Da Nang Port is the largest seaport in Central Vietnam, strategically located with connections to the road traffic network, including Da Nang International Airport and the railway station. It is also situated on an artery road with important routes such as National Highway 1A and the Da Nang - Quang Ngai Expressway, etc. It is designated as a national port (Class-1 seaport) within Vietnam's seaport system, boasting the advantages of a deep-water port that opens directly to the East Sea. Therefore, using Da Nang Port for transporting cargo to surrounding provinces in Central Vietnam, the Central Highlands, and countries within the East-West economic corridor is highly convenient. With its geographical advantages and substantial financial potential, Da Nang Port is expected to grow even more robustly, driving the development of the international maritime transportation sector in the region. Port operation plays an extremely important role in the import and export business. For businesses, timely loading, unloading, and distribution of goods can save both time and costs. For Da Nang Port Joint Stock Company (JSC), efficient port operation is a crucial competitive factor, helping it stand out among industry competitors. Recognizing the importance of port operation services in promoting the marine economic development of Vietnam and Da Nang City, through my internship and personal experience at Da Nang Port Joint Stock Company, I decided to choose the topic "Port Operation Process for Export Containers at Da Nang Port Joint Stock Company" for my graduation report. 2. Objectives The report is executed with the following objectives: • Research on the actual port operation process for export containers in Da Nang Port JSC. • Based on the gathered information, assess the strengths and weaknesses of the process. • Subsequently, propose solutions to enhance and further promote the progress of the port operation process for export containers in Da Nang Port JSC, contributing to the improvement of the company's business.
Rationale
International integration is a significant trend shaping modern international relations and impacting individual nations Globalization and trade liberalization have emerged as key drivers of economic growth, with Vietnam actively participating in this global movement by enhancing international trade and fostering economic exchanges In this context, international maritime transportation services are essential intermediaries, facilitating the flow of goods and stimulating international trade activities.
International maritime transportation currently represents up to 80% of global goods transport, playing a crucial role in Vietnam's socio-economic development Despite challenges from the COVID-19 pandemic and the Russia-Ukraine conflict, Vietnam's maritime sector showed resilience in 2023, with seaport cargo volumes reaching approximately 624.56 million tons in the first ten months, marking a 3% increase from the previous year Specifically, in the first nine months, cargo volume was 564.92 million tons, also reflecting a 3% growth This trend underscores maritime transportation as a key industry driving stable economic growth in Vietnam.
Da Nang Port is the largest seaport in Central Vietnam, strategically connected to major transport networks, including Da Nang International Airport and the railway station It lies along key routes like National Highway 1A and the Da Nang - Quang Ngai Expressway As a Class-1 national port in Vietnam's seaport system, it features a deep-water harbor with direct access to the East Sea, making it an advantageous hub for maritime activities.
Transporting cargo to neighboring provinces in Central Vietnam, the Central Highlands, and countries along the East-West economic corridor is highly efficient Da Nang Port, with its strategic geographical location and significant financial resources, is poised for substantial growth, further enhancing the international maritime transportation sector in the region.
Port operations are vital to the import and export business, as they enable businesses to save time and costs through timely loading, unloading, and distribution of goods For Da Nang Port Joint Stock Company (JSC), efficient port operations serve as a key competitive advantage in the industry Acknowledging the significance of these services in fostering marine economic development in Vietnam and Da Nang City, I chose to focus my graduation report on the "Port Operation Process for Export Containers at Da Nang Port Joint Stock Company" based on my internship experience and personal insights.
Objectives
The report is executed with the following objectives:
• Research on the actual port operation process for export containers in Da Nang Port JSC
• Based on the gathered information, assess the strengths and weaknesses of the process
To enhance the efficiency of export container operations at Da Nang Port JSC, it is essential to implement strategic solutions that streamline processes and promote continuous improvement By optimizing logistics, investing in advanced technology, and fostering collaboration among stakeholders, the port can significantly boost its operational performance These enhancements will not only facilitate smoother export processes but also contribute to the overall growth and success of the company.
Scope
The report researched the port operation process for export containers conducted at Da Nang Port Joint Stock Company
The report was conducted from January 02 nd , 2024 to May 05 th , 2024 The information used in the thesis was collected during the period from 2021 to 2023.
Methodology
The primary data collection methodology involves observing, interviewing, and documenting to address relevant questions This process includes consulting with employees and workers engaged in daily tasks related to the port operation for export containers By visiting the Operations Center and the Customer Service Center, a comprehensive understanding of the export container process is achieved through direct observation of various operational sections.
The secondary data collection methodology involves gathering documents from various departments and the Da Nang Port JSC website that pertain to the port operation process for export containers This includes reports on business performance, organizational structure, human resources, and customer information Additionally, the research will utilize textbooks, scholarly articles, and reputable websites to provide a theoretical foundation for the thesis.
This article synthesizes and compares business performance statistics derived from collected data, while detailing the port operation process for export containers within the company’s current context It analyzes the strengths and weaknesses observed in practice and offers strategic solutions for businesses to enhance their operations and address identified challenges.
Structure
In addition to the introduction, conclusion and references, the thesis is structured with the following chapters:
Chapter 2: Overview of Da Nang Port Joint Stock Company
Chapter 3: Port operation process for export containers at Da Nang Port Joint Stock Company
Chapter 4: Recommendations to improve the port operation process for export containers at Da Nang Port Joint Stock Company
THEORETICAL BASIS
Introduction to relevant theories
1.1.1 Process and criteria for evaluating process
The International Organization for Standardization (ISO) is a global federation that develops and publishes consistent standards across various industries, enhancing reliability and simplifying decision-making for consumers and businesses As defined in ISO 9000:2015, a process consists of interrelated activities that utilize inputs to produce intended results, emphasizing the interconnected nature of these activities and their collective goal of transforming inputs into valuable outputs.
A process can be defined as an activity that occurs over time with a specific goal in mind This definition highlights the temporal nature of processes, emphasizing that they unfold through a series of actions Each step within a process is purposefully directed toward achieving a particular outcome, underscoring the clarity of purpose that defines effective processes (Armstrong, 2006).
Processes exhibit three primary characteristics (Rand et al., 1997):
Processes are defined by their sequential nature, requiring tasks to be executed in a specific order, where each task relies on the successful completion of the previous one This structured arrangement fosters a logical and coordinated flow of activities, ensuring the process unfolds effectively.
Processes often involve repetitive tasks that are essential for identifying and correcting errors through iterative refinement This cycle of continuous improvement enables organizations to enhance efficiency and quality in their operations, ultimately leading to better overall performance.
Measurability in processes involves the use of metrics and indicators to objectively evaluate progress and performance These measurable parameters allow stakeholders to monitor key performance indicators and collect empirical data, supporting data-driven decision-making By utilizing insights from these metrics, organizations can pinpoint areas for improvement and execute targeted interventions to boost process efficiency and effectiveness.
According to Dumas (2018), the four criteria for evaluating process performance are time, cost, quality, and flexibility (Dumas et al., 2018):
Time: The time cycle is a common measure of process efficiency, representing the time needed to handle a process from start to finish Components to consider in this criterion include:
• Processing time: the time resources required to complete a work item
• Lead time: the total time taken from the initiation to the completion of a process, including wait times and delays
Waiting time refers to the duration a work item remains inactive, which occurs when resources take time to address tasks within the work items, when the process depends on the completion of parallel work steps, and during various other waiting scenarios.
Throughput refers to the speed at which work units are processed within a specific timeframe By optimizing processes to reduce idle time and delays, businesses can achieve faster execution and ensure timely delivery of products or services to their customers.
Cost: are expenses that reduce economic benefits and have a financial nature It can be distinguished between fixed costs and variable costs
Fixed costs are consistent expenses that remain largely unchanged regardless of processing intensity, primarily stemming from infrastructure and software systems Their predictability allows for stable financial planning, as they do not vary with fluctuations in business activity.
Variable costs fluctuate in direct relation to the volume of goods produced or services rendered, such as the costs of materials and utilities used during production As business activity expands, these costs increase, while a decrease in activity leads to a reduction in variable costs This dynamic nature makes variable costs closely tied to the operational scale and efficiency of a business.
Cost efficiency focuses on optimizing resource allocation and reducing waste, ensuring that the advantages gained from processes exceed their costs By effectively managing both fixed and variable expenses, businesses can enhance operations, boost profitability, and achieve sustainable financial stability.
Quality signifies the level of excellence and adherence to established standards, specifications, or customer expectations It includes key attributes like accuracy, reliability, consistency, and suitability for intended use Evaluating quality involves assessing these characteristics to ensure outputs meet desired criteria.
Monitoring and measuring product or service attributes, defect rates, error frequencies, customer satisfaction levels, and compliance with regulatory requirements are essential for quality assessment Additionally, the insights of participants involved in operational processes play a crucial role, as they possess firsthand knowledge of practical challenges and opportunities for improvement.
Flexibility refers to a process's capacity to effectively adapt and respond to changes in both internal and external conditions, demands, or requirements It includes agility, scalability, and resilience, allowing for the accommodation of variations, uncertainties, and fluctuations in workload, resources, and technologies.
Overview of the port operation process for export containers at seaport
International Standard ISO 668 was established by ISO to specify dimensional and other requirements for freight containers According to ISO 668:2020, freight containers are transport equipment that have the following characteristics:
• Of a permanent character and accordingly strong enough to be suitable for repeated use
• Specially designed to facilitate the carriage of goods by one or more modes of transport, without intermediate reloading
• Fitted with devices permitting its ready handling, particularly its transfer from one mode of transport to another
• Designed to be easy to fill and empty
• Having an internal volume of 1 square meter or more
According to ISO 668:1995, containers are standardized at a width of 2.438 meters (8 feet) and a length of 19.1 feet, with a maximum weight capacity of 20 tons and a cargo volume of 30.5 cubic meters These specifications define TEUs (Twenty-foot Equivalent Units), which serve as the benchmark for converting various container types.
The International Standard ISO 6346 establishes guidelines for the labeling, identification, and coding of freight containers As outlined in ISO 6346:2022, this identification system provides a standardized method for recognizing intermodal containers, ensuring consistency and efficiency in global shipping operations.
• Owner code (three letters): is unique and is registered with the Bureau International des Containers (BIC)
• Equipment category identifier (one letter): is identifier as follows “U” for all freight containers; “J” for detachable freight container-related equipment; and “Z” for trailers and chassis
The serial number, consisting of six digits, is selected by the container owner and must be unique, avoiding any overlap with other containers If the chosen number has fewer than six digits, it should be padded with leading zeros to ensure it totals six digits.
• Check digit (one numeral): is a means of validating the accuracy of the owner code and serial number
Size and type codes represent the size and type of the container:
The container size is denoted by a two-character code, where the first character represents the length using either a numeric or alphabetic character, and the second character indicates the width and height, also using a numeric or alphabetic character.
The container type and its main characteristics are denoted by a two-character code: the first character is an alphabetic letter that signifies the container type, while the second character can be either numeric or alphabetic, representing the primary characteristics associated with that specific container type.
There are various methods for categorizing containers According to ISO CODE R688 –
21968, which classifies containers based on their intended use, containers include 5 main groups:
General cargo containers encompass a variety of designs, including closed containers with doors at one end, those with doors on both ends and sides, and containers featuring openings on the top or sides This category also includes half-height containers and ventilated containers, catering to diverse shipping needs.
Dry bulk or bulker freight containers are specialized containers designed for the transportation of bulk goods such as grain, powdered soap, and small seeds These containers often feature a top opening for easy stacking and container doors for efficient unloading Their design significantly reduces labor costs during the loading and unloading processes, making them a convenient choice for bulk cargo transport.
Thermal insulated containers, also known as heated, refrigerated, or reefer containers, are designed with insulating ribs, roofs, floors, and doors to minimize temperature fluctuations between the interior and exterior These containers are essential for storing perishable items such as fruits and vegetables, as well as other goods sensitive to temperature variations.
Tank containers are specifically engineered for the safe transportation of hazardous materials and bulk liquids, including food products like cooking oil and various chemicals These containers are built to ISO standards, typically measuring 20 feet in length, and feature a robust rectangular iron frame that can hold approximately 15,410 liters, depending on the specific design.
10 type requirements This type of container can be equipped with additional refrigeration or heating equipment, as it is designed for special cargo
• Special container: ISO containers are permanently installed with live animal enclosures and may or may not be converted into containers suitable for general cargo transport
Port operations encompass the management and execution of processes that enable vessels to dock, load, unload, and depart efficiently and safely This article specifically addresses export container operations, highlighting the importance of effectively managing and executing these processes to ensure the smooth docking, loading, and departure of vessels.
1.2.3 Port operation process for export containers at seaport
Figure 1.1: Chart of port operation process for export containers
(Source: Business Department - Da Nang Port JSC)
Step 1: The Customer Service Center at Da Nang Port proceeds with declaring ship information in the CATOS based on the email sent by the shipping line Subsequently, the
12 logistics company, freight forwarder, or shipper directly registers the port operation for export containers with Da Nang Port JSC through the ePORT software
Specifically, the CATOS software can be understood as follows:
The Container Terminal Operating System (CATOS) is a comprehensive software solution that facilitates the management of port operations, encompassing planning, vessel operations, and cargo handling Implemented by Da Nang Port in 2004, CATOS has been instrumental in streamlining the entire port operation process.
In 2020, Total Soft Bank (South Korea) officially released an updated version of its container port management system, marking a significant advancement in the operational capabilities of Da Nang Port and positioning it for substantial growth in the future.
Meanwhile, the ePORT software is:
The Electronic Port System (ePORT) is an innovative information gateway developed by Da Nang Port JSC to enhance customer interaction at Da Nang Port This system allows users to access essential information such as container details, vessel schedules, and lists of imported and exported containers through the port's website Additionally, ePORT enables online container handling procedures and remote payments, streamlining the overall process Launched in 2020, this initiative aims to reduce costs, minimize travel time for customers, and improve operational efficiency within the company.
Step 2: The Operations Center receives "Confirmation of arrival of vessel at the port" from the shipping line, thereby checking ship profile, determining the appropriate berth, the arrival time at buoy zero and the berthing time Then, send a notification to the relevant departments at least 2 hours before the port operation shift
Step 3: The container shift leader receiving information about the arriving ship from the
The Operations Center directly engages with shipping lines to gather essential information regarding ship characteristics, enabling effective planning and registration of available manpower and equipment resources in preparation for port operation shifts.
OVERVIEW OF DA NANG PORT JOINT STOCK COMPANY
Introduction
2.1.1 The formation history and development
With a history spanning over 120 years, Da Nang Port JSC has demonstrated its significant role in ensuring security and fostering economic development in Da Nang city
Da Nang Port has established itself as the largest seaport in Central Vietnam and a key gateway to the Pacific Ocean along the East-West Economic Corridor Since coming under the management of the Ministry of Transport's Maritime Administration in 1976, the port transitioned to a state-owned enterprise in 1993 and became a single-member limited liability company in 2007 In 2014, it was converted into Da Nang Port JSC, a move that attracted diverse capital sources and strengthened its financial foundation This transformation necessitates that Da Nang Port JSC intensify efforts to attract customers and improve service quality to maintain a competitive advantage in the market.
Figure 2.1: Logo of Da Nang Port JSC
Official name: DANANG PORT JOINT STOCK COMPANY
Business registration certificate No 0400101972 was issued for the first time on April
01 st , 2008 by the Danang Department of Planning and Investment
Charter capital as of December 31 st , 2023 is 990,000,000,000 VND
The owner's investment as of December 31 st , 2023 is 1,690,582,848,423 VND
Address: 26 Bach Dang Street, Hai Chau District, Da Nang, Viet Nam
Da Nang Port JSC, situated on the picturesque Danang Bay, spans an area of 100 square kilometers and is surrounded by the stunning Hai Van Mountain and Son Tra Peninsula This strategic location is well-protected by a 450-meter-long breakwater, ensuring safe operations The Tien Sa terminal area is defined by a straight line connecting coordinates DN1 and DN2, enhancing its accessibility and efficiency.
• DN1: 16 o 12’36" N, 108 o 12’06" E (the southern edge of Son Cha Islet)
• DN2: 16o09’36" N; 108o14’42" E (the northwestern edge of Son Tra Peninsula)
Holding company: Vietnam Maritime Corporation The contribution capital to Da Nang
Port JCS is 742,500,000,000 VND (equivalent to 75%)
• Da Nang Port Logistic JSC The contribution capital of Da Nang Port JSC is 19,907,660,000 VND (equivalent to 45.10%)
• Da Nang Port Tugboat JSC The contribution capital of Da Nang Port JSC is 10,182,150,000 VND (equivalent to 36%).
Business activities
Cargo handling: loading and unloading goods by road, loading and unloading seaport goods, loading and unloading goods at river ports
Service activities that enhance water transport include direct support for coastal and ocean freight, as well as inland waterway transport Key offerings encompass shipping agency services, sea transport agency services, and comprehensive port operations Additionally, logistics services and multimodal transport solutions play a crucial role in facilitating efficient waterborne logistics.
Warehousing and storage of goods: warehousing and storing goods in bonded warehouses, warehousing and storing goods in cold storage, warehousing and storage of goods in other warehouses
Restaurants and mobile food services
Wholesale and retail of solid, liquid, gaseous fuels and related products: crude oil, petroleum and related products
Retailing of goods in specialized stores
Repair and maintain machinery and equipment
Construction of houses, construction of other civil engineering works
Trading in office and real estate
Construction investment and real estate, office rental
Vision, mission and values
Da Nang Port JSC is becoming the leading international trade gateway of the country and Mekong Subregion
Da Nang Port JSC has striven incessantly for smoothness, rapidity, safety of material flows, people and culture in the belief that it will create national prosperity
Their vision focuses on delivering exceptional seaport services that seamlessly integrate the logistics chain at local, national, and global levels This approach not only enhances their local standing but also fosters community prosperity and promotes sustainable national development.
Da Nang Port JSC operates with the motto "People are the foundation of development" with five core values: Honesty – Professional – Creativity – Discipline – Individual Respect
Organizational Structure
Da Nang Port Joint Stock Company operates under its Charter approved on July 24, 2014, in accordance with the Enterprise Law and relevant regulations The company is managed and overseen by an Administrative Council, a Control Board, and a Board of General Managers Currently, Da Nang Port JSC comprises twelve departments, three centers, and the Tien Sa Port Enterprise.
Figure 2.2: Organizational chart of Da Nang Port JSC
Tien Sa Port Enterprise A ffiliate Units
General Meeting of Shareholders is the highest authority in the Company The Annual general meeting of shareholders is held once a year
The Administrative Council serves as the management body of Da Nang Port JSC, responsible for overseeing and directing the company's business operations In addition to the powers granted to the General Meeting of Shareholders, the Council is fully authorized to exercise all rights on behalf of the company.
The Control Board is elected by the General Meeting of Shareholders to oversee the business, management, and operational activities of the company Its members are not affiliated with the company's accounting or finance departments, nor are they employees of the independent auditing firm responsible for auditing the Financial Statement of Da Nang Port JSC.
Executive Board includes a General Manager and two Deputy General Managers
The General Manager of Da Nang Port JSC oversees the daily business operations and is accountable to both the Administrative Council and the General Meeting of Shareholders This role involves adhering to legal obligations and reporting on the execution of assigned duties and powers when requested.
Deputy General Managers assist the General Manager in overseeing and directing operations, while also executing assigned tasks They are accountable to both the General Manager and legal regulations for their responsibilities.
Affiliate units are functional departments, centers and enterprise:
Business Department advises and assists the Administrative Council and the General
Manager on customer relations, marketing and market approach strategies to guide the
24 development of business strategies, commercial promotion, customer engagement and the organization of business activities according to planned objectives
The Quality and Labor Safety Monitoring Department ensures adherence to regulations concerning occupational health and safety, environmental protection, fire prevention, port security, disaster prevention, and search and rescue operations Additionally, it oversees insurance monitoring for equipment and vehicles while managing related insurance procedures effectively.
The Financial Accounting Department provides guidance and support to the Administrative Council and General Manager on financial management issues, encompassing privatization, auctions, issuance, listing, buying, selling, shareholder relations, and financial transactions, all while ensuring compliance with legal regulations.
The Investment Planning Department plays a crucial role in advising the Administrative Council and General Manager on strategies for company growth It effectively manages planning, investment, infrastructure development, and procurement of assets and resources Additionally, the department is responsible for compiling and updating reports on business performance, production status, investment partnerships, and capital management across various enterprises.
Salary Organization Department advises and assists the Administrative Council and the
General Manager on organizational structure, personnel management, labor remuneration, commendation and disciplinary work, as well as other policies related to employees and handling complaints
The Construction Technical Department provides essential advice and support to the Administrative Council and General Manager of Da Nang Port JSC, focusing on technical management, overseeing construction execution, monitoring project progress, and ensuring quality assurance for all undertaken projects.
Engineering Technology Department on technical management, technology of vehicles, equipment, loading and unloading tools, communication systems to meet the production and business needs of Da Nang Port JSC
The Information Technology Department supports the Administrative Council and General Manager in overseeing and executing the management of Da Nang Port JSC's complete information technology system This includes the administration of IT infrastructure and application systems, as well as formulating strategies for the advancement of information technology to enhance all operational phases of the company.
General Administrative Office Department advises and assists the Administrative
Council and the General Manager in administrative work, document archiving, reception, event organization, office management and ensuring the working conditions of the company
Legal and Risk Management Department advises and assists the Administrative
Council and the General Manager in building an internal regulatory document system to ensure compliance with legal regulations and mitigate legal risks
Internal Audit Committee is a professional department within the advisory apparatus, managing and organizing the implementation of internal auditing and internal control system examination tasks
The Secretary Department is a professional unit within the advisory framework that directly supports the Administrative Council Established by the Administrative Council, this department is responsible for drafting and receiving documents, as well as organizing tasks to facilitate meetings and other administrative functions.
Operations Center advises and assists the Administrative Council and the General
The manager oversees the management and implementation of port operations at Da Nang Port JSC, coordinating overall activities such as berth arrangements and the maneuvering of ships This role includes organizing inspections of ship heads and yard productivity while monitoring and supporting units to ensure adherence to operational plans Additionally, the Operations Center provides advice and assistance to the Administrative Council and the General Manager in planning for ship production and warehouse releases, with the authority to organize these processes as delegated by the General Manager.
The Operations Center oversees all production activities at the site, including warehouses, yards, and berths, to ensure optimal productivity, quality, and efficiency It effectively organizes and manages labor division, vehicles, equipment, and tools for cargo loading and unloading, ensuring that all assigned plans are completed on schedule.
Customer Service Center advises and assists the Administrative Council and the General
The Manager oversees the organization and execution of consulting, procedural guidance, monitoring, and management of customer information for all services offered by Da Nang Port JSC The Customer Service Center acts as a central hub for addressing customer requests and complaints throughout the service experience, collaborating closely with relevant departments to ensure optimal service delivery and improve customer satisfaction.
Logistics Service Center advises and assists the Administrative Council and the General
The manager is responsible for overseeing the efficient exploitation and management of resources at the Hoa Vang Logistics Center This includes organizing the supply and integration of logistics service chains that connect the Hoa Vang Logistics Center with Tien Sa Port and extend to customer warehouses.
Tien Sa Port Enterprise advises and assists the Administrative Council and the General
Business performance
Table 2.1: Table of business performance results of Da Nang Port JSC from 2021 to 2023
(Source: Financial report of Da Nang Port JSC)
Table 2.2: Table comparing the business performance results of Da Nang Port JSC from
2021 to 2023 (Source: Financial report of Da Nang Port JSC)
From 2021 to 2023, Da Nang Port JSC witnessed remarkable revenue growth, increasing from 1,078,888,885,510 VND in 2021 to 1,235,319,352,961 VND in 2023 The revenue rose by 10.89% in 2022, reflecting an increase of 117,486,123,132 VND compared to the previous year This growth can be linked to the relaxation of COVID-19 pandemic restrictions, which allowed the economy to recover and customers to resume operations, leading to a surge in trade demand that had been previously suppressed.
The growth rate from 2022 to 2023 was slower compared to the previous year, primarily due to a stabilization in the business conditions of customer companies rather than a strong recovery Additionally, a decline in export orders occurred as global consumer spending decreased amid high fuel prices and extended transportation delays The ongoing military conflict between Russia and Ukraine, along with the pandemic in several key trading partners of Vietnam, further intensified inflationary pressures.
In 2023, Da Nang Port JSC achieved a modest revenue increase of 3.25% compared to the previous year, despite facing challenges from an energy security crisis affecting 28 countries worldwide This situation has hindered economic and social development and reduced the volume of imported goods Nevertheless, the company's ability to adapt to ongoing economic fluctuations highlights its commitment to improving business efficiency.
Da Nang Port has experienced a steady rise in operating costs, increasing from 690.97 billion VND in 2021 to 734.40 billion VND in 2022, and reaching 779.60 billion VND in 2023 This represents an annual growth rate of approximately 6% in operating expenses each year from 2021 to 2023.
In 2023, the post-COVID-19 recovery has led to increased demand for goods, driving up prices for essential items due to global commodity price fluctuations Da Nang Port is actively promoting digital transformation by integrating information technology into its production and logistics processes, alongside significant investments in infrastructure and modern specialized equipment Currently, the port is constructing the Lien Chieu Port, a large-scale project requiring substantial financial and resource commitments However, the company faces challenges with existing debts from the Tien Sa Port construction in foreign currencies, exposing it to exchange rate risks and interest rate fluctuations amid a complex economic landscape.
Da Nang Port JSC has experienced a steady increase in profit after tax over the years, rising from 242.7 billion VND in 2021 to 271.8 billion VND in 2022, marking an 11.97% growth This upward trend continued in 2023, with a further increase of 1.31%, bringing the total to 275.3 billion VND Despite rising expenses during this period, the company has successfully maintained its profitability.
In the period of 2022-2023, Da Nang Port JSC experienced uneven revenue growth, resulting in a lower net profit after tax compared to 2021-2022 Despite challenges such as pandemics and wars, the company has maintained profitability, reflecting its resilience and the collective efforts of its team in navigating a complex economic landscape.
Resources
The length of the channel is from the pilot pick-up and drop-off area to the end of Tien Sa pier 3 6,8 km
Table 2.3: Marine lines of Da Nang Port JSC
Da Nang Port JSC boasts a robust marine infrastructure, featuring a 6.8-kilometer waterway that ensures safe navigation for maritime vessels With a channel width of 110 meters and a depth of -11.0 meters, the port accommodates large ships efficiently A 450-meter wave barrier protects the port from sea wave impacts, reducing risks and potential damage Collectively, these elements create a modern and secure port system at Da Nang Port JSC.
Exploitation capacity 12 million tons/year
Table 2.4: Exploitaion capacity of Da Nang Port JSC
Da Nang Port JSC is a vital maritime facility in Central Vietnam, boasting an impressive operational capacity of 12 million tons per year Its ability to handle container ships up to 50,000 deadweight tons (DWT) allows for direct access, eliminating the need for transshipment and enhancing efficiency for shipping companies Additionally, the port accommodates passenger ships with a gross tonnage (GT) of up to 170,000 and a length overall (LOA) of 348 meters, solidifying its role as a key gateway for cruise tourism and passenger transport By offering berthing facilities for large vessels, Da Nang Port JSC significantly contributes to tourism development and facilitates travel between destinations.
The Tien Sa Terminal features a vast warehouse area of 290,000 square meters, including a cargo yard of 200,000 square meters, a general warehouse of 3,148 square meters, and two container freight stations (CFS) warehouses of 2,160 square meters each Notably, the newly opened CFS 2 warehouse, operational since 2022, enhances the port's storage capacity for Less-than-Container-Load (LCL) shipments Additionally, the Danang Port Logistics Joint Stock Company offers a yard area of 35,018 square meters and warehouse space of 4,095 square meters.
Danang Port is currently advancing the second phase of the Tiên Sa Port expansion project, with an investment of 1 trillion VND aimed at enhancing storage capacity and logistical management In parallel, the port is prioritizing two key developments: the construction of Lien Chieu Port and a 20-hectare Logistics Center in Hoa Vang District, which will include extensive warehouse facilities to support the Central Highlands and Central Vietnam.
Figure 2.3: Human resources according to the technical qualification of Da Nang Port
Da Nang Port JSC features a specialized and clearly defined organizational structure that delineates the functions and responsibilities of each department This arrangement facilitates effective coordination among units and ensures standardized operational processes As a result, tasks are transparently assigned, fostering strong connections between various departments within the organization.
The pie chart reveals that more than 70% of employees at Da Nang Port JSC have received formal training, highlighting the company's commitment to high-quality human resources The management team, comprising 5% with master's degrees, showcases a strong level of specialized knowledge essential for effective management Additionally, 9%, 19%, and 6% of employees are high-level professionals, including engineers and university graduates, who actively contribute to research, technology development, and process improvement, fostering sustainable growth for the company In contrast, those with intermediate and high school education make up a smaller segment of the workforce (5% and 2%, respectively), yet they are skilled in advanced technology and operate modern machinery proficiently Notably, over 50% of the labor force consists of trained and general laborers primarily engaged in loading and unloading container cargo.
Da Nang Port JSC's diverse human resource structure enables the effective utilization and development of its workforce, ensuring high work efficiency and a competitive edge in the growing maritime industry In 2023, this strategic approach is essential for maintaining its market position.
Da Nang Port JSC has successfully conducted 25 training courses for its employees, alongside the creation of an Enterprise Culture Handbook to bolster corporate culture training These initiatives are designed to continuously enhance workforce quality and management efficiency, providing a strong foundation for the company's ongoing development.
PORT OPERATION PROCESS FOR EXPORT CONTAINERS AT DA
Overview of port operation process for export containers at Da Nang Port Joint
3.1 Overview of port operation process for export containers at Da Nang Port Joint Stock Company
During my internship at Da Nang Port JSC, I gained valuable insights into the export container operation process I specifically observed the collaboration with WAN HAI shipping company, which utilized the port's services for exporting containers.
WAN HAI shipping line facilitated the transport of 102 export containers from Da Nang Port to various ports in Kaohsiung, Tianjin, Taipei (China), and Hakata, Kobe, and Osaka (Japan) Among these, 15 containers were specifically booked through EXPEDITORS logistics company, whose representatives ensured their delivery to the port Upon the WAN HAI shipping line's arrival at Da Nang Port, Da Nang Port JSC took charge of loading the containers onto the ship.
Figure 3.1: Chart of port operation process for export containers
(Source: Business Department - Da Nang Port JSC)
Port operation process for export containers at Da Nang Port Joint Stock Company
3.2.1 Step 1: The Customer Service Center declares ship information into CATOS (1.1): Declare ship information according to the shipping line's booking into CATOS
Logistic companies, forwarding companies, and direct shippers, which are import-export businesses that work directly with shipping lines, initiate booking procedures with these lines Once the booking is successfully processed, the shipping line sends a "Booking Confirmation" to the customer to verify the reservation.
Figure 3.2: Booking confirmation between WAN HAI shipping line and EXPEDITORS logistics company (Source: Customer Service Center - Da Nang Port JSC)
Your booking confirmation for the WAN HAI 289 ship with EXPEDITORS logistics has been successfully processed You have reserved 15 containers, each 40 feet in size, containing general goods, specifically semi-chassis The voyage number is S036, with an estimated departure date of March 7, 2024, from Da Nang Port to the transshipment port in Taipei, China Your booking number is 041EX00727.
The shipping line has sent the "Booking confirmation" to the Customer Service Center, enabling staff to declare ship information in the Container Terminal Operating System (CATOS) for efficient container management.
Figure 3.3: Working screen of staff handling container procedures at the Customer
Service Center (Source: Customer Service Center - Da Nang Port JSC)
(1.2) Logistics company registers the port operation for export containers with Da Nang Port JSC
After the staff handling container procedures at the Customer Service Center completes the ship information declaration, the ePORT software received all the data entered in the
EXPEDITORS logistics company utilized CATOS software to register export container operations with Da Nang Port JSC via the ePORT system Access the ePORT software at http://eport.danangport.com/logistic/ for streamlined port operations.
Figure 3.4: Login interface of the ePORT software
The logistics company accessed the ePORT software at Da Nang Port by using account information obtained through a signed contract Da Nang Port issued a login account, enabling the company to utilize the software effectively.
After logging in, the EXPEDITORS logistics company navigated to the homepage, selected "Registered as an order," and proceeded to choose "Delivered containers with cargo to the port," resulting in the display of relevant information on the screen.
Figure 3.5: ePort software‘s interface after manipulating the above options
Enter the required information in the following order:
1: Click the icon to “Create new shipment”
2: Enter the Booking number in “Booking No”
3: Enter “Carrier code” and “Number of Containers” to be delivered
4: Check the entered information and click “OK” to save the information
Specifically, in the case of the logistics company EXPEDITORS, the information that needed to be entered included:
After the shipment was successfully created, the logistics company continued to input the
When entering the "Container No" into the table, the system can automatically populate the remaining fields if the ePORT contains existing data However, if no data is present, the logistics company EXPEDITORS will still ensure that all necessary information is inputted into the table.
After completing the declaration, the logistics company checked the information and clicked the button to save
3.2.2 Step 2: The Operations Center sends notification of ship arrival
(2.1) Receive “Notice of arrival of vessel at the port” from the shipping line
Seven days prior to the ship's arrival at Da Nang Port, the Operations Center staff receives essential shipping information via email from the shipping line, enabling them to effectively plan port operations for the upcoming week.
Figure 3.6: Email confirming receipt of information regarding the WAN HAI 289
(Source: Operations Center - Da Nang Port JSC)
The Operations Center has confirmed receipt of information regarding the WAN HAI 289 ship, registered by WAN HAI shipping company, with a laytime set for 14:00 and an estimated departure at 20:00 on March 7th, 2024 The vessel will carry a total of 244 import and export containers and is scheduled to berth at Tien Sa 4, utilizing two quayside cranes This email has also been forwarded to the Customer Service Center Additionally, the Operations Center has received the official "Notice of Arrival of Vessel at the Port" from WAN HAI, which will aid in planning port operations at Da Nang Port.
• Name of ship: WAN HAI 289
• IMO number: 9871361 is a ship identification number issued by the International Maritime Organization (IMO)
• Flag State of ship: Singapore
• Time of arrival Da Nang Port: 15h15 Mar 7th, 2024
• Ship technical specifications: Length overall - 175 meters, Breadth - 28.6 meters, Gross tonnage - 20,899 GT, Deadweight tonnage - 23,843.1 MT
• Purpose of call: Load and unload containers
• Name of the shipowners’ agents in Viet Nam: Cat Tuong Transport and Logistics service Company Limited
Figure 3.7: “Notice of arrival of the vessel at the port” of WAN HAI 289
(Source: Operations Center - Da Nang Port JSC)
The Operations Center staff evaluated Da Nang Port's capability to accommodate the WAN HAI 289 ship by assessing its specifications and berth technical parameters, including berth depth, marine fender conditions, and overall capacity Subsequently, they communicated their findings to the WAN HAI shipping company.
(2.3) Identifying suitable berth, arrival time at buoy zero, and berthing time
At least 9 hours before the ship arrives, the on-duty staff at the Operations Center receives the "Confirmation of arrival of vessel at the port" from the shipping line
Figure 3.8: "Confirmation of arrival of vessel at the port" of WAN HAI 289
(Source: Operations Center - Da Nang Port JSC)
This is the email about "Confirmation of arrival of vessel at the port" from the WAN HAI shipping line, sent approximately 44 hours before the ship's arrival (specifically on
On March 5th, 2024, the Operations Center was notified of the WAN HAI 289's expected arrival at 05:00 on March 7th, 2024 The vessel is set to import 147 containers and export 260 containers, with a fore draft of 10.2 meters and an aft draft of 10.5 meters Relevant authorities, including Customs for sea entry and exit procedures, the Da Nang Disease Control Center, and the Da Nang Port Border Guard, were also informed to facilitate the ship's arrival in Vietnamese waters.
43 assistance in arranging navigator onto the ship when WAN HAI 289 berths at Da Nang Port
The Operations Center staff has designated Tien Sa 4 berth as the appropriate docking location for vessel WAN HAI 289 The vessel is scheduled to arrive at buoy zero at 05:00 on March 7th, 2024, with a planned berthing time of 14:00 This information has been communicated to relevant departments, including Container supervisors, Container planning staff, and the Foreman.
Efficient planning of port operations is crucial, requiring the Tallyman to complete tasks swiftly and accurately at least two hours before the shift begins Specifically, all preparations must be finalized by 12:00 PM on Thursday, March 7th, 2024, in anticipation of the WAN HAI 289's scheduled arrival at 2:00 PM that day.
(2.4) The Customer Service Center enters container data into CATOS
Figure 3.9: The list of export containers on the WAN HAI 289
(Source: Customer Service Center - Da Nang Port JSC)
The WAN HAI 289 ship, voyage S036, has a detailed list of export containers provided by the WAN HAI shipping line, including essential information such as container position, container number, shipping line name, type and weight of containers, full or empty status, and any special requirements.
(REMARK) The staff handling container procedures at the Customer Service Center proceeded to input this export container data into the CATOS
Figure 3.10: Working screen for inputting container data into CATOS
(Source: Customer Service Center - Da Nang Port JSC)
Upon entering container data into the CATOS software, Customer Service Center staff monitor the status of containers If a container is marked as "Holding," it indicates incomplete procedures, while "Verified" signifies completion For containers pending export processing, the staff promptly informs EXPEDITORS logistics, WAN HAI shipping line, and other relevant departments, urging them to finalize procedures before the critical Closing time for customs clearance In cases of incomplete procedures, notifications are sent to the appropriate parties to ensure proper handling of the containers.
3.2.3 Step 3: Container shift leader plans production and registers for duty
(3.1) Container shift leader plans production
Upon receiving information about the arriving ship from the Operations Center, the
Evaluation
The integration of technology applications in port operations greatly boosts productivity, particularly through the use of ePORT and CATOS software These tools streamline preliminary procedures, leading to a significant reduction in document processing times.
Digitizing procedures, documents, and invoices enhances workflow efficiency, saving time for customers in document circulation This swift document delivery accelerates operations and supports seamless supply chain flow, ensuring continuity and reliability Organizational departments coordinate effectively by utilizing real-time data to create customized operational plans that respond to current conditions This proactive strategy guarantees timely export shipments, reduces delays, and maximizes customer satisfaction.
In step 2.3 of the process, punctuality is significantly affected by external factors, particularly when shipping lines submit vessel information late, just one or two days before arrival This situation creates an urgent need for Da Nang Port to quickly find an appropriate berth for the incoming ship, prompting immediate action from relevant departments to ensure timely berthing Such delays disrupt subsequent stages of the process and diminish staff accuracy, leading to potential errors.
To minimize interruptions in operational workflow at Da Nang Port, it is essential for shipping companies to provide timely ship information Implementing incentives can encourage these companies to submit their data ahead of deadlines, enhancing overall efficiency.
The modern infrastructure of the port has greatly improved operational capacity and reduced costs Investments in advanced handling equipment, such as quayside cranes and straddle carriers, along with automated container management systems and cutting-edge information technology like ePORT and CATOS software, have played a crucial role in this enhancement.
Da Nang Port efficiently handles large cargo volumes, utilizing automated machinery to minimize ship berthing time and costs This optimization enhances cargo transportation processes, reduces congestion, and minimizes resource wastage Consequently, operational and maintenance costs decrease while productivity rises, giving the port a competitive edge in the maritime transportation sector.
In step 8, mechanical workers employ the E-tractor system, a cutting-edge technology that transmits and receives industrial signals for yard tractor control This system provides vehicles with accurate, real-time instructions on their movements, facilitating a smooth and efficient port operation process By ensuring orderly vehicle movement to designated locations, the E-tractor system significantly minimizes congestion in container yards, a frequent challenge in busy ports Additionally, this organized approach helps avert incidents and accidents, ultimately reducing costly repairs and operational delays.
A critical phase in port operations that can lead to unnecessary expenses occurs during container planning In step 4, when the planning staff organizes the loading of containers onto the ship, insufficient information about the containers can significantly impact efficiency and increase costs.
To enhance operational efficiency at Da Nang Port, it is crucial for customers to provide comprehensive information about their containers, including name, voyage number, size type, cargo type, and remarks Without this data, the port struggles to categorize and optimize container placement, resulting in related containers being scattered and increased reliance on lifting equipment and yard tractors This inefficiency not only prolongs port operation shifts but also escalates costs for Da Nang Port.
Da Nang Port prioritizes the accurate execution of tasks to ensure the highest and most stable quality of output results All information used in contracts and documentation is precise and aligns with related shipment documents Task execution is meticulously monitored according to a well-established plan Supported by a long-standing team of highly skilled and experienced staff, Da Nang Port ensures that every phase, from preparation to execution, is carried out with exceptional accuracy.
Human involvement in cargo checking and process supervision can lead to errors To mitigate this risk, ports should allocate various departments and personnel to work together in inspecting cargo and promptly identifying mistakes, ensuring accurate documentation adjustments.
Effective communication and timely responses to emergencies are essential for successful coordination By keeping all stakeholders informed and aligned, organizations can enhance decision-making processes and ensure smoother operations during critical situations.
During steps 5 and 9, the Operations Center must maintain communication with the navigator to ensure the successful berthing and departure of the ship In the event of any special situations, both the on-duty staff and the navigator quickly coordinate their responses to effectively address and resolve the issue.
Da Nang Port is equipped with advanced communication tools, including Maritime handheld radios, which enhance operational efficiency and enable effective coordination among departments These radios allow port staff to quickly share vital information and manage tasks in real time However, during interviews with port personnel, it became evident that despite having established safety regulations, staff members showed a lack of interest in adhering to these safety protocols.
RECOMMENDATIONS TO IMPROVE THE PORT OPERATION
Recommendations 1: Require and encourage customers to provide complete and
To tackle the issue of timely vessel information submission, it is essential to enforce stricter time and content requirements for partners This strategy includes setting clear, non-negotiable deadlines for the submission of ship and container-related data Consistent communication of these deadlines to all partners is crucial, highlighting the significance of adhering to the schedule to ensure efficient port operations.
Implementing incentives for timely compliance and penalties for non-compliance is essential for ensuring deadlines are met Partners who consistently submit on time may qualify for benefits like priority berthing, while those who do not comply could incur consequences such as processing delays or extra fees.
Regular monitoring and evaluation of partner compliance with the time requirements are essential to ensure effectiveness.
Recommendations 2: Training employee to improve their expertise and skills
Enhancing employee training is crucial for improving skills and accuracy while reducing errors within an organization Da Nang Port JCS creates a tailored training roadmap that addresses the needs of employees company-wide or focuses on specific departmental topics This roadmap utilizes existing courses and industry-relevant training programs Furthermore, inviting experienced professionals as guest speakers and facilitating discussions can provide valuable insights and practical knowledge By equipping employees with essential skills and knowledge, their confidence is boosted, enabling them to tackle complex tasks with precision and efficiency.
Da Nang Port must prioritize the establishment of a safe and supportive working environment for its employees A positive workplace fosters enhanced learning and productivity, motivating staff to share innovative ideas regarding port operations This approach not only boosts employee engagement but also strengthens their sense of responsibility and commitment to the overall process.
Recommendations 3: Encourage employees to pay more attention to occupational
Regular knowledge assessments are essential for reinforcing employees' understanding of safety protocols and procedures These assessments can include quizzes, practical demonstrations, and scenario-based simulations, and should be conducted periodically to promote continuous learning and skill development By consistently evaluating employees' comprehension and proficiency in safety practices, employers can pinpoint areas for improvement and offer targeted support and training as necessary.
Organizing practical drills and emergency response exercises significantly boosts employees' readiness to handle workplace hazards and emergencies By simulating realistic scenarios they might face, these drills allow employees to gain hands-on experience, fostering the skills and confidence needed to respond calmly and decisively This proactive approach minimizes risks and enhances the overall safety of both employees and their colleagues.
The international maritime transportation sector is undergoing significant changes, making research and improvements in port operations crucial for Vietnam's socio-economic growth Da Nang Port, with its extensive history, modern facilities, and skilled workforce, is committed to refining its processes to boost customer satisfaction As Vietnam integrates more actively into the global economy, Da Nang Port faces both challenges and opportunities that could lead to substantial growth in the near future.
The topic of my study evaluated the effectiveness of the export cargo services provided by Da Nang Port through the analysis of the port operation process for export containers
This article presents recommendations for process improvement derived from practical observations, supported by valuable guidance from the Business Department of Da Nang Port JSC and Dr Tran Thi Ngoc Duy While acknowledging its limitations, the study welcomes constructive feedback from esteemed lecturers Thank you!
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