Fremantle Port Container Movement Study 2012.pdf

7/30/2019 Fremantle Port Container Movement Study 2012.pdf

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CONTAINER

MOVEMENT STUDY

2012

FRE IghT AND LOgIST ICS COUNCIL

OF WESTERN AUSTRAL IA

Fremantle P ort

Government ofWestern AustraliaDepartment ofTransport


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Fremantle Port

Container

movement

Study 2012

introduCtion

A new study to provide current inormation on the origin and destination o containerstravelling to and rom Fremantle Port was completed in March 2012.

The work was undertaken by Fremantle Ports, the WA Department o Transport,Main Roads WA and the Freight and Logistics Council o Western Australia. It updatesinormation rom the March 2004 Origin and Destination Study which has providedthe basis or Fremantle Port-related supply chain inrastructure decision making sincethat time.

The main aim o the recent study was to gain an up-to-date understanding o thetransport, storage and distribution o ull import and export containers as well as themovement o empty containers. The ndings will assist in improving industry planningand understanding, particularly in terms o :

inlandoriginsanddestinationsoffullcontainers(i.e.packandunpacklocations);

modeoftransportused;

stagingofcontainersbetweencontaineroriginsanddestinations

(bothlocationanduse);and timingofelementsoftheinlandlogisticschain-bothdayoftheweekandtimeofday.

Some other major Australian ports have also recently carried out similar studies andthese presented an opportunity to obtain valuable comparative data.

Fremantle Port Container movement Study 201 2

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Fremantle Port Container movement Study 2012

Study meth od

The project ocused primarily on six phases o the ports inland container logistics chain:

1. ImportFullContainersfromContainerTerminaltoUnpackPoint;

2. ImportEmptyContainerfromUnpackPointtoDehireatEmptyContainerParks;3. Where relevant, movements o Empty Containers rom Container Terminal to Empty

ContainerParks(ImportRepositioning);

4. ExportEmptyContainersfromEmptyParkstoPackingPoint;

5. ExportFullContainersreturnedfromPackingPointtoContainerTerminal;andnally

6. EmptyContainersfromEmptyParkstoContainerTerminals(ExportRepositioning).

In addition it collected and analysed data on container sizes, types and weights.

Following a 72 hour trial to test the response rate rom participants and validate thequality o data received, the main survey was undertaken over two weeks in the secondhal o August 2011. It involved 49 participants, including 37 road operators, and wasollowed by data collection, validation, consolidation and analysis.

The 49 participants in the ull study were in ve categories:

containerterminals;

emptycontainerparks;

quarantineapprovedpremises;

roadoperators;and

railoperators.

The totals were annualised using 2010/11 ull nancial year totals as the benchmark andwere broken down into the individual phases o the supply chain cycles or import andexport containers.

The study covered data or 78% o the ull containers into and out o Fremantle Ports

two container terminals at North Quay.

03


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General BaCKGround inFormation

From the Study

The growth o container trade at the port can be seen in Figure 1, with a record tradetotalin2010/11ofnearly600,000twentyfootequivalentunits(TEUs).

Each container is moved by either road or rail at some point in the import or exportcycle(transshipmentsbeingminimalinFremantle).

Within each o the six phases noted above, a container may be moved a number o times,

that is, picked up rom one location and delivered to another. In the report, these arereerred to as container movements.

The annualised number o import container movements reached nearly one million,while on the export cycle, it was just under 500,000. The marked dierence betweenimport and export container movements is due, in part, to the higher number omovementspercontainerwithintheimportcycle(average2.9movementspercontainer)versustheexportcycle(average2.6movementspercontainer)andthelower overall number o ull container exports.

O all the containers observed, about hal were ull imports, one quarter were ullexports and the other quarter were empties exported to meet requirements elsewhereintheworld.Thesearesimilarproportionstothefullyear2010/11(Figure2).

In contrast to the 2004 study, this recent survey ound that relatively little containerpacking and unpacking activity takes place outside the Perth metropolitan area.


04

Import

Full

12,253

50%

Export

Empty

5,919

24%

Export

Full

5,943

25%Import

Empty

300

1%

Import

Full293,208

49%

Export

Empty

119,593

20%

Export

Full

168,864

28%Import

Empty

16.862

3%

Figure 2 Volume Container Terminals

Comparison between 14 Day Full Survey

and Financial Year 2010/11(TEU)

14 Days Full Survey (TEUs)

FY 2010/11 (TEUs)

2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2010/112009/10

184 ,108 196 ,771 223 ,267 244 ,127 238 ,635 232 ,825 258 ,738 299 ,075 287 ,962 310 ,070288,463

170 ,119 186 ,365 208 ,457 221 ,855 228 ,945 223 ,229 247 ,081 281 ,270 277 ,529 288 ,464268,980

354,227

IMPORT

EXPORT

TOTAL 383,136 431,724 465,982 467,580 456,054 505,819 580,345 565,491 598,534557,443

700,000

Growth p.a. 2005/06 to 2010/11 = 5.6%

Growth p.a. 2000/01 to 2010/11 = 5.4%

600,000

500,000

400,000

300,000

200,000

100,000

0

T

EUs

Figure 1 Fremantle Container Trade Growth since 2000/01 (TEU)


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Full Road MovementEmpty Road Movement

18

16

91

126

18

1818

44

22

16

2

44155

102

8

28

11

6

1128

2367

206

163

74

Full Container Receipt 168.9 Full Container Release 293.2In000 TEUs

Container Terminals

Container Parks

QAP QAP

Empty Container Release 166.5 Empty Container Receipt 285.5

Road

Staging

NQRT/Forrestfield Rail

*Slight imbalances reflect the elimination of minor movements and rounding

Unpack PointPack Point

NQRT/Forrestfield Rail


05

Figure 3 Fremantle Ports Logistics Chain Movement (000 TEU) Import and Export Trade Containers Excluding Reposition (Annual Estimation)

loGiSti CS Cha in re PreSentation

Thevariouscontainermovements(TEUterms)areshowninFigure3below.The movements to the let o centre orm the Export Cycle, while those to theright represent the Import Cycle.

This Logistics Chain Movement diagram is provided here to give an overview o allthe key fows within the Ports landside container supply chain. It demonstrates thecomplexity o the overall chain, with a number o movement variations possible in theimport and export cycles. It clearly conrms the perception o the growing importanceo staging in the import chain in recent years, with only just over a third o the containers(asTEUs)goingdirectlytoanunpackpoint.Importantly,italsoshowsthatdirectdeliveriesarestillanimportantfactorintheexportcycle(54%ofTEUmovements).

The vital role played by empty container parks, as the nal repository or the initialstarting point or the import and export chains respectively, is also clear, with nearlyall containers passing through empty parks at some stage in the cycle.


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major FindinGS

ips

Currently, it is estimated that some

one million container movements occurin the import cycle annually.

As expected, unpack locations areconcentrated in core industrial zones(Table1).Twothirdsofallunpackstake place in just 10 industrial suburbs.Apart rom the port precinct, the twomajor concentrations are around theWelshpool/Kewdale/Forresteld and theCanning Vale/Jandakot/Bibra Lake areas.Hal o all unpacks take place in a bandbetween 20-30km rom the port(Figure4).Ninetypercentofunpacks

recorded during the survey took placewithin 30km o the port and only twocountry locations were in the top 50unpack locations.

When the unpack volumes are grouped,98% were located in the metropolitanarea, and 80% on the southern side othe city.

The role o road operator and railstaging, representing container moves toan interim location beore nal delivery,appears to have increased rom 52%

(2004survey)to65%.Roadoperatordepots account or approximately 50%and rail and quarantine checks accountor the other 15% .

Nearly all staging takes place in only 10suburbs. Nearly 85% o all import roadstaging takes place in our key suburbs(NorthFremantle,Welshpool,KewdaleandBibraLake).

Staging overcomes the pressures thatcan occur within the system when manyroad operators attempt to obtain their

containers at the same time. Staging allowsor a more even spread o pick ups rom,and deliveries to, terminals and a greaterguarantee o delivery times to customers.Delivery times to unpack locations stillshow, however, a preerence to receivecontainers earlier in the day.


06

Location 2004 2011

Bayswater/Morley/Malaga 6% 8%Inner Harbour 3% 6%

Kewdale/Forresteld/Welshpool 39% 35%

CanningVale(*note:2003totalsincludedinKewdale) * 10%

Kwinana/Rockingham/Naval Base/Henderson 2% 3%

OConnor/Spearwood/Bibra Lake 14% 16%

Outer Perth 5% 10%

Perth Central 11% 10%

Country 20% 2%

Total 100% 100%

Table 1 Distr ibution of Unpack Locations

Figure 4 - Unpack Destinations of Imports by Statistical Local Area

= 0 - 1,000

Breakpoints

(TEUs per annum)

< 1,000

< 5,000

< 15,000

< 25,000

< 35,000

< 45,000

< 55,000

< 65,000

< 75,000

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 20:00 22:0018:00

80

70

50

60

40

30

20

10

0

TEUsperhour

Figure 5 Full Container Delivery to Unpack Location - Time of Day


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The limited number o booking slots available at the on whar container terminals perhour is, however, assisting the Perth market slowly to mature in terms o the level oater hours unpacks occurring. While there is a signicant and steady decline in numberso deliveries to unpack locations ater midday, encouragingly there is a noticeable level oactivity still occurring between 6:00pm and midnight, ater which it eectively ceases until

around6:00am(Figure5).Trade growth means it is increasingly more dicult to get morning booking slots atFremantle Ports North Quay container terminals to pick up containers or directdelivery to clients. With demand or slots outstripping availability, rail is proving to be ahighly eective means to ensure deliveries to clients at the core times they require them.

exps

With loaded imports representing approximately hal o containers observed in the study,and loaded exports accounting or approximately one quarter o containers, it ollowsthat movements related to loaded exporters were approximately hal that o imports.

As was the case with imports, the Kewdale/Forresteld area retained its importance asan export origin area. The next largest loaded container exporting area was, however,the Henderson/Kwinana precinct. The port precinct played an even more important roleforexportsthanforimportsandtheBibraLakeareaasignicantlylesserone(Figure6).

The top ten exporting localities accounted or just over two thirds o all exports.One o these ten localities was non-metropolitan. Regional locations urther showedtheir importance to the economy, taking six o the top 20 pack locations and14 in the top 50.

This study has shown, however, a signicant shit away rom packing in non-metropolitanareas. Seventeen per cent o export packing takes place outside the metropolitan area.As an example, the 9% noted or the Lower Western region o the State in this study isa dramatic shit rom the results o the March 2004 study, where the study methodologyofthetimenotedthat24%ofloadedexportswerepackedinthisregion(Table2).

07

Location 2004 2011

Bayswater/Morley/Malaga 2% 2%

Inner Harbour 2% 9%

Kewdale/Forresteld/Welshpool 16% 25%

CanningVale(*note:2003totalsincludedinKewdale) * 5%

Kwinana/Rockingham/Naval Base/Henderson 5% 26%

OConnor/Spearwood/Bibra Lake 18% 8%

Outer Perth 9% 7%

Perth Central 5% 2%

Country 43% 16%

Total 100% 100%

Table 2 Distr ibution of Pack Locations


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The staging or exports is interesting.Proportionally more export containersmove by rail compared with importcontainers and movements by railintroduce an element o staging. While lessstaging o exports takes place than occurswith imports, nearly hal had some degreeo staging between the pack point andterminal delivery.

Results o the survey also show that theexport cycle is more complicated thanoten stated, as many o the exports areraw materials which are transported tothe metropolitan area or packing andshipment in containers.

Initial indications are that nearly hal theexport packs involve empty containers,which arrive at the pack location andare packed that day while still on thetruck ready or immediate delivery backto a terminal. For these packs emptycontainers are not held on site.

Figure 7 above indicates that while there is an increasing build up o pick up activity untilmidmorning,thereis,withoneexception(11am),asteadylevelofactivityfrom9am to 3pm.

Positively, although limited, some export pick-up activity takes place during the night.There is a surge around 10pm to midnight, largely as a result o rail terminal departures,thereby promoting more eective use o terminal assets.


08

= 0 - 1,000

Breakpoints

< 1,000

< 5,000

< 10,000

< 15,000

< 20,000

< 25,000

< 30,000

< 40,000

< 45,000

= 0 - 1,000

Breakpoints

Volume in TEUs

< 1,000

< 5,000

< 10,000

< 15,000

< 20,000

< 25,000

< 30,000

< 40,000

< 50,000

(TEUs per annum)

Figure 6 - Pack Locations of Exports by Statistical Local Area

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 20:00 22:0018:00

80

70

50

60

40

30

20

10

0

TEUsperhour

Figure 7 Full Container Pick Up Time of Day from Pack Location


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C tp us

In TEU terms, two thirds are 40 equivalents. In terms o physical containers, however,both20and40containersarehandledinequalnumbers(Figure8).

Thereisasignicantnumberofhighcubecontainers(96)inuseforabout44%offullimports and 42% o ull exports. As can be seen rom Figure 9 below, the result is thatcomparatively more high cubes tend to be exported empty.

09

Import Full Import Empty Export Full TotalExport Empty

100%

80%

60%

40%

20%

0%

4,133

8,120

182

118

2,763

3,180

1,145

4,774

8,223

16,190

40 20

Figure 8 Proportion of Equipment Type at Container Terminals (TEUs)

Figure 9 Breakdown of High Cube and Standard Container Type at Container Terminals (TEUs)

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

Export Empty

Import Empty

Export Full

Import Full

TEUs

Standard Highcube

5,431

2,524

137

3,166

6,822

3,419

163

2,753


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10

C ts

Wednesday was clearly the busiest day in and out o the container terminals, not MondayandFridayasmayhavebeenthought(Figure10).

This was because most large scale transers o empty containers occurred on Wednesdaybetweenemptycontainerparksandcontainerterminals(bulkruns).

Duringthestudyperiod,excludingbulkruns,Tuesdaywasthebusiestday(Figure11).Friday was the lowest volume day or exports, despite a stated belie that exporters, and

thereore transport operators, attempt to make ship cut-os on Fridays or vessels whichsail on weekends. This appears not to be the case.

Due to the stevedoring container terminals both having booking systems during this

period, the level o container movement activity was largely consistent throughoutthecoreworkingdayforfullimports(Figure12),notingthatthecontainerterminalsoperated rom 0600 to 2300 hrs or receival and delivery during the study period.

Mon

1,751

2,030

1,891

Week 1

Week 2

Average

Tue

2,508

2,639

2,574

Wed

2,652

3,165

2,909

Thu

1,727

2,559

2,143

Fri

2,082

2,220

2,151

Sat

357

338

348

Sun

335

52

194

3,500

Average Monday to Friday = 2,333 TEUs

3,000

2,500

2,000

1,500

1,000

500

0

TEUs

Figure 10 Average Daily Volume at Container Terminals (TEUs)

Mon

561

1,069

Entry (Export) Full

Exit (Import) Full

Tue

664

1,344

Wed

608

1,227

Thu

547

1,080

Fri

519

1,176

Sat

74

205

Sun

-

52

1,500

1,000

500

0

TEUs

Figure 11 Average Daily Full Entry and Exit at Container Terminals (TEUs)


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As shown in Figure 13, export deliveries to terminals basically build to the middle o theday and then decline until shit end.

The limited activity ater 10pm, in both gures, when the terminals complete theaternoon/evening receival and delivery shit, means there is a lengthy period oinadequate use o acilities by the entire supply chain. This presents a signicantopportunityforhighvolumefullactivity(byroadoperators)andbulkemptyactivity(bycontainerparks)tomakeavailablepeakperiodcapacity.

The limited weekend activity refects the general weekday, two-shit operations o theterminals up to just beore the time o the study. This has begun to change, as refectedin the gures presented, with some weekend activity occurring to the point whereSaturdaymorningreceivalanddelivery(R&D)shiftsarenowaregularfeatureinFremantle, with Sunday mornings also progressively being used more oten.

11

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

100

80

40

20

60

0

TEUsperhour

Weekday

Weekend

Figure 12 Time of Exit from Container Terminals - Import Full (TEUs)

0:00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

60

50

40

20

10

30

0

TEUsperhour

Weekday

Weekend

Figure 13 Time of Entry at Container Terminals - Export Full (TEUs)


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12

ep C Pks

The vital role o empty container parks in the supply chain is clearly shown in theLogisticsChainMovementsdiagram(Figure3),showingthatahireorde-hirefromortoan empty container park is nearly always a requirement in either the import or export

cycle. With around 90% o empty container park holdings still contained in or close tothe port, it shows the requirement placed on the chain in having to repeatedly come tothe port area.

Hal o all movements at empty container parks are to dehire empties. One quarter areto pick up export boxes and another quarter are bulk runs o empties rom the parks tocontainerterminals(nearlyallexportboxes).Thismeansthathalfofalltheboxesthatcome into the port are sent out empty.

Again, Wednesday is the busiest day o movement activity at the ECPs, due to bulk runs

as shown in Figures 14 and 15.

Bulk run activity, usually starting in the morning and ceasing rom early aternoononwards,generallydrawsemptycontainerparkresourcesawayfromR&Dduringthesetimes(Figure16).

Mon

140

61

EXIT RepoExport

ENTRY RepoImport

Tue

480

28

Wed

949

7

Thu

456

8

Fri

293

18

Sat

66

-

Sun

234

-

1,000

500

0

TE

Us

Figure 15 Empty Container Repositioning at Empty Container Parks (TEUs)

Mon

2,153

1,816

1,985

WEEK 1

WEEK 2

AVERAGE

Tues

2,176

2,314

2,245

Wed

2,592

2,855

2,724

Thu

2,117

2,245

2,181

Fri

1,999

1,963

1,981

Sat

-

132

66

Sun

335

132

234

3,000

2,500

2,000

1,500

1,000

500

0

TEUs

Average Monday to Friday = 2,223 TEUs

Figure 14 Average Daily Volume per Day at Empty Container Parks (TEUs)


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This is expected to change with the recent announcement that major parks will move toafterR&Dhoursbulkrunsandintroduceasystemrequiringroadcarrierstonotifytheirarrival, according to slots made available by the parks.

r

Rail operates two services a day rom the North Quay Rail Terminal, located within theport precinct, to an intermodal terminal in Forresteld.

Twelve per cent o the total number o containers travelled by rail during the studyperiod. Full exports were notably higher with 18% moving by rail.

The distribution pattern or containers moving by rail was very restricted with over 96%o imports and 86% o export volume being within a band 20-30km radial distance romthe port, showing that the market or rail is tightly centralised around the Forresteldterminal.Onlyasmallnumber(3%)ofexportscamefromlocalities50kmtoamaximumo 100km rom the port.

Nearly20%ofimports(18.3%)andover40%ofexports(41.8%)inthe20to30kmband travelled by rail. This shows rails attractiveness in situations where the intermodalterminal is located close to critical mass customer base locations and where rst/naldistribution distances are shortest. It provides an indicator that an overall target to have30% o container reight on rail is not unrealistic provided the appropriate inrastructureis available near the key logistics loading/unloading points.

While still to be conrmed, initial indications rom the rst stage o this study show

that rail is very ecient in moving containers rom and to customers. Ninety percent ocontainers taken rom terminals transit through the North Quay Rail Terminal and outto Forresteld to allow pick up within 24 hours. In total, when comparing all containersmoved at some point by rail to those purely moving by road through a road operatorstagingfacility(themajorityofcontainers,asthisstudyhasshown),thetimetakenbyrailappears to be the same to customer as by road.

13

6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00

60

40

20

0

TEUsperhour

Weekday

Weekend

Figure 16 Time of Exit from Empty Container Parks - Export Repositioning (TEUs)


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14

C Wgs

The average net weight in a transported 20 import container does not dier rom that ina40container(bothnearly17.5t).

Interestingly,althoughtheveryheavyimportweights(25tandabove)tendedtobemorein40containers(onequarterofall40s),20containerstookmoreofthemid-rangeweightsof15-25tonne(onethirdof20containerswere20-25t),andtwiceasmany40containerswerelikelytobeinthe5-15tonnerangeas20(i.e.thelargercontainerswerebeingusedforlighterloads).

WA seems to largely export heavier containers. Well over 90% o all containers wereabove 15t. Two thirds o all 40 exports were 25t and above.

F

The study has produced valuable insights into Fremantle Ports landside logistics supplychain. It allows comparison with many o the results obtained in the original March 2004study. It complements work perormed by other ports in Australia.

By designing the study to allow repeatability, the intention is to carry out ollow-upstudies in uture years to build on the understanding gained o the ports supply chain andidentiy trends.

The study team wishes to thank all the participants and supporting partner organisationsor their valued contributions to this study.


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Fremantle Port Container Movement Study 2012.pdf