Terminal expansion model for a container port for Johor port

Abstract

At present, container terminal’s expansion models did not consider small changes in commercial viability with small changes in expansion size over time. This study intends to develop an alternative container terminal’s expansion model based on marginal approach. The treatment of each of these variables should be done separately for the increase in demand that may require one variable to be immediately expanded while other variables may have cope with and sustain the increase in demand. An algorithm’s expansion model is generated to calculate the expansion size, expansion time, interval of expansion and significant of expansion for each of the expansion variables, respectively. A case study was performed in Johor Port Berhad to validate the practicability and workability of the algorithm model. The initial result shows that the subsequent expansion for rubber tyred gantry crane starts in the year 2021. The expansion size of quay crane and rubber tyred gantry crane is one unit per time. The expansion size of prime mover is two units per time. The first expansion time for quay crane is in the year 2023, and the interval period is four to five years. The first expansion time for rubber tyred gantry crane is in the year 2021, and the interval period is one to two years. The first expansion time for prime mover is in the year 2025, and the interval period is one to two years. The reason for the one year allowance of the interval period is because the expansion size is based on the unit of infrastructure purchase and not based on 20-foot equivalent unit capacity. All the expansion stage is positive for the net present value. On the other hand, the algorithm model shows that the berth capacity requirement, container park area, container freight station and terminal other areas are sustainable over the planning time horizon and not based on expansion required. The research has successfully identified five key infrastructural components of the container terminal, and developed a generic mathematical model to calculate the marginal expansion required.