Description
Customer conference improving operational efficiency in the port system.
Customer Conference
Improving Operational Efficiency in the Port System
- 30 September 2013
2
? Driving efficiencies in the Port System
? 3 Tiers Strategy
? Operations framework
? Port Logistics chain
? Embedding oversight management
? Ops Centre
? Terminal Operators Performance Standard
? Oversight structure (Senior Operations Managers)
? Precinct Strategy
? Safety, Security and Environment
Agenda
Create and Manage
infrastructure ahead of
demand
Enhance the ports
position as integrated
gateways to trade
? Provision of port infrastructure to facilitate trade
growth
? Improve productive use of assets
? Improve vessel and cargo turnaround
? Enterprise-wide Risk Management
? Develop human capital and skills to achieve objectives
? Increase/influence the market
Strategic intent : To enable the Safe, Efficient, Effective and economic
functioning of an integrated port system to promote economic growth
3Tiers of TNPA Strategy 6 Goals
In line with the MDS, TNPA has adopted a 3tier strategy to
deliver on its mandate: Port efficiencies are focal to our strategy
4
OPS
• Tactical Plan
• Execution
Plan
• Performance
& Continuous
improvement
Security / Port of
Entry
• ISPS
• Customs
• (SAPS)
• BCOCC
• DHA
• Health
• Agriculture
Stakeholders
• Port Regulator
• Communities
• Business Chamber
• Local Govt
• Provincial Govt
• Suppliers
Port Services
• Stevedoring
• Bunkering
• Diving
• Ship repairers
• Fire
• Surveying
• Pest control
• Waste removal
• Vessel maintenance
Performance:
• Landside norms
• Good order
• Technical norms
met
• Value extraction
• CI
(Oversight)
• Terminal efficiency
• Capacity
exploitation
• CI
• Ops SSHEQ
• Systemic logistics
• Lease maintenance
Performance:
• Accommodation
• Joint planning
• Integrated
operations
• CI
Operational
Engagement:
• Alignment and
participation in Port
activity
Performance:
• Planning
• Execution
• Asset mgt
• Value extraction
• CI
Oversight:
• Compliance
• Ops
planning
Marine Services
Terminals
Infrastructure / Land
Performance:
• Efficient
governance /
admin
TNPA Admin
DOA, Port EXCO, OPCO,
RISKCO, CAPIC, PAC,
LAC, LBC, PCC, BCP,
Shop floor
Performance:
• Planned
• Controlled
• Safe
• Risk elements
Public access
Road
Rail
Our Operations framework seeks to provide the total port
supply chain efficiencies
5
Anchorage Apron Terminal Berth
I
n
t
e
r
m
o
d
a
l
CARGO FLOWS
There is a need to integrate Marine, Port Terminals, Road and Rail services, to ensure
seamless and efficient supply chain system
Provision of End to end Visibility of the Logistics Supply
Chain in order to improve efficiencies
Berth planning, ensure
berth availability (provide
berth on arrival)
Berth occupancy rate.
Terminal and Crane working
time per vessel
Stacking space, correct
stacking and stowing
of cargo
Cargo availability at the port as
influenced by road carriers (trucks)
Cargo availability at the
port as influenced by
rail
Reduce the anchorage waiting
time.
Improve vessel planning (14 day
view, 7 day view, 48 hours forward
looking plan)
W
a
t
e
r
s
i
d
e
L
a
n
d
s
i
d
e
3
Laying the foundation
Performance Monitoring
Embedding oversight
management in TNPA
• Driving Business
performance culture
• Establishment of Ops Centres
• Establishment of Terminal
Operator Performance
Standard (TOPS)
• Introduction of precinct
strategy
• Establishment of oversight
structures (SOMS)
Business Monitoring Platform
Establishment of Operations
Centre
( Enabling supply chain visibility)
• Efficiency Improvement
• Productivity improvement
• Assets utilisation
• Improved customer response
time
Key Focus Areas
Embedding Oversight management to enable
efficiencies in the port system
1
We are here
6
Improvements brought about by oversight management initiatives
88 88 88 88 87
106
120
135
Jul 2013 Apr 2013
-36%
Feb 2013 Dec 2012
Durban has improved the container
vessels port stay by 36% (from 6 days
down to 4 days) between December
2012 and July 2013. A significant
improvement has been seen on
Anchorage waiting time.
Durban Container
vessels Port Stay
(Anchorage waiting
time + STAT)
performance
Ave actual (hrs) Target (hrs)
7
? Driving efficiencies in the port System
? 3 Tiers Strategy
? Operations framework
? Port Logistics chain
? Embedding oversight management
? Ops Centre
? Terminal Operators Performance Standard
? Oversight structure (Senior Operations Managers)
? Precinct Strategy
? Safety, Security and Environment
Agenda
The TNPA Ops centre business case is that of
Integrating the Logistics System of South Africa
Concept
Strategic Intent
Vision
Mission
Value
Proposition
1
2
3
4
5
Real-time Integrated View of S.A. Transport Logistic Chain – thereby
creating a holistic interchange of information between all Role Players
Making South Africa More Competitive by Reducing Transport Cost
Through Improving the Efficiency and Reliability of the Transport
Logistics Chain
To Lead the Efficient & Reliable Movement of Cargo Through South
African Ports
To be a World Class Operations Centre which integrates Sea, Port, Rail
and Road Operations
A World Class Port Operations Centre that proactively provides Integrated
Real Time Information to Drive Decisions which leads to a more Efficient
& Reliable Transport Logistic Solution for South Africa
Operations Centre will benefit the port users and
customers
? Become a single point of reference to all port users
? Infuse strategy into all operational decisions
? Promote system thinking & cross functional learning
? Drive overall efficiency and reliability of Transport Logistic Chain (focusing on Port
Operations)
? Ensure that transport Logistics Know-how is saved and persevered
? Proactively monitor productivity of facilities & resources
? Timeously provide information to the relevant stakeholders to resolve deviations and
solve operational problems
? Enhance emergency co-ordination & response
? Contribute in the enhancement of port capacity
The Operations Centre will:
Port Operations Centre Partners and Stakeholders:
Ops Centre community for an envisaged end to end supply chain
visibility
Forwarding &
Shipping Agents
TNPA Port Controls
(Marine
Integration)
TPT: Operations
Centre
(Terminals
Integration)
Cargo Owners Others
External Members
(Road Integration)
Community
TFR: National Command
Centre
(Rail Integrations)
Customs
SUPPLY CHAIN MANAGEMENT SYSTEMS
All in one integration of the Logistics Supply Chain
?Role Player Coherence: Creates a Single point reference to all Role Players
?Strategy Focus: infuse strategy into all operational decisions
?Promotes System Thinking & Cross Functional Learning
?Increases overall Efficiency and Reliability of Transport Logistic Chain (focusing on Port Operations)
?Transport Logistics Know-how is saved and persevered
?Proactively monitor productivity of facilities & resources and timeously take corrective action (e.g. Slow
steaming )
?Expeditious Cross Functional Problem Solving
?Enhance Emergency Coordination & Response
Port Operations Centre as a systems approach to
activist port management
Strategic Focus: Infuse strategy in all
operational decisions
Enables & Facilitates Effective
Communication & Collaboration
Increases Port (including entire transport logistic
chain) Performance & Productivity
Provides Decision Makers with a
holistic view or all relevant
information to “Navigate the Business
(Logistic Chain)”
Port Operations Centre
…A Systems Approach to
Activist Port Management…
The implementation plan of the Ops Centre,
Where are we?
Planning for
Execution
Designing of
Solutions
Procurement &
HR Processes
Construction &
HR Processes
19 Apr-13 Jul „13
TNPA’s Operations Centre Implementation Journey
We are
here
Jul – Aug?13
? Procurement of Hardware
? Construction Services
? Furniture
? Applications
? SAP CRM & telephony solutions
? Recruitment & Selection Process (pilot)
? Training of Ops Centre staff (Pilot)
? Creation Of Operations Centres (Pilot)
Pilot sites
(HQ & DBN)
prioritized
? Scoping
? WBS
? Risk Assessment
? Integrated Program
Planning
? Due Diligence
? Appointment of MC
? Operations Centre
Process Definition
? Change Readiness
Assessment
? Review Cash Flow
Plan
? Sanctions &
Appropriation
Requests (AR?s)
? Creation Of Operations
Centres
? Recruitment & Selection
Process
? Training of Ops Centre
staff
? Ops Centre
Processes
? Facilities Design
(Prototype
Designs)
? Operations
Centre
Organisational
Design
? Change &
Communications
Plan
Durban and Head Office Operations Centre?s go live_ 03 Feb 2014
Legend:
? Completed
? Work In Progress
? Not yet started
? DBN 03 Feb?14
? HQ – 03 Feb ?14
? RCB - Mar „14
? ELS, PLZ & NGQ – Jun „14
? CPT, SAL & MSB – Jun?14
? Stabilisation & Embedding
Change July – Aug?14
? Closure – Sept?14
13
? Driving efficiencies in the port System
? 3 Tiers Strategy
? Operations framework
? Port Logistics chain
? Embedding oversight management
? Ops Centre
? Terminal Operators Performance Standard (TOPS)
? Oversight structure (Senior Operations Managers)
? Precinct Strategy
? Safety, Security and Environment
Agenda
14
Background and Context of TOPS; with the influence
of the National Ports Act
SA Ports model
•Volume based
Commercial Ports Policy (Notice 1409 of 2002)
and National Ports Act No 12 of 2005 consistent
in prescription
• Efficient and economic functioning, efficient port services,
productive system, service levels based on user needs; capable
of competing in international markets; international standards;
reliable, orderly
TNPA issued 90 Terminal Operator Licences
(TOL?s) in July 2012
• Resolution of disputes
• 1 year period for determination of performance standards
TOL?s provide for:
• Compliance oversight
• Terminal Operator Performance standards (TOPS) (Clause
14)
• Remedial action (Clause 20)
What is a terminal performance standard
(norm)?
• An informed and expected level of performance for a
specific terminal performance measure
How will TOPS work?
• Addendum to the licence
• Operationalised at port level
• Level of achievement assessed quarterly, assessed +
revised annually
• Scaled ramp-up of visibility of information at POC?s
Key elements influencing Port System performance:
These are Focal areas for port efficiency, productivity and
performance improvement
K
E
Y
I
N
F
L
U
E
N
C
E
R
S
O
F
T
H
E
P
O
R
T
S
E
R
V
I
C
E
S
V
A
L
U
E
C
H
A
I
N
P
E
R
F
O
R
M
A
N
C
E
• Capacity utilisation, viz berth
occupancy, berth utilisation, volume
per m2, cargo capacity
• Average port stay
• Port delays
• Marine Operational delays
• Resource availability
• Number of serviced movements
• Adherence to administration
requirements and clearance timeframes
• Turnaround times rail and road
• On time scheduled departure (rail)
• Volume throughput
• Volume of cargo per ship working hour
• Turnaround times (cargo, ship, road
and rail)
Key Performance Indicators
Collaboration/
Consultation
• Port Stakeholders
• NPCC
• PCC
subcommittees
• Shareholders
Compact
Legislative
Requirements
• National Ports Act
• Directives
WORKING
TOWARDS
EFFICIENT
PORTS SYSTEM
Infrastructure
Marine
Operations
Terminal
Operations
Landside
Intermodal
Port Services
Our port users expectations forms the basis for TOPS development:
We seek to Improved port performance, increased volumes / revenues and
decrease cost of doing business
Shipping
lines
Terminals
Cargo
Owners
Stakeholders
(Service
providers and
Suppliers
Marine
Services
Port
Authority
Cargo volumes, Compliance with schedules, High productivity levels,
Flexibility, Reduced operating costs, Market growth
Cargo volumes, Terminal productivity, Performance of service
providers, Reduced operating cost, Market growth
Compliance with dwell times and lead times, Storage, Cargo
handling productivity, No cargo degradation or damage, Reduced
costs
Economic growth, Job creation, Access to the port industry, People
development, Minimised externalities, Sustainability
Targeted volumes, Asset utilisation, Vessel handling productivity
levels, Demand coverage, Competency, Safety, Sustainability
Cargo and vessel volumes, Targeted levels of capacity utilisation,
High productivity levels, Quick turnaround of vessels, Smooth
logistics flows, Market growth
TNPA had engagements with the key port stakeholders
to determine TOPS
17
? Department of Public Enterprises
? Transnet Performance and Monitoring
Department
? National Port Consultative Committee
(NPCC)
? Port Consultative Committees (PCC?s)
? SAASOA
? CLOF
? National Ports Regulator
? Terminal Operators
? Shipping Lines
? Industry / Chambers and main cargo
owners
National spread of terminal operator licenses issued
as at July 2012, “90 Licenses issued in total”
Port Container Auto
Dry
Bulk
Liquid
Bulk
Break
Bulk
Multi
purpose
TOTAL
RCB 2 3 1 6
DBN 1 1
9
24 5
14
54
EL 1 1 4 1 7
NGQ 1 1
PE 1 1 1 4 1 1 9
CT 1 6 1
2
10
SALD 1 1 1 3
TOTAL 4 3 14 42 7 20 90
18
Licenses are specific to different terminals with respective
key performance areas. The Full scope of measures for TOPS
per license type
19
Measure Cont Ro Ro
Liquid
Bulk
Dry
Bulk
Break
Bulk
MPT Info source
Terminal delays of vessels at
anchor (berthing delays)
X X X X X X
TNPA
Berth occupancy
X X X X X X
TNPA
Berth utilisation
X X X X X X
TNPA
Ship Working Hour
X X X X X X
Terminal
Berth equipment productivity
X X X X X X
Terminal
Truck turnaround time
X X X X X X
Terminal
Truck queues outside terminals
X X X X X X
Cargo Agents
Rail turnaround time
X X X X X X
TFR
Trains departed on time
X X X X X X
TFR
*Cargo dwell time in terminals
X X X X X X
Terminal
Terminal throughput
X X X X X X
Terminal
X If common user berth, consider in Phase 2
X Top 3 cargoes
X Strategic stockpile/storage periods declared for key products
X Terminals using road, rail or both modes
*Import, export and transshipment must be shown separately
20
? Driving efficiencies in the port System
? 3 Tiers Strategy
? Operations framework
? Port Logistics chain
? Embedding oversight management
? Ops Centre
? Terminal Operators Performance Standard
? Oversight structure (Senior Operations Managers)
? Precinct Strategy
? Safety, Security and Environment
Agenda
Improving efficiencies through Oversight Management
by Senior Port Operations Management
21
SOMS providing operational oversight at the ports
In order to efficiently exercise oversight on port operations, TNPA has appointed as part of
oversight structures The Senior Operations Managers across the port system.
SOMS will provide the wider port community with a comprehensive and holistic view of port
operations. This will include the merging of the TNPA marine operations (water), terminal
operations (land); rail/road operations, shipping agents as well as cargo owners in the total
supply chain to produce a product that can be marketed globally.
Effectively, SOM?s are responsible to oversee and monitor the day to day delivery of safe,
secure, sustainable and efficient integrated water and landside operational services in support
of TNPA?s long term corporate objectives, short and medium term planning objectives and
guiding principles.
SOM?s together with Customer Relations Management and Harbour Master?s office will maintain
close liaison with internal and external stakeholders (e.g. terminal operators, shipping lines and
agents, cargo owners etc.), internal departments, government
agencies and customers to ensure optimal use of port infrastructure and equipment at
all times.
Key deliverables
22
? Driving efficiencies in the port System
? 3 Tiers Strategy
? Operations framework
? Port Logistics chain
? Embedding oversight management
? Ops Centre
? Terminal Operators Performance Standard
? Oversight structure (Senior Operations Managers)
? Precinct Strategy
? Safety, Security and Environment
Agenda
Precinct Strategic Focus
Precinct Management in larger ports to create focus and
improve efficiencies
Durban Example
Aimed at making the Port Of Durban a high performance port. The Precinct Management Model
allows the port to provide detailed, focused attention, to all areas within the port. The port is
divided into five (5) autonomous operational precincts that operate as fully fledged business units
with accountable structures led by the Senior Ops Managers. It provides for a singles point of
entry entry/contact and accountability into the precinct business
What is a Precinct Management
5 Business Precincts of Port of Durban
1.Island View (Mainly Liquid Bulk –
Chemicals, Oils, Petroleum Products)
2.Container Precinct (Durban Container
Terminal comprises of Pier 1 & 2 and
handles only Containers)
3.Maydon Wharf (Mainly Dry bulk and Break-
bulk)
4.Point and Leisure (Mainly automotive,
fresh produce and Cruise Industry)
5.Ship repair and Bay-head (Dry dock,
Workshop 24 and Real Estate)
Infrastructure delivery
Monitor the execution of projects within the Precinct and ensure
infrastructure is adequately maintained.
Operational efficiency & Oversight
Improving port efficiency through increased productivity and
operations oversight.
Cargo Volume throughput
Retention of existing volumes and identification of new business
opportunities will ensure the precinct generate the necessary
revenue to ensure financial sustainability
Port Management Pipeline
The port of Durban supports the “home grown” concept.
Positions will be filled from within the port and through
mentoring and training create a Port Management Pipeline.
Real Estate Management
Effective Real Estate Management will ensure optimal land
utilisation, Terminal configuration and market related rentals. are
collected on time.
24
? Driving efficiencies in the port System
? 3 Tiers Strategy
? Operations framework
? Port Logistics chain
? Embedding oversight management
? Ops Centre
? Terminal Operators Performance Standard
? Oversight structure (Senior Operations Managers)
? Precinct Strategy
? Safety, Security and Environment
Agenda
25
TNPA high emphasis on Security, Safety and Environmental
Efficiencies. We are incompliance with our regulatory regime in
these key areas
Safety
Security
Environ
ment
1
2
3
DIFR performance improvement
Audits carried out as part of oversight to make sure that port users
comply with the National Environmental Act
0.25
1.24
0.10
1.22
-85%
-46%
13/14
YTD
12/13 11/12
0.66
10/11
0.8
09/10 08/09
We are safety conscious
port system
1,0
0,5
0,0
-20%
A
0,10
J
0,12
J
0,17
M
0,22
A
0,24
Target Actual Budget
TNPA is currently reviewing its entire security system with the intent to improve
the security effectiveness in the ports. Focus and priority is given to access control,
intelligence, fencing, surveillance.
The End
26
doc_171563037.pdf
Customer conference improving operational efficiency in the port system.
Customer Conference
Improving Operational Efficiency in the Port System
- 30 September 2013
2
? Driving efficiencies in the Port System
? 3 Tiers Strategy
? Operations framework
? Port Logistics chain
? Embedding oversight management
? Ops Centre
? Terminal Operators Performance Standard
? Oversight structure (Senior Operations Managers)
? Precinct Strategy
? Safety, Security and Environment
Agenda
Create and Manage
infrastructure ahead of
demand
Enhance the ports
position as integrated
gateways to trade
? Provision of port infrastructure to facilitate trade
growth
? Improve productive use of assets
? Improve vessel and cargo turnaround
? Enterprise-wide Risk Management
? Develop human capital and skills to achieve objectives
? Increase/influence the market
Strategic intent : To enable the Safe, Efficient, Effective and economic
functioning of an integrated port system to promote economic growth
3Tiers of TNPA Strategy 6 Goals
In line with the MDS, TNPA has adopted a 3tier strategy to
deliver on its mandate: Port efficiencies are focal to our strategy
4
OPS
• Tactical Plan
• Execution
Plan
• Performance
& Continuous
improvement
Security / Port of
Entry
• ISPS
• Customs
• (SAPS)
• BCOCC
• DHA
• Health
• Agriculture
Stakeholders
• Port Regulator
• Communities
• Business Chamber
• Local Govt
• Provincial Govt
• Suppliers
Port Services
• Stevedoring
• Bunkering
• Diving
• Ship repairers
• Fire
• Surveying
• Pest control
• Waste removal
• Vessel maintenance
Performance:
• Landside norms
• Good order
• Technical norms
met
• Value extraction
• CI
(Oversight)
• Terminal efficiency
• Capacity
exploitation
• CI
• Ops SSHEQ
• Systemic logistics
• Lease maintenance
Performance:
• Accommodation
• Joint planning
• Integrated
operations
• CI
Operational
Engagement:
• Alignment and
participation in Port
activity
Performance:
• Planning
• Execution
• Asset mgt
• Value extraction
• CI
Oversight:
• Compliance
• Ops
planning
Marine Services
Terminals
Infrastructure / Land
Performance:
• Efficient
governance /
admin
TNPA Admin
DOA, Port EXCO, OPCO,
RISKCO, CAPIC, PAC,
LAC, LBC, PCC, BCP,
Shop floor
Performance:
• Planned
• Controlled
• Safe
• Risk elements
Public access
Road
Rail
Our Operations framework seeks to provide the total port
supply chain efficiencies
5
Anchorage Apron Terminal Berth
I
n
t
e
r
m
o
d
a
l
CARGO FLOWS
There is a need to integrate Marine, Port Terminals, Road and Rail services, to ensure
seamless and efficient supply chain system
Provision of End to end Visibility of the Logistics Supply
Chain in order to improve efficiencies
Berth planning, ensure
berth availability (provide
berth on arrival)
Berth occupancy rate.
Terminal and Crane working
time per vessel
Stacking space, correct
stacking and stowing
of cargo
Cargo availability at the port as
influenced by road carriers (trucks)
Cargo availability at the
port as influenced by
rail
Reduce the anchorage waiting
time.
Improve vessel planning (14 day
view, 7 day view, 48 hours forward
looking plan)
W
a
t
e
r
s
i
d
e
L
a
n
d
s
i
d
e
3
Laying the foundation
Performance Monitoring
Embedding oversight
management in TNPA
• Driving Business
performance culture
• Establishment of Ops Centres
• Establishment of Terminal
Operator Performance
Standard (TOPS)
• Introduction of precinct
strategy
• Establishment of oversight
structures (SOMS)
Business Monitoring Platform
Establishment of Operations
Centre
( Enabling supply chain visibility)
• Efficiency Improvement
• Productivity improvement
• Assets utilisation
• Improved customer response
time
Key Focus Areas
Embedding Oversight management to enable
efficiencies in the port system
1
We are here
6
Improvements brought about by oversight management initiatives
88 88 88 88 87
106
120
135
Jul 2013 Apr 2013
-36%
Feb 2013 Dec 2012
Durban has improved the container
vessels port stay by 36% (from 6 days
down to 4 days) between December
2012 and July 2013. A significant
improvement has been seen on
Anchorage waiting time.
Durban Container
vessels Port Stay
(Anchorage waiting
time + STAT)
performance
Ave actual (hrs) Target (hrs)
7
? Driving efficiencies in the port System
? 3 Tiers Strategy
? Operations framework
? Port Logistics chain
? Embedding oversight management
? Ops Centre
? Terminal Operators Performance Standard
? Oversight structure (Senior Operations Managers)
? Precinct Strategy
? Safety, Security and Environment
Agenda
The TNPA Ops centre business case is that of
Integrating the Logistics System of South Africa
Concept
Strategic Intent
Vision
Mission
Value
Proposition
1
2
3
4
5
Real-time Integrated View of S.A. Transport Logistic Chain – thereby
creating a holistic interchange of information between all Role Players
Making South Africa More Competitive by Reducing Transport Cost
Through Improving the Efficiency and Reliability of the Transport
Logistics Chain
To Lead the Efficient & Reliable Movement of Cargo Through South
African Ports
To be a World Class Operations Centre which integrates Sea, Port, Rail
and Road Operations
A World Class Port Operations Centre that proactively provides Integrated
Real Time Information to Drive Decisions which leads to a more Efficient
& Reliable Transport Logistic Solution for South Africa
Operations Centre will benefit the port users and
customers
? Become a single point of reference to all port users
? Infuse strategy into all operational decisions
? Promote system thinking & cross functional learning
? Drive overall efficiency and reliability of Transport Logistic Chain (focusing on Port
Operations)
? Ensure that transport Logistics Know-how is saved and persevered
? Proactively monitor productivity of facilities & resources
? Timeously provide information to the relevant stakeholders to resolve deviations and
solve operational problems
? Enhance emergency co-ordination & response
? Contribute in the enhancement of port capacity
The Operations Centre will:
Port Operations Centre Partners and Stakeholders:
Ops Centre community for an envisaged end to end supply chain
visibility
Forwarding &
Shipping Agents
TNPA Port Controls
(Marine
Integration)
TPT: Operations
Centre
(Terminals
Integration)
Cargo Owners Others
External Members
(Road Integration)
Community
TFR: National Command
Centre
(Rail Integrations)
Customs
SUPPLY CHAIN MANAGEMENT SYSTEMS
All in one integration of the Logistics Supply Chain
?Role Player Coherence: Creates a Single point reference to all Role Players
?Strategy Focus: infuse strategy into all operational decisions
?Promotes System Thinking & Cross Functional Learning
?Increases overall Efficiency and Reliability of Transport Logistic Chain (focusing on Port Operations)
?Transport Logistics Know-how is saved and persevered
?Proactively monitor productivity of facilities & resources and timeously take corrective action (e.g. Slow
steaming )
?Expeditious Cross Functional Problem Solving
?Enhance Emergency Coordination & Response
Port Operations Centre as a systems approach to
activist port management
Strategic Focus: Infuse strategy in all
operational decisions
Enables & Facilitates Effective
Communication & Collaboration
Increases Port (including entire transport logistic
chain) Performance & Productivity
Provides Decision Makers with a
holistic view or all relevant
information to “Navigate the Business
(Logistic Chain)”
Port Operations Centre
…A Systems Approach to
Activist Port Management…
The implementation plan of the Ops Centre,
Where are we?
Planning for
Execution
Designing of
Solutions
Procurement &
HR Processes
Construction &
HR Processes
19 Apr-13 Jul „13
TNPA’s Operations Centre Implementation Journey
We are
here
Jul – Aug?13
? Procurement of Hardware
? Construction Services
? Furniture
? Applications
? SAP CRM & telephony solutions
? Recruitment & Selection Process (pilot)
? Training of Ops Centre staff (Pilot)
? Creation Of Operations Centres (Pilot)
Pilot sites
(HQ & DBN)
prioritized
? Scoping
? WBS
? Risk Assessment
? Integrated Program
Planning
? Due Diligence
? Appointment of MC
? Operations Centre
Process Definition
? Change Readiness
Assessment
? Review Cash Flow
Plan
? Sanctions &
Appropriation
Requests (AR?s)
? Creation Of Operations
Centres
? Recruitment & Selection
Process
? Training of Ops Centre
staff
? Ops Centre
Processes
? Facilities Design
(Prototype
Designs)
? Operations
Centre
Organisational
Design
? Change &
Communications
Plan
Durban and Head Office Operations Centre?s go live_ 03 Feb 2014
Legend:
? Completed
? Work In Progress
? Not yet started
? DBN 03 Feb?14
? HQ – 03 Feb ?14
? RCB - Mar „14
? ELS, PLZ & NGQ – Jun „14
? CPT, SAL & MSB – Jun?14
? Stabilisation & Embedding
Change July – Aug?14
? Closure – Sept?14
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? Driving efficiencies in the port System
? 3 Tiers Strategy
? Operations framework
? Port Logistics chain
? Embedding oversight management
? Ops Centre
? Terminal Operators Performance Standard (TOPS)
? Oversight structure (Senior Operations Managers)
? Precinct Strategy
? Safety, Security and Environment
Agenda
14
Background and Context of TOPS; with the influence
of the National Ports Act
SA Ports model
•Volume based
Commercial Ports Policy (Notice 1409 of 2002)
and National Ports Act No 12 of 2005 consistent
in prescription
• Efficient and economic functioning, efficient port services,
productive system, service levels based on user needs; capable
of competing in international markets; international standards;
reliable, orderly
TNPA issued 90 Terminal Operator Licences
(TOL?s) in July 2012
• Resolution of disputes
• 1 year period for determination of performance standards
TOL?s provide for:
• Compliance oversight
• Terminal Operator Performance standards (TOPS) (Clause
14)
• Remedial action (Clause 20)
What is a terminal performance standard
(norm)?
• An informed and expected level of performance for a
specific terminal performance measure
How will TOPS work?
• Addendum to the licence
• Operationalised at port level
• Level of achievement assessed quarterly, assessed +
revised annually
• Scaled ramp-up of visibility of information at POC?s
Key elements influencing Port System performance:
These are Focal areas for port efficiency, productivity and
performance improvement
K
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V
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A
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C
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P
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F
O
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M
A
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C
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• Capacity utilisation, viz berth
occupancy, berth utilisation, volume
per m2, cargo capacity
• Average port stay
• Port delays
• Marine Operational delays
• Resource availability
• Number of serviced movements
• Adherence to administration
requirements and clearance timeframes
• Turnaround times rail and road
• On time scheduled departure (rail)
• Volume throughput
• Volume of cargo per ship working hour
• Turnaround times (cargo, ship, road
and rail)
Key Performance Indicators
Collaboration/
Consultation
• Port Stakeholders
• NPCC
• PCC
subcommittees
• Shareholders
Compact
Legislative
Requirements
• National Ports Act
• Directives
WORKING
TOWARDS
EFFICIENT
PORTS SYSTEM
Infrastructure
Marine
Operations
Terminal
Operations
Landside
Intermodal
Port Services
Our port users expectations forms the basis for TOPS development:
We seek to Improved port performance, increased volumes / revenues and
decrease cost of doing business
Shipping
lines
Terminals
Cargo
Owners
Stakeholders
(Service
providers and
Suppliers
Marine
Services
Port
Authority
Cargo volumes, Compliance with schedules, High productivity levels,
Flexibility, Reduced operating costs, Market growth
Cargo volumes, Terminal productivity, Performance of service
providers, Reduced operating cost, Market growth
Compliance with dwell times and lead times, Storage, Cargo
handling productivity, No cargo degradation or damage, Reduced
costs
Economic growth, Job creation, Access to the port industry, People
development, Minimised externalities, Sustainability
Targeted volumes, Asset utilisation, Vessel handling productivity
levels, Demand coverage, Competency, Safety, Sustainability
Cargo and vessel volumes, Targeted levels of capacity utilisation,
High productivity levels, Quick turnaround of vessels, Smooth
logistics flows, Market growth
TNPA had engagements with the key port stakeholders
to determine TOPS
17
? Department of Public Enterprises
? Transnet Performance and Monitoring
Department
? National Port Consultative Committee
(NPCC)
? Port Consultative Committees (PCC?s)
? SAASOA
? CLOF
? National Ports Regulator
? Terminal Operators
? Shipping Lines
? Industry / Chambers and main cargo
owners
National spread of terminal operator licenses issued
as at July 2012, “90 Licenses issued in total”
Port Container Auto
Dry
Bulk
Liquid
Bulk
Break
Bulk
Multi
purpose
TOTAL
RCB 2 3 1 6
DBN 1 1
9
24 5
14
54
EL 1 1 4 1 7
NGQ 1 1
PE 1 1 1 4 1 1 9
CT 1 6 1
2
10
SALD 1 1 1 3
TOTAL 4 3 14 42 7 20 90
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Licenses are specific to different terminals with respective
key performance areas. The Full scope of measures for TOPS
per license type
19
Measure Cont Ro Ro
Liquid
Bulk
Dry
Bulk
Break
Bulk
MPT Info source
Terminal delays of vessels at
anchor (berthing delays)
X X X X X X
TNPA
Berth occupancy
X X X X X X
TNPA
Berth utilisation
X X X X X X
TNPA
Ship Working Hour
X X X X X X
Terminal
Berth equipment productivity
X X X X X X
Terminal
Truck turnaround time
X X X X X X
Terminal
Truck queues outside terminals
X X X X X X
Cargo Agents
Rail turnaround time
X X X X X X
TFR
Trains departed on time
X X X X X X
TFR
*Cargo dwell time in terminals
X X X X X X
Terminal
Terminal throughput
X X X X X X
Terminal
X If common user berth, consider in Phase 2
X Top 3 cargoes
X Strategic stockpile/storage periods declared for key products
X Terminals using road, rail or both modes
*Import, export and transshipment must be shown separately
20
? Driving efficiencies in the port System
? 3 Tiers Strategy
? Operations framework
? Port Logistics chain
? Embedding oversight management
? Ops Centre
? Terminal Operators Performance Standard
? Oversight structure (Senior Operations Managers)
? Precinct Strategy
? Safety, Security and Environment
Agenda
Improving efficiencies through Oversight Management
by Senior Port Operations Management
21
SOMS providing operational oversight at the ports
In order to efficiently exercise oversight on port operations, TNPA has appointed as part of
oversight structures The Senior Operations Managers across the port system.
SOMS will provide the wider port community with a comprehensive and holistic view of port
operations. This will include the merging of the TNPA marine operations (water), terminal
operations (land); rail/road operations, shipping agents as well as cargo owners in the total
supply chain to produce a product that can be marketed globally.
Effectively, SOM?s are responsible to oversee and monitor the day to day delivery of safe,
secure, sustainable and efficient integrated water and landside operational services in support
of TNPA?s long term corporate objectives, short and medium term planning objectives and
guiding principles.
SOM?s together with Customer Relations Management and Harbour Master?s office will maintain
close liaison with internal and external stakeholders (e.g. terminal operators, shipping lines and
agents, cargo owners etc.), internal departments, government
agencies and customers to ensure optimal use of port infrastructure and equipment at
all times.
Key deliverables
22
? Driving efficiencies in the port System
? 3 Tiers Strategy
? Operations framework
? Port Logistics chain
? Embedding oversight management
? Ops Centre
? Terminal Operators Performance Standard
? Oversight structure (Senior Operations Managers)
? Precinct Strategy
? Safety, Security and Environment
Agenda
Precinct Strategic Focus
Precinct Management in larger ports to create focus and
improve efficiencies
Durban Example
Aimed at making the Port Of Durban a high performance port. The Precinct Management Model
allows the port to provide detailed, focused attention, to all areas within the port. The port is
divided into five (5) autonomous operational precincts that operate as fully fledged business units
with accountable structures led by the Senior Ops Managers. It provides for a singles point of
entry entry/contact and accountability into the precinct business
What is a Precinct Management
5 Business Precincts of Port of Durban
1.Island View (Mainly Liquid Bulk –
Chemicals, Oils, Petroleum Products)
2.Container Precinct (Durban Container
Terminal comprises of Pier 1 & 2 and
handles only Containers)
3.Maydon Wharf (Mainly Dry bulk and Break-
bulk)
4.Point and Leisure (Mainly automotive,
fresh produce and Cruise Industry)
5.Ship repair and Bay-head (Dry dock,
Workshop 24 and Real Estate)
Infrastructure delivery
Monitor the execution of projects within the Precinct and ensure
infrastructure is adequately maintained.
Operational efficiency & Oversight
Improving port efficiency through increased productivity and
operations oversight.
Cargo Volume throughput
Retention of existing volumes and identification of new business
opportunities will ensure the precinct generate the necessary
revenue to ensure financial sustainability
Port Management Pipeline
The port of Durban supports the “home grown” concept.
Positions will be filled from within the port and through
mentoring and training create a Port Management Pipeline.
Real Estate Management
Effective Real Estate Management will ensure optimal land
utilisation, Terminal configuration and market related rentals. are
collected on time.
24
? Driving efficiencies in the port System
? 3 Tiers Strategy
? Operations framework
? Port Logistics chain
? Embedding oversight management
? Ops Centre
? Terminal Operators Performance Standard
? Oversight structure (Senior Operations Managers)
? Precinct Strategy
? Safety, Security and Environment
Agenda
25
TNPA high emphasis on Security, Safety and Environmental
Efficiencies. We are incompliance with our regulatory regime in
these key areas
Safety
Security
Environ
ment
1
2
3
DIFR performance improvement
Audits carried out as part of oversight to make sure that port users
comply with the National Environmental Act
0.25
1.24
0.10
1.22
-85%
-46%
13/14
YTD
12/13 11/12
0.66
10/11
0.8
09/10 08/09
We are safety conscious
port system
1,0
0,5
0,0
-20%
A
0,10
J
0,12
J
0,17
M
0,22
A
0,24
Target Actual Budget
TNPA is currently reviewing its entire security system with the intent to improve
the security effectiveness in the ports. Focus and priority is given to access control,
intelligence, fencing, surveillance.
The End
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doc_171563037.pdf