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Chapter 4 deals with port investment and finance with particular emphasis on port costs and costing, economic and financial appraisal of port investment, and the nature and modes of private sector participation in ports. Chapter 5 introduces the subject of port pricing, lists the different port dues and charges, and reviews the different approaches to port pricing and user charging. Chapter 6 discusses various aspects of port operations: queuing and congestion, terminal configurations, terminal processes and procedures, equipment and handling systems, and maintenance and repair, with particular emphasis on containerised operations.
Value added also means the value newly created or added to traditional services. Logistics activities are key elements in the value chain, and thus contribute greatly in the creation of value added. Apart from their traditional function as a sea–land interface, ports are a good location for value-added logistics activities such as consolidation and break bulk, sequencing and order processing, packing and packaging, postponement and customisation, promotion and market intelligence, facilitation of contacts and procedures, and so on.
The focus on the nature, origins and destinations of freight movements disintegrates port management from logistics and supply chain structures. • On the other hand, the operations approach disaggregates the port system into individual units and components and seeks to optimise their individual operations rather than that of an overall port system. Here, operational fragmentation may result in conflicting objectives and disintegrated port operations. An integrative approach is therefore required.