Port Operations

and Management

Dr. Funda Yercan, Professor

Piri Reis University
Dean, Maritime Faculty

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 Port Operations
and Management

Chapter 6:
Organizational
Structures at Ports

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Port Administration and Management

Management and functioning of ports

Port ownership

Port management development and objectives

Free ports and free zones

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Port Administration and Management,
cont’d
Management and functioning of ports
Relationship between management and functioning
Figure 5.1: Direct relationship between port development and economic
function of a port

Port Economic
management function of a
port

Elements in effective functioning of ports

Port regulator

Port landowner

Port operator
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Port Administration and Management,
cont’d
Management and functioning of ports, cont’d
Elements in effective functioning of ports, cont’d
Port regulator (i.e. port authority)
• Duties
• Responsibility for the regulatory function
• Maintaining the conservancy function
• Ensuring navigable approaches to the port
• Providing pilotage and vessel traffic services
• Enforcing applicable laws and regulations
• Safeguarding port users against risk of monopolies
• Monitoring port performance

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Port Administration and Management,
cont’d
Management and functioning of ports, cont’d
Elements in effective functioning of ports, cont’d
Port regulator (i.e. port authority)
Figure 5.2: A model of a port authority

- Related ministries
Port - Municipality
administration - Chambers
- Shippers
- Port operators
Port operation - Experts
and management

Port activities
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Port Administration and Management,
cont’d
Management and functioning of ports, cont’d
Elements in effective functioning of ports, cont’d
Port landowner
• Managing and developing the port estate
• Implementing port policies and development strategies
• Supervising major civil engineering works
• Providing and maintaining channels, breakwaters, etc.
• Providing and maintaining locks, berths, piers, etc.
• Providing or arranging road access to the port complex

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Port Administration and Management,
cont’d
Management and functioning of ports, cont’d
Elements in effective functioning of ports, cont’d
Port operator
• Responsibility for the physical transfer of goods and
passengers between sea and land
• Providing stevedoring services
• Providing value added activities at the port
(ie. Warehousing, storage, packaging, labeling, etc.)
• Establishing a free trade / industrial zone at the port
area, if necessary
• Providing specialist services
(ie. Towage, ship repair, etc.)

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Port Administration and Management,
cont’d
Port ownership
Types of port ownership
State ownership (ie. Port of Hamburg, Port of Istanbul, etc.)

Autonomous (ie. Port Marseilles, Port of Liverpool before

privatization, etc.)

Municipal ownership (ie. Port of Rotterdam, etc)

Private ownership (ie. Port of Southampton, Port of

Liverpool, etc.)

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Port Administration and Management,
cont’d
Port ownership
Port models

Municipality public municipality municipality Port of Rotterdam

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Port Administration and Management,
cont’d
Port authority types
Landlord port
Tool port
Service port
Table 5.2: Port authority responsibilities

Port Infrastructure Sub- Operations and

authority /superstructure stevedoring
type services

Landlord port Yes No No

Tool port Yes Yes No

Service port Yes Yes Yes

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Port Administration and Management,
cont’d

Activities for ownership at ports

The ship (ie. Channels, breakwaters, VTS, repairs,
pilotage, etc.)
Cargo and passengers (ie. Terminals, cargo handling, etc.)
Land carriers (ie. Roads, inland waterways, railway
tracks, etc.)
General services (ie. Lighting, firefighting, police, etc)

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Port Administration and Management,
cont’d
Methods of port privatization
Leasing land and facilities
Leasing land and infrastructure; selling
superstructure/equipment
Leasing land; selling facilities
Establishing management contract
Converting public authority to public enterprise
Selling land, all infrastructure and superstructure
(ie. Port of Klang, Port of Shanghai, Port of Keelung)

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 Port Administration and
Management, cont’d
Port management development and objectives
Port management development
First generation ports
Second generation ports
Third generation ports
Port management objectives
Maximization of benefits
Minimization of costs

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Port Administration and Management,
cont’d
Port management development and objectives, cont’d
Port management development, cont’d
Table 5.3: Services provided at three generations of ports

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Port Administration and Management,
cont’d

Free ports and free industrial zones

Types of free ports/zones
Advantages of free ports/zones
Examples of free ports/zones in the world

Approx. 20% of world trade  handled in 478 free zones in 80 countries

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