[CHAPTER 8] PORTS AND FACILITIES

PORTS AND FACILITIES

A port is defined as the intersection of different modes of transport

REASONS FOR DISTINGUISHING BETWEEN PORTS AND FACILITIES

v  At a port there are parties other than a shipper or consignee handling the cargo.

v  Different modes of transportation come together at a port.

v  As an intersection, there are different directions in which the cargo can go.

OCEAN PORTS

An ocean port is any place where geography allowed a ship near land where it could safely load cargo.

AIRPORTS

v  It can be said that almost all major airports are run by a public agency usually a local government.

v  The groundside which is what the passengers see, including airline arrival and departure areas such as public parking, the restaurants and more.

v  While the airside is often bigger which is where the airlines operate, the baggage is handled and the cargo moved.

HOW AIRPORT EARN MONEY?

1)   Concessions

2)   Carrier fees which is landing fees

WAREHOUSING

There are two functions in a warehouse which is movement and storage of the cargo.

VALUE-ADDED SERVICES OF A WAREHOUSE

Ø  Dispatch

Ø  Freight unloading

Ø  Forklift service

Ø  Local delivery

Ø  Documentation handling

Ø  After market sales support

FREE TRADE ZONES

Free trade zone which is (FTZ) are not a port and not a warehouse.

PURPOSE OF FREE TRADE ZONE

Ø  Encourage international trade by giving some flexibility in the import rules.

Ø  Allows someone to bring something into the country and as long as it remains in the FTZ, it is not officially imported.

Ø  Some of those things are intended to assist the importer to get the cargo ready for legal import which this help the importer to do his job.

Ø  A way to create local jobs.

ADVANTAGES OF FREE TRADE ZONE

Ø  Government provides the carriers and shippers flexibility. This means without an FTZ any mistake would mean that the cargo be sent out of the country.

Ø  A good way for unstable countries to get some free and fair enterprise  which is mean a foreign companies are often shy of entering an unstable country but an FTZ is usually much safer.

REASONS OF USING FREE TRADE ZONE

1)   Delay tariffs

2)   Avoid tariffs before on shipment

3)   Processing

4)   Correct mistakes

5)   Sell