Seaports and maritime transport have existed for some thousands of years and they support international trade in shaping the economies of the modern world. It is estimated that about six billion tonnes of freight move through maritime transport each year, being comprised mostly of liquid and general cargo.
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Global trade has been growing since the 1950s and the increasing prominence of the World Trade Organisation and bilateral nations efforts to promote competition in global trade has led to changes in shipping practices, and as the dominant mode of global freight transport, this has led to growth in containerised trade, helping minimise freight handling costs compared to earlier forms of shipping.
The emphasis on the role of ports in the growth of world trade and maritime transport businesses globally has increasingly connected many of the world’s economies, a result of the increasing trade and the globalisation of production. Over the past half-century, most countries have seen an increase in exports share of GDP, with the vast bulk of these exports transported by sea.
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A number of factors have affected the ports sector positively and were instrumental in increasing efficiency and productivity in the sector. These include better, faster and larger vessels and improvements in cargo handling at the ports.
With fewer ports able to handle larger vessels, there is a growing traffic concentration at certain ports, and increasingly many mid-sized ports are acting in a feeder role to the larger ports. In these networks, the larger vessels sail between the major hubs, with the effect that the growth of the smaller ports is dependent on the routes of the major shipping lines.
Global shipping companies have also increased significantly in scale as freight has grown considerably in recent years. A particular feature of this growth is its uneven spread across different sections which has led to directional imbalances, with the result that large numbers of empty containers may flow in one direction, while much higher freight rates exist in the opposite direction.
The rising cost of transport has seen more economies using port-centric logistics models which has boosted its level of competitiveness. This term describes a logistics and distribution service based at the port where goods arrive, a brilliant alternative to inland depots and centrally located national distribution centres, which reduces the number of storage and distribution handling stages, saving both time, energy and money.
This is recommended by some of the world’s largest supply chain and distribution companies and is rapidly gaining popularity as businesses and economies look for better solutions to streamline supply chains and reduce the impact on the environment. Port-centric logistics removes unnecessary freight miles.
For example, if goods arrive at a port in the south, then travel to the distribution centre in the north, the goods essentially retrace their steps if they are distributed to a customer based in the south. If the goods remain at the port they arrived in and get distributed from that same location, you have avoided wasted freight miles, which is excellent for the ports’ bottom line and reduces environmental impact.
Port-centric logistics helps reduce costs, streamlines operations and improves customer service. As a result, shippers benefit from lower costs, shorter lead times, reduced congestion in the ports, a more efficient supply chain, a reduced carbon footprint, and cost-effective logistics and distribution.
Port-centric logistics helps make management of the supply chain process simple. Ports and organisations using this model utilise innovative warehousing management systems to ensure seamless handling of goods from start to finish, from unloading and storage to pick and pack for onward distribution. This helps guarantee safe handling of customers’ goods and gives control and traceability of stock in real-time.
The important role seaports play in the development of trade and economies of nations cannot be over emphasised because they serve as the gateways and transit points through which imports and exports flow, as such seaports are critical elements of the global supply chain.
Global trade enhances economic development and many countries including Nigeria must take advantage of this linkage by reducing or eliminating obstacles that slow down the movement of cargo through their seaports which result in idle times that lower seaport efficiency, and negatively impacts on the cost of trade and the level of competitiveness of the port.
For example, the Chinese government places great emphasis on building their economy through international trade and, hence, China has the largest shipping ports in the world and is a leader in manufacturing. Currently, the port of Shanghai in China, comprised of a deep seaport and a river port, is the largest and busiest port in the world in terms of cargo tonnage.
A port is defined as any maritime facility that is operated on a commercial basis and has at least one or more wharves for docking ships. Most ports are located around the coastal areas but there are some that are inland, e.g. those in Manchester, Hamburg etc and usually a canal or river helps connect the inland port to the sea. Recently, Asia has emerged as the continent with the most significant port growth globally because of the steady growth in its international trade transactions and this has brought tremendous growth to its economy.
The modern types of ports are very busy locations with a lot of economic and operational functions, the old days of the port being nothing more than a mere berthing space for ships has long changed. Even vessels and shipping businesses have changed, and we now have commercial ships, military ships, tourism ships etc. that need modern technology and a strategic management system to maximise efficiency and productivity.
The techniques needed to achieve optimum growth in port logistics and shipping management is, therefore, a very fundamental strategy for nations and stakeholders to adopt and take seriously if they want to stay ahead in the present day competitive maritime industry.
FESTUS OKOTIE
