Port Functions and Management Models - Case Study Example

Running Header: Port of Shanghai Student’s Name: Instructor’s Name: Course Name & Code: Date of Submission: Table of Contents Table of Contents 2 Introduction 3 Types of Cargoes Handled and Trade Throughput 4 Port of Shanghai management 6 Port management model 6 Ownership of the port 7 Directors at the Shanghai port 8 Advantages of a tool port model 8 Disadvantages of a tool port Model 8 Conclusion 9 Works Cited 10 Introduction The port of Shanghai is found in Shanghai city which is the most popular city in China. It is the second busiest sea port in the world. It is around 430 nautical miles of the Taipei port of Taiwan and about 421km southeast of the Lianyungang port. Port of shanghai comprises a river port and a deep-sea port. It is located in the vicinity of Shanghai, China. Shanghai has been the busiest port by cargo tonnage since 2005. It is faced towards the southern and northern areas of China’s coastal seas and other world oceans. It is linked with the River Yangtze and the inland waterways of Yangtze water region like Anhui, Zhejiang, and Jiangsu provinces. The port of Shanghai faces Hangzhou Bay to the south and East China Sea to the east. It is the leading port in a water way with a T-shaped network comprising of Coastline and Yangtze River. The point where River Yangtze enters the sea is referred to as “the Golden Waterway”. Other rivers include Qiantang River, Yangtze River, and Huangpu River which enters into Yangtze River. It is usually located at the middle of 18,000 km long coastline of China. This makes the port enjoy the advantage of geographical location. The port of Shanghai is the leading center of financial and commercial sector. The port has a stronger base in the technology and manufacturing sectors. Shanghai International Port (Group) Company, Limited (SIPG) is the public terminal sole operator in the Shanghai Port. Containers are the main leading business of Shanghai port. The core business of Shanghai International port is container terminal operation. Shanghai International port has three main port areas that include Waigaoiao, Wusongkou, and Yangshan. The port of Shanghai is responsible of handling cargo; de-stuffing, manufacturing, leasing and maintaining containers. It is also responsible of transporting both international and domestic cargo through the land and water. It is also in charge of managing warehousing information, processing, distribution and other port logistics activities. Shanghai port also provides facilities for international passengers as well as piloting and towing vessels. It provides in-port services, forwarding freight as well as leasing port equipment. It also builds, manage and even operate port and other terminal facilities. In every year, total exports and imports trade that move through the Shanghai port comprises of one-fourth of the China’s foreign trade. The port of Shanghai also has non-container terminals which supports Yangtze’s River valley economic development. There are over two thousand containers that leave the port of Shanghai carrying various types of cargo to world’s major markets and continents. This is located on the Huangpu River that feeds the Yangtze River and serves as a distribution center for the hinterlands of Shanghai Port. Port of Shanghai also provides a good destination for tourists around the world. It is one of the most popular destinations of tourists around the world (Shanghai International Port (Group) CO. LTD). Types of Cargoes Handled and Trade Throughput Port of Shanghai handles foreign cargoes of equipment, pulp, iron, steel, containers, vehicles, and bulk cargoes. The main facilities materials handled by the port are the containers. In 2003, Shanghai port was the third largest port to handle a lot of containers all over the world. In 2005, Shanghai port handled over 18.1 million containers. This number of containers increased to 21.7 million in 2006 and 26.2 million in 2007. This is an annual growth of 20 percent. It has strong ties with the mainland mainly through the railway system and road transport system. This assists greatly towards transport of materials and various goods including cargoes or containers from the port to the mainland. Various types of goods leaving the mainland of China leave through the port of Shanghai. This is mainly through connecting it with the mainland through the land and rail transportation systems that connects it with the major cities. Shanghai had over 560 expressways carrying over 327 million tons of cargo and more than 24.68 million people from the port. In 2005, Shanghai railway authorities covered 269.1km. This transported over 12.783 million tons of cargo from the port. It also transported more than 43.131 million passengers. Table 1. Container throughput Year 1993 1994 1995 1996 1997 1998 1999 2000 2002 Growth Rate _ 28.24 27.36 29.08 28.21 21.33 37.51 33.11 12.97 Throughput 93.5 120 153 197 253 307 422 561 634 Year 2003 2004 2005 2006 Growth Rate 31.00 29.00 24.25 20.05 Throughput 1128 1455 1808 2171 Port of Shanghai management Shanghai International Port is the one responsible for managing the port of Shanghai. They superseded the Shanghai Port Authority in 2003. Shanghai International Port Company Limited is one of the listed companies in China. Shanghai Municipal council owns 44.23 percent of the Company’s shares. Ports have governing bodies which in most cases referred to as port authority, port administration, or port management. The widely used name to indicate one of these is port Authority. The way that the ports are structured, organized, and managed is influenced by various factors that include country’s socio economic structure like open boundaries and market economy. Other factors include historical developments like former colonial structure and the location of the port whether urban or isolated region. Others include the type of cargo that is handled whether general cargo or containers. Port management model They are four main categories of port management models that emerged with time. They include the landlord port, tool port, the public service port, and fully privatized port or private service port. These models are mainly notable by the way they vary with respect to various characteristics like local, regional or even global orientation. Other characteristics which make it to differ include ownership of infrastructure like the port land as well as private, public or mixed provision of the services. Status of the dock management and labor as well as ownership of equipment like ship-to-shore handling equipment and warehouses, and superstructure is other characteristics. The type of model used in Shanghai is Tool Port Model. Under a tool port model, the land, superstructure and other required equipment are provided by the ports authority. It manages all the equipments, workers and operations within the Shanghai port. It is led by the directors who include the President (Harald 45). Ownership of the port The Shanghai International Port Company is a share holding Company. The major share holders include Shanghai Municipal government, Shanghai Tongsheng investment Group Corporation, and China International Terminals Company Limited. Minor shareholders include Shanghai Dasheng Assets Company and Shanghai State-assets Operation Company. The Shanghai International port Company is controlled and managed by board of directors. It has port authority that owns, develops and even maintains the infrastructure in the port. This includes the forklift trucks and other cargo handling equipment. Therefore, the type of model utilized in Shanghai port is Tool ports model. The port labor is public and any qualified member of public can work in it. Many of the employees in the Shanghai port are people around and in Shanghai city and other parts of China. Majority of the functions that takes place in the Shanghai port are public. Shanghai International port employs people with various kinds of skills in technology. This is due to integrated technology that is used including computer management and control technology. Other type of technology that require qualified and skills personnel include modern information management and communication technology. The employees are managed through modern computer systems of management due to high number of those who work within the port. According to the tool ports model, the facilities in the port are operated by the staff who are part of the ports authority (World Port Source). Directors at the Shanghai port The Shanghai port is operated and controlled by the state. It has board of directors, President, 4 vice-presidents and board of supervisors. The senior management consists of president, 4 vice presidents, Chief Financial Officer, Company Secretary, and Deputy Chief Financial Officer. President of port of Shanghai is Chen Xuyuan while vice-presidents are Bao Qifan, Chen Lishen, Zhang Jiali, and Hunag Xin. Chief Financial Officer is Fang Huaijin while Port of Shanghai Company secretary is Wang Qingwei. Wang Lingling is the Deputy Chief Financial Officer. Independent Directors include Wu Xiaohua, Cao Huimin, and Chen Weishu. Port of supervisors has Chairman of Board of supervisors who is Xiao Yijia. Others are supervisors who include Zhang Youlin, Zhang Rizhong, Zhou Yuankang, and Li Xiaoxing (Shanghai International Port (Group) CO. LTD). Advantages of a tool port model A tool port model has various advantages for Shanghai port authority. It makes the port to adopt various phases of reforms since there are no state assets that are transferred to the private sector. This makes the laws and regulation for establishing a tool port even less extensive. Port infrastructure and equipment investment is provided and even decided by the public sector. This assists in avoiding facilities duplication. Disadvantages of a tool port Model A tool port model has various disadvantages associated with it. Due to private enterprise and port administration share of cargo handling services, this may lead to situations that are conflicting. A tool port model may be under the risk of underinvestment. It may also lack the required innovation that may be crucial to the operations of the port. Conclusion Ports and terminals are the core areas of regional and national development of many countries. They are planned specifically as strategic means of regional development. The Shanghai port is favored by its location as well as the nature of the hinterland. This has enhanced the functions of Shanghai port and its operations. The port of Shanghai has effective management in order to ensure they meet required service delivery. This will also enhance the relationship between handling facilities, navigation, and infrastructure. This is to ensure there is reduced cargo and traffic congestion. The port of Shanghai is crucial transport hub for the region of Yangtze River. It is vital gateway for foreign trade. It serves Yangtze region economically as it develops hinterland of Zhejiang, Anhui, Henan, and Jiangsu. These areas are densely populated, developed in the sector of agriculture, and strong industrial base. The port of Shanghai has been successful due to its geographical location, natural conditions, complete inland distribution as well as economically developed hinterlands and entire China economy. Works Cited Harald, K. Port Management Textbook. London: Drewry House, 2005. Shanghai International Port (Group) CO. LTD. About Port of Shanghai. 13 July 2008. 1 August 2010. World Port Source. Port of Shanghai. 5 June 2006. 1 August. 2010. Read More