Chapter 10- ROLE OF HUB PORT

MMM4204
LEARNING OBJECTIVE
Be able to:

1. understand what is hub port

2. differentiate between hub port and feeder
port
3. benefits of having hub port in a country
Defination of Hub Port
Defination of Hub:

Hub is a focal or centre point of a great importance or activities

(Abdullah Bashiron 1996) and central point or trade where a particular
activities or services are concentrated (Macmillan 1999).

A Hub is able to provide “everything” to the customers such as

fulfilling demand, friendly employees, good level of customer services
and maintaining a good business development (Capt.Samsudin 2004,
Personal Communication).
Defination of Hub:

Hub is a focal or centre point of a great importance or

activities (Abdullah Bashiron 1996) and central point or
trade where a particular activities or services are
concentrated (Macmillan 1999).

A Hub is able to provide “everything” to the customers such

as fulfilling demand, friendly employees, good level of
customer services and maintaining a good business
development (Capt.Samsudin 2004, Personal
Communication).
 ADDITIONAL NOTES ON DEFINITION
HUB PORT

1. It is a container port
- provides terminal & marine services to handle & facilitate the
transfer/transshipment of containers between feeder & mother vessels in
the possible shortest time.

2. It also refers to the practice where the shipping lines call at one port in a
country/region, rather than at several ports.

(Source: http://www.hie.co.uk/HIE-HIE-economic-reports/HIE-
TRANSHIPDOC.pdf)
 Example overseas Hub Port

ARACRUZ'S HUB OPERATION (BRAZIL)

It offers a series of benefits to its European customers.
These include improved transit time, greater flexibility and reliability of the
deliveries, as well as optimization of inventory conveniently close at
hand in Europe.
The hub port operation is a three-way partnership between Aracruz, as the
product supplier; Verbrugge Scaldia Terminals, the owner of the hub
port and terminal warehouses; and Fr. Meyer's Sohn (FMS), a German
freight forwarding company that specializes in forest products.
(Source:Henry Philippe Van Keer, Commercial manager)
 Conditions for success as hub port

1. location (proximity to major world routes)

2. quick turnaround time
3. quality services with efficiencies and productivity
4. reasonable costs
5. ability to accommodate super larger ships – deep water,
advanced equipment
6. excellent networks covering neighbouring feeder ports
7. existence of logistic cluster supporting value-added logistics
activities
8. no red tapes and no burdensome paper works
9. advanced information technology
10.intermodal infrastructures- access to rail, air and road
distribution networks
11.local markets producing freight volume.
Port characteristics in Measuring tools for hub port quality when
implementing related policies.

Source: (Dong-Wook Song 2002)

Northport, Malaysia as Hub Port
Northport, situated at Port Klang Malaysia, is owned and operated
by Northport (Malaysia) Bhd, a fully Malaysian-owned and one of
the largest private port operating companies in the region. The
parent company of Northport (Malaysia) Bhd (NMB) is NCB
Holdings Berhad (NCB), a transport conglomerate listed on the local
bourse, also owns the largest container road haulage company in
Malaysia.
Northport comprises dedicated and modern multipurpose port
facilities and services located at two locations- in Northport,
Southpoint or conventional cargo handling, and in Northport where
the state-of-the-art container handling facilities are located.
Northport Logistics further adds value to the business entity.
The wide and extensive connectivity provided by leading global
shipping lines has helped Northport to leverage and emerge as a
major regional transshipment hub port. Northport now offers more
links to worldwide ports than any other ports in Malaysia and has
emerged as one of the most important gateway ports in the world.

http://www.northport.com.my/core1a.php
Port of Rotterdam
The Port of Rotterdam is the largest port in Europe, located in the
city of Rotterdam, South Holland, the Netherlands. From 1962 until
1986 it was the world's busiest port, now overtaken by Asian ports
like Singapore and Shanghai. In 2006, Rotterdam was world's sixth-
largest container port in terms of twenty-foot equivalent units
(TEU) handled.
Most important for the port of Rotterdam are the petrochemical
industry and general cargo transshipment handlings. The harbour
functions as an important transit point for transport of bulk and
other goods between the European continent and other parts of
the world. From Rotterdam goods are transported by ship, river
barge, train or road. Since 2000 the Betuweroute, a fast cargo
railway from Rotterdam to Germany, has been under construction.
The Dutch part of this railway has been opened in 2007. Large oil
refineries are located west of the city. The river Meuse and Rhine
also provide excellent access to the hinterland.
Port of Rotterdam
The Port of Rotterdam is the largest port in Europe, located in the
city of Rotterdam, South Holland, the Netherlands. From 1962 until
1986 it was the world's busiest port, now overtaken by Asian ports
like Singapore and Shanghai. In 2006, Rotterdam was world's sixth-
largest container port in terms of twenty-foot equivalent units
(TEU) handled.
Most important for the port of Rotterdam are the petrochemical
industry and general cargo transshipment handlings. The harbour
functions as an important transit point for transport of bulk and
other goods between the European continent and other parts of
the world. From Rotterdam goods are transported by ship, river
barge, train or road. Since 2000 the Betuweroute, a fast cargo
railway from Rotterdam to Germany, has been under construction.
The Dutch part of this railway has been opened in 2007. Large oil
refineries are located west of the city. The river Meuse and Rhine
also provide excellent access to the hinterland.
http://www.portofrotterdam.com/mmfiles/Port_Statistics_2008_tcm26-
60399.pdf
http://www.portofrotterdam.com/mmfiles/Port_Statistics_2008_tcm2
6-60399.pdf
http://www.portofrotterdam.com/mmfiles/Port_Statistics_2008_tcm2
6-60399.pdf
http://www.portofrotterdam.com/mmfiles/Port_Statistics_2008_tcm2
6-60399.pdf
Singapore Port as hub port

http://www.mpa.gov.sg/sites/port_and_shipping/port/port.page
Keppel Harbour, Singapore

Source: Google earth

Hong Kong Port as a hub port
The port of Hong Kong is a deep water port which
located at South China.
It is one of the hub ports serving the South-East and
East Asia region, and is a gateway to mainland China.
In the past, Hong Kong had been a colony of United
Kingdoms. Due to the free port policy, Hong Kong
becoming an international trade centre which
provides connection of land and sea transport
between China and the Western countries.
Nowadays, Hong Kong is a world class city with
mature infrastructure, well-connected air-sea-land
transport. It helps Hong Kong maintain its position on
international trade centre and transshipment hub.

http://en.wikipedia.org/wiki/Port_of_Hong_Ko
ng
PSA as hub port
At the crossroads of seaborne trade, Singapore’s
interconnectivity makes it the preferred port of call for
more than 130,000 vessels totalling some 1.5 billion
gross tons.
Singapore’s hub port is a complex stream of activity,
handling a variety of cargoes at different terminals.
About 30 million containers and 500 million tonnes of
cargo are handled every year and more than 30
million tonnes of bunkers lifted annually. In addition,
about a million visitors cruise into Singapore every
year.
Technology is at the heart of Singapore’s intelligent
port. Advanced technology enables MPA to oversee
port and marine service providers round-the-clock,
making sure that services are safe and reliable.
http://www.mpa.gov.sg/sites/port_and_shipping/port/port.page
Performance of PSA
The tonnage of ships calling at the port has grown from
0.98 billion GT in 2003 to 1.62 billion GT in 2008. The
number of containers handled at the port also increased
from 18.4 million TEUs to 29.9 million TEUs in the same
period.
This enabled Singapore to remain as the world's busiest
port, and as a premier container transshipment hub.
Singapore also retained its position as the world's top
bunkering port.
At the same time, the Singapore ship registry remained
among the top 10 registries in the world, and the top
registry in Asia.

http://www.mpa.gov.sg/sites/port_and_shipping/port/port.page
Operators
 REFERENCES:-

1.http://www.aracruz.com.br/show.do?menu=
true&id=859&lastRoot=253&act=stcNews

2. http://www.hie.co.uk/HIE-HIE-economic-
reports/HIE-TRANSHIPDOC.pdf
 Questions:
1. What does the hub port provides for the
vessels?

2. What is the benefits having a hub port?

3. What is a three-way partnership between

Aracruz’s hub operation?