Different functions of Ports
September 17, 2008
Ports are one of the most important logistical systems in a sense of global circulation and trade. The functions of ports are:
Transport (circulation) function of ports
The most important port function is surely transport (circulation) function. Without this function, there is no business and no profit. For successful execution of business activities, ports have to fit next requirements:
- Proper facilities (port infrastructure and superstructure)
- Good transport links with hinterland
- Extended sea transport links
Optimal benefit of all required demands is possible only when adjusting port capacities, transport possibilities of continental transport and proper amount of sea links.
Port of Koper, Slovenija (EU)
Commercial function of ports
In ports are gathering huge amounts of goods for local needs and for all continental countries which are not connected with the sea. Commercial function depends on transport (circulation) function of ports. For efficient commercial work, ports must follow:
- Good continental and sea links
- Concentration of goods on the port area
- Proper warehousing capabilities
In port, commercial function includes purchase and sale activities and additional goods service that rise up the value of goods.
Industrial function of ports
In bigger European ports and in other parts of the world have been developing industrial zones that provide stimulative conditions for business increase (customs relief). Because of that, products are more competitive on global markets. Such industrial zones in (EU) operate in Rotterdam, Antwerp, Le Havre-Rouen, Marseille La Fos-Lyon, Venetia-Mestre(Porto Marghera), etc…
Economical advantages of strategic industrial zones in ports are:
- Rising up of trade and employment
- Involving the country in international trade
- Increasing the competitive abilities of port industry against the continental industry
Basic condition for effective work of industrial function of port is surely transport (circulation) function. At present, all new port projects involve industrial zones and port zones with all possibilities and additional infrastructure for competitive business.
Port of Rotterdam, The Netherlands (EU)
Distributional function of ports
All previous functions were cause for development of distribution and thinking how to improve the concept of distribution. Active cooperation of transport (circulation), commercial and industrial functions had stimulated the beginning of distributional function of ports and its proper organization. We understand distributional role of ports as function that appears as a part of supply chain. It is noticeable that some bigger shippers are also operators on separate container terminals that have also become consolidation points (logistic-distributional centers).
Practically we know two types of distributional centers inside the ports, which are:
- Distributional centers, where shipments are sent to some smaller centers, from where it is easier to distribute the goods to the final customer
- Distributional centers, from where goods are shipped directly to the final customer
Successful development of distributional function in ports depends on all other mentioned functions and efficient infrastructural links to the gravitational hinterland. Distributional centers have undoubtedly become advanced, technologically perfected logistical systems that offer logistical-distributional service, warehousing, manipulating facilities and all other forwarding and logistical services that rise up the value of the goods. The main advantage is the ability to prepare goods for direct delivery, with all belonging administrative work at one place (in port area).
