Assignment # 01

Group Members

Tauseef Raza

Naeem Ullah

Mishal Zikria

Tehmina Malik

Mahnoor Amjad

Ammara Abbasi

Subject: Strategic Supply Chain Management

Submitted to: Sir Azfar Wasim

DEPARTMENT OF MANAGEMENT SCIENCE

BAHRIA UNIVERSITY, ISLAMABAD

SPRING 2023
 Find out what are the different types of international ports and their key
features. What are some of the costs associated with landing at Karachi
Port for international shipping lines?

International ports can be categorized into different types based on their location, size, and
the services they offer. Here are the most common types of international ports and their key
features:

1. Container Ports: These ports specialize in the handling and storage of shipping containers.
They are equipped with modern container-handling equipment such as gantry cranes and
container yards. Container ports are designed to facilitate the rapid transfer of containers
between ships, trucks, and railcars.

2. Bulk Ports: These ports handle large quantities of raw materials such as coal, grain, and ore.
They are equipped with specialized equipment such as conveyor belts and bucket elevators
that are used to load and unload bulk cargo from ships.

3. Ro-Ro Ports: Ro-Ro stands for Roll-On/Roll-Off, and these ports specialize in the handling
of vehicles, such as cars, trucks, and buses. Ro-Ro ports have specialized ramps and decks
that allow vehicles to be driven onto and off of ships.

4. Ferry Ports: Ferry ports are designed to handle passenger and vehicle ferry traffic. They
typically have passenger terminals, car parks, and loading ramps for vehicles.

5. Cruise Ports: These ports are designed to accommodate large cruise ships. They are
equipped with facilities for disembarking and boarding passengers, as well as customs and
immigration facilities.

6. Fishing Ports: Fishing ports specialize in the handling of fish and seafood products. They
have facilities for offloading and processing fish, as well as refrigerated storage for perishable
products.
7. Oil and Gas Ports: These ports handle the shipment of oil and gas products. They have
specialized terminals for loading and unloading tankers, as well as storage facilities for oil
and gas products.

Overall, international ports play a critical role in facilitating global trade and commerce. Each
type of port is designed to handle specific types of cargo, and their key features are tailored to
meet the needs of their customers.

Associated Costs:
There are several costs associated with landing at Karachi Port for international shipping
lines. Some of these costs may include:

1. Port Dues: These are charges levied by the port authority for using the port facilities. The
amount of port dues varies depending on the size and type of vessel.

2. Pilotage Fees: A pilot is required to navigate the vessel in and out of the port. The pilotage
fees are charged by the pilotage authority for their services.

3. Berth Hire Charges: These are charges for using the berth or wharf for loading or unloading
cargo.

4. Cargo Handling Charges: These charges are levied for loading and unloading cargo from
the vessel. The charges may vary depending on the type of cargo, the handling equipment
used, and the duration of the operation.

5. Tug Charges: Tugs are used to assist the vessel in manoeuvrings in the port. Tug charges are
levied by the tug operator for their services.

6. Stevedoring Charges: These are charges for the services of the stevedores who load and
unload cargo from the vessel.

7. Customs Clearance Charges: These charges are levied by the customs authority for clearing
the cargo for import or export.
8. Security Charges: These are charges for the security services provided at the port.

9. Terminal Handling Charges: These charges are levied by the terminal operator for the use
of the terminal facilities.
The above-mentioned charges are not exhaustive and may vary depending on the specific
circumstances of the shipment and the port.

Consider the Karachi Port and analyses the competitive advantage it has or
doesn’t have when compared to regional ports.

Karachi Port, located in Karachi, Pakistan, is the largest and busiest seaport in the country. It
serves as the gateway to Pakistan's economy and is a crucial transportation hub for both
imports and exports. In terms of competitive advantage, Karachi Port has several strengths
and weaknesses compared to other regional ports.

Advantages:

1. Strategic Location: Karachi Port's strategic location makes it an ideal transshipment hub for
cargo entering and leaving Pakistan. It is situated at the crossroads of major shipping lanes,
making it easily accessible for vessels coming from different directions. Additionally, Karachi
Port is located near the Arabian Sea, which gives it easy access to other countries in the
region.

2. Modern Infrastructure: Karachi Port has modern infrastructure and facilities, including
deep-water berths, container terminals, and storage facilities. It has the capacity to handle
large vessels and has been expanding its facilities to accommodate even larger ships. This
infrastructure enables it to handle a significant volume of cargo and ensures efficient handling
and processing of goods.

3. Connectivity: Karachi Port is well-connected to major transportation networks in Pakistan,

1. Congestion: Karachi Port is often congested, which can cause delays and increase the time
required to process cargo. This congestion can result in ships waiting at anchor for several
days before they can dock and unload their cargo. The port has been working to address this
issue by expanding its facilities and improving its operations, but congestion remains a
significant problem.

2. Security Concerns: Karachi Port has experienced security concerns in the past, which has
raised concerns among potential customers. These concerns include piracy, terrorism, and
theft. While the port has taken measures to address these issues, they remain a concern for
some customers.

3. Limited Port Capacity: While Karachi Port has been expanding its facilities, its capacity is
still limited compared to other regional ports. This limitation can make it challenging to
handle large volumes of cargo and can result in congestion.

In conclusion, Karachi Port has several competitive advantages, including its strategic
location, modern infrastructure, and connectivity. However, it also faces several challenges,
such as congestion, security concerns, and limited capacity. Despite these challenges, Karachi
Port remains an essential transportation hub for Pakistan and continues to play a crucial role
in the country's economy.

What is the maximum TEUs that can be managed at Karachi Port,

Karachi Port is one of the busiest ports in South Asia, and it has been undergoing
modernization and expansion efforts to increase its capacity. The maximum TEUs that can be
managed at Karachi Port depends on several factors, including the available infrastructure,
equipment, and workforce.

According to the Karachi Port Trust, the maximum container handling capacity of Karachi
Port is currently around 3.6 million TEUs per year. However, this figure is expected to
 increase up to 7 million TEUs per year after the completion of ongoing expansion projects.
It is important to note that the actual volume of TEUs that can be handled at Karachi Port
may vary based on several factors, including the level of demand, operational efficiency, and
infrastructure limitations.

What features of Gwadar Port can make it a more attractive option

Gwadar Port is strategically located on the Arabian Sea in Pakistan, which makes it an
attractive option for China under the China-Pakistan Economic Corridor (CPEC) agreement.
Some of the features of Gwadar Port that make it more attractive as a maritime hub and
investment destination include:

1. Strategic Location: Gwadar Port is located near the Strait of Hormuz, which is one of the
world's most important oil shipping lanes. This strategic location makes it an important hub
for trade between China, Pakistan, and the Middle East, which can increase economic activity
and growth.

2. Deep Sea Port: Gwadar Port has a deep draft of 14 meters, which can accommodate large
cargo vessels, including oil tankers and container ships. This feature makes it an ideal
location for transshipment of cargo and a gateway for trade between the Middle East, Africa,
and Europe.

3. Special Economic Zone: Gwadar Port has been designated as a Special Economic Zone
(SEZ), which offers various incentives to foreign investors, including tax exemptions, duty-
free imports, and simplified procedures for business registration. This can attract foreign
investment and promote economic growth in the region.

4. Integrated Infrastructure: The CPEC agreement includes plans to develop Gwadar Port
into an integrated transportation and logistics hub, which includes road and rail networks
connecting Gwadar with China and other countries in the region. This infrastructure
 development can improve connectivity, reduce transportation costs, and enhance trade and
commerce.

5. Natural Resources: Gwadar Port is in the Balochistan province of Pakistan, which is rich in
natural resources such as minerals, oil, and gas. The development of Gwadar Port can provide
access to these resources, which can contribute to economic growth and development in the
region.

Overall, the strategic location, deep seaport, special economic zone, integrated infrastructure,
and natural resources make Gwadar Port an attractive option for investment under the CPEC
agreement.