MAY/JUNE 2021

CARIBBEANEXAMINATIONSCOUNCIL
CARIBBEAN ADVANCED PROFICIENCY EXAMINATION®
LOGISTICS AND SUPPLY CHAIN OPERATIONS
UNIT 2 – Paper 02
2 hours 30 minutes

MODULE 1 – COMMERCIAL SHIPPING

Answer ALL questions.

1. (a) Identify TWO components of commercial shipping. [2 marks]

(b) State TWO characteristics of EACH of the following types of shipping markets. [6 marks]

(i) Second‐hand shipping market

(ii) Demolition market

(iii) International tanker and dry cargo markets

(c) Discuss THREE benefits to port operations of complying with the International Ship and
Port Facility Security (ISPS) code for ships and port facilities. [12 marks]

2. (a) Define the term ‘routing’ as it relates to the shipping industry. [2 marks]

(b) Outline an example of the scheduling of a RORO ferry taking cargo from a named port
in the United States of America to THREE destinations in the Caribbean. [6 marks]

(c) Discuss THREE advantages of routing to effective port planning and commercial shipping
activities. [12 marks]
SECTION B
MODULE 2 – PORT OPERATIONS
Answer ALL questions.

3. Due to high costs associated with airline travel within the Caribbean region, there has been an
appeal by some regional governments for the establishment of an alternative, cheaper mode of
Transportation. Accordingly, ship-owners and shipping corporations have approached port authorities
in various Caribbean countries requesting accommodations to facilitate the establishment of an Inter-
island ferry service. In many instances, such an undertaking will require the expansion of existing port
facilities.

(a) Define the term ‘port authority’. [2 marks]

(b) Outline THREE factors that ship owners would need to consider in the selection of ports for the
establishment of the inter-island ferry service. [6 marks]

(c) Discuss how EACH of the following aspects of port operations would be impacted by the
introduction of an inter-island ferry service. [12 marks]

(i) Safety and security

(ii) Human resources
(iii) Communication

4. In view of the expansion of the Panama Canal, several ports in the Caribbean have undertaken large
capital port expansion projects to increase their capacity and competiveness. The aim is to exploit
potential increases in transhipment distribution in the container trade streams within the wider
Caribbean region, when larger ships are deployed.

(a) Identify TWO types of transhipment hubs. [2 marks]

(b) Briefly explain THREE ways in which air quality could have been negatively affected in the
expansion of the ports. [6 marks]

(c) Discuss how EACH of the following factors guides the development of a port or terminal. [12
marks]

(i) Planning and design

(ii) Navigation
(iii) Dredging and disposal

SECTION C
MODULE 3 – LOGISTICS TRANSFORMING ECONOMIES
Answer ALL questions.

5. (a) State TWO ways in which the Dubai logistics hub has created jobs in that country. [2 marks]

(b) Briefly explain how any TWO types of infrastructure at the Dubai logistics hub have helped
to create a seamless internal trade within the United Arab Emirates. [6 marks]

(c) Discuss THREE strategies the Government of the United Arab Emirates has used to stimulate
growth in Dubai’s logistics sector. [12 marks]

6. As a result of new opportunities, the Government of Trinidad and Tobago has recognized that it is
advantageous to exploit opportunities in air logistics. With this in mind, the Piarco AeroPark Project
was conceived to create an economic zone with a wide range of commercial activities. The AeroPark
will be designed to house different dedicated zones, including an international four-star hotel, health
care and pharmaceutical sectors, retail shops, warehousing, light manufacturing and aviation
maintenance, repair and overhauling.

(a) Suggest TWO environmental impacts that may occur as a result of the construction of the
AeroPark. [2 marks]

(b) Outline THREE reasons why air logistics would be beneficial to Trinidad and Tobago. [6 marks]

(c) Discuss THREE ways in which the AeroPark could contribute to the socioeconomic development
of Trinidad and Tobago. [12 marks]