Checking the sums

The reasons why a port or terminal might require temporary storage are many and varied. An interim solution could be a low-cost bridging exercise designed to generate new cargo revenue prior to funding the construction of a permanent structure. It might be designed for 'client capture' - to ensure the customer's needs are met as quickly as possible to fend off a rival and secure a long-term contract. Or, more usually, it might be required as a stop-gap while a permanent solution is designed, permitted and constructed.

"If it is being set up prior to installing a permanent structure, then usually it's not recommended unless there's a clear strategic benefit to the port operator or their client, or a very simple way of implementing it," he says.

Working out the actual cost of using a temporary storage solution means factoring in a whole range of variables which could affect the bottom line of the operation - from the impact on terminal logistics and characteristics of the cargo to be handled and stored, to the implications for personnel and security arrangements.

"You really need to understand what you're trying to achieve," says Mr Lucci. "You need to step back and look at the strategic importance of a temporary storage solution."

For example, establishing a substantial interim container storage yard for a short time frame while a new terminal is developed will, unless port space is unusually abundant, almost certainly mean using land offsite because of the high cost of renting port space.

The extra expense of implementing this type of operation might include trucking to and from the yard, double-handling, the use of more labour intensive handling options than rubber-tyred gantry cranes, extra training for staff and more complicated customs procedures. Security and safety requirements will be just as rigorous for a temporary storage area although their implementation might be more difficult.

"If temporary storage is about client capture, then the development cost and operations need to be looked at very carefully," he says. "It's rare that a temporary solution can generate enough profit to fund a permanent one. So establishing the real cost is fundamental because, unless a temporary structure is a building block for a permanent one, then it's likely to be an extra cost. And that extra cost can multiply if there is operational inefficiency, because it's hard to run a conventional operation without the correct facilities."

However, there are occasions when a temporary fix can be advantageous on implementation speed without being too burdensome in price.

Mr Lucci says Halcrow has developed temporary storage and handling systems for new cement trades in the past at little extra cost by converting existing warehousing and installing simple pneumatic systems for receiving self-unloading vessels. "Once the warehouse is airtight, front loaders can be used to handle the cement inside the storage area," he says. "It is labour intensive, but it can be set up very quickly.

"Another option is to use floating storage while a permanent warehouse is constructed."

Timber and various other forest products can usually be stored safely outside and handled using standard general cargo and breakbulk gear.

Fertiliser can also be relatively easily stored by using a warehouse when a silo is not available. "The warehouse doesn't need to be airtight, the big concern would be unloading," says Mr Lucci. "This would probably require a mechanical unloading system, and then we'd look at using a simple conveyor from the berth to storage to avoid handling with trucks. Front loaders can then be used in the storage area."

Providers of weather-proof, relatively lightweight warehousing can help provide storage options for a whole range of cargoes, including most dry bulks, general cargo as well as passengers.

Manufacturers point out that their products can sometimes bypass planning permission, can be erected quickly and some are durable enough to be used on a permanent basis for decades afterwards if required with very little modification.

"Lightweight structures from a number of manufacturers need to be evaluated on a case by case basis to ensure they meet the operational needs," says Mr Lucci. "They offer the advantage of being pre-engineered and being typically available and erected faster than conventional warehouses.  

"Insurance coverage and permitting issues vary and have to be looked at on a case by case basis with the local authorities."

For a passenger terminal, an existing warehouse might be converted or a new lightweight, single-storey structure put in place for passenger reception while port calls are built up or a new facility is built. A temporary solution might then be upgraded into a permanent facility by improving the aesthetics or adding a second floor onto the structure while the ground floor is in use.

Chemical products are often the most difficult to handle on a temporary basis, however. "Storage requirements are typically the same for large or small volumes and quite often the piping and storage will have to be dedicated," says Mr Lucci. "So unless there is an empty tank available, it's probably better to rent storage while a new facility is constructed."