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Friday, November 12, 2010

Sydney Port and Durban Port Economies and Logistics Management

Introduction

A country that is surrounded by the bodies of waters must use this to boost their economic competence in other country. It is a way of importing or exporting through the products that were inside each cargo. This economic activity is taken as a part of the country’s income. Such shipments should pass a certain regulatory and the host is entitled to pay an entrance which is called tariff or toll.

A port is a facility for receiving ships and transferring cargo. They are usually found at the edge of an ocean, sea, river, or lake. Ports often have cargo-handling equipment such as cranes (operated by longshoremen) and forklifts for use in loading/unloading of ships, which may be provided by private interests or public bodies. Often, canneries or other processing facilities will be located nearby. Harbour pilots and tugboats are often used to maneuver large ships in tight quarters as they approach and leave the docks. Ports which handle international traffic have customs facilities. A sudden change in shipping methods, such as the use of containers and larger ships, put them at a major disadvantage.

Ports

Usually the transportation of shipments is not always intended to travel by sea, but this is taken ideally. Most common problem in sea is the danger if there are pirates that surveying a certain port. The typhoon is also played a big part for the continuous shipment and there is travel advisory for this incident. Sometimes, the shipment is postponed and the products were automatically delayed when this fictitious event happened. Therefore, the Industry made a solution from this common but cannot take for granted problem. The life of the product and their employees are important in the industry. Another way to deliver or ship these cargoes is through land and air. They use the land ideally, in the place where the area is within reach or located in remote places. This is less expensive and the shipment can be received in no extra time. By means of trucks or railways, the shipment is carried directly to the place of its client. The air-shipment is almost the same with the water-shipment. They just differ in how they will use the available route. The air-cargo was currently promoted because of the efficiency and it can carry a weight of tons.

There are many ports that covered the different continents in the world. The Ports that involved in the study are the Durban Port which is located in the South Africa. The other one is Port of Sydney. There are two famous ports in Australia named the Port of Jackson and Port Stephens. These two ports are compared through their logistics managements and many countries can learn through their success and failures in the way they handle the port territories. Most of these ports are concerned with the tourism which is another factor to help one’s economy growth. Gradually, many factors are affected by the ports, both commercially and livelihood. The ports played essential parts in the business realization and government gains.

For some reasons, even there is a financial problem that every economy is trying to fight, the industry of Port Operation is still intact and not that much affected. The ports are not really subject to recession but it’s a big loss in one’s country if they will suspend the operation of their ports. Various industry put extra effort to maintain this kind of industry because this is really bound for a great income. The financial crisis, in my own view, are widely felt by the capitalist and joined by the Capitalization of the wealthy country. In fact, the Agriculture sector or the Manufacturing sector of Industry is more aggressive for the challenge of the worldwide crisis. For creating such goods doesn’t need too much capital. The only important part of it is that the skill and the capability to meet such demand for the market. Therefore, the Port Operation must enthusiastically play an important role in dealing with the economic problem.

Proper deployment of this cargo must be managed particularly in those hard to reach areas. Security is really in top priority of shipment, because in case that the product had acquired damages, the result would be unenviable and not good for the company’s name. The Ports are also not subject for a competition but rather, a way of transportation. It is impossible to create your own port in the backyard, because the vast measure of land is needed and the port’s size is not that small. The fishing Industry is the most common user of this port. The fish should stay fresh up to the point of the customer’s consumption.

Durban Port Advantages:

Durban is the third most populous city in South Africa. It is the largest city in KwaZulu-Natal and is famous as the busiest port in Africa.

a. It became a major centre of tourism due to the city's warm subtropical climate and beaches.

b. The modern Port of Durban grew around trade from Johannesburg, as the industrial and mining capital of South Africa is not located on any navigable body of water. Thus, products being shipped from Johannesburg outside of South Africa have to be loaded onto trucks or railways and transported to Durban.

c. Its coastal location and large port gives it comparative advantage over many other centers in South Africa for export-related industry and somehow provided a little growth in the number of jobs provided by DMA's (Durban Metropolitan Area) formal sector over the past 20 years. The Area is the main economic driver in KwaZulu-Natal, contributing over half of the province's output, employment and income. Making Durban as the second most important economic complex.

Durban Port Disadvantage:

a. High rates of crime have become a disincentive to growth in tourism and many other sectors.

b. Despite a dynamic and growing small and micro business sector, the DMA has very high rates of unemployment, reaching over 30% in some areas of the city. There are still few economic opportunities in the former township areas.

c. The central business district has experienced an economic decline due to crime and grime.

d. Port Limitations is still a hindrance for the continuous operations of the ports. The entrance channels were narrow and shallow and the large vessels are restricted in entering the port. This problem leads the Port Authorities to find solution. They proposed to widen the entrance and looking forward to complete the construction before the start of 2010.

Sydney Port Advantages:

a. The largest economic sectors in Sydney, as measured by the number of people employed, include property and business services, retail, manufacturing, and health and community services.

b. The Sydney Port Access Road or SPAR, links Harbourside Commercial Park to Highway 125 and also called Route 125 can refer to multiple roads which are used for transportation and shipping. The roads were equally divided for the country that was taking it as a way for their shipment.

c. The Port Jackson containing Sydney Harbour having two islands: The Goat Island and Shark Island, which serves as rehabilitation for its marine creatures and economically, attracts visitors. Usually this kind of project of rehabilitation had a major chance in discovering new types or kinds of species. They were also chances for saving the endangered species that typically live in water. Some are subjected for ecotourism of the locality.

d. The marketing strategies of developing new substantial products that will fit to the consumers are the basic ideas that should not be neglected. The Route 125 gives an accessible way to present the cargoes from the point of shipping to the point of destination.

Sydney Ports Disadvantages:

a. According to The Economist Intelligence Unit's worldwide cost of living survey, Sydney is the sixteenth most expensive city in the world, while a UBS survey ranks Sydney as 15th in the world in terms of net earnings (statistics website, 2009).

b. The lands surrounding the Port Jackson in Sydney were filled with people. If the authorities did not implement proper law with respect to the environment, the place will be polluted and hard to recover.

Conclusion

The Government must also play a part in recovering the Ports Competency. They definitely need additional facility to meet the standard demand of the consumers. And because the government allotted the taxes incurred for these Ports, they should also protect the Port territories because it is still part of the country. Although the said security is fallen under the port’s own responsibility, the government is still in part of protecting the certain area. Another help that this industry should expect from the government is the additional graphical property. The expansion of the Port is needed for the convenience in the part of the port operators. Like what happened on the Durban Port. They did not stop until they reached the goal of taking another mile of territory.

References

"London is the most expensive city in the world while Swiss cities are home to highest earners". Economics, City Mayors, 2007 [Online] Available at: http://www.citymayors.com/economics/richest_cities.html [Accessed: 09 July 2009]

Boilling, M. 2006. City among most costly, Herald Sun, [Online] Available at: http://www.heraldsun.news.com.au/common/story_page/ [Accessed: 09 July 2009]

City Commerce - City of Sydney Media Centre [Online] Available at: http://www.sydneymedia.com.au/html/2290-city-commerce.asp [Accessed: 09 July 2009]

From best [Online] Available at: http://www.streetnet.org.za/english/Durban06.htm [Accessed: 09 July 2009]

Overview, Sydney Futures Exchange [Online] Available at: http://www.sfe.com.au/index/html?content/sfe/intro.htm [Accessed: 09 July 2009]

Ports: (Online research) Available at: http://www.ports.co.za/durban-harbour.php. [Accessed: 09 July 2009]

Sydney - Basic Community Profile and Snapshot - 2001 Census, Australian Bureau of Statistics 2002 [Online] Available at: http://www.abs.gov.au/ausstats/abs@cpp.nsf/Lookup/105Snapshot12001 [Accessed: 09 July 2009]

Sydney Statistical Division, Australian Bureau of Statistics. 2005 [Online] Available at: http://www.abs.gov.au/AUSSTAT/abs@nsf/Latest products/ [Accessed: 09 July 2009]

Tourism Data Card - Forecasts, Economic Impacts and selected Regional Data - 2004 Tourism NSW. 2004 [Online] Available at: http://corporate.tourism.nsw.gov.au/corporatelive/downloads/research/datacard [Accessed: 09 July 2009]

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