(Tiểu luận) group 4 after the field visit at tan cang cat lai company in the mostpractical way

To observe the reality and know the function of the cargo inspection area, the import and export warehouse at the port, etc.. To ensure that the type, origin, condition, amount, and valu

Ho Chi Minh City University of Economics and FinanceFaculty of Economics

MIDTERM REPORT

LOGISTICS MANAGEMENT - MGT1143E.B10EGroup: 4

Lecturer: Pham Thi Trang

No.Full nameStudent IDTasks

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

Table of Contents

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

REFERENCES 26

First of all, group 4 would like to thank the University of Economics and Finance and their guide Pham Thi Trang for allowing them to visit Tan Cang - Cat Lai Company to observe and learn more useful knowledge from practice Secondly, I would like to thank Tan Cang - Cat Lai Company for accepting the invitation and enthusiastically supporting the students After a day touring Tan Cang - Cat Lai, group 4 observed and learned many useful lessons from the guidance of the brothers and sisters in the port During the visit, the members of the port supported Group 4 in particular and other students in general To observe the reality and know the function of the cargo inspection area, the import and export warehouse at the port, etc Besides, there is very interesting information about Tan Cang - Cat Lai revealed by the port's tour guide In addition, the group also better understand the routes that ships from Cat Lai can go to as well as the reasons for banning ships with too much effort from entering the port and the difference between Tan Cang - Cat Lai compared to other routes with other ports, etc All information presented by the group is from field observations and collected from carefully selected information in today's useful media Group 4 hopes that the information presented by Group 4 below will summarize the knowledge and lessons learned by Group 4 after the field visit at Tan Cang - Cat Lai Company in the most practical way

Best regards, Group 4.

Group 4 [LOGISTICS MANAGEMENT]

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 build Intercity Route 25 from Hanoi Expressway to Cat Lai Ferry to attract customers.

The largest and most cutting-edge international container port in Vietnam, Tan Cang - Cat Lai Terminal (TCCL), is run by Operations Center - Saigon Newport Corporation The terminal is separated into three terminals, A, B, and C, each having its own receiving berth for four barges and a separate space for referring containers and rice 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 transferred all container ship operations from Sin Cang Port to Cat Lai Port, which has since become the main port in the southern region At that time, the Cat Lai Port’s throughput reached 1 million TEU and then increased to 2,6 million TEU in 2011.

With the services of tugboats, pilots, warehousing, land transport, barge water transportation, 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.

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Group 4 [LOGISTICS MANAGEMENT]

- 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 important gateway 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 at cargo 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

Group 4 [LOGISTICS MANAGEMENT]

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 the type, origin, condition, amount, and value of the commodities comply with the Kyoto Convention's requirements, the Kyoto Convention defines "inspection of goods" as a physical inspection of the goods by the Customs Authorities with the data stated in the products.

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 the conformity of products and goods with the contract or announced applicable standards and relevant technical regulations by observation and evaluation of measurement and testing results, “as stated in” Product quality law".

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

Group 4 [LOGISTICS MANAGEMENT]

- An area dedicated to conducting inspections and examinations of items is referred to as a "goods inspection area" It is a regulated setting where officials conduct inspections to verify adherence to rules, quality standards, and safety criteria, such as customs 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 to scrutiny and verification The primary purpose of the goods inspection area is to assess the 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 designated physical 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 specified practices and norms To evaluate the quality, compliance, and security of the items, these procedures may include visual inspections, physical examinations, sample testing, 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 products adhere to stringent requirements, such as those set down in trade agreements, customs rules, and standards for the safety of products.

- Documentation and Record-Keeping: Inspections in the commodities inspection domain 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 and coordinate in the commodities inspection domain Importers, exporters, shipping brokers, regulatory bodies, customs officials, and other participants in the logistics chain are all included in this Smooth and effective inspections depend on effective communication and information sharing.

Group 4 [LOGISTICS MANAGEMENT]

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 export declarations:

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

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

- Businesses are excluded from conducting thorough physical inspections of a variety of things under the following circumstances: imported products, Tax exemptions apply to machinery and equipment used to construct fixed assets Foreign-made goods are exempt bonded warehouses, transshipment ports, products in transit, and free trade zones for shipping, unique goods.

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

- 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, the inspection will cease; if violations are found, the inspection will continue until the number of violations is satisfied.

Group 4 [LOGISTICS MANAGEMENT]

+ Level 3: Physical inspection of 5% of the shipment; inspection ends if no violations 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 clearance will be transported to the goods inspection area at Cat Lai Port for examination The legality and compliance of the entire package with the customs dossier will be assessed Two different kinds of goods inspection exist:

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

Manual inspection: To have the container of products subject to manual inspection, 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 and cut the lead Customs will decide whether to investigate the entire package or individual items 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 entire shipment if it is a sensitive shipment.

Customs will rely on specialist inspection registration papers to carry out customs clearance operations for shipments that are on the list of commodities that are subject to state inspection Check the product’s provenance The rate of the customs duty.

Businesses must describe and submit information on the quantity, kind, and origin of commodities as well as take images of the first shipment when temporarily importing or re-exporting items.

The function of Cat Lai Port:

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

Group 4 [LOGISTICS MANAGEMENT]

specifications, standards, and compliance with regulations set by relevant authorities It ensures that the goods meet the required quality standards and are suitable for import/export.

- Quantity Verification: The inspection area also verifies the number of goods being transported through Cat Lai Port This is done by comparing the quantity stated in the shipping documents with the actual goods received or delivered It helps prevent discrepancies and ensures accurate record-keeping for importers, exporters, and customs authorities.

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

- Security Checks: The inspection area is responsible for conducting security checks on goods passing through Cat Lai Port It screens the goods to detect and prevent the transportation of prohibited items, hazardous materials, or contraband This helps maintain the safety and security of the port, its facilities, and the overall supply chain.

- Documentation and Record-Keeping: The inspection area maintains accurate documentation and records of the inspected goods This includes recording inspection results, issuing certificates of inspection or compliance, and updating relevant databases or systems These records serve as evidence of compliance and can be used for auditing, traceability, and dispute-resolution purposes.

Group 4 [LOGISTICS MANAGEMENT]

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 special characteristics that set it apart from other ports While specific details may vary, here are some possible special characteristics:

- Modern Infrastructure: The goods inspection area at Cat Lai Port may feature modern infrastructure and facilities to accommodate efficient and streamlined inspection processes.

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

- Advanced Technology: The goods inspection area at Cat Lai Port may leverage advanced 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 robust risk management measures to identify and mitigate potential risks associated with the transportation of goods This can include risk profiling, targeted inspections, and intelligence-driven approaches to focus resources where they are most needed.

- Specialized Inspections: Depending on the nature of goods passing through Cat Lai 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 at Cat Lai Port could vary over time, depending on how regulations and business standards develop It is advised to speak with the port authorities or official sources for the most precise and recent information.

Group 4 [LOGISTICS MANAGEMENT]

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 storing goods Depending on the nature of the commodities, different types of warehouses are suitable 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, of which:

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

- Export CFS warehouse: first floor, warehouse 05, 6,250 m2 in size, 3,500 pallets 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, a 3,500 pallet capacity overall, 22 shelves, and 5 machines with a 5 tons/elevator capacity.

- 9,500 m2 domestic warehouse.

To accommodate various client needs, the warehouse system in this place is built to contemporary norms For the entire warehouse area, a 6-story high shelf frame system is fully installed to aid enhance storage space and make it easier to monitor items 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 in conjunction with barcode management of goods Extinguishing, fire alarm, and qualified fire 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 field tour.

Group 4 [LOGISTICS MANAGEMENT]

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, arrange them according to destination, and then store them until they can be loaded into another container for transit or delivery.

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

- Assist shippers and transporters with packing containers for export to third countries 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 with numerous items belonging to various owners into the warehouse because the goods at CFS are retail and each shipper only has a small amount of goods to load into full containers Diversified goods will be kept at CFS Accepting false, imitation, illegal, or harmful 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 following situations 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 after they have gone through customs processes or have made customs declarations.

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

Group 4 [LOGISTICS MANAGEMENT]

inconsistent product amounts for many of these shop owners' items Therefore, there needs 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 to pick them up The CFS warehouse model was developed to assist businesses to save money and carrying commodities more effectively by combining individual items from 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 loading products into the warehouse at Cat Lai Port:

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

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

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

- Stage 4: Unloading: The forklift driver will load the cargo onto the vehicle and move it to the designated location in the warehouse after the goods have been removed from the truck.

- Stage 5: Lowering the pallets to the warehouse floor after carefully guiding the forklift 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 is repeated.

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

Group 4 [LOGISTICS MANAGEMENT]

The direction of gathering the most trucks and containers is at gate 23 This is where the import warehouse enters We'll unpack and open the container

A warehouse employee is seated at the box to inspect the items being carried out Before placing the goods in the warehouse, the employees will inspect their condition To handle the goods, a barcode will then be pasted The items will be placed where the client has requested earlier when the customer places how many boxes and shelves in the warehouse; otherwise, the unscrambles will fill the vacant space in a random order When a client needs to pick up the products, they will scan the barcode of that order, and the system will display all the information of the parcels of the shipment placed where, and take out all the goods for consumers Finally, they will scan the barcode and store the information in that box The export and import stores are located at gates 21 and 22, where personnel pick up items for customers Before delivering the goods to the customer, the warehouse personnel will verify the quality of the items one last time, compare them upon arriving and leaving, bill the items, and then load them into the customer's car.

2.3.2 Rules in the storage facility

The merchandise is set up in the warehouse the same way it is in the yard There is a storage cost outside the yard and a storage fee inside the warehouse.

The division of commodities into categories includes common, hazardous (solid and liquid), large, and overloaded items For instance, bulky, heavy objects that can't fit in a box, like cars, must be left on the shelves.

Containerized items are additionally inspected by customs Additionally, retail products are inspected by customs As an illustration, the warehouse for imported goods will examine the customs after unpacking, and place the items there, and then each shipper will be in charge of examining their orders and be independent of one another Door 22 is the gate for goods inspection, for instance, and customs may inspect any or all of the shipments there.

The way things are organized in the warehouse is also governed For instance, coffee with a certain moisture level combined with rice, which is highly hygroscopic but needs to be dry, will alter the quality of both.