container shipping course module

5/21/2018 Container Shipping Course Module

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INTRODUCTION TO THE

CONTAINER SHIPPING

INDUSTRY

University of Wisconsin MilwaukeePaper No. 11-1

National Center for Freight & Infrastructure Research & EducationCollege of Engineering

Department of Civil and Environmental EngineeringUniversity of Wisconsin, Madison

Author:Matthew E. H. PeteringDepartment of Industrial and Manufacturing EngineeringUniversity of Wisconsin Milwaukee

Principal Investigator:Alan J. HorowitzProfessor, Civil Engineering and Mechanics Department, University of Wisconsin Milwaukee

January 6, 2011


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Introduction to the Container Shipping Industry

INTRODUCTION

This document contains images of all slides in a course module about the container

shipping industry and container port operations. Sources and additional content are found on the

note pages of the original slide presentation. The full presentation contains videos. Thispresentation is available upon request to Alan Horowitz, [email protected].


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1

Introduction to theIntroduction to theContainer Shipping IndustryContainer Shipping Industry

Matthew E. H. Petering

Assistant Professor

Department of Industrial and Manufacturing Engineering

University of WisconsinMilwaukee

[email protected]

2010 Matthew E. H. Petering

2

OutlineOutline1. Introduction to maritime shipping

2. Introduction to container shipping

3. Container vessels and shipping lines

4. Seaports

5. Railway container transportation / facilities

6. Conclusion


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3

OutlineOutline

1. Introduction to maritime shipping



4. Seaports


6. Conclusion

4

Introduction to Maritime ShippingIntroduction to Maritime Shipping Ships carry 99% of overseas trade in volume terms

and 62% in value terms, the remainder beingconveyed by air.

90% of all international trade moves by sea

Globally, the ton-miles of f reight moved by waterare more than twice the total ton-miles moved byroad, railway, and air put together.

http://www.greatlakes-seaway.com/en/aboutus/competitiveness.html

Water transportationis less costly andmore energy efficientthan other modes oftransport:


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5

Maritime Shipping: Cargo TypesMaritime Shipping: Cargo Types

Dry Bulk(salt, grain, minerals, cement/gypsum, coal byproducts)

Liquid Bulk(crude oil, gasoline, chemicals, liquefied natural gas)

Break Bulk(steel, lumber, heavy machinery)

Automobile

Containerized(finished consumer goods)

6

Shippers (importers/exporters)(Nike, Wal-Mart, ExxonMobil, Toyota)

Shipping lines (ocean carriers, vessel operators)(Maersk Sealand, MSC, CMA CGM, Evergreen, Hapag Lloyd)

Seaport terminal operatorsMorton Salt (dry bulk)Shell Oil (liquid bulk)Toyota (automobile)Containerized cargo:

PSA Corporation (Singapore)Hutchison Port Holdings (Hong Kong)Dubai Ports World (United Arab Emirates)

APM Terminals (Netherlands, Denmark)

Railway operators(Union Pacific, BNSF, CSX, Norfolk Southern, CN, CP)

Trucking companies (motor vehicle carriers)

Maritime Shipping: Major PlayersMaritime Shipping: Major Players


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OutlineOutline




4. Seaports


6. Conclusion

8

Container ShippingContainer Shipping

World fleet, Feb 2004: 3167 vessels, capacity = 6.5 mill ion 20-ft conts . (TEU)

World fleet, Dec 2008: 4661 vessels, capacity = 12.1 million 20-ft conts. (TEU)

Port of Long Beach

Port of Long Beach


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Container ShippingContainer Shipping

Port of Long Beach Frankfurt am Main East

Port of Singapore

10

VesselsVessels


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ContainersContainersContents

furniture, toys, footware, clothing, auto parts, electronics,computers, bananas, pineapples, foodstuffs, meat, fish

Sizes20' x 8' x 8.5' high (TEU)40' x 8' x 8.5' high (FEU)45' x 8' x 8.5' high

Capacity30 tons

Where are they manufactured?China

Typesstandard dry, high cube (9.5' high) (90%)refrigerated ("reefer") (5%)other: ventilated, open top, adjustable height (5%)

QuantityGlobal stock = 35 million (10 mill leased); 3.5 million produced in 2008

CostNew: $2000 - $20,000; lease rate $1 - $6 per day (5 year term)

12

ContainersContainers Hoisted, lowered, and secured at the corners


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Secured aboard vessels, trains, truck chassies using(1) twist locks

for securing adjacent containers in the same stack

(2) lashing rods (vessels only)for securing containers in high tiers directly to the deck

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Port of Long Beach Website

Import cargo g enerally starts at an overseasmanufacturer, supplier or consolidation facility.The US buyer may contact an industry professionalknown as a Freight forwarder or logistics company.

Import cargo g enerally starts at an overseasmanufacturer, supplier or consolidation facility.The US buyer may contact an industry professionalknown as a Freight forwarder or logistics company.

1- Product Ordered: A t ypical import transaction startswhen a U.S. wholesaler, retailer or other bu yer ordersproducts from an overseas manufactures

1- Product Ordered: A t ypical import transaction startswhen a U.S. wholesaler, retailer or other bu yer ordersproducts from an overseas manufactures

2- To port: Once the product has been ordered and packaged, the buyer orfreight forwarder will arrange for a local trucking company to move thecontainer to seaport, and then for a ship to transport the container oversea.

2- To port: Once the product has been ordered and packaged, the buyer orfreight forwarder will arrange for a local trucking company to move thecontainer to seaport, and then for a ship to transport the container oversea.

3- Security checks: A U.S. Customs official based at the port receives informationfrom a U.S.-based command center about which containers may be a security risk.

3- Security checks: A U.S. Customs official based at the port receives informationfrom a U.S.-based command center about which containers may be a security risk.

4- All abroad: When the container is cleared by security it will be placed on a ship along with asmany as 8,000 TEU (twenty-foot equivalent) con tainers.

4- All abroad: When the container is cleared by security it will be placed on a ship along with asmany as 8,000 TEU (twenty-foot equivalent) con tainers.

5- Coast Guard review: The U.S. Coast Guard reviews crew and cargo manifestinformati on, which must be delivered at least three days before any ship arrives

at U.S. shores.

5- Coast Guard review: The U.S. Coast Guard reviews crew and cargo manifestinformati on, which must be delivered at least three days before any ship arrivesat U.S. shores.

6- Vessel docked: As the ship nears the harbor itwill be boarded by a port pilot, maritim e specialistswith expert knowledge of the harbor waters.

6- Vessel docked: As the ship nears the harbor itwill be boarded by a port pilot, maritim e specialistswith expert knowledge of the harbor waters.

7- Unloading the ship: As the ship is arriving, the terminal operator will contact thelocal union hall and arrange for unionized longshore workers to unload the container(using a giant, electric gantr y crane) and place it onto a truck, a rail car o r temporarystorage area on the termin al property. Unloadin g an 8,000 TEU ship takes about th reedays.

7- Unloading the ship: As the ship is arriving, the terminal operator will contact thelocal union hall and arrange for unionized longshore workers to unload the container(using a giant, electric gantr y crane) and place it onto a truck, a rail car o r temporarystorage area on the termin al property. Unloadin g an 8,000 TEU ship takes about th reedays.

8- Security Checks: U.S. Customs officials conduct fu rther analysis and determinewhich containers warrant further inspection.

8- Security Checks: U.S. Customs officials conduct fu rther analysis and determinewhich containers warrant further inspection.

9- Radiation detection: As a final security safeguard, containers pass through largeportals that detect radiation.

9- Radiation detection: As a final security safeguard, containers pass through largeportals that detect radiation.

18


As wi th i mpor ted go ods, ex port ed cargo may requ ireseveral intermediate stops between the producer ormanufacturer of the cargo and the Port.

As wi th i mpor ted go ods, ex port ed cargo may requ ireseveral intermediate stops between the producer or

manufacturer of the cargo and the Port.

1- Direct Delivery: In the most straightforward route, asingle container from a local exporting company,produce grower or manufacturer would be delivered bytruck directly to the marine terminal.

1- Direct Delivery: In the most straightforward route, asingle container from a local exporting company,produce grower or manufacturer would be delivered bytruck directly to the marine terminal.

2- Warehouse/consolidator: Cargo delivered from local ornonlocal destinations may be stored temporarily at awarehouse or consolidated with other cargo bound for

export. Cargo may also be transferred from domestic trucktrailers to marine shipping containers at this facility.

2- Warehouse/consolidator: Cargo delivered from local ornonlocal destinations may be stored temporarily at awarehouse or consolidated with other cargo bound for

export. Cargo may also be transferred from domestic trucktrailers to marine shipping containers at this facility.

3- Off-dock railyards: Some export cargo containers aredelivered by train to off-dock railyards, where they areplaced onto trucks for final delivery to marine terminals.

3- Off-dock railyards: Some export cargo containers aredelivered by train to off-dock railyards, where they areplaced onto trucks for final delivery to marine terminals.

4- On-dock railyards: Cargobound for export can bedelivered by train directly toon-dock railyards, where itis loaded onto an oceanvessel. On-dock deliveryrequires no local truck trips.

4- On-dock railyards: Cargobound for export can bedelivered by train directly toon-dock railyards, where itis loaded onto an oceanvessel. On-dock deliveryrequires no local truck trips.

5- Near-dock railyards: Export deliveries are also made to near-dock railyards,where the cargo is picked up by truck for a short trip to the marine terminal..

5- Near-dock railyards: Export deliveries are also made to near-dock railyards,where the cargo is picked up by truck for a short trip to the marine terminal..

6- Vessel loading: Outbound cargo is loaded ontoan ocean vessel headed for an overseas port.

6- Vessel loading: Outbound cargo is loaded ontoan ocean vessel headed for an overseas port.


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From the port o f Long Beach, containers are either transported by train or by truck to their finaldestination, or to one of several intermediate destinations such as a railyard, warehouse, distribution center,or transload facility ( a sorting, routing and short-term storage building). A containers final destinationdetermine exactly what path it will take once it leaves the dock.

From the port o f Long Beach, containers are either transported by train or by truck to their finaldestination, or to one of several intermediate destinations such as a railyard, warehouse, distribution center,or transload facility ( a sorting, routing and short-term storage building). A containers final destinationdetermine exactly what path it will take once it leaves the dock.

1- Unloading the ship: When a shiparrives at the Port, the marineterminal operator will arrange forunionized longshore workers tounload the vessel. The terminaloperator directs th e longshor eworkers to place the cargo

containers where they belong:on trains, trucks or on terminalproperty for temporary storage.

1- Unloading the ship: When a shiparrives at the Port, the marineterminal operator will arrange forunionized longshore workers tounload the vessel. The terminaloperator directs th e longshor eworkers to place the cargo

containers where they belong:on trains, trucks or on terminalproperty for temporary storage.

2- Freight forwarder: A containers

movements are determined by thecargos owner, or an industryprofessional known as a freightforwarder or logistics provider.

2- Freight forwarder: A containers

movements are determined by thecargos owner, or an industryprofessional known as a freightforwarder or logistics provider.

3-On-dock railyard: Cargo can be placed directly onto trains at the marine terminals on-dock railyards.3-On-dock railyard: Cargo can be placed directly onto trains at the marine terminals on-dock railyards.

4- Near-dock railyards: Cargo is often transportedby truck to larger near-dock railyards close tothe Port.

4- Near-dock railyards: Cargo is often transportedby truck to larger near-dock railyards close tothe Port.

5- Off-dock railyards: Off-dock railyards are used to coordinate rail deliveries tonon-local destinations. Containers are delivered here by truck, then sorted andgrouped by final destination. These railyards handle Port cargo as well as domesticcargo from other sources.

5- Off-dock railyards: Off-dock railyards are used to coordinate rail deliveries to

non-local destinations. Containers are delivered here by truck, then sorted andgrouped by final destination. These railyards handle Port cargo as well as domesticcargo from other sources.

6- Transload or storage yard: Shippi ng containers are oftenmoved initially to a transload facility where workers unload thecargo fromthe marine container, sort it and repackage it intolarger-sized truck trailers. The larger trailers are used to transportthe cargo from the transload facility to regional distributioncenters, local stores or off-dock railyards.

6- Transload or storage yard: Shippi ng containers are oftenmoved initially to a transload facility where workers unload thecargo fromthe marine container, sort it and repackage it intolarger-sized truck trailers. The larger trailers are used to transport

the cargo from the transload facility to regional distributioncenters, local stores or off-dock railyards.

7- Direct delivery: In thesimplest transportationplan, a single containerimported by a companyfor its own use would bedelivered by truckdirectly from the marineterminal to a local storeor factory.

7- Direct delivery: In thesimplest transportationplan, a single containerimported by a companyfor its own use would bedelivered by truckdirectly from the marineterminal to a local storeor factory.

20




4. Seaports


6. Conclusion


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VesselsVesselsCapacity

from 100 to 14,000 TEU

Divided into 45 sections called baysship length can be from 3 to 25 bays

Newbuild cost$1 million per 100 TEU capacity

Speed20 - 25 knots

FuelMarine diesel oil; efficiency ~ 500 ton-miles/gal

20 crew memberscaptain/master, 3 deck officers, chief engineer w/ 3 assistants,

radio operator, cooks, qualified members of the engine department(QMEDs), etc.

Fully cellular or gearedGeared vessels can unload and load themselves

Itineraries are cyclical

Every 4 weeks:Naples-Genoa-Barcelona-New York-Norfolk-Charleston-Naples

Where are they built?Korea: Hyundai, Samsung, Daewoo, HanjinChina: Jiangsu, Shanghai, Xiamen, Dalian

22

2007TEU deployed Revenue

Ocean Carrier Country in 2006 (billion $)

1. A.P. Moller-Maersk Denmark 1,600,0122. Mediterranean Shipping Co Sw itzerland 937,1453. CMA CGM France 597,677 11.84. Evergreen Taiwan 539,8015. Hapag-Lloyd Germany 448,840 8.86. Cosco China 385,368 6.57. China Shipping Cont. Lines China 339,545 5.38. Hanjin South Korea 328,327 7.49. American President Lines Singapore 323,319 8.210. NYK Japan 313,049 25.811. Mitsui OSK Lines Japan 284,848 19.412. OOCL China (HK) 268,502 5.213. CSAV Chile 249,885 4.114. K Line Japan 241,772 13.315. Yang Ming Taiwan 223,192 4.1

The Shipping Line BusinessThe Shipping Line Business


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Mediterranean Shipping Co. Website

Number of Vessels Operated

24

The Shipping Line BusinessThe Shipping Line BusinessPort to Port Freight Rates ($ per TEU, Sept 2008):

Asia N. Amer ica $1800 Europe Asia $1100Asia N. Amer ica $1000 Europe Asia $1900

N. America Europe $1300N. America Europe $1700

Mediterranean Shipping Co. Website


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The Shipping Line Business:The Shipping Line Business:Planning DecisionsPlanning Decisions

1. When to purchase/charter additional vessels?

2. What kind of vessels to purchase/charter?

3. When to sell/scrap old vessels?

4. Which vessels to sell/scrap?

5. Which ports should be served?

6. Which routes should be served?

7. Which vessels should be assigned to which routes? (fleet deployment)

8. Scheduling the vessels assigned to each route. At what times will theyarrive/depart from each port in the route sequence?

9. Determine performance requirements for each vessel at each port.How fast must each vessel be served at each port it visit s?

10. Negotiating vessel service agreements with seaport facilities (containerterminals).

11. Hiring crew members

Decision .

26

The Shipping Line Business:The Shipping Line Business:

Operational DecisionsOperational Decisions

1. What should the freight rates be?

2. When to cancel a vessel call at a port?

3. Which containers should be loaded onto which vessel?(applies to large shipping lines or lines belonging to an alliance)

4. How many empty containers should be loaded onto each vessel at eachport? ( empty container repositioning)

5. Where should individual containers be placed on the vessel?( vessel stowage)

6. Assigning crew members to vessels.

Decision .


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Because the United States imports mor e goods than it exports, many empty containers are sent overseas to be refilled with goods. Typically,about a third of the containers loaded onto a ship at the Port of Long Beach will be filled with cargo, while about two-thirds will be empty.

Because the United States imports mor e goods than it exports, many empty containers are sent overseas to be refilled with goods. Typically,about a third of the containers loaded onto a ship at the Port of Long Beach will be filled with cargo, while about two-thirds will be empty.

1- Delivery to local exporter : A local

exporter who needs to fill emptycontainers may arrange to receivethem by truck directly from a marineterminal, from an empty containerstorage yard or from a local importer.Direct delivery between importers andexporters is encour aged because iteliminates an additional truck trip to astorage yard or marine terminal.

1- Delivery to local exporter : A local

exporter who needs to fill emptycontainers may arrange to receivethem by truck directly from a marineterminal, from an empty containerstorage yard or from a local importer.Direct delivery between importers andexporters is encour aged because iteliminates an additional truck trip to astorage yard or marine terminal.

2- Empty container storage yard:Empty containers are oftentransported by truck from a transloadfacility or local importer to an emptycontainer storage yard. From thestorage yard, the empty containerscan be transported to a marineterminal for export, or to a localexporter to be filled with cargo.Empty containers are alsotransported from marine terminalsto storage yards, usually when theterminal needs more space for full,incoming containers.

2- Empty container storage yard:Empty containers are oftentransported by truck from a transloadfacility or local importer to an emptycontainer storage yard. From thestorage yard, the empty containerscan be transported to a marineterminal for export, or to a localexporter to be filled with cargo.Empty containers are alsotransported from marine terminals

to storage yards, usually when theterminal needs more space for full,incoming containers.

3- Direct Delivery:The simplest route for an emptycargo container would be a returntrip to the Port from a transloadfacility or local importer after itsimported goods had beenunloaded.

3- Direct Delivery:The simplest route for an emptycargo container would be a returntrip to the Port from a transloadfacility or local importer after itsimported goods had beenunloaded.

4- Ocean Vessel: Empty containers areloaded onto an ocean vessel, alongwith containers filled with exportgoods, bound for an overseas port.

4- Ocean Vessel: Empty containers areloaded onto an ocean vessel, alongwith containers filled with exportgoods, bound for an overseas port.

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OutlineOutline




4. Seaports


6. Conclusion

30

Introduction to Container TerminalsIntroduction to Container Terminals

Unloading and loading of containerships Temporary storage of containers

Port of Hong Kong

Port of Singapore

Aerial view ofNorthport's

containerterminal


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The Container Port BusinessThe Container Port Business

Globally, 474 million TEU worth of (empty and loaded) containerswere transferred between ships and shore in 2007.

Worlds Busiest Million TEU

Container Ports Country handled in 2007

1. Singapore Singapore 27.92. Shanghai China 26.23. Hong Kong China (HK) 24.04. Shenzhen China 21.15. Busan South Korea 13.36. Rotterdam Netherlands 10.87. Dubai UAE 10.78. Kaohsiung Taiwan 10.39. Hamburg Germany 9.910. Qingdao China 9.511. Ningbo-Zhoushan China 9.412. Guangzhou China 9.313. Los Angeles USA 8.414. Antwerp Belgium 8.215. Long Beach USA 7.3

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The Container Port BusinessThe Container Port BusinessMillion 2007

TEU handled RevenueTerminal Operator Country in 2007 (billion $)

1. Hutchison Port Holdings China (Hong Kong) 66.3 4.92. PSA Corp. Singapore 58.9 3.03. DP World UAE 43.3 2.74. Cosco Pacific China 39.8 0.15. APM Terminals Netherlands 31.4 2.56. HHLA Germany 7.2 1.9

Globally, 474 million TEU worth of (empty and loaded) containerswere transferred between ships and shore in 2007.

The DP World controversy began in February 2006 and rose toprominence as a national security debate in the United States. Atissue was the sale of port management businesses in s ix major U.S.seaports to DP World, and whether such a sale would compromiseport security.


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Container TerminalsContainer Terminals

33

Vessels

quay to yard

yard to quayStorageyard

Trains

import

export

transshipment

Externaltrucks(XTs)

Horizontaltransportof cargo

Container lifting &stacking

1. 2. 3.

Terminal-owned equipment performs 3 kinds of tasks:

On-dockrail yard

XTsGate

Unloading andloading of vessels

Trains

Typically a24-houroperation

34Port of Singapore

Land-Scarce Container Terminals

Quay cranes (QCs)

Yardtrucks(YTs)

Rubber-tired gantrycranes (RTGCs)

External trucks (XTs)

1.

2.

3. Rail-mounted gantrycranes (RMGCs)

Gate


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Port of Singapore

LandLand--Scarce Container TerminalsScarce Container Terminals

Cargo stacked up to7 tiers high in largeblocks

0-3 truck traffic lanesbetween bl ocks

Storage density:1000-1200 TEUper hectare

Manually operatedtrucks and c ranes

No on-dock rail yard

Cargo throughput:2000-2500 TEU permeter of wharf lineper year

Rubber-tired gantrycranes (RTGCs)

Quay cranes (QCs)

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Port of Hong Kong

LandLand--Scarce Container TerminalsScarce Container Terminals


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Straddle CarrierStraddle Carrier--Based Container TerminalsBased Container Terminals Common on U.S. East Coast and in Europe Cargo stacked 3 tiers high in lanes that are 1 container wide Spaces between lanes very narrow Storage density: 750 TEU per hectare Manually operated straddle carriers perform operations 2 and 3 On-dock rail yard a possibility: RMGCs may be needed Cargo throughput: 1500 TEU per meter of wharf line per year

3.

Straddle carriers(SCs)

2.

1. Quay cranes (QC)

Port of Hamburg

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Straddle CarrierStraddle Carrier--Based Container TerminalsBased Container Terminals Common on the U.S. East Coast and in Europe Cargo stacked 3 tiers high in lanes that are 1 container wide Spaces between lanes very narrow Storage density: 750 TEU per hectare Manual/automated straddle carriers perform operations 2 and 3 On-dock rail yard a possibility: RMGCs may be needed Cargo throughput: 1500 TEU per meter of wharf line per year

3.

Straddle carriers(SCs)

2.

1. Quay cranes (QC)

Port of Hamburg


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Straddle CarrierStraddle Carrier--Based Container TerminalsBased Container Terminals

Port of Bremerhaven (Germany)

Aeri al vi ewof

Northport'scontainerterminal

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Simulation of a terminal in which

SCs used in quay and s torage yard areas

RMGCs used at on-dock rail yard to load tr ains

Straddle CarrierStraddle Carrier--Based Container TerminalsBased Container Terminals

Source: HHLA website (http://hhla.de)


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TTI/Hanjin Terminal (Seattle)

YC/SCYC/SC--Free, GroundFree, Ground--Based TerminalsBased Terminals Common on U.S. West Coast

Large forklifts called top-handlers and reach-stackersstack containers up to 4 tiers high in blocks Large spaces needed between blocks Storage densi ty: 500 TEU per hectare Manually operated reach-stackers, top-handlers, side-picks,

and tractor-trailers On-dock rail yard a possibil ity Cargo throughput: 1000 TEU per meter of wharf line per year

3.

Quay cranes (QCs)1.

Top- handlers

Reach-stackers

2. Yard trucks

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Global Gateway North Terminal (Seattle)

WheelWheel--Based Container TerminalsBased Container Terminals Common on U.S. West Coast Loaded containers sitting on trailers (chassies) parked in

storage yard (stacking height = 1 tier) Empty containers stacked up to 4 tiers high by side-picks Storage density: 250 TEU per hectare Manually operated equipment On-dock rail yard a possib ility Cargo throughput: 500 TEU per meter of wharf line per year

On-dock rail yard

Quay cranes (QCs)

1.

3.

Side-picks 2. Yard trucks

Top-handlers

Reach-stackers


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Automated Container Terminals IAutomated Container Terminals I Ports of Rotterdam and Hamburg

Cargo stacked up to 5 tiers high in large blocks Spaces between blocks very narrow Automated guided vehic les (AGVs) perform operat ion 2 Automated stacking cranes (ASCs) perform operation 3 in yard On-dock rail yard a possibility: RMGCs may be needed

Container Terminal Altenwerder (Hamburg)

ASCs

3.

AGVsQCs1.

RMGCs

2.

www.hhla.de www.hhla.de

44Patrick Terminal (Brisbane, Australia)

Patrick Terminal at Port of Bri sbane Only automated SC-based terminal i n the world Cargo stacked 2 tiers high in lanes Automated straddle carr iers perform operations 2 and 3

3. Automated straddle carriers2.1. Quay cranes (QC)

Automated Container Terminals IIAutomated Container Terminals II


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Straddle carriers and ASCs used in storage yard

RMGCs used in on-dock rail yard

Other PossibilitiesOther Possibilities

Source: HHLA website (http://hhla.de)

46

Container Terminal Characterist icsContainer Terminal Characterist icsMost terminals never close workload processed continuously: 24 hours per day, 365 days per year uneven distribution of workload over time (late vessel arrivals, cust. requests)

Highly uncertain equipment processing times truck travel times affected by road traffic conditions inside terminal crane handling times are variable

10,000+ decisions made per day equipment dispatching, container storage location assignment, etc. decision opportunities come with no prior warning decisions made immediately, usually one at a time inter-decision time highly stochastic, avg. as low as 1 sec.

Quay, yard, and gate operations h ighly interconnected bottlenecks in yard late vessel departures few or no inter-equipment buffers


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Measures of Terminal PerformanceMeasures of Terminal Performance

Gross crane rate (GCR) Also known as the quay crane work rate Avg. # QC lifts made per QC hour beside a vessel that is being worked

Average vessel turnaround t ime Avg. time it takes to fully process a vessel From time of berthing to time of un-berthing

Average external t ruck (XT) turnaround t ime Avg. time it takes for external truck to be serviced at the terminal Drop-off or pick-up From time of gate entry to time of gate departure

Abil ity to keep vessels and trains on schedule Consistency in performance more important than maximizing avg. performance Another goal: keep operations on-time at minimum cost

Cost per TEU moved between ship and shore USD $150 at U.S. ports

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Container Terminal Planning and Design

1. Where should the terminal be located?

2. What kind of cargo will be handled (import, export, transshipment)?

3. What is the planned throughput capacity?

4. How much cargo storage capacity is needed in the yard?

5. Will there be an on-dock rail yard? A large empty container yard?

6. How much land area will the terminal occupy? What is its shape?

7. What type of container handling equipment will be used? Specs?

8. How many work shifts wil l there be per day?

9. Should the yard layout be parallel or perpendicular?

10. How many storage blocks should there be? What are their dimensions?

11. How many vehicle lanes should there be between the blocks?12. How much equipment should be deployed on an average day?

Yard Trucks(YTs)

Decision .

Vessels

Yard Cranes (YCs)

unloading

loadingYard

Quay Cranes(QCs)


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Design Issue #7:Design Issue #7:Equipment Selection and SpecificationEquipment Selection and Specification

Yard Equipment Type Horizontal L i ft ing StackingTransport

1. Tractor-trailers (YTs) X2. Automated guided vehicles (AGVs) X

3. Rubber-tired gantry cranes (RTGCs) X X4. Rail-mounted gantry cranes (RMGCs) X X5. Automated stacking cranes (ASCs) X X6. Bridge cranes X X7. Top-handlers X X8. Reach-stackers X X9. Side-picks X X

10. Straddle carriers (SCs) X X X11. Shuttle carriers X X12. Automated lifting vehicles (ALVs) X X

2. 3. 3.

Specification issues for Quay CranesSpecification issues for Quay Cranes

50

Single troll ey quay cranehandles one cont. at a time

Port of Long Beach

container-terminal of Bremerhaven


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QC Issue A: The Double Trolley Quay CraneQC Issue A: The Double Trolley Quay Crane

51

The Double Trolley Quay CraneThe Double Trolley Quay Crane

52Double Trolley QCs and Straddle Carriers at Port of Hamburg

www.hhla.de


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QC Issue B: TwinQC Issue B: Twin--lift (two 20lift (two 20 conts) and tandemconts) and tandem

(two 40(two 40 conts) spreadersconts) spreaders

53

54

Design Issue #10.1: Block WidthDesign Issue #10.1: Block Width

What is the optimal width forthe storage blocks?(storage capacity is unchanged)


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Block Width: TradeoffsBlock Width: Tradeoffs

55

10 rows per block (3 zones)

3 rows per block (10 zones) 5 rows per block (6 zones)

6 rows per block (5 zones)?

56

Group 2: scenarios 3-4

13

18

23

28

33

38

1 3 5 7 9 11 13 15

Rows per block (block width)

Grosscranerate

(QC

lifts/hr)

Less equip

More equip

Group 3: scenarios 5-7

13

18

23

28

33

38

1 3 5 7 9 11 13 15


Grosscranerate

(QClifts/hr)

Less equip

More equip

Group 4: sc enarios 8-10

13

18

23

28

33

38

1 3 5 7 9 11 13 15


Grosscranerate

(QClifts/hr)

Less equip

More equip

Group 5: scenario 11

13

18

23

28

33

38

1 3 5 7 9 11 13 15


Grosscranerate

(QC

lifts/hr)

Less equip

More equip

Group 6: scenario 12

13

18

23

28

33

38

1 3 5 7 9 11 13 15


Grosscranerate

(QClifts/hr)

Less equip

More equip

Group 7: s cenarios 13-14

13

18

23

28

33

38

1 3 5 7 9 11 13 15


Grosscranerate

(QClifts/hr)

Less equip

More equip

Block Width: ResultsMostOblong

MostSquare

From: M.E.H. Petering, Effect of block wi dth andstorage yard layout on marine container terminalperformance, Transportation Research E, doi:10.1016/j.tre.2008.11.004,accept ed Nov 2008.


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57

Design Issue #10.2: Block LengthDesign Issue #10.2: Block Length

What is the optimal length for

the storage blocks?(storage capacity is unchanged)

58

Longer blocks

Fewer vertical traffic lanes

Less land area

More congestion

Shorter blocks

More vertical traffic lanes

More land area

Less congestion

Block Length: Tradeoffs


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Design Issue #11: Vehicle LanesDesign Issue #11: Vehicle Lanes

59

Container Terminal Operations ManagementContainer Terminal Operations Management

60Vessels

Quay Cranes (QCs)

Yard Cranes (YCs)

unloading

loading Yard

1. Allocation of berths to arriving vessels 000010

2. Allocation of QCs to docked vessels 000010

3. QC scheduling and job sequencing 10 (off-line) or 10,000 (real-time)

4. Container storage location assignment 010,000

5. Container retrieval location assignment 010,000

6. YC job assignment 010,000

7. Inter-zone YC deployment 010,000

8. YT job assignment 010,000

9. YT routing 100,000

10. Selecting appointment times for external trucks 010,000

Yard Trucks (YTs)

Decision Frequency (decs/day)

Land-scarceterminal:


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61

Terminal ManagerTerminal Managers Goal:s Goal:

Find solutions for operationsFind solutions for operationsmanagement (OM) issues thatmanagement (OM) issues that

(1) are viable in a real(1) are viable in a real --time settingtime setting(2) maximize performance(2) maximize performance (e.g. gros s crane rate)(e.g. gros s crane rate)

GCR =

total # QC lifts made

total hours of QC time beside a busy berth

62

Terminal Operating System (TOS)Terminal Operating System (TOS)

TOS is idle

TOS deciding nextactivity for a particularQC/YC/YT/container

TOS manipulating data internally

TOS receiving input:

- QC/YC/YT task completed

- Vessel arr ives(new jobs added to system)

- XT arrives(new job added to system)

storagelocations

YCdisp

YCdeploy

YTdisp

To be viable, a TOS must :

Use less than 1 second ofCPU time per decision on100% of occasions

Avoid deadlocks on 100%of occasions


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63

OM Issues #1 and #2: Terminal, Berth, andOM Issues #1 and #2: Terminal, Berth, andQuay Crane Allocation to Arriving VesselsQuay Crane Allocation to Arriving Vessels

Where should anarriving vessel beberthed? (Whichterminal, which berth?)

Which quaycranes shouldwork on thevessel?

64

Terminal, Berth, and Quay Crane Allocation:Terminal, Berth, and Quay Crane Allocation:

A MultiA Mult i --objective Problemobjective ProblemObjectives:

(1) Minimize vessel turnaround times

(2) Maximize berth utilization and terminal throughput

(3) Maximize satisfaction of customer shipping lines

(4) Minimize cost (labor and equipment used) when processing vessels

(5) Maximize efficiency of vessel-to-vessel transshipment operations

Constraints:

Water depth

Berth and vessel lengths

Quay crane availability and specs

Vessel schedules

Transshipment requests


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65

Once a vessel is securedalongside the terminal,

(A) Which containers aremoved by which QC?

(B) What is the sequence ofmoves for each QC?

OM Issue #3:OM Issue #3:QC Scheduling and Job SequencingQC Scheduling and Job Sequencing

Objectives:

Minimize vessel turnaround time

Unload hot containers quickly

Minimize cost of unloading andloading vessel

66

Constraints:

1. Ship balance must be maintained

2. Stress on vessel may not exceedcertain limits

3. Precedence constraints due tocontainer stacks

4. QCs must remain a minimumdistance apart to avoid collisions

5. Visibi li ty: crane operators must beable to easily see containers

6. Stabili ty of above-deck stacks: no chimneys (stacks jutting outvertically by more than 2 tiers)



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67

Further complexity:

1. Some cargo booked for a vesselarrives after loading has begun

2. Cranes may work at differentspeeds

3. Not all container moves are loadsor unloadsthere are alsorepositioning moves!


68

QCQC Scheduling: Current PracticeScheduling: Current Practice

Perform a Crane Split:(a set partitioning problem)

Vessel bays are partitioned intocontiguous areas

Each area is served by one crane

Partitioning done so that the timewhen last QC finishes is minimized

Each QC works the bays in its areafrom L to R


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69

QCQC Scheduling: The Crane SplitScheduling: The Crane Split(Equal Crane Speeds)(Equal Crane Speeds)

70

QCQC Scheduling: The Crane SplitScheduling: The Crane Split

Containers to be moved Time required (min)

Bay # Unloading Loading Total QC1 QC2 QC3 QC4

2 15 19 34 82 102 102 136

3 9 8 17 41 51 51 68

4 66 52 118 283 354 354 472

7 35 35 70 168 210 210 280

10 26 24 50 120 150 150 200

11 40 43 83 199 249 249 332

14 72 76 148 355 444 444 592

18 55 45 100 240 300 300 400

Total 318 302 620

(Unequal Crane Speeds)(Unequal Crane Speeds)


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71

QCQC Scheduling: The Crane SplitScheduling: The Crane Split

Containers to be moved Time required (min)

Bay # Unloading Loading Total QC1 QC2 QC3 QC4

2 15 19 34 82 102 102 136

3 9 8 17 41 51 51 68

4 66 52 118 283 354 354 472

7 35 35 70 168 210 210 280

10 26 24 50 120 150 150 200

11 40 43 83 199 249 249 332

14 72 76 148 355 444 444 592

18 55 45 100 240 300 300 400

Total 318 302 620 574 399 444 400

Optimal solut ion: 574 minutes is the minimumvessel turnaround time

(Unequal Crane Speeds)(Unequal Crane Speeds)

Yard Control IssuesYard Control Issues

72

Zone 1

Zone 2

Zone 3

Zone 4

Quay crane: 1 2 3 4 5 6 7 8 9

Vessel 1Vessel 3

Vessel 2

1 2

20 21

3

13

87

14

4 5 6

9 10 11 12

15 16 17 18 19

22 24

Block 1 Bk 2 Bk 3

Bk 4 Bk 5 Bk 6

Bk 7 Bk 8 Bk 9

Bk 10 Bk 11 Bk 12

cross-gantry

linear gantry

? ??

???

? ? ? ?

23

? ?

?

? ? ? ?

?

? ? ? ?

Yard Crane Yard Truck


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73

OM Issue #4:OM Issue #4:Selection of Cargo Storage LocationsSelection of Cargo Storage Locations

Where should containers beplaced in the yard upon theirarrival?(e.g. after being unloaded from a vessel)

74

I. Re-marshalling strategy Containers have multiple places of rest

II. Sort and store strategy Containers have a single place of rest

Containers stored based on attributes (e.g. length, heigh t,weight class, loading vessel, destination port)

Containers with similar attributes stored in same stack

Two versions:

1) Storage locations determined off-line in advance2) Storage locations determined in real-time

immediately after container is discharged

Container Storage StrategiesContainer Storage Strategies


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75

Possible objectives to pursuePossible objectives to pursue

1. Minimize container travel distance2. Minimize congestion in vicinity of storage locations3. Minimize number of times each container is touched

Container Storage: Competing ObjectivesContainer Storage: Competing Objectives

Not all objectives can be pursued simultaneously.

Thus, managers need to determine which objectivesare most important!! This is not easy!

76

Zone 1

Zone 2

Zone 3

Zone 4

Quay crane: 1 2 3 4 5 6 7 8 9

Vessel 1Vessel 3

Vessel 2

1 2

20 21

3

13

87

14

4 5 6

9 10 11 12

15 16 17 18 19

22 23 24

Block 1 Bk 2 Bk 3

Bk 4 Bk 5 Bk 6

Bk 7 Bk 8 Bk 9

Bk 10 Bk 11 Bk 12

? ? ? ?

Which stack in the yard, among those which are eligible,should provide the container(s) loaded by a QC ??

OM Issue #5: Container Retrieval Location AssignmentOM Issue #5: Container Retrieval Location Assignment


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OM Issue #6: Yard Crane Job AssignmentOM Issue #6: Yard Crane Job Assignment

77

Zone 1

Zone 2

Zone 3

Zone 4

Vessel 1Vessel 3

Vessel 2

1 2

20 21

3

13

87

14

4 5 6

9 10 11 12

15 16 17 18 19

24

Block 1 Bk 2 Bk 3

Bk 4 Bk 5 Bk 6

Bk 7 Bk 8 Bk 9

Bk 10 Bk 11 Bk 12

? ???

22 23

?

(1) When a YC becomes free, which YT does it serve next?

(2) How to avoid deadlocks when YCs are working in close proximityand containers halfway between them need to be moved?

?

OM Issue #8: YT Job AssignmentOM Issue #8: YT Job Assignment

78

(2) When to carry two 20 containers?

(3) Should YTs be pooled at the QC, vessel, or terminal level?

Zone 1

Zone 2

Zone 3

Zone 4

QC: 1 2 3 4 5 6 7 8 9

Vessel 1Vessel 3

Vessel 2

1 2

20 21

3

13

87

14

4 5 6

9 10 11 12

15 16 17 18 19

22 24

Block 1 Bk 2 Bk 3

Bk 4 Bk 5 Bk 6

Bk 7 Bk 8 Bk 9

Bk 10 Bk 11 Bk 12

23

Q1:24U

Q1:25U

Q1:26U

Q1:27U

...

Q2:22U

Q2:23U

Q2:24U

Q2:25U

...

Q3:25U

Q3:26U

Q3:27U

Q3:28U

...

Q4:89L

Q4:90L

Q4:91L

Q4:92L

...

Q5:89L

Q5:90L

Q5:91L

Q5:92L

...

Q6:88L

Q6:89L

Q6:90L

Q6:91L

...

Q7:90L

Q7:91L

Q7:92L

Q7:93L

...

Q8:75U

Q8:76U

Q8:77U

Q8:78U

...

Q9:71U

Q9:72U

Q9:73U

Q9:74U

...

?

(1) When a YT becomes free, what should it do next?

?

?

PendingQC jobs

QC jobsalreadyassignedto YTs


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79

What kind of truck appointment system best serves the interests ofthe terminal, trucking industry, neighboring community, andenvironment?

What should the appointment date and time be for a specific truck?

OM Issue #10:OM Issue #10:Appointment System for External TrucksAppointment System for External Trucks

Global Gateway North Terminal, Seattle

80

Appointment system should:

automatically generate appointment t imes for customers who call theterminal or log onto the internet

determine the number of appointments to be made for a given regionof the container yard for a given time period

minimize average truck service time at the terminal

minimize truck congestion overflow into local highway system

maximize gate throughput

enhance yard and vessel operations in the container terminal

OM Issue #10: XT Appointment SystemOM Issue #10: XT Appointment System


43/49

Other Container Terminal IssuesOther Container Terminal Issues

81Vessels

Quay Cranes (QCs)

Yard Cranes (YCs)

unloading

loading Yard

1. Labor (union or non-union)2. Container identification and tracking (OCR, RFID)

3. Equipment identification and tracking (GPS, local radar, RFID)

4. Customs

5. Security (scanning equipment, manual inspections)

6. Negotiating service agreements with shipping lines

7. Negotiating lease rates with public municipalities

8. Purchasing/developing a terminal operating system (TOS)

9. Tactical issues: when to purchase more equipment (QCs, YCs, YTs)

Yard Trucks (YTs)

Issue .

82




4. Seaports


6. Conclusion


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83

Railway Container TransportationRailway Container Transportation

84

Railway Container TransportationRailway Container Transportation2007

North American TEU moved RevenueRailway Operator Country in 2007 (billion $)

1. BNSF USA 5,065,0052. Union Pacific USA 3,453,0003. Norfolk Southern USA 3,120,0004. CSX Corp. USA 2,111,0005. Canadian National Canada 1,324,0006. Canadian Pacific Canada 1,238,1007. Kansas City Southern USA 526,370


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85


BNSF Intermodal Network


Union Pacifics intermodal lanes, 2009 86


46/49

87Union Pacific Intermodal Network, 2008


88

Inland (Rail) Container TerminalsInland (Rail) Container Terminals

Transferring containersbetween trains andtrucks

Unloading and loadingof intermodal trains

Temporary s torage ofcontainers Port of Long Beach

Frankfurt am Main East

Rochelle, Illinois


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89

OutlineOutline




4. Seaports


6. Conclusion

90

Container shipping supp lies cities and their inhabitants withfinished consumer goods

Chicago: inland container shipping hub of the USA

Milwaukee: CP Canadian Pacific rail facility at the Port ofMilwaukee

Congestion

Pollution

Maritime shipping constitutes 4.5% of global CO2 emissions

Containerization Impact on CitiesContainerization Impact on Cities


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91

Inspired architectural innovation

Containerization Impact on CitiesContainerization Impact on Cities

92

Literature on Container Terminal Ops.Literature on Container Terminal Ops.Briskorn, D., Drexl, A. and Hartmann, S. (2006) Inventory-based dispatching of automated guided vehicles oncontainer terminals. OR Spectrum, 28, 611-630.Dekker, R., P. Voogd, van Asperen, E. (2006). "Advanced methods for container stacking." OR Spectrum V28(4).Grunow, M., Gnther, H.-O. and Lehmann, M. (2004). Dispatching multi-load AGVs in highly automated seaportcontainer terminals. OR Spectrum, 26, 211-235.Grunow, M., Gnther, H.-O. and Lehmann, M. (2006). Strategies for dispatching AGVs at automated seaportcontainer terminals. OR Spectrum, 28, 587-610Hussein, M. (2010). Efficient container handling systems and crane scheduling algorithms for seaport containerterminal. Industrial and Manufacturing Engineering Department. University of Wisconsin-MilwaukeeKim, K. H., and Bae, J. W. (2004). "A Look-Ahead Dispatching Method for Automated Guided Vehicles in AutomatedPort Container Terminals." Transportation Science, 38(2), 224-234.Kim, K. H., and Bae, J. W. (1998). "Re-marshaling export containers in port container terminals." Computers &Industrial Engineering, 35(3-4), 655-658.Kim, K. H., Jeon, S. M., and Ryu, K. R. (2006). "Deadlock prevention for automated guided vehicles in automatedcontainer terminals." OR Spectrum, V28(4), 659-679.Kim, K. H., Kang, J. S., and Ryu, K. R. (2004). "A beam search algorithm for the l oad sequencing of outboundcontainers in port container terminals." OR Spectrum, V26(1), 93-116.Kim, K. H., and Kim, H. B. (1998). "The optimal determination of the space requirement and the number of transfercranes for import containers." Computers & Industrial Engineering, 35(3-4), 427-430.Kim, K. H., and Kim, H. B. (2002). "The optimal sizing of the storage space and handling facilities for importcontainers." Transportation Research Part B: Methodological, 36(9), 821-835.Kim, K. H., and Kim, H. B. (1999). "Segregating space allocation models for container inventories in port containerterminals." International Journal of Production Economics, 59(1-3), 415-423.Murty, K. G., J. Liu, et al. (2005). "A decision support system for operations in a container terminal." DecisionMurty, K. G., Y.-W. Wan, et al. (2005). "Hongkong International Terminals gains elastic capacity using a data-iPetering, M. E. H. (2009). Effect of block width and storage yard layout on marine container terminal performaStahlbock, R. and Vo, S. (2008) Operations research at container terminals: a literature update. OR Spectrum, 30,1-52.Steenken, D., Vo, S. and Stahlbock, R. (2004) Container terminal operation and operations research - aclassification and literature review. OR Spectrum, 26, 3-49.Vis, I. F. A. and de Koster, R. (2003). Transshipment of containers at a container terminal: an overview. EuropeanJournal of Operational Research, 147, 1-16.


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AcknowledgmentAcknowledgmentEditor : Mazen I. Hussein, Industrial and Manufacturing Engineering Department, University of W isconsin-Milwaukee.

Grateful acknowledgment is herewith made for the cooperation and permission tous the materials and photos from the following personnel/websites/institutes:

Alex Klein / www.renaissanceronin.wordpress.com

American President Lines Ltd / www.apl.com

Burlington Northern Santa Fe Railway / www.bnsf.com

Center for Disease Control and Prevention / www.cdc.gov

containershipping.nl / www.containershipping.nl

Danny Cornelissen-Maritime Photographer/ www.portpictures.nl

FRANCETRUCK / [email protected]

Great Lakes St. Lawrence Seaway System / www.greatlakes-seaway.com

Hamburger Hafen und Logistik AG / www.hhla.de

Hapag-Lloyd / www.hapag-lloyd.com

KOCKS / www.kockskrane.de

Mediterranean Shipping Company MSC / www.mscgva.ch

merriam-webster / www.visualdictionaryonline.com

Port of Brisbane Pty Ltd / www.portbris.com.au

Port of Long Beach/ www.polb.com/default.asp Robert West Milwaukee School of Engineering / [email protected]

Swedish Timars group / www.timars.se

VDL Containersystemen / www.vdlcontainersystemen.com

Webmaster / www.infovisual.info

Wikimedia

Wikipedia

Union Pacific / www.up.com

93

94

The End!

container shipping course module

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container vessels

container shipping3

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