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Customers, containers and congestion

06 Mar 2008
Morten Engelstoft: COO of Maersk Line

Morten Engelstoft: COO of Maersk Line

Making sure a terminal is able to run at its peak efficiency is the first thing port operators should strive for when seeking to eliminate congestion, according to the chief operating officer of the world's largest container shipping company.

That's the view taken by Morten Engelstoft of Maersk Line, who believes productivity is key. "It boils down to good planning and basic efficient running of a terminal, and having the equipment to handle the volumes," he says. "But it's important also to be able to maintain equipment along the way. Sometimes we see equipment being used so much that maintenance and repair cannot be done, and there is then potential for breakdown which reduces efficiency by causing significant delays." And delays have a detrimental impact in two areas of concern for Maersk Line and its 500 container ships: cargoes and customers. "There is no doubt that congestion is impacting on our ability to be reliable, and ports have to remember the importance of a shipping line's promise to its customers when trying to remove it.

"When we promise, we must deliver. The design of our network is fundamental to the service we give, and congestion impacts our efficiency. Alternative routes may have to be found for sensitive cargoes, and reefer cargoes may have to be discharged at another port and be moved onwards by rail or even truck," he said.

Such problems have a detrimental impact on environmental performance too. "There is no doubt that port congestion uses extra fuel. We may have to speed up to keep to schedules, or use alternative routes for sensitive cargoes. Congestion leads to increased carbon dioxide emissions."

Going forward, development of ports and their hinterland infrastructure in a way that eliminates congestion is a task for all stakeholders working together, he says. "In some ports, national and regional governments play an important role, but the level of co-operation differs around the world. It is important that there is co-operation amongst all stakeholders to remove all blockages.

"We must all take part in being innovative and taking on new technologies," he adds.

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