RECOMMENDATIONS TO REDUCE THE CONTAINER TRUCK CONGESTION IN ENTRANCE GATES AT a PORT OF VICONSHIP JOINT STOCK CONPANY GREENPORT TERMINAL

- MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: TO DINH BACH DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS RECOMMENDATIONS TO REDUCE THE CONTAINER TRUCK CONGESTION IN ENTRANCE GATES AT A PORT OF VICONSHIP JOINT STOCK CONPANY- GREENPORT TERMINAL HAI PHONG – 2015 MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: TO DINH BACH CLASS: GMA 02 DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS RECOMMENDATIONS TO REDUCE THE CONTAINER TRUCK CONGESTION IN ENTRANCE GATES AT A PORT OF VICONSHIP JOINT STOCK CONPANY- GREENPORT TERMINAL Supervisor: Division: Faculty: Vuong Thu Giang Basic economic Global Studies and Maritime Affairs HAI PHONG – 2015 Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal PREFACE Purpose of the paper is to evaluate situation of container truck congestion in terminal gates at a port of VICONSHIP joint stock company- Greenport terminal Then, recommendations are suggested to reduce container truck congestion in Greenport terminal gates There are five main parts in this paper: Introduction Chapter 1: Literature review Chapter 2: Situation of container truck congestion in Greenport terminal gates Chapter 3: Recommendations to reduce the truck congestion in Greenport terminal gates Conclusion I declare that this report is my own unaided work It has not been submitted before If violated, I am solely responsible for and bear the punishments of the Institution and University Student Name and Signature To Dinh Bach To Dinh Bach- GMA02 Page Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal ABSTRACT Vietnam is a favorable natural country having 3200 km sea-way So the development of maritime transports will bring benefits for country, especially in container transportation There are 72% container level approximately imported and exported in South Vietnam ports and 26% in North ports, Vietnam ports could compete to another region such as Singapore, Hong Kong or Busan (Thai Van Vinh, 2007) In fact, many ports are facing heavy truck congestion in the terminal, which leads to longer truck waiting time and lower operation efficiency (Xiaoju Zhang, et.al, 2013) Although Vietnam built so many large container ports, container truck congestion still occur in major terminal gate because volume of container exceeds in rush period Then, what is the cause of the congestion problem at the port container and how to resolve this situation? The research figures out the underlying cause of the problem and offers some solutions to remedy the situation, as well as to develop Vietnam's seaports The research will contribute some positive solution to address the immediate situation contributing to Vietnam's seaport grows and brings many benefits not only for the state but also for the whole society To Dinh Bach- GMA02 Page Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal ACKNOWLEGEMENT First of all, I would like to thank Ms Phuong Anh, master of accounting manager, who gave me a chance to internship in Greenport terminal and gave a hand to help me have information and important statistics I would like to thank security and related employee who help me to successfully finish our project without any interrupted I also want to thank my instructor- Mrs Nguyen Thi Le Hang who supervised my industrial project that is modeling and simulation material handling system in container terminal and who gave me this valuable chance to work with her for a small period I also want to thanks Huynh Viet and Duc Thuan who make long conversations to answer for many questions and spend time to introduce departments of Greenport Finally, I would like to thank everyone who helped me in direct and indirect ways during period of project To Dinh Bach- GMA02 Page Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal TABLE OF CONTENTS To Dinh Bach- GMA02 Page Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal LIST OF ABBREVIATIONS LCL: CFS: CCTV: VOCs: TAS: HDC: OCR: LPR: ISO: TOS: LCD: VoIP: IP: RE: EDI: PL-TOS: IAS: Less than Container Load Container freight station Closed-circuit television Volatile Organic Compounds Truck appointment system Harbor development commission Optical character recognition Location plates reader International organization for standardization Terminal operating system Liquid crystal display Voice over IP Internet Protocol Road extension Electronic Data Interchange Port logics-Terminal Operation System Individual appointment systems To Dinh Bach- GMA02 Page Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal LIST OF TABLES Table 1.1: Alternate definition of congestion 17 Table 1.2: Summary of types of congestion 19 Table 1.3: Alternative congestion measures to assess user acceptability .22 Table 2.4: Greenport business operation report .33 Table 2.5: Congestion identification as Qualitative measures .35 Table 2.6: The First Measurement specification (seconds/mile) 37 Table 2.7: The First Measurement specification (minutes/meter) 38 Table 2.8: Congestion identification as the first Measurement specification 38 Table 2.9: Congestion identification as the second Measurement specification 39 To Dinh Bach- GMA02 Page Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal LIST OF FIGURES Figure 1.1: Terminal layout gates 15 Figure 2.2: Greenport layout 26 Figure 2.3: Management organization of VICONSHIP 28 Figure 2.4: Greenport berths 29 Figure 2.5: CFS warehouses 29 Figure 2.6: Greenport Container yards 30 Figure 2.7: Greenport entrance gates 31 Figure 2.8: Greenport CCTV camera 31 Figure 2.9: Greenport weighting stations 32 Figure 2.10: Business operation chart of Greenport 34 Figure 2.11: Researching Location- Greenport Entrance Gates 35 Figure 2.12: Road leading to Greenport entrance gates 36 Figure 3.13: TAS process .43 Figure 3.14: Queuing theory simulation .44 Figure 3.15: Truck OCR camera portal 46 Figure 3.16: Operator console in gate automation project .47 Figure 3.17: Truck-driver self-service kiosks 48 Figure 3.18: Kiosk system 48 Figure 3.19: Process of OCR gates automation 49 To Dinh Bach- GMA02 Page Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal INTRODUCTION Introduction The gate system on container terminals is the operation channel for trucks to carry containers to move into or out of the container yard With the rapid development of maritime logistics, the demand improvement of the container terminals gate system is becoming higher and higher If the planning on the configuration of gate system such as the number of truck lanes is unreasonable, the congestion by trucks which is waiting and queuing outside the terminal gate becomes quite serious in the rush hours and it will influence the whole service performance of the container terminal Therefore, it is necessary to carry out the feasible planning on the terminal gate However the construction cost ratios of terminal gates is far lower and as the operation performance of the gate system does not bring the direct punishment charges so the planning on the terminal gate system has been not considered So far, researches on planning of container terminals focused mainly on the gate system Methodology The paper is conducted by using combination of methodologies namely analytical, statistical, logical methods - Analytical method: Analyze figures and date related to company and process - Statistical method: Collect and research the information about data - Logical method: Summary and point out the situation of the process and recommend solutions Research scope Actually, the performance of the gate system plays an important role in enhancement of service quality of ports Congestion in front of gate occurs frequently not only in Vietnam terminal but also in most of terminal in over the world However, the paper only focuses on researching Greenport gate operation and congestion phenomena To Dinh Bach- GMA02 Page 10 Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal CHAPTER III: RECOMMENDATIONS TO REDUCE CONTAINER TRUCK CONGESTION IN ENTRANCE GATES AT A PORT OF VICONSHIP JOINT STOCK COMPANY- GREENPORT TERMINAL 3.1 Recommendation of technology 3.1.1 Truck appointment system (TAS) To ease congestion at terminal gates, one of the proposed recommendations is the implementation of an appointment system at inbound gates, which can be effective in controlling truck random arrivals, modifying peak hours of demand, minimizing truck idling, and improving the utilization of the terminal’s capacity (Boile and et.al, 2012) The terminal operator announces the maximum appointment quota of each period and then the truckers select one preferred period But if the selected period is not available, the truckers need to select another until they successfully make an appointment Truck appointment method can decrease the number of truck arrival during peak hours 3.1.1.1 Goals of TAS There are main purposes of truck appointment system First goad allows the harbor development commission (HDC) to monitor and plan for truck congestion TAS is served as a port operations management tool for the private terminal operator Providing valuable traffic as well as port information to freight operators to optimize routes and pick up drop off times is the last purpose of truck appointment system In order to determine the optimal appointment quota using truck appointment model, terminal operator needs to take the factors affecting truck turn time into consideration Truck turn time is equal to the total of gate waiting time and yard waiting time plus a fixed value (Source collected) The terminal system contains gate system and yard system and there is a link between the gates and the yard 3.1.1.2 TAS process TAS is an online process required to use technological equips and skillful employees First of all, all necessary information is filled and entered into computer To Dinh Bach- GMA02 Page 43 Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal by truck driver who will picks-up date then Truck appointment system (TAS) is aggregated data online Figure 3.13- TAS process Source: Kanaan Consulting US Shipping Office checks schedules, shipping plans and enter truck info to port management system Harbor development commission (HDC) could view statistics on truck activity Then truck driver receives traffic alert and truck list information is completed in port management system when trucker arrives port TAS simulation would similar to booking in a restaurant You call to restaurant provide required information which could be How many people in your family come? What kind of food? What event will celebrate? Restaurant has to check schedules then appoint detail plan to you So you and your family don’t have to go early to order dishes or choose other restaurants because of coming late Everything is just in-time The operation process of the terminal gate system is attributed to a dynamic multi-classes queuing process The TAS simulation model based on the queuing theory is established when container truck enter terminal gates as shown in Fig.3.14 The main factors are described as follows - Arrival process The arrivals of unloaded and loaded trucks are regarded as the random process, and the probable distributions are used To Dinh Bach- GMA02 Page 44 Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal - Queuing rule The service rule is FIFO for three queues FIFO stands for first-in, first-out, meaning that first coming truck go in first If the service station is busy, customers will wait in the queue until the station becomes idle Figure 3.14- Queuing theory simulation Source: YU Yue, JIN Chun, HUO Lin (1998-2005) - Service process The entrance lanes, container yard and exit lanes are regarded as multi-class service stations with multi-server units Each service unit deals with one customer at a time, and the service time is random When a truck reaches the entrance lanes (as first-class service station), if the entrance lane of gate system is idle, it will receive the service; and if the entrance lane is busy, it has to wait in a waiting Queue as shown in Figure 3.14 After the service has finished, the truck moves to the yard or stack area to load and unload containers Then, it returns to the exit lane, if the lane is idle, the truck moves into the gates and receives service; otherwise it has to wait in Queue in Figure 3.14 Finally, the truck departs from the terminal gates and finishes all activities in the system 3.1.1.3 TAS strengths and weaknesses Gate efficiency can be improved by implementing automated terminal appointment systems These systems often use the internet for greater coordination of terminal capacity and operating conditions with truck appointment scheduling It helps to reduce lengthy truck queues and information processing times and facilitates a more efficient allocation of personnel Trucks arrive when needed and To Dinh Bach- GMA02 Page 45 Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal benefit from faster processing and reduced wait times Minimizing wait times and improving timeliness of deliveries can improve customer satisfaction and productivity for both drayage fleet and terminal operators Shipment information can be updated online and relayed between terminal users and gates prior to trucks arriving at the port Information on container status can help trucking companies to efficiently dispatch trucks to pick up available loads Online fee payments and driver information can dramatically reduce the occurrence of problematic transactions and minimize terminal delays Equipping trucks with transponders allows driver information to automatically be transmitted to the entrance gates to improve the speed of processing There are several negative in TAS project ● ● ● ● ● ● ● Needs to be voluntary, not mandatory Needs to ensure that proprietary information is protected Needs to be reliable and available to users all the time Needs to have quick response time using the Internet Needs to collect and report performance and usage metrics Needs to be easily modified or expanded as warranted Needs active technical support Finally, TAS project is highly appropriate to apply for Greenport gate system It is the best recommendation to relieve container truck congestion In fact, TAS is bonus software decreasing the number of truck arrival during peak hours and is not replaced current terminal system PL-TOS (Port logics-Terminal Operation System) PL-TOS is a method used for terminal operations from planning (berth planning, ship planning, yard planning) to manager (billing, statistics, web access and Security Management) and operation (Operation Management, Monitoring & Control, Gate Operation, EDI Import/Export) while TAS is only operated in terminal gate area 3.1.2 OCR (optical character recognition) gate automation OCR (optical character recognition) gate automation is an automatic gate project which is more modern than current infrastructure system as well as truck appointment system plan It operates and manages implementation due to technology decreasing human resource and cost Although Greenport gates are updated and rebuilt recently could not be modern ones comparing to other terminals in the world TAS is a short-term To Dinh Bach- GMA02 Page 46 Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal recommendation for congestion situation The long-term solution is OCR gate automation system which includes truck OCR camera portal system, truck-driver self-service kiosk and operator console 3.1.2.1 Truck OCR (optical character recognition) camera portal system Truck OCR camera portal system which is a department of the automatic gate system locates in entrance gates It has OCR camera portal, condition recording camera portal, location plate reader (LPR) OCR camera portal enables terminals to automatically capture and process container data and at the same time obtain high-resolution images It scans all incoming and outbound trucks, for automatic identification of trucks, containers and trailers The system automatically detects and reads container numbers, ISO codes, trailer numbers, chassis numbers, dangerous goods labels and container state (full or empty) One striking feature of OCR camera portal is container truck go through it with unlimited speed and high resolution image Processing is fast seconds under There are 180 to 500 passengers per hours The generated quality pictures are stored for damage claims management Greenport is applied camera system which has function similar to OCR camera portal but quality pictures are lower and quantity of camera is fewer Figure 3.15- Truck OCR camera portal Sources: quoted in Mannheim, gate automation and OCR, October 17, 2013 To Dinh Bach- GMA02 Page 47 Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal Condition recording camera portal recording all damages to trucks and cargoes is not developed in Greenport Employees working in Greenport have to take photography by handheld camera to record condition of container (old or new) Gate automation solutions require location plate reader systems (LPR) that can read license plates of vehicles coming from various countries and/or states with the highest accuracy and in the shortest possible time Greenport don’t apply LPR system only use camera to take photography which could not determine original location of truck 3.1.2.2 Operator consoles Operator console where manages and responsible for gate operations is a department of gates automation system Operator console in Greenport locates in kiosks next to entrance gates and each kiosk implements to each truck lane While operator console in gate automation is stayed in a room far away from gates Operator console has modern equipment and high-tech Figure 3.16-Operator console in gate automation project Source: quoted in Mannheim, gate automation and OCR, October 17, 2013 3.1.2.3 Truck-driver self-service kiosks Truck-driver self-service kiosk is an evolution in automatic gate system Gate kiosks serve as self-service terminals where truck drivers perform identification and registration tasks while remaining seated in their truck cabin All data is instantly To Dinh Bach- GMA02 Page 48 Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal checked with the TOS to optimize planning This self-service concept significantly reduces operational costs and intervention times and increases overall throughput Figure 3.17- Truck-driver self-service kiosk Source: quoted in Mannheim, gate automation and OCR, October 17, 2013 Figure 3.18- Kiosk system Source: quoted in Mannheim, gate automation and OCR, October 17, 2013 Kiosk system has LCD (Liquid crystal display) Touch Screen, Soft keyboard, Card reader, Barcode reader, Ticket printer, Biometrics, VoIP (Voice over IP) Intercom, Face camera 3.1.2.4 Brief process of OCR entrance gates automation Firstly, customer and shipping agents previously send information electronically Terminal will respond if everything is correct A pin code is sent to To Dinh Bach- GMA02 Page 49 Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal customer by terminal Secondly, the truck which arrives at automatic gates passes through a single control point or OCR camera portal where its number of location plates is detected and all container truck information is recorded One striking feature of OCR camera portal is container truck go through it with unlimited speed and high resolution image Processing is fast seconds under Then, truck moves to self-service kiosks where truck-driver has to implement himself Driver enters his authorization card as an authorized driver and a pin code that terminal have sent to him From here, the barriers are opened and he is shown where to process by traffic guidance system Figure 3.19-Process of OCR gates automation Source: quoted in Mannheim, gate automation and OCR, October 17, 2013 3.1.2.5 OCR gate automation strengths OCR gate automation could identify automatically: container number, ISO (International Organization for Standardization) code, license plate number, dangerous goods labels and detect automatically: Container location, door direction, seal presence In Greenport situation, the paper recommends to apply of departments of OCR (optical character recognition) gate automation- OCR camera portal system and truck-driver self-service kiosk to modern terminal gates Management software To Dinh Bach- GMA02 Page 50 Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal of Greenport Operator console is PL-TOS a stable system which could not replace to save cost 3.2 Recommendation of infrastructural 3.2.1 Road extension (RE) The RE scenario represents the infrastructure solution of roadway expansion This scenario is developed to simulate an expansion to the roadway network that increases the capacity of the area Hence, more trucks could be processed during rush hours, the level of service could be enhanced and congestion in the near port network could be reduced As mention before, road leading to Greenport is deterioration, poor condition and occupied by repairing slot and small shops as well as military weighting station It makes the road became more narrow Container trucks and motorbikes which park around entrance gate contribute directly to congestion phenomena Road extension is a recommendation to deal with congestion in area around Greenport while truck appointment system is used to optimize operation gates Repairing slots and small shops are destroyed to contribute space extending route If military weighing station and fuel station is moved to other location, new extended road will have truck lanes so congestion in Greenport entrance gates is solved immediately However, RE project need a huge amount of fund buy military weighing station and fuel stations 3.2.2 New subsidiary- VIP Greenport November 11th 2014, VIP Greenport Joint Stock Company started construction VIP Greenport project at Dinh Vu- Cat Hai Economic Zone, Dong Hai Ward, Hai An District, Haiphong City VIP Greenport located in convenient, right next to Nam Hai Dinh Vu port today The maximum capacity of VIP Greenport may reach 500,000 TEU per year, 40% higher than current Greenport JSC VIP Green Port will have a charter capital of 450 billion VND slightly higher than the current charter capital of VSC (sources from collected) VIP Greenport project is built on an area of 152,694.9 m with total investment is 1,092 billion VND It includes: berths and gantry cranes with 45 tons of lifting capacity as well as 140,000 m2 warehouses To Dinh Bach- GMA02 Page 51 Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal New subsidiary will relieve truck container congested situation in Greenport by the customer sharing So truck density in peak-hours is decreased immediately To Dinh Bach- GMA02 Page 52 Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal CONCLUSION In conclusion, it is obvious that in general, container truck congested situation occurs daily in several Vietnam terminal gates Firstly, the paper provides theory relating to terminal gates and congestion, especially congestion of container truck at terminal gates In detail, terminal gates are essential position to help commercial circulation and security control for terminal There are main ways to identify congestion in terminal gates- qualitative measurement and quantitative measurement Secondly, the paper gives general information about congestion situation in Greenport entrance gates Greenport entrance gates have been occurred frequently container truck congestion since 7PM especially in Tuesday and Friday Some qualitative measurement and quantitative measurement have been applied in this study to identify the truck congestion level of Greenport terminal gates Thirdly, there are several effective recommendations relating to technology and infrastructures have been made in this study to reduce or relieve container truck congestion in terminal gates Technology recommendation consists of TAS system and truck OCR camera portal system TAS system is short-term solution and other ones are long-term Infrastructure recommendation includes road extend (RE) and new subsidiary project Finally, the phenomenon of congestion at the terminal gates is a matter to be considered and solved Hopefully, container truck congestion situation in Greenport will be resolved in the near future To Dinh Bach- GMA02 Page 53 Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal APPENDICES Business Process Modeling of Automatic gates To Dinh Bach- GMA02 Page 54 Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal To Dinh Bach- GMA02 Page 55 Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal References ● ● Asmy sheriff, University Of Peradeniya,Sri Lanka, Civil Engineering, Faculty Member, 2005 Bovy, P.H.L and Salomon, I Congestion in Europe: measurements, patterns and policies, in E Stern, I Salomon and P.H.L Bovy (eds.), Travel Behaviour: spatial patterns, congestion and ● modelling, Cheltenham: Edward Elgar, (2002) Baskett, F.; Chandy, K Mani; Muntz, R.R.; Palacios, F.G (1975) "Open, closed and mixed ● networks of queues with different classes of customers" Journal of the ACM 22 (2): 248–260 B Jansen, Pieter C.J Swinkels, Gert J A N Teeuwen, Babette van Antwerpen de Fluiter, Hein A Fleuren, Operational planning of a large-scale multi-modal transportation system, European Journal ● of Operational Research, vol 156, Issue: 1, July 1, 2004, pp 41-53 Boile, M., Moini, N., Theofanis, S & Golias, M.M (2012) Evaluating the impacts of a marine container terminal gate appointment system using simulation In Proceedings of the World ● Conference on Transport 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African Ports, 2015 To Dinh Bach- GMA02 Page 57 ... the paper is to evaluate situation of container truck congestion in terminal gates at a port of VICONSHIP joint stock company- Greenport terminal Then, recommendations are suggested to reduce container. .. public port and private port To Dinh Bach- GMA02 Page 13 Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal 1.2 Container. .. To Dinh Bach- GMA02 Page 23 Recommendation to reduce container truck congestion in entrance gates at a port of VICONSHIP joint stock company- Greenport terminal CHAPTER II: SITUATION OF CONTAINER