The Management of port operation requires the proper and efficient use of port facility, equipment for cargo handling, berth facilities, waterways and roads. It also entails the use of effective communications system, storage facilities, and dockworkers. The whole activities mentioned above form the bulk of port operations. The aspiration of port operator is to get cargo through the gateway of ports as fast as possible on to other modes of transport (rail or road) with a minimal cost to them and to the cargo owner.port operations, efficiency, communications.

Georgiana NUKINA

Gheorghe BASANU

English

Research Papers in Economics

Review of International Comparative Management                              Special Number 1/2011  55 
 
 
MANAGEMENT OF PORT OPERATIONS 
 
 
Gheorghe BĂŞANU 
The Bucharest Academy of Economic Studies, Romania 
Georgiana NUKINA  
Hyperion University Bucharest, Romania 
 
 
 
 
A web definition of management states it is the effective utilization and 
coordination of resources such as capital, plant, materials, and labour to achieve 
defined objectives with maximum efficiency.  
Like  every  facet  of  business  enterprises,  the  port  is  not  left  behind  in 
finding  out  the  most  efficient  way  to  carry  out  its  task  through  the  use  and 
coordination of resources.  
We can define port management as a process in which all port resources 
superstructure  and  infrastructure  are  well  managed  in  order  to  arrive  at  set 
objective. He also adds that it is aimed at improving quality of services lowering 
costs and eliminating waste. 
Whether or not the model operated in any port is tool port or landlord port, 
the overall objective of any port is to be efficient and to render quality service to 
port users. 
Large ports need to deal with a number of diverse activities: the movement 
of  ships,  containers  and  other  cargo,  the  loading  and  unloading  of  ships  and 
containers,  customs  activities.  Human  resources,  anchorages,  channels,  lighters, 
tugs, berths, warehouse and other storage spaces have to be allocated and released.  
The efficient management of a port involves managing these activities and 
resources, managing the flows of money involved between the agents, providing 
and using these resources, and providing management information. 
Poor structure in organization, lack or inadequate laws and regulations, or 
error in the information systems and data, omission in planning, absence of cost 
control, poor service objectives and poor maintenance of equipment are some of 
the deficiencies that have been identified in ports in developing countries.  
ABSTRACT 
The Management of port operation requires the proper and efficient use of 
port facility, equipment for cargo handling, berth facilities, waterways and roads. It 
also  entails  the  use  of  effective  communications  system,  storage  facilities,  and 
dockworkers. The whole activities mentioned above form the bulk of port operations. 
The aspiration of port operator is to get cargo through the gateway of ports as fast as 
possible on to other modes of transport (rail or road) with a minimal cost to them and 
to the cargo owner.          Special Number 1/2011                         Review of International Comparative Management  56 
Port managers like in any other organizations are tasked with the functions 
of  planning,  forecasting,  organizing,  controlling,  coordinating,  staffing, 
communicating, and  motivating.  Unlike some  other organizational units, factors 
external to the ports, like national policy, government interference, corruption and 
technology and traffic flow play a major role in port existence.  
Management has to find a way to create a balance. 
Management  should  be  able  to  have  a  clear  understanding  of  the 
environment in which the port does its business. A basic management tool that can 
be  very  useful  in  this  regard  is  strategic  management  tool.  This  tool  helps 
management  to  make  rational  decisions  that  come  with  the  exigencies  or 
uncertainty  of  the  normal  planning  cycle  inadequacies  in  today’s  business 
environment. It involves creation, or retention, of a strategy involving the internal 
and external analysis by the organization 
Planning in sea ports are of varied time frame. A large part of the planning 
schedule is of long term nature.  
Part  of  such  plans  include  investments  facilities  and  manpower 
requirement,  this  could  cover  five  to  ten  years  schedule,  devising  policies,  and 
decisions on purchase of equipments or facility improvement are of medium term 
nature and covers about five years schedule. 
Planning involving port performance, operations etc could be of more short 
term involving from a year to a few days. 
As a result of the spontaneous changes in the maritime sector / industry, 
giving rise to the emergence of new types of ships, development of freight carriers, 
handling technology and new cargo types tended to have stimulated improvement 
in the cargo handling and production systems in ports.  
This development has resulted in specialized functions in the ports where 
in  some  cases  terminals  are  located  out  of  the  port  area  so  as  to  achieve 
homogeneity and specialization in operations. 
Strategy is the way a port matches its capability with the opportunities in 
the market place to achieve set objectives.  
Port strategy involves the optimum utilization of port resources to achieve 
set objectives. Part of an organization’s strategy is operation and is imbedded in 
operations management. Slack et al defines operation management as the way an 
organization produces goods and service.  
The  essence  of  strategic  planning  is  to  determine  how  to  design  and 
implement  ports  strategies  which  could  be  formal  management  planning  (or 
informal, in which case the environment is too turbulent for any long term planning 
or when the port lacks the authority to conduct planning).  
This is done against the backdrop of the ports  
Strengths, weakness, opportunity and threat (SWOT) analysis and involves 
how a firm uses it strength to utilize it opportunity and address its weakness to 
defend rising threats. 
The steps below have been identified when undertaking a formal strategic 
planning; Review of International Comparative Management                              Special Number 1/2011  57 
•  Define,  the  mission,  vision,  stakeholders,  customers,  goals  and 
objectives, shared value 
•  Analyze the SWOT of the organization 
•  Identify the current strategies 
•  Evaluate  the  current  strategy  with  respect  to  the  SWOT,  analysis 
identifying critical issues 
•  Select the best strategy alternatives 
•  Implement the strategy and monitor performance. 
 
 
References 
 
1.  Bardi, E.J, et al (2006) Management of Transportation, South western, USA 
2.  Coughlan, et al (2006) Marketing Channels 7th Edition. Pearson prentice Hall. 
New York 
3.  Golafshani, N. (2003). “Understanding Reliability and Validity in Qualitative 
Research”. The Qualitative Report Volume 8. University of Toronto, Canada. 
4.  Hausman,  W.H,  (2005)  Creating  Global  Value  through  Efficient  Trade 
Logistics. 
5.  Laudon,  K.  L.  Laudon,  J.  P  (2003)  Essentials  of  management  information 
system. 5
th Edition, Pearson education Ltd. New Jersey 
 

Creating Global Value through Efficient Trade Logistics.

Essentials of management information system.

Marketing Channels 7th Edition.

Understanding Reliability and Validity in Qualitative Research”. The Qualitative Report Volume 8.

Management of Port Operations

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Management of Port Operations

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