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Revolution not evolution to combat Asian port congestion: consultant

ASIAN container terminals' constant port congestion problem can be overcome through an industry mind-set shift, according to partner at CTI Consultancy Andy Lane, who spoke recently at the JOC TPM Asia conference in Shenzhen, China.

Using data from the JOC/IHS port productivity database, he pointed out that congestion was not necessarily caused by the deployment of mega-vessels - just 12 per cent of all calls at Asia's 27 largest ports are from 10,000 TEU vessels or larger, which carry just 22 per cent of total container volumes, the Loadstar reported.

"Cargo surge existed before even 6,000 TEU vessels entered service, caused by the legacy of the 'end week closing' (of Asia's factories) - although larger ships do magnify the effect.

"Trying to move a week's worth of production through two-to-three days of intense terminal operations is akin to trying to force an elephant through a mouse-hole!"

Mr Lane said that as most ships sailed at very similar speeds and served mostly the same ports, the problem appeared to start in East and South China and then rippled out to South-east Asian and Korean hubs, also hitting feedered ports, and even spreading as far as the US or Europe.

"Looking at the world's 12 largest ports, they appear to be utilised only 48 per cent of the hours available within a period and at sub-optimal efficiency," he added.

Drawing parallels with the manufacturing industry, Mr Lane said that the "bottleneck machine" - which must either be the most expensive asset within a facility or the one which drives the core revenue stream - was normally utilised 85 per cent of the time and at no less than 85 per cent efficiency.

Contrasting that with container terminals, where the "bottleneck machine" is the quay cranes, he said that "if utilisation could be increased to just 60 per cent and efficiency increased from a standard 28 to 32 moves per hour, then 44 per cent more capacity would be created with zero investment required".

"It is barely an evolution, when what is really required is a revolution," Mr Lane suggested. He said: "As well as a mind-set shift, and structured improvement programmes, much greater levels of co-operation and collaboration among all stakeholders in the supply chain is required.