ERP Approach For Container Terminal
ERP Approach For Container Terminal
operating systems
1. Introduction
Recently, vessels are becoming more large-scale and high-speed because of the
increasing quantity of cargo transported, shipper’s requirements for lower transpor-
tation fee and shipping companies’ effort toward retrenchment of transport cost
per shipping unit. Furthermore, shipping companies become more interested in
maximizing vessel turnover by minimizing the length of staying time at ports for
economical reasons.
These situation forces rival terminal companies to develop into the latest tech-
nology ofl oading and unloading, as well as the renovation of their terminal facilities
in order to reduce the length of staying time of vessels at their terminals. The efficient
operation of terminals is another very important factor that is very necessary for
improving the competitive status and productivity in the fierce competitive environ-
ment between container terminals. However, the investment in software systems for
the efficient operation of a terminal and its standardization has been relatively
neglected compared with the large investment in the expansion of terminal facilities
and infra-structure.
Usually, each terminal developed their own terminal operating systems by order-
ing them from a software development company. Therefore, each terminal’s opera-
tion system is different from each other. Gamman container terminal, in the Port of
Busan, is the typical example of the situation. There are four different terminal
operating systems, because four different shipping companies operate the terminal [1].
This paper’s purpose is to explore the way to develop ERP systems for container
terminals in order to reduce the development time by standardization and increase
the software quality. The ERP system is a general purpose and integrated operating
system to fully utilize and cover all the information resources and business operation
in an enterprise, packaged software with built-in business process model, and has an
integrated database and open architecture. Existing ERP systems are mainly for the
manufacturing industry. However, it also has important features such as integrated
database and operating system, and it has the capability of curtailment of developing
time and retrenchment of developing cost. So, the ERP concept can also be applied
to a container terminal operating system.
With this background, this paper suggests a container terminal ERP system that
can solve problems of existing container terminal operating systems such as high
developing cost, prolonged developing time and non-integration. For this purpose,
one has analysed the existing terminal business processes to produce a new one for
reducing data redundancy, and suggested an ERP framework for the integrated
terminal operating system.
(3) Process the containers transported into the terminal by rail or road, receiv-
ing notification from shipping companies and trucking companies about
them; and
(4) Notify shipping companies and trucking companies about the locations of
containers.
Most container terminal operating systems consist of separated functional modules.
The modules are database module, planning module for loading/unloading
sequences from vessels and movements of containers through the yard and control
modules for operating processes [3].
In the aspect ofi nformation services, ERP integrates a variety source ofi nfor-
mation in an enterprise and share the information in the whole levels of business
processes. So, ERP can reuse information and simplify workloads raising efficiency
of workflow.
3.1.4. Problems in the view of optimal planning and simulation function. The current
way of planning depends on human judgement and manual operation that causes a
delay of planning process and mistrust of the result concerning its optimality.
Personnel in charge are required to plan manually and that causes a time delay.
Manual planning may cause mistakes and make it hard to maintain the consistency
and the stability of the planning. Time delay and error in planning is a critical
factor that lowers competitive power of container terminals and may cause a loss
of physical and non-physical terminal resources.
(1) Lack of simulation function. It is difficult to predict the actual situation of
operation and preparation of exceptional or undesirable accidents because of
the lack of simulation functions for the system that simulate ship stability,
state of equipment such as container crane and transfer crane, interference
between operation and line of moving.
(2) Lack of automation of planning function. Berth planning and yard planning
are performed by personnel based on their experience. A lack of optimiza-
tion and automation of planning function lowers the efficiency of terminal
operation [6].
(3) Utilization of material and personnel resource.Lack of a planning system for
optimal allocation of equipment and personnel resource by capturing the
correct status and situation of the resources lowers the efficiency of terminal
operation.
3.1.5. Problems in the view of management decision support and information service.
(1) Lack of decision support and knowledge sharing. Current terminal operat-
ing systems are online transaction processing systems. The system dumps
out the data that has expired into a separate database used only for trans-
action evidence and statistics. Therefore, there are no decision support
functions by multidimensional analysis and knowledge accumulation and
sharing.
(2) Information service for customers. The system also lacks in information
service for customers by a single point of contact. Customers’ inquiries
about their cargo processing status via telephone increase the cost of
personnel as well as lower the quality of the information service level.
Based on the analysis so far, the problems of current container terminal operating
systems were summarized as shown in table 2. It has been found that the main causes
of problems are information interconnection, information sharing and information
service. One will try to find solutions to the problems by linking the causes with
ERP characteristics.
ERP approach for container terminal operating systems
terminal systems only after revising parts of the system while maintaining the
skeleton. When new requirements for integration or new business flow arise, it
is remedied by performing a partial revision of the existing terminal systems.
The insufficiency of system coverage over newly emerged business processes
causes conflicts between departments and ad hoc procedures that are far from
standard processes.
The problem can be solved with an ERP system that can have characteristics of
completeness, consistency, cohesiveness and integration. After business process
reengineering, the ERP system can suggest an optimal enterprise-wide integrated
business process.
Another advantage of ERP is that the maintenance is fully supported by the
software development company, including version upgrade and configuration
following new information technology and business requirement. This point is
very different from the existing container terminal operating systems where the
internal staff personnel of the terminal have the duty of maintainance.
3.2.5. Management decision support and information service for customers. Online
analytical processing by multidimensional analysis such as usage rate by berths,
mechanical trouble rate by equipment, processing time and processing cargo amount
by season is necessary to support the decision-maker and manager for their effective
strategic decision-making. Visualization, prompt response time and easy to use are
important requirements for executives [8].
Information services for customers require tracing cargo location and status func-
tions in ERP systems. Customers can contact the information in one contact point.
The system can be implemented by Web, CTI (Computer Telephony Integration) or
ITI (Internet Telephony Integration).
Financial
Financial Material/ Environment/
Environment/
Human
Humanresource
resource Planning
Planning Facilities
accounting
accounting Purchasing Safety
Safety
1.1. Berth 2.1. Overall 3.1. Export 4.1. Equipment 5.1. Human
planning control freight resource
1.2. Yard 2.2. Yard 3.2. Import 4.2. Business 5.2. Financial
planning operation freight activity accounting
1.3. Load/unload 2.3. Load/unload 3.3. Stock 4.3. Billing 5.3. Planning
planning operation on hand
1.4. Rail 2.4. Gate 4.4. Communications 5.4. Material/
planning operation purchasing
1.5. Resource 2.5. Rail 4.5. Logistics 5.5. Facilities
allocation operation information
planning
5.6. Environmental/
safety
The proposed container terminal ERP system is not a new idea, but a requirement
for doing integration, standardization and systematic maintenance of modules of
existing container terminal operating systems. The top modules of existing container
terminal operating systems are categorized as planning, operation, CFS operation,
operation support and general management, as shown in table 3.
4.1.1. Berth planning. Berth planning includes berth configuration, vessel informa-
tion management—which covers general information of vessels such as service route
and navigation features, vessel arrival/departure schedule management and berth
allocation—which includes allocation management of berth and container cranes.
What one has to consider in berth planning is to give priority to regular time/day
or week service over other irregular berth allocation service requests. The system
must also be flexible to adapt to and cope with frequent changes of vessel arrival/
departure schedule by interconnecting related system modules, database, personnel
and equipments.
ERP approach for container terminal operating systems
For the allocation of container cranes, berth planning decides only what container
crane will serve for what vessel. The detailed time of allocation is left to a resource
allocation step by a 2-step crane allocation method.
4.1.2. Yard planning. Yard planning modules include yard configuration manage-
ment, yard planning for export cargo, yard planning for import cargo, yard planning
for transshipment cargo, yard planning for empty container and relocation within
yard boundary.
The yard configuration management includes management ofl ocation of yard
operation-related facilities such as illuminators, as well as management of config-
uration of the container yard. Yard planning for an export cargo module should
consider a berth that is ready for a vessel coming alongside, yard status by types and,
by vessels, to plan the allocation for export cargo. It is necessary to receive timely
data about cargo that will be loaded for export. The cargo information should be
categorized by container type. Booking prospects for terminals are occasionally
accepted, the module has functions to cope with the frequent change in status.
The overall condition of the yard for export cargo should be grasped.
Yard planning for import cargo modules should accept the plan for unloading
cargo and consider cargo that will be transferred to other piers, navigation type and
size of vessel. Generally, yard allocation for import cargo is performed after the
accomplishment of unloading planning. However, the module should support the
case when it is necessary to adjust the yard plan, while import cargo are being
unloaded from a vessel.
4.1.3. Loading/unloading planning. The loading/unloading planning module con-
sists of management of vessel data, container crane planning, unloading planning
and loading planning. Vessel data is information for loading/unloading planning.
This includes detail specification of the vessel, structure of cargo holder and tank,
draught, displacement tonnage, special data for calculation of the stability of the
vessel and strength of the structure and anything else which may be required.
The C/C (container crane) planning module identifies the cargo amount in each
hatch by each port where the cargo will be unloaded, berthing side, what C/C is
allocated for the vessel, its starting time of work and status and location of the C/C.
The C/C planning module also evaluates the effect of ebb and flow of the tide to the
C/C work. Then, the C/C planning module assigns working time of each C/C and
sets the order of which hatch to work, dividing the work by loading and unloading
following the principles of working.
Unloading planning modules estimates workload according to type of work, such
as general unloading and moving in a ship. It also estimates workload according to
type of cargo, such as whether the cargo is frozen and dangerous or not.
The loading planning module sets the order of work to ensure the safety by
calculating displacement, longitudinal strength and torsion moment.
4.1.4. Railway planning. Railway planning includes platform and freight train
configuration, arrival/departure control and loading and unloading planning for
railway transportation.
The arrival date and amount of containers should be notified before planning or
loading and unloading planning for railway transportation.
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4.2.1. Overall control. Overall control is composed of vessel control, yard control
and gate control. Vessel control sends working order to workers of container crane,
yard tractor and RMGC, based on the details ofl oading/unloading planning and
equipment allocation planning. Vessel control also monitors the progress status
while cross-checking with loading/unloading plan. When unexpected conditions
happen, overall control issues orders that remedy the states.
4.2.2. Yard operation. Yard operation consists ofl oading and unloading on and
from vessels, gate-in yard management, gate-out yard management, reefer container
and dangerous goods container management.
Yard operation for unloading proceeds based on the unloading plan from vessel
and yard plan. Yard operation includes the relocation of the unloaded containers
and manages the positions of them. At the time of completion of relocation of
unloaded containers on the yard, the reports are transferred to the overall control
with the data of container number, equipment number, working time, working detail
and position of the equipment. The automatic tracking function for container loca-
tion should be included in yard operation and the location data should be supplied
to outer institutions that are chained in the logistics.
For consideration with yard operation for gate-in/gate-out, the order ofl oading/
unloading onto/from trailers should be determined considering extra workload
needed. Reefer container operation should include such operations as power
plugging, temperature setting and monitoring. The prompt alarm is necessary
when sudden problems happen. Dangerous goods container management includes
the reception of a dangerous goods list, examination of the level of danger of the
goods, gate-in/gate-out operation and yard operation for the containers. The opera-
tion should keep the regulation of handling dangerous goods such as keeping
some distance between containers and positioning the containers on the isolated
yard blocks.
The whole architecture of ERP modules is illustrated in figure 3 to solve the
interconnection with the outer institution and internal departments, system integra-
tion, enforcement of planning and confirmation function and enhancement of
service level.
5. Conclusion
This paper presents an ERP system approach for a container terminal. This paper
analyses the existing problems of the container terminal operating systems and
suggests an ERP concept to solve the problems. The existing systems have problems
in the view ofi nterconnection with client companies, workflow between internal
departments, system function integration, optimal planning and verification,
management decision support and customer service. The ERP can handle the
ERP approach for container terminal operating systems
Shipping Line
1. Planning 2. Operation 3. CFS MAO
Shipper
NR
Trucking Company
MA
existing problems of container terminal operation that are mainly caused by the lack
ofi ntegration of the whole information resource in container terminal, ad-hoc and
poor planning capability, disconnected and incorrect data from client companies.
The existing container terminal operating system is developed for one terminal.
This may cause problems of productivity of software development and standardiza-
tion of business processes.
One has clustered the workflow of container terminals and analysed the business
process to generate the best workflows. This paper suggested the whole architec-
ture of container terminal ERP systems into five modules and discuss the detail
functions.
A container terminal is a central pivot of maritime and land logistics that links all
the logistics companies. Therefore, the compatibility and standardization of business
process is the main issue of the future container terminal operating system, and this
paper will be helpful for the approach.