SUBJECT ELECTIVE 1 operational schedule, allocation, and utilization of
CODE resources including loading/unloading equipment.
DESCRIPTION PORT MANAGEMENT AND
CHAIN LOGISTICS PORT AUTHORITY
INSTRUCTOR CRISTY A. DACARA, LCB, LPT
WEEK NO. 1,2, and 3 Ports typically function under a regulating system
TOPIC PORT MANAGEMENT AND known as the PORT AUTHORITY OR PORT
OPERATIONS, PORTS, PORT MANAGEMENT. This is an agency—government or
AUTHORITY AND ROLES IN THE state, public or semipublic—legally established to
OPERATIONS operate ports and typically controlled by boards or
commissions. The rapid evolution of globalization has
brought about changes to the administrative role of
Modern seaport facilities are technology-intensive
ports within their national boundaries, their strategic
platforms of carriage of goods, situated by a natural or
role within the supply chain, and last but not least their
man-made dredged port and containing multiple
operational role in terms of cargo handling.
terminals, docks, and berths. Port management and
terminal operations encompass a wide range of Their navigational channel operations are in
activities. synchronicity with the superstructure and
infrastructure that will enable the commodities to be
PORTS effectively handled and transported in an intermodal or
multimodal manner.
Ports are generally places alongside navigable water
(e.g., oceans, rivers, or lakes) with facilities for the Twenty-first century ports are not immune to
loading and unloading of passengers or cargo from competition; hence, they are rapidly growing by
ships, ferries, and other commercial vessels. These utilizing their competitive advantages, which vary in
facilities may be operated by different entities terms of
including state or local public port authorities, private
terminal operators, and federal agencies. Economy
Cargo volume and segments (dry bulk, wet,
Activities associated with ports include operation of containers, Ro-Ro’s, cruise ships, etc.)
vessels, cargo handling equipment, locomotives, Culture, vision, and strategy
trucks, vehicles, and storage and warehousing facilities Geographical location
related to the transportation of cargo or passengers as Legal and regulatory framework
well as the development and maintenance of Layout, structure, and size
supporting infrastructure Market and trade agreements
Technology and innovation
A port serves as a safety haven for ships and a cargo
Working practices and corporate culture
loading/unloading area; as a trade and transport link;
as a hub center for sea, land, and air; as a bunkering this manner, each port is unique.
supply station for fuel and diesel oil; and as a
commercial, economic, and industrial zone, with banks, The most noteworthy of a port’s functions is its ability
brokers, and agents of all kinds. to adjust its cargo unloading/ loading and carrying
capacity to accommodate all of the market whims,
PORT MANAGEMENT SERVICES AND OPERATIONS fluctuations, and unexpected developments.
There are approximately 9000 seaports globally, 3500 Port authorities are involved in port management
of which are medium to large in size. They all serve as and the promotion of the port they manage.
the strategic transshipment links between inland and
maritime transportation, and domestic and What is a port in maritime?
international trade. Because of their distinctive
characteristics, market position, size and trade A port is a harbor or area that can provide shelter to
specialization, ports are classified into various numerous boats and vessels (transferring people or
categories. The general rule is that the larger the port’s cargo) and allow constant or periodic shipment
size, the more terminals a port has, and the more
transactions. In layman's language, a port is a place
to facilitate the loading as well as unloading of
operational services and market segments it
vessels.
encompasses.
Seaports are complex entities, and their success What is the difference between a port and a
formula lies in their ability to adapt in the modern port authority?
business world. Prior to computerization, this was a
A port authority is a government entity. A port
laborious process that, because of communication and
authority may own facilities in one or more ports,
visibility hindrances, involved a wide margin of error.
and a port authority's domain may include both
Modern ports now use efficient and interactive software seaports and airports. For example, port authorities
that provide real-time operational organizing for all the do not control private terminals, military operations
port and terminal activities, including berthing, port or industrial facilities located in or around port
facilities.
What is the importance of the Philippine Ports
Authority in the port's operation?
Ports in the Philippines function as important What is the most important port in the
gateways of international and local trade. The scope Philippines?
and functions of the PPA broadened to facilitate the
implementation of an integrated program for the Port of Manila
planning, development, financing, operation and 1. Port of Manila. This is the largest port in the
maintenance of ports or port districts for the entire country and also its gateway to international
country in 1975. shipping and trade. The port of Manila has an
impressive number of terminals and facilities that
What is the busiest port in the Philippines? process maritime trade occurring in the Metro
Manila area.
Functions of Port Authorities
As a landlord, a port authority manages the port
assets under its jurisdiction. This commonly
concerns the provision of infrastructure such as
piers and the dredging of waterways.
As a regulator, a port authority sets the planning
framework, namely fees, subcontracting services,
and safety, as well as the enforcement of national
Manila and port-related rules and regulations.
Covering an area of some 137.5 hectares (0.5
square miles), Manila is the leading port in the As an operator, a port authority provides day-to-
Philippines, and one of the oldest, busiest and most day services to ships (e.g. pilotage and towage) and
important ports in the entire southeast Asian region, merchandise (e.g. loading/unloading and
having been a vital trade link between the Far East warehousing).
and South America for over 1,000 years.
THE PORT AUTHORITY’S ROLE IN
Who manages ports in the Philippines? OPERATIONS.
The role of the port authority in operations can vary
from port to port; however, ports often fall into one of
the following two categories:
Operational Port: The port authority builds the
wharves, owns the cranes and cargo-handling
equipment, and hires the labor to move cargo
in the sheds and yards.
A stevedore, or labor management company, hires
The Philippine Ports Authority dockworkers to lift cargo between the ship and the
dock, where the port’s laborers pick it up and bring it to
the storage site.
The Philippine Ports Authority, a government-owned
corporation, manages the Port of Manila and most of
Landlord Port: The port authority owns the
the public ports in the country. It is composed of 3 wharves, which it then rents or leases to a
major facilities, namely Manila North Harbor, Manila terminal operator (usually a stevedoring
South Harbor, and the Manila International company).
Container Terminal.
The operator invests in cargo-handling equipment
What are the three roles of ports? (forklifts, cranes, etc.), hires dockworkers to operate
such lift machinery and negotiates contracts with
Ports are integral to the functioning of international ocean carriers to handle the unloading and loading of
trade and logistics, serving as crucial nodes in the ship cargoes.
global supply chain. Their role as gateways for
trade, efficient cargo handling, and value-added
services make them vital components of the global
economy.
