Capacity planning for container terminals (part 1)

Abstract

Since the advent of containerization, demand for container terminal services has been rising for the past decades and is expected to continue in the future as globalization accelerates. Container terminal operators need to plan capacity in both short-term and long-term, so as to cope with the changing demand and to maintain their competitiveness. This report mainly focuses on the short-term and operational level capacity adjustment to cope with fluctuations in demand for container terminal services.

Container terminal short-term capacity can be increased by reducing the potential bottlenecks at the terminal’s anchorage and gate, apart from the yard and the quay side to which researchers usually pay more attention. Congestion reduction is the key issue, because the capacity adjustments that can be made in the short-term are relatively limited. Reducing anchorage congestion can be achieved by optimising the use of available anchorages. Reducing congestion and increasing capacity at the terminal’s gate can be achieved through gate expansion, gate operation hour extension, and assigning separate gates for different types of containers.

Container terminal operational capacity can also be adjusted through the management of labour such as stevedores and pilots. The management method to increase labour capacity includes working overtime, rearranging shifts, re-allocating labour among the terminals and increasing the total number of workers. The labour capacity adjustment also depends on many political and legislative restrictions, and the bargaining power of both the employer and the employee’s union. Training and improved practices are also important to increase the labour productivity.