Luận văn Recommendations to improve CFS warehouse operation at Vietnam Container Shipping Joint Stock Company - Green Port

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  1. MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: PHAM THI THUY ANH DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS RECOMMENDATIONS TO IMPROVE CFS WAREHOUSE OPERATION AT VIETNAM CONTAINER SHIPPING JOINT STOCK COMPANY - GREEN PORT HAI PHONG – 2015
  2. MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: PHAM THI THUY ANH CLASS: GMA02 DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS RECOMMENDATIONS TO IMPROVE CFS WAREHOUSE OPERATION AT VIETNAM CONTAINER SHIPPING JOINT STOCK COMPANY - GREEN PORT Superviser : Doan Trong Hieu Division : International Economics Faculty : Economics HAI PHONG – 2015
  3. Recommendations to improve CFS warehouse operation at Vietnam Container Shipping Joint Stock Company - Green Port PREFACE I declare that this report is my own unaided work. It has not been submitted before. If violated, I am solely responsible for and bear the punishments of the Institution and University. Student Name and Signature Pham Thi Thuy Anh Pham Thi Thuy Anh – GMA02 Page i
  4. Recommendations to improve CFS warehouse operation at Vietnam Container Shipping Joint Stock Company - Green Port ACKNOWLEGEMENT Firstly, I would like to express my sincere gratitude to my advisor M.S Doan Trong Hieu for the continuous support of my dissertation and related research, for his patience, motivation, and immense knowledge. His guidance helped me in all the time of research and writing of this thesis. I could not have imagined having a better advisor and mentor for my study. Pham Thi Thuy Anh – GMA02 Page ii
  5. Recommendations to improve CFS warehouse operation at Vietnam Container Shipping Joint Stock Company - Green Port TABLE OF CONTENTS PREFACE i ACKNOWLEGEMENT ii TABLE OF CONTENTS iii LIST OF ABBREVIATIONS v LIST OF TABLES vi LIST OF FIGURES vii INTRODUCTION 1 CHAPTER I: LITERATURE REVIEW 4 1.1 Introduction about CFS 4 1.1.1 Definition 4 1.1.2 Role of CFS 4 1.1.3 Types of goods at the CFS 6 1.1.4 Services provided in the CFS 6 1.2 Regulations related to CFS 7 1.2.1 Conditions to establish a CFS 7 1.2.2 Rights and responsibilities of CFS owners 8 1.2.3 Responsibilities of customs authorities 9 1.3 CFS performance measurement 10 CHAPTER II: SITUATION OF CFS WAREHOUSE AT GREEN PORT 14 2.1 Introduction about Green Port 14 2.1.1 History 15 2.1.2 Functions 15 2.1.3 Terminal Layout 16 2.1.4 Organizational structure 17 2.2 Introduction about CFS warehouse at Greenport 19 2.2.1 CFS Area 19 2.2.2 Equipment and Facility 20 Pham Thi Thuy Anh – GMA02 Page iii
  6. Recommendations to improve CFS warehouse operation at Vietnam Container Shipping Joint Stock Company - Green Port 2.2.3 Organizational Chart 20 2.3 CFS warehouse operating activities 22 2.3.1 Export consolidation operation 22 2.3.2 Import consolidation operation 28 2.3.3 Performance indicators of Green Port’s CFS 33 CHAPTER III: RECOMMENDATIONS TO IMPROVE CFS WAREHOUSE OPERATION AT GREENPORT 36 3.1 Evaluation on the Green Port’s CFS 36 3.1.1 Evaluation the mathematical indicators 36 3.1.2 Evaluation the non-mathematical indicators 37 3.2 Recommendation to company 40 3.2.1 Recommendation on increase storage and handling capacity 40 3.2.2 Recommendation on the infrastructure and equipment 44 3.2.3 Recommendation on human factor 45 3.2.4 Recommendations on service 46 CONCLUSION 48 REFERENCES 49 APPENDICES 50 Pham Thi Thuy Anh – GMA02 Page iv
  7. Recommendations to improve CFS warehouse operation at Vietnam Container Shipping Joint Stock Company - Green Port LIST OF ABBREVIATIONS CFS Container Freight Station LCL Less Than Container Load FCL Full Container Load CY Container Yard B/L Bill of Lading D/O Delivery Order CPL Container Packing Plan THC Terminal Handling Charge ECUSS Electronic Custom Software WMS Warehouse Management System Pham Thi Thuy Anh – GMA02 Page v
  8. Recommendations to improve CFS warehouse operation at Vietnam Container Shipping Joint Stock Company - Green Port LIST OF TABLES Table 1: Green Port Terminal Layout 16 Table 2: Equipment at the CFS 20 Table 3: The Number and Qualitification of CSF Employees 21 Pham Thi Thuy Anh – GMA02 Page vi
  9. Recommendations to improve CFS warehouse operation at Vietnam Container Shipping Joint Stock Company - Green Port LIST OF FIGURES Figure 1: CFS Activies According to the Flow of Goods 7 Figure 2: Map of Green Port Location 15 Figure 3: General Terminal Layout of Green Port 16 Figure 4: Green Port’s Organizational Structure 17 Figure 5: Warehouse Organizational Chart 21 Figure 6: Export Consolidation Operation Process 22 Figure 7: The Illustration of Stacking Pallet Racking System at the CFS 25 Figure 8: Import Consolidation Operation Process 28 Figure 9: Cargo Volume through CFS at Green Port from 2011 to Sep.2015 34 Figure 10: Comparing Selective Pallet Racking with Double Pallet Racking 41 Figure 11: Requirements of Using Handling Equipments at the CFS 43 Pham Thi Thuy Anh – GMA02 Page vii
  10. Recommendations to improve CFS warehouse operation at Vietnam Container Shipping Joint Stock Company - Green Port INTRODUCTION Thanks to the helpful location, Vietnam has a long sea border line. Under the globalization, Vietnam maritime industry has been developed rapidly. According to the data of Vietnam Marine Administration (Vinamarine) in 2014, Vietnam has 44 seaports with the cargo throughput of 370.3 million tons in 2014. The cargo volume has grown by 8.1 percent from 2009 to 2014 of 8.1 percent. In which the container volume increased by 16.7 percent to achieve 10.2 million TEUs in 2014. The container throughput is estimated to increase with the rate of 8 to 9 percent annually until 2020. With the development of the national economy, Vietnam ports in general and Northern ports in particular are expected to have many potentials to develop shipping industry. One of the important ports contributing to the growth of this industry is Green Port. Green Port is the subsidiary of Vietnam Container Shipping Cooperation (Viconship). Green Port is operated from Sept. 2004, mainly exploit containerized cargo. Green Port provides a variety of services, from ocean shipping services to inland transport. One of such is CFS services that I researched in this paper. Necessity CFS is customs area for loading and unloading containerized cargo. CFS plays an essential part in the flow of exporting and importing goods. In the growing trend of containerized service, CFS is estimated to be an important factor in the development of maritime industry in the next years. So, in two months of internship, with a wish to study the CFS operation activities, I have chosen this topic: "Recommendations to improve CFS operation at Green Port". This research will give an insight to the CFS activities at Green Port. And from that, give proper solutions to increase the development of company. Research Object This study is conducted to study the CFS warehouse operation at Green Port and from that evaluate the situation as well as find the possible ways to improve the operation in the CFS at Green Port. Pham Thi Thuy Anh – GMA02 Page 1