Port logistics City Assignment 2022

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Port Logistics City
Students’ Name
University
Course
Date

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Contents
Introduction.................................................................................................................................................3
Characteristics of Melbourne City...............................................................................................................3
Three key challenges of Melbourne Logistics Port city................................................................................4
Implementing logistics strategy...................................................................................................................5
Trans loading strategy.............................................................................................................................5
Cross-docking strategy............................................................................................................................7
Cargo Rotation technique........................................................................................................................8
Will a Trans loading be successfully implemented on other cities?...........................................................10
Conclusions and Recommendations..........................................................................................................11

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Introduction
The logistic is made up of various activities such as value adding tasks, logistics-drive, and
consolidation of freights and pre-processing. A logistics city port help connects different
multimodal networks like rails and roads of a city to the global markets. A port logistics city is
made up of different distribution areas where some value adding activities are preformed like
breaking bulk and sortation (Geroliminis, and Daganzo, 2015). A port logistics city is the current
trend in the logistics system. Different adopted global logistics hubs like Rotterdam, Dubai,
Singapore cities and Melbourne city which has the largest and second busiest port in Australia.
This paper covers key challenges of Melbourne’s port logistics city, strategies to enhance
Melbourne’s freight networks such as Trans loading, cross-docking and cargo rotation technique.
Characteristics of Melbourne City
Melbourne city is used as the case study for this paper because it one of the most populated city
in Australia. Melbourne city port is the most containerized port in Australia located Port Philip
Bay. The Melbourne port enabled large ships to navigate Yarra River into the ports thus there is
no need for roads or rail transport. The port connects and provides supplies to other cities. To be
able to perform these function two changes were implemented. These changes have enable the
city port operations run smoothly. Consolidation promotes agglomeration while suburbanization
cause de-agglomeration (Mangan, and Lalwani, 2016). Consolidation of land have maximized
use of underutilized resources, expanded markets through effective competition, increased
productivity, and cost reduction. The inland freight shipments are affected by technological
sharing, traffic congestion and rent escalations. These aspects have resulted into increased
containerization, increased throughput and cheap industrial land. All these characteristics have

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made Melbourne to be the largest and busiest port in Australia. Melbourne has many successful
characteristics but there are also some key challenges affecting the port logistics city (Chhetri, et.
al 2018).
Three key challenges of Melbourne Logistics Port city
Melbourne logistics port city has faced some challenges which have to resolve for it to succeed.
The three major challenges which require solving are reconfiguration of shipments, too much
reliance on trucks, and much congestion on Melbourne infrastructure (Gusah, et al, 2019). The
city challenges are discussed below;
Reconfiguration of shipments
Reconfiguration of shipment system is a key challenge facing Melbourne’s logistics city.
Reconfiguration has led into ineffective and inefficient movement of freights to the Melbourne
port city. The city has some areas which are more populated than others for example east and
south east regions are more populated compared to west regions. The port logistic clusters are
located in the west region meaning that long distance exist between the port and final
destinations. The reconfiguration therefore increase distribution distance and also increase
transportation costs because of the increased demand of empty containers.
Too much dependence on trucks
Heavy reliance on fixed scheduled transport mode is the second challenge because it increases
the delivery time, lower utilization of vehicles and cause transportation bottlenecks. The heavy
reliance has also increased hot spots congestion in Melbourne which has made transportation

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trucks fixed schedule. Heavy reliance challenge results into transportation difficulties and
increased traffic during peak hours.
Infrastructure challenge
Shipments in logistics city port can only be done using a single transportation mode mostly
trucks has become difficult and expensive because of traffic congestion. The infrastructure
challenge has a predicted rise of the Melbourne city traffic over the years for example congestion
has greatly increased since 2011.
Implementing logistics strategy
It’s necessary to resolve the above three key challenges using effective logistics methodologies
in the port supply chain system. There are strategies which can be implemented to enhance
Melbourne’s freight networks. Apart from the above three challenges there are other challenges
which need to be resolved such as challenges from consolidation, transshipment and break bulk
functions, and lack of active freight network. Melbourne city faces challenge of quick response
mechanism which slows transportation of global products to meet just-in –time demand. To
solve all these challenges different strategies like Trans loading and cross -docking are
implemented (McArthur, 2018).
Trans loading strategy
Trans loading strategy is one of the logistics strategy if successfully implemented in the
Melbourne’s city can improve efficiency of the freight distribution networks. This strategy
involves shipment of freights using several modes for example trains and containerization. Rail
transport is used to transport heavy materials like coal and iron ore. The materials are Trans

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loaded to rails then transferred to the port using sophisticated equipment’s like automated
conveyer belt. In Melbourne, Trans loading strategy help in development of inland logistics
terminals which are used in shipment of cargo. Trans loading strategy involves freight movement
by trucks from stores to the port terminals. In this strategy, long haul shipments can be
transported using rails and in turn trucks can be used for short distance deliveries. This strategy
involves use of specialized infrastructure in freight movements like conveyor belt, automated
straddle and gantries, grain silos, and oil storage tanks. The advantages and disadvantages of
Trans loading strategy will affect the operations of port logistics of Melbourne. Trans loading
strategy when successfully implemented improves logistics efficiency of the city.
Merits of Trans loading strategy
 Pallezing your cargo. Trans loading strategy allows importers and other transporters to
perform value adding activities such as organization and sortation of cargo before it
arrives at a warehouse. The value adding activities ensures that there is no delay in
getting cargo to final destinations.
 Reducing costs. Trans loading allows people to choose an inexpensive shipping method
to transport their cargo so that prices stay low as possible.
 Simplify shipping. Trans loading allows people to consolidate their shipments.
Consolidation makes transport easier especially when shipping large items and also
reduces some shipping expenses.
 Maximize efficiency. Trans loading improves transportation efficiency. Products are
stored in a store where they can be easily moved to customers when an order comes.
 Routine flexibility. Importers can choose the route they need and also can postpone their
shipment.

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Disadvantages of Trans loading strategy
 Reconciliation of different container loads can cause more delays.
 Trans loading strategy is faced with the risk of damage or theft of cargo when Trans
loading into trucks.
 Not all cargo is suitable for Trans loading thus some cargo are left out in Trans loading.
Cross-docking strategy
The second resolution strategy which can enhance Melbourne city is the implementation of
cross-docking strategy. This strategy which involves distribution of freight direct to customers
and retail chains. In cross-docking strategy, material handling equipment’s and storage space is
not necessary. In this strategy, inbound freights can be unloaded from trucks, processed using
different value-added activities then transported directly to final destinations for example to
customers. Before implementing this strategy, its advantages and disadvantages should be
considered as they affect Melbourne port shipment (Monios, et al,. 2018).
Advantages of cross-docking strategy
 The strategy does not involve handling processes thus freight handling is minimized.
Cross-docking reduces the need for storage spaces like warehouse since freight storage is
not necessary.
 Few material handling thus no need for many workers which reduces labor costs.
 Condensed time to reach customers of final destinations since cargo is directly shipped
to customers.
 Construction of terminals is cheap compared to warehouses as only small start-up capital
is required.

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 Increased turnover of products.
Disadvantages of cross-docking strategy
 Cross docking its time consuming since it requires much management attention and
planning. Also construction of cross-docking terminals takes a lot of time.
 Cross-docking is depended on trucking because shipments are mostly made using trucks.
 Some suppliers can’t manage to deliver customized products to cross docking terminal.
 Melbourne port logistics should have reliable suppliers who will manage time properly
and deliver right freight to customers.
Melbourne port city therefore should understand the above advantages and disadvantages before
deciding whether to implement cross-docking strategy. Cross docking has many advantages thus;
when implemented it will ensure smooth running of the port operation by reducing the key
challenges.
Cargo Rotation technique
Cargo rotation is a strategy of tackling empty containers which pose great problem in
Melbourne. The main aim of cargo rotation technique is to reduce the amount of empty
containers and trucks on Melbourne city roads. The strategy meets its objective movement of
unfilled containers from area of surplus that is import-oriented to place of deficit (export
oriented) inland freight hub. Cargo rotation strategy decreases movement of tracks on roads with
empty containers thus the strategy provide efficient and effective distribution mode of freight
therefore strengthens the logistics operations of the Melbourne port (Es, et al,. 2018).

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According to Bedford et .al (2018) Cargo rotation strategy can be represented using the diagram
below;
The above diagram shows how empty containers are moved from port terminals to empty depots.
The diagram shows clearly the movement of empty cargos. Cargo rotation provides natural
balance between local cargo and international cargo maintenance shipments. The management of
empty cargo is under the control of consigner and consignee in port logistics. By integrating
flows from two different locations, re-allocation of empty flow becomes easy. Cargo rotation
technique will enable Melbourne port reduce empty movements of containers. This technique
requires a marketplace where demand for container can be reconciled with container supply. The
implementation of the above mentioned strategies that is Trans loading strategy, cross-docking

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and cargo rotation technique would improve efficiency of freight distribution. These strategies
will also strengthen Melbourne port logistics city performance, reputation and its ability to
emerge in global market as the global logistics city (Ewedairo, et al,. 2018).
Will a Trans loading be successfully implemented on other cities?
Yes Trans loading just like it has enhanced operations of Melbourne port, it can also be
implemented in other cities because every port city needs to have reduced costs, less
warehousing space usage, excellent image in the market and be reliable and fast. Trans loading
will help other cities port to reduce problem of empty container and storage levels in warehouses.
Trans loading strategy allows use of various shipment methods thus cities which use different
transport methods can use this strategy. Trans loading strategy has many advantages like reduced
costs, less time consumption and routing flexibility thus these advantages makes it work in other
cities (Aregall, et al 2018). Some of the cities where Trans loading strategy can work are port of
Halifax, and Vietnam. Halifax has recently built a logistic park to meet its customers Trans load
needs. The port consolidates bulk of shipments together. I Vietnam, most of cargo handling
facilities am substandard. Most of Vietnam port cargo handling facilities lacks full concrete
floors which can damage cargo. Due to these reasons Trans loading strategy can work in
Vietnam. Another reason is that there are few cargo handling facilities in Vietnam thus to satisfy
the customers, they have to implement Trans loading strategy.

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Conclusions and Recommendations
In conclusion, this paper has fully discussed the operations of Melbourne port logistics city
which is the most populated city in Australia. Though the city has faced several challenges such
as lack of active freight networks, reconfiguration freight systems, and heavy reliance of trucks
which increase traffic and congestion and use of one mode of transport. For Melbourne port city
to succeed two changes had to be made. These changes are land use consolidation and
suburbanization of freight activities. To resolve most of the challenges facing logistic cities,
cross-docking, trans loading and cargo rotation strategies can be implemented (Furlong, et al,.
2018). In Trans loading strategy long distance freight are transported from warehouse by rails
while short distance deliveries by trucks. Cross-docking strategy involves freight distribution
from warehouses to final destinations using one transport mode. The last strategy, cargo rotation
technique, enhance port efficiency through reduction of empty containers or trucks. These
strategies will help Melbourne port improves its cost effective operations, time usage, and have
value added methods to improve its freight. Shipments by rails and trucks are recommended
because they ensure efficiency in monitoring and controlling the port logistic system. To be the
leading logistics port city, it’s recommended that Melbourne city should implement all the above
stated strategies.

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