Midterm Reportlogistics Management - Mgt1143E.b10E.pdf

Why does Cat Lai not allowships with a larger capacity to dock and maximize their cargo handling capacity?...194.1 Types of ship...194.2 Why does Cat Lai Port not allow ships with a larg

Ho Chi Minh City University of Economics and Finance

Faculty of Economics

MIDTERM REPORT

LOGISTICS MANAGEMENT - MGT1143E.B10E

Group: 4 Lecturer: Pham Thi Trang

% contribution

to the overall result

Evaluation of task results

1 Nguyễn Ngô Nhật Linh 215142178 Question 3 20% Good

2 Đoàn Minh Hiếu 215140538 Question 4 20% Good

3 Nguyễn Thanh Diệu 215142985 Question 2 20% Good

4 Võ Quốc Kha

215141519 Question 1 20% Good

5 Phạm Tín Hùng 215140178 Question 1 20% Good

Total: 100%

Table of Contents

INTRODUCTION 1

Chapter I An overview of the Cat Lai Port 2

Chapter II Case study 4

1 What is the function of the goods inspection area? 4

1.1 Concept of the goods inspection area 4

1.2 Function of Cat Lai port goods inspection area of Cat Lai port 6

1.3 Some special characteristics of the goods inspection area of Cat Lai port 9

2 During your trip, you visited a warehouse What kind of warehouse is that? Describe the process of receiving and loading goods into that warehouse by forklift 10 2.1 General warehouse introduction and classification: 10

2.2 The idea, purpose, and features of the Container Freight Station warehouse:.11 2.3 The procedure of warehouse operation 12

3 How many maritime routes can cargo ships from Cat Lai take? List down and describe those routes 15

3.1 How many maritime routes can cargo ships from Cat Lai take? 15

3.2 List down and describe those routes 16

4 Which type of ship that Cat Lai port approves berthing? Why does Cat Lai not allow ships with a larger capacity to dock and maximize their cargo handling capacity? 19

4.1 Types of ship 19

4.2 Why does Cat Lai Port not allow ships with a larger capacity to dock and maximize their cargo handling capacity? 22

CONCLUSION 25

REFERENCES 26

First of all, group 4 would like to thank the University of Economics and Finance andtheir guide Pham Thi Trang for allowing them to visit Tan Cang - Cat Lai Company toobserve and learn more useful knowledge from practice Secondly, I would like to thankTan Cang - Cat Lai Company for accepting the invitation and enthusiastically supportingthe students After a day touring Tan Cang - Cat Lai, group 4 observed and learnedmany useful lessons from the guidance of the brothers and sisters in the port Duringthe visit, the members of the port supported Group 4 in particular and other students ingeneral To observe the reality and know the function of the cargo inspection area, theimport and export warehouse at the port, etc Besides, there is very interestinginformation about Tan Cang - Cat Lai revealed by the port's tour guide In addition, thegroup also better understand the routes that ships from Cat Lai can go to as well as thereasons for banning ships with too much effort from entering the port and the differencebetween Tan Cang - Cat Lai compared to other routes with other ports, etc Allinformation presented by the group is from field observations and collected fromcarefully selected information in today's useful media Group 4 hopes that theinformation presented by Group 4 below will summarize the knowledge and lessonslearned by Group 4 after the field visit at Tan Cang - Cat Lai Company in the mostpractical way

Best regards,

Group 4

Chapter I An overview of the Cat Lai Port.

Figure 1: Cat Lai Port

Cat Lai Port was constructed in stages from June 1996 to 2002, with an initial area

of about 170,000 square meters, including two 150-meter berths, which can berth ships

of more than 20,000 DWT Meanwhile, Cat Lai has teamed up with the city to buildIntercity Route 25 from Hanoi Expressway to Cat Lai Ferry to attract customers

The largest and most cutting-edge international container port in Vietnam, TanCang - Cat Lai Terminal (TCCL), is run by Operations Center - Saigon NewportCorporation The terminal is separated into three terminals, A, B, and C, each having itsown receiving berth for four barges and a separate space for referring containers andrice cargo stuffing Three vacant container depots are located inside Cat Lai Terminal;four linked depots are located outside

In 2005, after the completion of Thu Thiem Bridge, Sai Gon New Port transferredall container ship operations from Sin Cang Port to Cat Lai Port, which has sincebecome the main port in the southern region At that time, the Cat Lai Port’s throughputreached 1 million TEU and then increased to 2,6 million TEU in 2011

With the services of tugboats, pilots, warehousing, land transport, barge watertransportation, customs clearance…In 2019, Tan Cang-Cat Lai Port achieved 3 best:

- Receiving the largest container ship of 4,5 thousand tons

- The average ship clearance capacity is 71 containers/h, an increase of 11%compared to 2018

- Delivery time for 01 container only takes 43.8 minutes/cont (10% less than it was

in 2018)

This evidence further highlights and confirms that TC-CL Port is an importantgateway and the most dynamic seaport in the south

 Contact address:

- Head office: 1295A Nguyen Thi Dinh Street, Cat Lai Ward, District 2, HCMC

- Phone number: (08) 3,742.3499 Fax: (08) 3,742.3500 VND

- Email: catlaiport@catlaiportjsc.com

Capital structure: is the cooperation between TNXP Public Utilities

Company Limited and Saigon Newport Corporation

 Business:

- Maritime services (seaport operation)

- Loading and unloading services at seaports (loading and unloading containers atcargo yards, barge berths)

- Quayside Mobile Gantry Cranes (K.E): 20

- Fixed Quayside Cranes (Liebherr): 3

- Reach Stacker 28-42T: 24 5

- Warehouse forklift: 34 - Tractor: 377 - Power socket: 1,100

Chapter II Case study

1 What is the function of the goods inspection area?

Actual inspection of goods refers to the customs authority examining the products'actual state and assessing their conformance to the customs dossier To ensure that thetype, origin, condition, amount, and value of the commodities comply with the KyotoConvention's requirements, the Kyoto Convention defines "inspection of goods" as aphysical inspection of the goods by the Customs Authorities with the data stated in theproducts

Figure 2: Container vehicle inspection area in and out of the port.

1.1 Concept of the goods inspection area.

 Concept of the area for goods inspection:

- Inspection of goods: The definition of inspection is "the examination of theconformity of products and goods with the contract or announced applicable standardsand relevant technical regulations by observation and evaluation of measurement andtesting results, “as stated in” Product quality law"

- Document review, visual quality and quantity inspection, packing, marking, andloading inspection are all typically included in the inspection scope The breadth of theinspection takes a more business-oriented approach than a technical one Shopinspection is occasionally done in conjunction with goods inspection

- An area dedicated to conducting inspections and examinations of items isreferred to as a "goods inspection area" It is a regulated setting where officials conductinspections to verify adherence to rules, quality standards, and safety criteria, such ascustoms officials, quality control inspectors, or security officers.

- The goods inspection area serves as a centralized location within a port, airport,

or other transportation hubs where incoming and outgoing goods are subjected toscrutiny and verification The primary purpose of the goods inspection area is to assessthe quality, quantity, authenticity, and compliance of the goods being transported

 Key aspects of the concept of a goods inspection area include:

- Physical Space: The goods inspection area typically consists of a designatedphysical space within the larger transportation facility

- Controlled Environment: The goods inspection area is a controlled environment

to ensure proper oversight and security during inspections

- Inspection Procedures: The area for inspecting items adheres to specifiedpractices and norms To evaluate the quality, compliance, and security of the items,these procedures may include visual inspections, physical examinations, sampletesting, document verification, scanning technology, or other pertinent techniques

- Compliance and Regulations: The product inspection area complies with all local,state, national, and international rules and regulations It guarantees that productsadhere to stringent requirements, such as those set down in trade agreements, customsrules, and standards for the safety of products

- Documentation and Record-Keeping: Inspections in the commodities inspectiondomain require meticulous record-keeping and documentation To provide transparency,traceability, and accountability, this includes maintaining inspection reports, certificates

of compliance, test results, and other pertinent documentation

- Collaboration and Coordination: Many different stakeholders work together andcoordinate in the commodities inspection domain Importers, exporters, shippingbrokers, regulatory bodies, customs officials, and other participants in the logistics chainare all included in this Smooth and effective inspections depend on effectivecommunication and information sharing

1.2 Function of Cat Lai port goods inspection area of Cat Lai port.

Figure 3: Cargo inspection process.

 Customs clearance procedures, including those for import and exportdeclarations:

- Green channel: Businesses that adhere to the requirements of the customs laware typically granted access to the green channel, which exempts them from detailedrecord examination and detailed product inspection

- Yellow channel: The benefit of this system is that Customs only needs to reviewthe records and not the specifics of the products

- Businesses are excluded from conducting thorough physical inspections of avariety of things under the following circumstances: imported products, Tax exemptionsapply to machinery and equipment used to construct fixed assets Foreign-made goodsare exempt bonded warehouses, transshipment ports, products in transit, and free tradezones for shipping, unique goods

- Red channel: The red channel is used by Customs to evaluate the accuracy ofdocumentation and perform thorough inspections of the shipment's contents at severalstages

- There are 3 levels of a reality check:

+ Level 1: Inspect the entire shipment

+ Level 2: Inspect 10% of the shipment in detail; if no violations are found, theinspection will cease; if violations are found, the inspection will continue until thenumber of violations is satisfied

+ Level 3: Physical inspection of 5% of the shipment; inspection ends if noviolations are found; otherwise, inspection continues until the full range of violations

is determined

 The products that are intended to pass through the Red Channel for clearancewill be transported to the goods inspection area at Cat Lai Port for examination Thelegality and compliance of the entire package with the customs dossier will beassessed Two different kinds of goods inspection exist:

- Scanner inspection: After completing the required steps, the import/exportproducts are dragged to the scanner station to conduct the “there-channel inspectionprocess” This is an automated software-based inspection method In this situation,cutting the sealing lead is not necessary for the cargo container The customsauthorities will determine whether or not the shipment qualifies for customs clearancebased on the outcomes of the scanner inspection Should any anomaly be discoveredwith the items

 Manual inspection: To have the container of products subject to manualinspection, businesses must deliver it to the designated yard, according to Customs.The customs office will then dispatch personnel to the location to inspect the goods andcut the lead Customs will decide whether to investigate the entire package or individualitems depending on each particular item A random package will be chosen by Customs

as the inspection shipment The customs authority is required to inspect the entireshipment if it is a sensitive shipment

 Customs will rely on specialist inspection registration papers to carry outcustoms clearance operations for shipments that are on the list of commodities that aresubject to state inspection Check the product’s provenance The rate of the customsduty

 Businesses must describe and submit information on the quantity, kind, andorigin of commodities as well as take images of the first shipment when temporarilyimporting or re-exporting items

 The function of Cat Lai Port:

- Quality Control: The inspection area is responsible for verifying the quality andcondition of goods entering or leaving Cat Lai Port This involves checking the

specifications, standards, and compliance with regulations set by relevant authorities Itensures that the goods meet the required quality standards and are suitable forimport/export.

- Quantity Verification: The inspection area also verifies the number of goods beingtransported through Cat Lai Port This is done by comparing the quantity stated in theshipping documents with the actual goods received or delivered It helps preventdiscrepancies and ensures accurate record-keeping for importers, exporters, andcustoms authorities

- Customs Compliance: The goods inspection area plays a crucial role in ensuringcompliance with customs regulations and procedures It conducts inspections to verifythat the goods being imported or exported comply with applicable customs laws, tariffs,and documentation requirements It helps prevent smuggling, tax evasion, and othercustoms-related offenses

- Security Checks: The inspection area is responsible for conducting securitychecks on goods passing through Cat Lai Port It screens the goods to detect andprevent the transportation of prohibited items, hazardous materials, or contraband Thishelps maintain the safety and security of the port, its facilities, and the overall supplychain

- Documentation and Record-Keeping: The inspection area maintains accuratedocumentation and records of the inspected goods This includes recording inspectionresults, issuing certificates of inspection or compliance, and updating relevantdatabases or systems These records serve as evidence of compliance and can beused for auditing, traceability, and dispute-resolution purposes

1.3 Some special characteristics of the goods inspection area of Cat Lai port.

 The goods inspection area at Cat Lai Port may have some specialcharacteristics that set it apart from other ports While specific details may vary, hereare some possible special characteristics:

- Modern Infrastructure: The goods inspection area at Cat Lai Port may featuremodern infrastructure and facilities to accommodate efficient and streamlined inspectionprocesses

- Dedicated Inspection Teams: The port may have dedicated inspection teamsconsisting of qualified personnel with expertise in various aspects of goods inspection

- Advanced Technology: The goods inspection area at Cat Lai Port may leverageadvanced technology and equipment to enhance inspection capabilities

Integrated Systems: To streamline operations and facilitate information sharing,the goods inspection area may be integrated with other port systems

- Risk Management Measures: The goods inspection area may implement robustrisk management measures to identify and mitigate potential risks associated with thetransportation of goods This can include risk profiling, targeted inspections, andintelligence-driven approaches to focus resources where they are most needed

- Specialized Inspections: Depending on the nature of goods passing through CatLai Port, the inspection area may have specialized capabilities to handle specific types

of inspections

It's noticeable to remember that the particulars of the product inspection area atCat Lai Port could vary over time, depending on how regulations and businessstandards develop It is advised to speak with the port authorities or official sources forthe most precise and recent information

2 During your trip, you visited a warehouse What kind of

warehouse is that? Describe the process of receiving and loading goods into that warehouse by forklift.

2.1 General warehouse introduction and classification:

 There are many various types of warehouses, which are mostly used for storinggoods Depending on the nature of the commodities, different types of warehouses aresuitable for each item, such as domestic storage, volume storage, CFS warehouse, etc

 The Cat Lai port's warehouse area has a total square footage of 46,250 m2, ofwhich:

- Import CFS warehouse: 18,000 m2, total capacity of 12,500 pallets, 64shelves, and 26 import and export doors

- Export CFS warehouse: first floor, warehouse 05, 6,250 m2 in size, 3,500pallets total capacity, 22 shelves, 19 import and export doors, and 5 elevators with

a 5 ton/elevator capacity

- Bonded warehouse: second floor, warehouse 05 with a 6,250 m2 area, a3,500 pallet capacity overall, 22 shelves, and 5 machines with a 5 tons/elevatorcapacity

- 9,500 m2 domestic warehouse

 To accommodate various client needs, the warehouse system in this place isbuilt to contemporary norms For the entire warehouse area, a 6-story high shelf framesystem is fully installed to aid enhance storage space and make it easier to monitoritems Data on items that are exported, imported and in-stock can be retrieved in real-time using the content management systems TOPOVN, TOPX, and WMSVN inconjunction with barcode management of goods Extinguishing, fire alarm, and qualifiedfire protection systems The four CFS warehouses at Cat Lai Port are warehouses Nos

1, 2, 3, and 5 We stopped by Warehouse No 3, an import warehouse, during the fieldtour

2.2 The idea, purpose, and features of the Container Freight Station warehouse:

 Concept:

-CFS (Container Freight point) is a retail warehouse or a cargo gathering point.This strategy of classification and gathering items is employed in warehouses

 The CFS repository's features include:

-Obtain complete shipping containers from the port, unload the contents, arrangethem according to destination, and then store them until they can be loaded into anothercontainer for transit or delivery

-Transshipped items are taken to the port's retail goods collection station wherethey are separated and packed into export containers, or they are combined withVietnamese exports

-Assist shippers and transporters with packing containers for export to thirdcountries or splitting import shipments while they are waiting for customs clearance

 Features of the items kept at CFS:

-Each shipper must bring products to CFS to be exploited and packed withnumerous items belonging to various owners into the warehouse because the goods atCFS are retail and each shipper only has a small amount of goods to load into fullcontainers Diversified goods will be kept at CFS Accepting false, imitation, illegal, orharmful goods is prohibited You must also adhere to all Vietnamese legal requirements

-According to Section 3 of Article 61 of the 2014 Customs Law, the followingsituations typically apply to items kept in CFS:

-Imported products that were not cleared by customs

-Exported items are placed in CFS warehouses for physical examination afterthey have gone through customs processes or have made customs declarations

 Being a container port There is still a retail warehouse here because there areclients who have a modest number of goods and are uncertain of the cost Goods thatneed to travel through Cat Lai to board the ship and from the ship to Cat Lai must beplaced in a huge warehouse They want to travel with other shippers, but they want totravel by sea and container However, there will be varying delivery schedules and

inconsistent product amounts for many of these shop owners' items Therefore, thereneeds to be a location where goods may be gathered to wait until they fill the container

or where numerous goods owners can enter to split and return the goods As a result,the goods need a location where they can be stored while they wait for each owner topick them up  The CFS warehouse model was developed to assist businesses tosave money and carrying commodities more effectively by combining individual itemsfrom several sources into a whole vessel before transporting

2.3 The procedure of warehouse operation 2.3.1 The procedure of using a forklift to receive and load products into that warehouse.

 The following steps are often included in the process of receiving and loadingproducts into the warehouse at Cat Lai Port:

- Stage 1 Cargo landing: After the ship docks, the cargo is unloaded and driven bytruck to the warehouse

- Stage 2 Inspection: Goods are inspected for any shortages, damage, ordeviations before being delivered to the warehouse's reception area and sorted into theproper categories The examination is completed by warehouse representatives andcustoms officers

- Stage 3: Processing and preparation of the paperwork for the products Thisincludes paying taxes, clearing customs, and obtaining other necessary documentation

- Stage 4: Unloading: The forklift driver will load the cargo onto the vehicle andmove it to the designated location in the warehouse after the goods have been removedfrom the truck

- Stage 5: Lowering the pallets to the warehouse floor after carefully guiding theforklift into position

- Stage 6: Before being dispatched, the goods are checked for damage or flaws

- Stage 7 Until all of the cargo is unloaded and stored, the entire process isrepeated

 Particularly, in import warehouse number 3, the procedure is carried out as follows: