Project Objective

The project objective of Phase III will focus on the logistics operations of marine container terminal needs to improve freight movement in light of expectations that container movement will double by the year 2015. This phase will focus on the logistics operations inside a marine container terminal. It will analyze and integrate the areas of information management, yard management procedures, container yard operations, equipment utilization, and space allocation and utilization to optimize vessel operations and cargo handling (receiving and delivering).

Project Abstract:

The competitiveness of the Port Authority of NY & NJ is dependent on intermodal freight movement through the port. This project provides an analysis of the efficiency of the Port's intermodal movements. The analysis will focus on the objective of keeping the cost of movement at a minimum while at the same time providing for maximum efficiency. The project is divided into three phases: I. crane performance (completed), II. infrastructure access and infrastructure access (near completion) and III. logistics operations of marine container terminal (the present proposal).

Phase III will focus on the logistics operations of marine container terminal needs to improve freight movement in light of expectations that container movement will double by the year 2015. This phase will focus on logistics operations inside a marine container terminal. It will analyze and integrate the areas of information management, yard management procedures, container yard operations, equipment utilization, and space allocation and utilization to optimize vessel operations and cargo handling (receiving and delivering). The efficiency of freight movements and supply chain management are important. All will be reviewed for public investments, improved freight flow and regional economic liability.

Task Descriptions

The marine container terminal (MCT) is an intermodal storage, transfer and distribution center in the global supply chain driven by external factors stated above. The solutions for service optimization after a review of literature vill be based on tools of system analysis, data mining, and total cost trade-off model in logistics.

Literature review. This involves the review of historical and current research in the areas of terminal logistics operations. Such review would help identify methodologies that successfully aided other ports and that could be useful in this study. System analysis. This analysis will identify terminal logistics operations parameters. They include operational method (grounded or wheeled operations), types of yard handling equipment, operational procedures, container segregation, stacking arrangement, organizational structure, space allocation, intra-terminal traffic routing, and information flow. Terminal logistics operations among terminals in NY/NJ area have different systems set up by using various types of equipment and information system, and operational procedures. Furthermore, each shipping line or consortium has its own container and chassis fleet (or pool), preferred operational methods, and procedures. The analysis will help understand how the terminal logistics operation is functioning and the relationship among various parameters.

Data mining. This is a new technique in data analysis and information management. Based on the nature of liner service (fixed schedule and routing), all terminal activities are basically driven by external factors such as vessel schedule and shipper's own logistics requirement. This is mainly cargo pick up and delivery, customs release, and freight release. These external factors are beyond terminal operators' control, but they are the essential triggers of terminal operational activities. Liner service provides fixed arrival and departure dates. The shippers' interaction with terminal operators has been closely following such schedule for their own logistics set-up needs. There are certain patterns in the shippers' cargo pick up and delivery activities. By using the data mining technique that studies shippers' cargo pick-up and delivery patterns, dynamics of terminal activities could be identified. thus, linking customers' behavior to the port activity. The data in the terminal activity dynamics will be integrated into a useful and meaningful tool to help pro actively manage the terminal logistics operations. Rather than continuing the present process of passively going through ups and downs in the daily operations as a given, the terminal operators could plan and manage better in equipment usage, space utilization, gate hours, labor hiring, etc. In other words, the terminal operators could provide better service by targeting their customers for the right service at the right time and the right cost. In the end, the terminal operators could improve services and have better control over space and equipment utilization and labor cost.

Models. Due to system complexity and the various conflicting goals mentioned above, the terminal operator has multiple roles to play. On one hand, it has to improve service level to minimize truck turnaround time. On the other hand, it has to maximize productivity in ship-shore transfer. Furthermore, it also has to maximize land and equipment utilization in order to minimize public tax dollar investments in port expansion before its due time. Certain trade-offs among these goals might be necessary. It is difficult to achieve those goals simultaneously even more so in a large port complex of the Port Authority of New York and New Jersey. The researchers will select one marine terminal like Howland Hook as our model. A total cost trade-off model will be developed to analyze the terminal logistics operations. The terminal activity dynamics data will be the model input. Through this model, a terminal performance optimization will be obtained in terms of terminal service level, equipment utilization, space utilization, and cost.

In short, the optimized outcome will enable the port and terminal operators to achieve their external goals by improving their services to the general public (including the trucking community) and the shipping communities while minimizing the costs that are invested by the private sector and public sector in labor, land, and equipment.

Student Involvement

The project's team will include faculty form SUNY Maritime College with several graduate assistants. The graduate assistants will perform data collection, data analysis and documentation.

Relationship with Other Research Activities

This is a continuation of Phase I -Crane Performance, and Phase II -Surface Transportation and Infrastructure Access of the Intermodal Productivity and Goods Movement research project. This phase completes the project contribution to the regional infrastructure investments needs due to expected growing freight movements to and from the regional port of NY and NJ.

Technology Transfer Activities

See Benefits below.

Benefits of the Project

Phase III will provide explicit recommendations for present and future terminal operations procedures and investment needs. The recommendations will be based on performance, productivity and cost.

Future, Phase III will provide a comprehensive analysis of terminal logistics operations, but most importantly it will identify the dynamics of external forces that drive the terminal activities and integrate them into" the analysis and decision-making process. The total cost trade-off model is a powerful tool to identify cost-effectiveness of public investment in land and equipment, service improvement, capacity enlargement, and equipment utilization.

The recommendations will continue through Phase III of this proposal in order to determine the comprehensive impact of all phases.