Lecture 1: International Trade, Roles and Functions of a Port Flashcards
What is a port?
An area within which ships are loaded with and discharged of cargo, including waiting areas and connections to other transport modes.
A port acts as a gateway/load center for goods and passengers between ships and the shore.
How does a port differ from a terminal?
A port is a large area, while a terminal is a specific facility within a port for cargo handling, storage, and transportation.
A port can contain multiple terminals, such as Singapore’s port.
What are the major terminals of the Port of Singapore?
- Tanjong Pagar
- Brani
- Keppel
- Pasir Panjang
- Tuas
- Jurong Port
These terminals serve different types of cargo and operations.
Who primarily operates the container terminals at the Port of Singapore?
PSA Corporation Limited.
PSA primarily handles container traffic and operates terminals at Tanjong Pagar, Keppel, Brani, and Pasir Panjang.
What type of cargo does Jurong Port mainly handle?
Bulk and conventional cargo (dry and wet).
Jurong Port is involved in various types of cargo handling.
What are the types of terminals at the Port of Singapore?
- Container Terminals
- Bulk Terminals
- Multi-Purpose Terminals
- Ro/Ro (Roll-on/Roll-off) Terminal
Each terminal type serves different cargo handling needs.
What are the fundamental roles of a port?
A port handles both ships and inland transport vehicles, facilitating trade and boosting a nation’s economy.
Ports look outward over the sea and inward over their economic hinterland.
What is the basic operational function of a port?
Cargo handling.
This is the primary function that ports perform.
What are the key elements of port production?
- Resources: Personnel, land, capital
- Firms: Port operators/companies
- Households: Final consumers of port services
These elements contribute to the overall operation and service provision of ports.
What are the objectives of port owners?
Contribute to national economic development.
Often, port owners are government entities focused on economic growth.
What do port operators aim to achieve?
Cover costs and make a profit (mainly private operators).
This is essential for the sustainability of port operations.
How do ports generate employment?
Direct employment effects from shipping, cargo, industrial activities, and services in port areas.
Logistics and industrial clusters in ports employ a vast labor force.
What are the three major types of multiplier effects in port economics?
- Direct: Refer to the immediate economic contributions of port services, including activities directly linked to port operations.
- Indirect: arise from the supply chain and support activities required to sustain port operations. Expenditures by port-related businesses on goods and services from other industries (e.g., purchasing fuel, maintenance services, or equipment manufacturing)
- Induced: occur when income earned by employees and businesses directly or indirectly linked to port activities is spent in the broader economy. E.g port workers going to the movies, multiplier impacts amplify as spending circulates
These effects demonstrate how initial spending in ports ripples through the economy.
What does the income multiplier measure?
The total increase in income resulting from the initial spending.
It reflects the ‘value added’ at each stage of economic activity.
What is the formula for calculating a multiplier?
Multiplier = Total Spending (including original) / Original Spending.
This formula helps quantify the economic impact of spending.
What types of effects does Type II multiplier include?
Direct, indirect, and induced effects.
Type II gives a more complete picture of the total economic impact.
Understand the main economic functions of port
Cargo handling is the basic, operational function of a port.
Commercial: storage and distribution function.
Industrial: function related to adjacent industrial sites.
