Differential Global Positioning System
EDI	Electronic Data Interchange
EDIFACT	Electronic Data Interchange for Administration, Commerce and Transport
EIR	Equipment Interchange Report
ERP	Enterprise Resource Planning
ETA	Estimated Time of Arrival
ETC	Estimated Time of Completion
ETD	Estimated Time of Departure
Execute before	A date before which the order is supposed to be executed
FCL	Abbreviation for “Full Container Load”
FPOD	Final Point of Destination
GC	Refers to General Cargo (Breakbulk Cargo) that is not in containers but is unitized or in some kind of packaging
GOS	Gate Operating System
GPS	Global Positioning System
Harmonised System of codes	An international goods classification system describes cargo in international trade under a single commodity-coding scheme. Developed under the auspices of the Customs Cooperation Council
HAZMAT	An industry abbreviation for “Hazardous Material.”
HHT	Hand-Held Terminal, a radio terminal used for tally, inventory and reefer operations
HMC	Abbreviation for Harbour Mobile Crane
HR	Human Resources
HSCODE	Abbreviation for “Harmonised System of Codes”
IALA	The International Association of Marine Aids to Navigation and Lighthouse Authorities
IAPH	International Association of Ports and Harbours
ICD	Inland Container Depot
IEC	International Electrotechnical Commission
IFTDGN	EDIFACT Message: International Forwarding and Transport Dangerous Goods Notification
IHMA	International Harbour Masters Association
IMDG	International Maritime Dangerous Goods
IMDG code	International Maritime Dangerous Goods Code. The regulations published by the IMO for transporting hazardous materials internationally.
IMO	International Maritime Organisation
IMV	Internal Movement Vehicle
ISO	International Standards Organisation
ISP	Internet Service Provider
ISPS	The International Ship and Port Facility Security Code. Worldwide standard; An amendment to the Safety of Life at Sea Convention on Maritime security, including minimum security arrangements for ships, ports and government agencies
KPI	Key Performance Indicator
LCL	Abbreviation for “Less than Container Load”
Line	The shipping line. Orders are issued by shipping lines to terminals
Line agent	The agent represents the shipping line for which the order is made.
LPR	License Plate Recognition
Manifest	A document that details all the bills of lading issued by a carrier or its agent or master for a specific voyage. A detailed summary of the total cargo of a vessel or train. Used principally for Customs purposes. Also, a detailed list of all cargo in a specific container.
MDT	Mobile Data Terminal
MOVINS	EDI file containing the prestow or instructions of a shipping line indicating where to load categories of containers or individual containers
MT	Abbreviation for Metric Ton
MTBF	Mean Time Between Failure
MTTR	Mean Time To Repair
OCR	Optical Character Recognition
OOG	Out of gauge, over-dimensioned cargo or containers with length/height and/or width exceeding standard dimensions
Out of Gauge	Cargo outside of standard dimensions. In the case of containerized cargo, cargo that does not fit fully in a container. About non-containerized, oversized cargo. Cargo exceeds the permissible height, width, and/or length limits. Out of gauge cargo requires special permits and special chassis equipment.
P-Check	Physical Check. This is a check to see that the actual container or cargo was received or delivered. Other information such as damages and numbers can also be verified.
PCS	Port Community System
PDS	Position Detection System
Place of destination	The final destination of the cargo
Place of origin	The place where the cargo originates from
PLCM	Product Life Cycle Management
PMBOK	Project Management Book of Knowledge
PMI	Project Management Institute
PMIS	Port Management Information System
POD	Port of Discharge/Destination
POL	Port of Loading/Origin Port
QC	Quay Crane
Radio Data Terminal	A mobile device is used to carry out on-site operational data input. This can also be a tablet or some other suitable supported outdoor device.
RDT	Radio Data Terminal
Reefer	Refrigerated container. Containers whose contents are stored with a specific temperature range by refrigeration, transport, and storage.
RFID	Radio Frequency Identification
RFP	Request for Proposal
RFQ	Request for Quotation
RMF	Risk Management Framework
RMG	Rail Mounted Gantry, a Container Handling Machine on rails
RMI	Remote Machine Interface
RMMS	Remote Maintenance Management System
RMS	Remote Maintenance System
Ro-Ro	Ro-Ro cargo refers to roll-on roll-off cargo. This is typically a reference to motor vehicles that can drive by themselves without needing another transporter. Ro-Ro vessels refer to vessels carrying such cargo.
RS	Reach Stacker
RTG	Rubber Tired Gantry
RTLS	Real-Time Location System
SA	Shipping Agent
SaaS	Software-as-a-Service
SAT	Site Acceptance Testing
SCADA	Supervisory Control and Data Acquisition
Service	A standard route or schedule published by Shipping lines indicates the route operation of vessels between various ports.
SFTP	Secure File Transfer Protocol
Shipper	The shipper of the goods
SLA	Service Level Agreement
SNMP	Simple Network Management Protocol
SOC	Shipper Owned Container
Stripping	Removing cargo from a container (Unloading or Devanning)
Stuffing	Putting cargo into a container (Loading)
TAD	Truck Announcement Document
Tally	Physical verification of goods while receiving them, delivering them or transferring them
TEU	Abbreviation for “Twenty-foot Equivalent Unit.”
TID	Truck Instruction Document – a document provided by the terminal operator to a truck driver with instructions
TIR	A document transferring a container from one carrier to another or to/from a terminal. Same as EIR.
TOS	Terminal Operating System – Specialized software system that assists in operations of cargo terminals
TT	Terminal Truck, also known as Prime Mover
UAT	User Acceptance Testing
UI	User Interface
UOM	Unit of Measure
VBS	Vehicle Booking System
Vessel/Voyage	The name of the vessel for which the order is made
VGM	Verified Gross Mass certificate
VMT	Vehicle Mounted Terminal: a radio data terminal fitted in cargo handling equipment to interact with the operator and send instructions for execution
VTMIS	Vessel Traffic Management Information System
VTS	Vessel Traffic System

20220316 Ports and Terminals glossary.xlsx

Is technology the solution to optimise Port and Terminal operations?

nobx — Tue, 26 Apr 2022 12:03:56 +0000

Managing ports and terminals with technology

Terminals and Ports are looking more and more at technology to do better, achieve higher throughput on a smaller piece of land, make better use of the available berthing space and reduce the turnaround time of the vessels visiting the port. The technology could be a Port Management System, a Terminal Operating System, a VTMS system, or any other software and/or hardware system.

Key Drivers

The key driver to implementing technology varies. Some think that technology will help overcome any constraint, any roadblock on the road to optimisation. Constraints are inherent to any design, physical layout, and system, no matter how well we design the form of our port or the system to manage it. Market evolution, customer demands and changing environments can push systems and designs to their limits. Another reason to implement technology may be to follow trendy evolutions, such as artificial intelligence, deep learning, IoT or other new developments. Let us be honest, when we invest, we all look at the return on investment as the main driver. It is good practice to evaluate how much cost we can reduce, how much more profit we can generate, and how we can do more with less.

Control over speed

I genuinely believe that technology plays an important role to manage port and terminal operations. Having procured, sold and implemented terminal operating systems (TOS), PMS and other systems for many years, I do not need convincing about their contribution to the business. If implemented wisely, with attention to every aspect of the process, technology will positively affect and generate a return on investment.From experience, I learned, however, that technology, by itself, does not optimise operations. For technology to perform and meet expectations, good processes need to be in place. These processes need to be supported by the technology and take the burden of daily repetitive tasks away.

In that sense, technology will enable competent, trained and motivated staff to focus on their primary tasks and serve the customer as good as possible.

Ten Questions to answer

To make the right decisions about what technology to implement, answering a set of questions is the first step:

What are customers telling us? Are the customers happy about the way we interact with them and about the services we provide? How can we improve?
Where are the current bottlenecks or challenges?
Are our current processes fit for purpose? Can we optimise processes, eliminate steps
Should we re-invent our current processes? Should we adapt our operations to the flow available in the technology we will be choosing?
Are we making optimal use of our resources?
Is the technology we currently use still up-to-date? Fit for purpose?
What are we trying to achieve by implementing technology?
Do we have the right and motivated staff to go through the change process of implementing new technologies?
What about the vendor of the technology? What criteria will we use when selecting a vendor? What are our requirements?
Who should decide on the systems and technology we are going to use?

I will discuss each of these points in separate posts and share my views. Stay tuned and stay safe!

Click the link below to view and download the post as PDF.

Is technology the solution to optimise Port and Terminal operations v2