Strategies for Enhancing Melbourne Port Logistics City Operations

This report provides a comprehensive analysis of Melbourne's port logistics city, examining its success, challenges, and strategies for enhancement. It explores the concept of a port logistics city, highlighting Melbourne's development and its role in trade and transportation. The report delves into the challenges faced by Melbourne, including traffic congestion and limited landside connections. It then proposes strategies such as trans-loading, cross-docking, and cargo rotation to improve freight networks. The discussion includes the advantages and disadvantages of each strategy, as well as their effectiveness in other port cities. The report concludes with recommendations for optimizing logistics operations in Melbourne, emphasizing the importance of these strategies for future success. The report is based on the case study of Melbourne in Australia.

RUNNING HEAD: PORT LOGISTICS CITY 1
THE PORT LOGISTICS CITY
STUDENT’S NAME
UNIVERSITY
COURSE
DATE

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TABLE OF CONTENTS
INTRODUCTION.........................................................................................................................2
SUCCESS OF MELBOURNE PORT LOGISTICS CITY.......................................................2
CHALLENGES FOR A PORT LOGISTICS CITY - MELBOURNE.....................................4
STRATEGIES TO ENHANCE MELBOURNE ‘S FREIGHT NETWORKS........................5
TRANS-LOADING STRATEGY.............................................................................................6
CROSS-DOCKING STRATEGY............................................................................................7
CARGO ROTATION TECHNIQUE.......................................................................................8
HOW EFFECTIVELY TRANS-LOADING STRATEGY WILL WORK ON OTHER
LOGISTICS PORT CITIES.........................................................................................................9
CONCLUSION AND RECOMMENDATION...........................................................................9
REFERENCES............................................................................................................................10

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INTRODUCTION
A port is a place that links different countries together by using different modes of
transport like ship. A port logistics city, therefore, is a place that has developed mainly as a result
of port shipping activities available. These activities include: transportation, distribution,
warehousing, assembly, processing, and storage. All these activities are performed within the
port premises, therefore, known as port logistics operations. Seaports and airports are examples
of ports that have brought about on this concept of port logistics city. Some ports that have
extensively developed as a result of the same are Singapore and Rotterdam, which are deep
seaports. The port logistics concept have globally linked countries, easing and improving the
trade, transportation, distribution, and provided job opportunities to many. Some towns have
adopted this through construction of global logistics hub (Anca, 2019). Example of Melbourne
logistics port city in Australia.
SUCCESS OF MELBOURNE CITY AS A LOGISTICS CITY
One of port Logistics city is Melbourne the “Victoria's capital city” and second-biggest
town in Australia. It was during the Victorian Gold Rush that this city developed and emerged to
be a port city since it played a key role in the trading sector. Melbourne acted as a trading Centre
between 1851 to 1850s. Since then, Melbourne city has been the busiest and extensively
developing port in Australia. Melbourne logistics city is located along Port Philip Inlet, next to
the river mouth of River Yarra, which made the town more attractive.
The port logistics city has some advantages like completion margin which have been
created by port city. The competition becomes a matter of accessibility, cost and quality from

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different clients in different margins of the port. Increase in the employment sector on the port
logistics city is also another concept that have widely covered. Port city has led to expansion of
trade activities, transportation, assembly, warehousing, and storage, thus inputting many
individuals in job markets.
In recent years, Melbourne logistics port has undergone some changes. Among these
changes, there are two main changes.
To start with, Melbourne is the amalgamation of the introduced land by “Victorian
Government” to encourage collection of logistics and other shipping organization closer to th
vicinity of the port. This change leads to an increase in efficiency of underutilized resources and
also the improved the market by making it more effective and efficient, thus increasing
productivity. The newly developed ports, including Pearl Delta, China, are all planned and built
in the port logistics model.
Secondly, Melbourne main change is ‘sub-urbanization' of freight activities. In this
change, the port activities started to migrate to the islands. This inland shift began as a result of
congestion in the traffic, technology sharing, and increased rental cost in the inland. These three
reasons lead to logistics cluster in that; increase in congested gateways lead to increased
containerization. Another one is cheaper industrial land and an increase in the throughput,
therefore making an impact in the inland ever-changing transport and shipping organization to
Suburbia (Kwok, 2018).

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CHALLENGES FOR A PORT LOGISTICS CITY - MELBOURNE
Melbourne city experiences several logistic port city limitations which are brought in by
freight logistics operations. The framework for roles of ports in logistics allows validation of
different supply chain strategies through the roles played by logistics technics thus being useful.
According to Notteboom and Rodrigue (2015) port logistics city has increased traffic. Since
ports attract marketing activities and land transport system, the port's operations attract more
actions on the land which corresponds to the nature of the land they are connected to.
The dominant trends on the ports hinterlands also increases the traffic condition. The
inland freight transport providers have to lead to direct ownership of stock and profit-sharing.
This has resulted in an extreme level of loss in the supply chain both over maritime space and
hinterland.
Critical challenges within the port industry compared with previous years indicates that
the port faced separation distance of nearly one thousand kilometers or more. Another challenge
is the limited landside connection network between road and rail, and there is no regional
competition for containers or car trade. Despite the stiff competition in the port logistics, the
same is controlled by the ports.
Sustainability has been affected by increased porting activities. This social dimension has
become an important topic of concern.
Congestion is due to two reasons; one, the request for movement exceeds the volume to
maintenance the port logistics operations, therefore becoming a challenge. Secondly, congestion
occurs when a random event brings a temporally disrupt, for instance, flooding. The issue of
overcrowding is likely to remain one of the most ongoing effects on geography transport.

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Overcrowding is not restricted to internal town-generated ways. In the meantime, maritime
transport will continue to lead under the agreement of freights transport in relationships of the
value (Shi et al. 2019). A wide range of issues are occurring due to the point of congestion, and
the geographers are dealing with it on how to deliver clarifications and the influences of
particular forthcoming patterns. Regarding the issue of congestion, the solutions that are
considered increasing demand is placing unprecedented demand for investments in transport.
Furthermore, public-private partnership and ultimately, private solutions are one set of solution.
Sheffi (2012) Logistics clusters, discusses on the benefits of logistics clusters, he quotes
the port of Rotterdam Authority as having interesting logistics professionals although the ports
have challenges of industrial clustering. He goes ahead and claims that since logistic bands serve
a lot of industrialists, retailers, and traders, other than being in the port activities. Therefore, can
performance a principal role in providing job opportunities by not single creation nevertheless
nourishing the same jobs.
Challenges faced by developing countries in the competition is main problem in the
developing countries like Melbourne which has competition of many industries and congestion
has moved to ports for the activities.
STRATEGIES TO ENHANCE MELBOURNE ‘S FREIGHT NETWORKS
A network is needed to improve and maintain the Melbourne freight due its merits that has as
developed port city logistics. Primarily Melbourne is one of a port logistics city in Australia.
Strategies from different individuals or organizations have been put in to place to curb the
problem that has arisen in the concept of port logistics city. Some of these strategies have shown
a significant impact in enhancing the freights networks and particularly Melbourne city, which is

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located in Victoria, a town that has developed as a result of port activities (Monios, Bergqvist
and Woxenius, 2018).
The following are the strategies which Melbourne city port has to implement for
successful facing of the above challenges.
TRANS-LOADING STRATEGY
Essential and effective strategies like trans-loading are required to be implemented. The
growth of the port is facilitates through this strategy because is cost effective. The strategy
provides the mechanism of handling cargos and other freights in the port. Handling machines are
automated for ease and capable of handling massive resources once. Compared to the manual
way of handling freights, this is faster, effectives and utilizing less space in the warehouse.
According to the concept of port logistics, if this strategy is implemented it will provide cheap
and effective shipment between the port and other inland cities. Through this techniques the
railways and truck means of transport are fully utilized (Geroliminis and Daganzo, 2015). Long
distance from the port will be served through railways means the later where the means cannot
reach trucks will offer the final delivery. The total transport cost which Melbourne city port uses
for more expenses in handling, now will be directed to other operation which will improve the
logistics.
Trans-loading concept affects maritime and shipping within the city of Melbourne.
Therefore, this provides some advantages and disadvantages to the port.
Advantages to the importers within Melbourne port city. The strategies provides cheap
transport fee per unit, value adding techniques are available like sorting, packaging, and

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labelling. Through this strategies makes the movement to be flexible since postponement routing
is well established.
Disadvantages of this strategies is that, it creates imbalance of freight movement
through discrimination of local containers compared to the international cargos. Also, cargo
shipped under this techniques experiences risk of theft and damage while in transit.
CROSS-DOCKING STRATEGY
Another strategy is here, cross-docking. Cross-docking offers direction provision of the
freights directly from the distributor to the final retailer in the chain. The strategies minimizes
warehouse storage space and the related cost to be incurred. Melbourne city port constructed
logistics hubs which are going to be used as cross-docking stations. Both inbound and outbound
freights are involved with cross-docking in one way or the other. Good under this strategy can be
loaded without many processes like sorting, screening, and therefore being delivered to the
customer as per the order. In Melbourne logistic port city, this strategy will provide
implementation of effective storage space, products of different brands, and all cost incurred in
the process (Gusah, Cameron-Rogers and Thompson, 2019). Also in this strategy has advantage
and disadvantage of implementing the system within the operation of cross-docking.
Advantages includes minimum handling of cargos, reduced warehouse usage space,
labor cost and packaging fee. Other include quick cargo transportation within the terminals thus
proving providing friendly conditions all through.

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Disadvantages, Cross-docking needs a lot of time in planning, and managing the
movement of all operations. Constructing logistics terminal is expensive compared performing
other activities in the port.
CARGO ROTATION TECHNIQUE
Cargo rotation is another strategy which Melbourne port city can use with the purpose of
reducing transportation of empty cargo. The transportation movement is well controlled and
monitored in between the port and inland stations. Therefore, the main goal of this strategy is to
have less empty container transportation and have perfect re-allocation of freights within the port
operations (Vahdani, 2019). The strength of the port through cargo distribution will be realized at
high rate as described below by the diagram. The figure below describes well how to manage
empty container within the port.
Figure 1: Fang, 2018.

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The balance of cargo transportation between local and international ones is now provided
with best convenient way, thus making easy flow of products between consigner and consignee
within logistic operations.
HOW EFFECTIVELY TRANS-LOADING STRATEGY WILL WORK ON OTHER
LOGISTICS PORT CITIES
The strategy of trans-loading will work effectively to other port cities a part from Melbourne
logistics city. Not only Melbourne port is city is after profit making through having reduced cost
in shipping, reliable and effective means of transport. Therefore, this encourages trans-loading
strategy to adopt full in all other port logistics cities around the global. Also this strategy is
comfortable with both small and large freights, therefore, favoring all levels of the logistics
activities within located cities. However, trans-loading is amongst the logistic strategies which
are easy and effectively to be used in all levels of logistics cities. Competitive advantages of each
is promoted thus utilizing the limited resources available thus expanding the market
simultaneously.
CONCLUSION AND RECOMMENDATION
The report has summarized logistic operations of Melbourne port city through analyzing
the necessary changes undertaken, the challenges encountering today, and strategies to
implement for future success. Trans-loading, cross-docking and cargo rotation technique will
provide better environment for the logistics operations. These strategies will help to control
shipment in a better way by encountering the following challenges. Reconfiguring of the
Melbourne’s metropolitan freight system, heavy trucking on trucks movement through fixed
destination, and inefficient of network towards freight. These strategies improves the time spend,
value adding techniques and have effective shipment all through.

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Recommendation. Some of the advantages of improved trade activities, assembling,
storage, containerization, storage, warehousing, increased job opportunities, and information on
technology has widely been shared. The demerits of the same are minimal, the main one being
congestion in the port logistics city, and this is a case whose remedy is being researched. Since
the advantages of the port logistics city concept outweigh the disadvantages the same, remedies
for the demerits should, therefore, be sought and put into consideration. More research should
also be put into place to minimize and eliminate any causes of congestion in the posts since
congestion has proved to be the most significant burden to the port logistics city. Government
sectors and non-governmental sectors have key roles to play concerning the same. Individuals,
too, and private organizations have a role to play in reducing and terminating the causes of
congestion in the port logistics city.

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REFERENCES
Anca, V., 2019. Logistics and Supply Chain Management: An Overview. Studies in Business
and Economics, 14(2), pp.209-215.
Fang, N., 2018. Characteristic Rotational Behaviors of Rod-Shaped Cargo Revealed by
Automated Five-Dimensional Single Particle Tracking. Biophysical Journal, 114(3), p.656a.
Geroliminis, N., and Daganzo, C.F., 2015. A review of green logistics schemes used in cities
around the world.
Gusah, L., Cameron-Rogers, R., and Thompson, R.G., 2019. A systems analysis of empty
container logistics–a case study of Melbourne, Australia. Transportation Research Procedia, 39,
pp.92-103.
Kwok, A.O., 2018, August. ASEAN Logistics Performance and Bilateral Trade in the Global
Supply Chain. In International Conference on Management Science and Engineering
Management (pp. 1375-1382). Springer, Cham.
Mangan, J, Lalwani, C & Fynes, B (2008) Port centric logistics, international logistics of the
management, 19(1), 29-41
Monios, J., Bergqvist, R., and Woxenius, J., 2018. Port-centric cities: The role of freight
distribution in defining the port-city relationship. Journal of Transport Geography, 66, pp.53-64.
Notteboom , T & Rodrigue , J.P, (2015) Port regionalization development, maritime policy and
management 32(3), 297 -313.
Sheffi, y,(2012) logistics clusters; Delivering value and driving growth, The MIT press,
Cambridge, MA, 32(3), 251-254