ASEAN PORTS ASSOCIATION

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BEST PRACTICES MANUAL ON

PORT OPERATIONS

The information contained in this document is solely for the use of the ASEAN Ports Association (APA) for the purpose for which it was prepared. The APA Permanent Secretariat takes no responsibility for inaccurate or incomplete information that may have been submitted to it. The facts published indicate the result of inquiries conducted and no warranty as to their accuracy is given by the APA Permanent Secretariat.

Published by the Permanent Secretariat of the ASEAN Ports Association, Philippine Ports Authority, Marsman Building, South Harbor, Port Area, Manila, Philippines

FOREWORD

This reference material, one in a series of APA port practices manuals, is the fruition of the collaborative efforts of the 25^th APA Main Meeting held in 1999 in Bali, Indonesia. It is APA’s intent to draft a manual that would provide yardsticks on efficiency and productivity, particularly in cargo handling, pilotage and tug operations, as they are adopted and applied at specific areas of responsibility in APA member-ports.

Responses indicated on the customized survey questionnaire, which underwent several amendments to address identified survey lapses, served as groundworks in the preparation of the manual. A total of 42 respondent ports/terminals from the seven APA member-countries, namely: Brunei, Indonesia, Malaysia, Philippine, Singapore, Thailand and Vietnam, took pains in providing the needed data inputs. The survey also focused on aspects of resource/logistics management such as port documentation, equipment, personnel, security, facilities and amenities besides port operational activities.

At hindsight, the survey returns did not yield any definitive standards nor “hard and fast” rules on the “how-to” of quality port management and/or service delivery, taking into mind a singular ASEAN perspective. It has to be reckoned with that the touchstones of efficiency and productivity are the consequences between the interplay of resources and capabilities, which may be peculiar in an area and are largely defined by the like-mindedness of the stakeholders concerned.

In view of the foregoing, it was, thus, decided and agreed upon during the 28^th APA Main Meeting, held in 2002 in Singapore, for the APA Permanent Secretariat to just proceed for the time being with the compilation, analysis and presentation of the canvassed results as captured through the latest survey instrument. The Permanent Secretariat, however, committed to come up with a more refined and comprehensive manual, which may afford general reference for a wider range of users/readers, especially those affiliated with the maritime industry.

The benefit this manual can offer could only be something relative, depending on the objectives of the user. Still, further improvements can be incorporated into this text to gradually and eventually fully satisfy the port information needs of APA member-ports. So, let us leave it as what it is for the moment and have this undertaking be a continuing process that would document the best and the exemplary in ASEAN port operations practices.

ACKNOWLEDGMENTS

This report was prepared by the Permanent Secretariat of the ASEAN Ports Association which would like to acknowledge the following agencies, groups and individuals:

BRUNEI DARUSSALAM

1. Ports Department

2. PSA Muara Container Terminal SDN. BHD

INDONESIA

1. Tanjung Priok/Pt JICT

2. PT Terminal Petikemas, Surabaya

3. Palembang Port

4. Panjang/General Cargo

5. Port of Tanjung Perak

6. Pontianak Port

7. Tanjung Priok/General Cargo

8. Panjang/UTPK

9. Tanjung Priok/Multi-Purpose

MALAYSIA

1. Miri Port Authority

2. Rajang Port Authority

3. Kuantan Port Consortium SDN. BHD

4. Kuching Port

5. Sabah Port

6. Johor Port

PHILIPPINES

1. North Star Port Development Corp.

2. Manila International Container Terminal

3. Regal Arrastre and Stevedoring, Inc. – Legaspi

4. Port Management Office of Cotabato

5. Asian Terminals, Inc.

6. Gold City Integ. Port Services Inc./Continental Arrastre and

Stevedoring Co., Inc. – Cagayan de Oro

7. Port Management Office of Nasipit

8. Port Management Office of Iligan

9. South Cotabato Integ. Port Services, Inc.

10. Port Management Office of Davao

11. BREDCO II, Pulupandan

12. Port Management Office of Tacloban

13. Port Management Office of Tagbilaran

14. Cebu International Port

15. Port Management Office of Iloilo

16. Port Management Office of Ozamis

SINGAPORE

1. Port of Singapore Authority

2. Maritime and Port Authority of Singapore

THAILAND

1. Bangkok Port

2. LCB Container Terminal

3. Laem Chabang Port/TIPS

4. Eastern Sea Laem Chabang Terminal Co., Inc.

VIETNAM

1. Baria Serece

2. Saigon Port

3. Danang Port

TABLE OF CONTENTS

I. INTRODUCTION/BACKGROUND …………………………………….. 1

II. DEFINITION OF BEST PRACTICE ……………………………………. 2

III. BEST PRACTICES ……………………………………………………….. 3

A. Institutional Best Practices ……………………………………………. 3

1. Entity Responsible For Cargo Handling …………………………. 3

2. Types Of Skilled Labor And Unskilled Labor Employed In

Cargo Handling Operations …………………………………… 3

3. Skills Acquisition ………………………………………………….. 4

4. Portworkers’ Compensation And Benefits ………………………. 4

B. Operational Best Practices ……………………………………………. 6

1. Types Of Quay And Yard Equipment Deployed ………………… 6

2. Processing Of Requests For Workers And Equipment …………. 6

3. Deployment Of Portworkers ………………………………………. 7

4. Cargo Tracking System ……………………………………………. 7

5. Cargo Documentation System ……………………………………. 8

6. Security Measures ………………………………………………… 15

7. Processing Of Claims Due To Loss/Injury And Damage To Life/Property…………………………………………………… 15

8. Type Of Billing/Collection System ………………………………. 16

9. Documentation Processes And Procedures……………………… 16

a. Timely Receipt Of Source Documents

For Billing Purposes ……………………………………… 16

b. Accuracy Of Information In Source Documents …………… 16

c. Uniform Application Of Cargo Handling Tariff …………….16

d. Proper Billing/Collection Of Cargo Handling Tariff ………. 17

10. Interfacing Of Various Operational Systems In The Port……… 17

11. Productivity Standards And Measurement Of Port

Performance …………………………………………………… 18

12. Provision Of Amenities …………………………………………… 18

C. Best Practices On Pilotage …………………………………………… 19

1. Policy On The Use Of Pilotage…………………………………… 19

2. Institutional Set-Up For The Provision Of Pilotage ……………. 19

3. Accreditation/Licensing Of Pilots ……………………………….. 20

D. Best Practices On Tug Services ……………………………………… 21

1. Policy On The Use Of Tug Services …………………………….. 21

2. Institutional Set-Up For The Provision Of Tug Services………. 22

3. Operating Parameters And Tariff For Tug Services…………… 22

4. Obligations And Liabilities Of Tug Operators …………………. 26

5. Types Of Services Provided ……………………………………… 26

6. Manning Of Tugs And Qualifications…………………………… 26

7. Accreditation/Licensing Of Tug Operators …………………….. 27

8. Tug Requirements For Berthing/Unberthing Of Vessels ……… 28

9. Manner Rates For Tug Services Are Determined ……………… 29

10. Mechanisms For Determining Liability Of Tugboat

Operators And Compensating Aggrieved Parties…………… 29

E. Best Practices Survey – Cargo Handling Statistics………………… 40

IV. APPENDICES

A. Questionnaire On Port Operations Standards

B. List Of Respondents, Their Categories And Entity Responsible For Undertaking Cargo Handling

C. List Of Documents/Forms Submitted By APA Ports

D. Results Of Questionnaires On Port Operations Standards

1. Best Practices Survey – Cargo Handling Statistics

2. Best Practices Survey – Quay and Yard Equipment Inventory

ABBREVIATIONS / ACRONYMS

1. APA - ASEAN Ports Association

2. ASEAN - Association of Southeast Asian Nations

3. ATI - Asian Terminals, Incorporated

4. BOC - Bureau of Customs

5. CBA - Collective Bargaining Agreement

6. CITOS - Computer Integrated Terminal Operating System

7. EDI - Electronic Data Interchange

8. GRT - Gross Registered Tonnage

9. GT - Gross Tonnage

10. HP - Horse Power

11. ID - Identification

12. KPH - Kilometer per Hour

13. LOA - Length Over-all

14. MARINA - Maritime Industry Authority

15. MICT - Manila International Container Terminal

16. MT - Metric Ton

17. NGH - Net Gang Hour

18. PCG - Philippine Coast Guard

19. PPA - Philippine Ports Authority

20. PSA - Port of Singapore Authority

21. PUNNS - Port Users’ Needs and Satisfaction Survey

22. PVOER - Port Vessel Operations Evaluation Report

23. VOC - Vessel Operations Commitment

DEFINITION OF TERMS

1. Pilotage - the act of conducting a vessel from/to the Pilot’s Boarding Station, to/from berth or anchorage, at any government or private wharf or pier.

2. Port Authority - the port management body that is vested by the State with the authority to oversee the ports within a specified area of jurisdiction.

3. Port Contractor - any government or private entity, individual or company that is granted by the State or Port Authority, as the case may be, with the permit or license to provide services in a port, usually related to infrastructure development.

4. Port Operator - any government or private entity, individual or company that is granted by the State or Port Authority, as the case may be, with the permit or license to operate the port and provide other related services.