Port Management Improvement Strategies Based on Simulation Model

Abstract

Management performance of container terminal is an important factor of port competitiveness. In the past, ports had often increased performance by expanding the number of berths and equipment. However, recent global recession has significantly dampened the growth of the international trade. Thus, port authority must seek effective utilization of the capacities of its container terminals. Most ocean carriers in the Port of Kaohsiung in Taiwan rent multiple berths that are often dispersed to different container terminals, resulting in inefficient handling. Establishing terminal operators to optimize berth assignment may resolve this problem. The objective of this research is to construct a simulation model to assess the positive effects of establishing effective terminal operators, which may be achieved through port privatization. The research results show that once terminal operators are established to optimize berth reassignment, terminal capacity could increase 20~30% with a related cost reduction in the range of 10~20%. These positive results suggest that the studied model offers potential benefit to other port authorities seeking to enhance their container handling capacity.