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An integrated terminal operating system for enhancing the efficiency of seaport terminal operators

Author

Listed:
  • Hokey Min

    (Bowling Green State University)

  • Seung-Bum Ahn

    (Incheon National University)

  • Hyang-Sook Lee

    (Incheon National University)

  • Heekeon Park

    (Incheon National University)

Abstract

A seaport terminal is a vital link in the global supply chain which has a profound impact on port competitiveness and international trade. However, ongoing worldwide economic slumps, coupled with the proliferation of terminal operators, have created a glut for terminal-related logistics services and intensified competition among terminal operators. As a way to better utilize the existing terminal infrastructure and enhance terminal operating efficiencies, we propose an integrated terminal operating system that can reduce duplicated investments in equipment, redundant workforce, and non-value-adding processes, while standardizing terminal services including loading/unloading, discharging, and transferring cargo. To verify the usefulness of the proposed integrated terminal operating system, we develop key performance indicators of terminal operations which help to measure the comparative performances of both an integrated group and a non-integrated group of terminal operators and then formulate viable strategic options for creating “win–win” situations for terminal operators and their stakeholders including port administrators. In so doing, we examine the current practices of terminal operators at the Incheon Inner harbor in Korea through in-depth interviews and then identify critical success factors for integrated terminal operations based on a questionnaire survey and analytic hierarchy process. These factors include the terminal operator’s cargo attraction level, cargo turnover ratio, cargo storage capacity, and ability to comply with government rules and policies.

Suggested Citation

  • Hokey Min & Seung-Bum Ahn & Hyang-Sook Lee & Heekeon Park, 2017. "An integrated terminal operating system for enhancing the efficiency of seaport terminal operators," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(3), pages 428-450, August.
  • Handle: RePEc:pal:marecl:v:19:y:2017:i:3:d:10.1057_s41278-017-0069-5
    DOI: 10.1057/s41278-017-0069-5
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    References listed on IDEAS

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    1. Yoon, Junghyun & Lee, Hee Yong & Dinwoodie, John, 2015. "Competitiveness of container terminal operating companies in South Korea and the industry–university–government network," Transportation Research Part A: Policy and Practice, Elsevier, vol. 80(C), pages 1-14.
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    Cited by:

    1. Chandra Prakash Garg & Vishal Kashav & Xuemuge Wang, 2023. "Evaluating sustainability factors of green ports in China under fuzzy environment," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 7795-7821, August.
    2. Vairetti, Carla & González-Ramírez, Rosa G. & Maldonado, Sebastián & Álvarez, Claudio & Voβ, Stefan, 2019. "Facilitating conditions for successful adoption of inter-organizational information systems in seaports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 333-350.
    3. Miguel Hervás-Peralta & Sara Poveda-Reyes & Gemma Dolores Molero & Francisco Enrique Santarremigia & Juan-Pascual Pastor-Ferrando, 2019. "Improving the Performance of Dry and Maritime Ports by Increasing Knowledge about the Most Relevant Functionalities of the Terminal Operating System (TOS)," Sustainability, MDPI, vol. 11(6), pages 1-23, March.
    4. Abou Kasm, Omar & Diabat, Ali & Bierlaire, Michel, 2021. "Vessel scheduling with pilotage and tugging considerations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 148(C).
    5. Hokey Min, 2022. "Developing a smart port architecture and essential elements in the era of Industry 4.0," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(2), pages 189-207, June.
    6. Burak Cankaya & Ezra Wari & Berna Eren Tokgoz, 2019. "Practical approaches to chemical tanker scheduling in ports: a case study on the Port of Houston," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 21(4), pages 559-575, December.

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