Ecuador - Proposed methods of improving operations at the present port of Guayaquil

RL COPY C-25 IAL PROPOSED METHODS OF IMPROVING OPERATIONS AT THE PRESENT PORT OF GUAYAQUIL ECUADOR BY F. G. HOSKINS CONSULTANT THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. August 25, 1955 ECUADOR PROPOSED METHODS OF IT6PROVING OPtRATIONS AT THE PRESENT FORT OF GUAYAQUIL S 1. Cargo-handling of general imports at the Customs wharf is in- * efficient, limits capacity, and is a source of complaints. 2. It is possible to improve performance and efficiency, thus eliminating delays in discharge of ships, congestion on the docks, and delays in the clearance and delivery of freight to consignees by the following measures: 1. More intensive utilization of lighters. 2. Introduction of the use of pallets. 3. Provision of sufficient platform space to take care of the unloading from lighters and sufficient housing space to take care of classification of freight; improvement of the condition of floors and platforms. 4. Direct movement of freight to Quito. 5. Improved methods of checking and classifying freight on arrival. 6. Prompt transfer of freight from classification area to delivery points and storage. 7. Replacement of obsolete and worn-out equipment. 8. More economic use of storage facilities, taking advantage of higher piling of freight. 9. Better arrangements for the delivery of freight to trucks, 10. Improved management and direction. Lighters 3. About 300,000 tons of import cargo were handled across the Customs wharf in 1954. Customs-owned lighters brought in 225,000 tons while an additional 70,000 tons were delivered by the shipping companies with lighters not owned by the Customs. The Customs had an average of 36 lighters in service. An average of 24.2 metric tons was handled for each "lighter day", which is below the standard that should be expected. There are four tugboats in service. 4. With improved methods, it should be possible to increase the present tonnage to an average of 30 metric tons a lighter day, With 48 lighters in service, including 12 additional new lighters, it should be possible to handle an average of at least 450,000 metric tons per year, including the use of lighters not owned by the Customs and arranged for by the shipping companies as shown below: - 2- Present "Light e" Tonnage Total. 1954 295.000 tons of import freight Customs = 225,000 Shipping companies = 69,800 Customs - Present performance Average of 36 lighters in service (1954) = 6,256 tons of freight a year per lighter 258 working days = 24.2 tons of freight per lighter-day Estimated "Lighterage" Tonnage with Prposed Improvements Annual total = 450,000 tons of import freight Customs = 360,000 = 80.0% Shipping companies = 90,000 = 20.0% Customs - Future performance Average of 48 lighters in service (including 12 new lighters) = 7,500 tons of freight a year per lighter 258 working days = 29,0 tons of freight per lighter-day Increase in freight haulage per lighter-day 4.6 tons 19.0% 5. The above figures exclude the lighterage by Customs craft from riverside to shipside of a small volume of export cargo amounting to less than 15 percent of total exports. This service is furnished by Customs only for exports other than bananas and only when lighters are available. All exports pay a base tariff of S/.25 a ton (reduced to S/.10 a ton if Customs cannot supply the lighters) plus a surcharge of S/.9 a ton if the goods are shipped via Puna (whether in Customs or private lighters). 6. The base tariff on imports is S/.105 a ton plus a surcharge of S/.15 a ton if the goods are discharged at Puna. In principle, the Customs supplies lighters to bring in all the import freight, but occasionally no Customs lighters are available. In this event, the shipping company supplies its own craft and the base tariff is reduced to S/.20 a ton. It is difficult, however, to cOtain the special Customs permit required for the use of non- Customs lighters to bring in imports. 7. At present, Customs limit their operations of handling imports at the dock from 7.30 a.m. to 11.30 a.m., and 2.15 p.m. to 6.15 p.m., Monday to Friday, and 7.30 a.m. to 11.30 a.m. on Saturdays, or 44 hours, per week. For all services performed beyond these time limits, the entire labor expense is billed the importer or shipping company, - 3 - 8. In many instances, it is desirable and economical, as a time factor, to keep the ships working to save per diem and keep them on schedule, and in some cases, to obtain prompt deliveries, all of which justifies the additional expense. This is not entirely an unusual practice and is in effect at other ports outside of Ecuador. There are also other instances where Customs cannot meet the requirement of furnish- ing lighters during peak or emergency periods and for the same reasons as mentioned above, the importers or shipping companies provide this lighter- age service at their expense. It is generally furnished by private lighterage companies except that the Grace Line has a limited number of lighters and tugboats which they use to take care of part of this work. At the present time, approximately 25 percent of the goods moving across the Customs wharf are brought in by private lighters and it is believed that this condition will continue due to the necessity of the ships work- ing overtime. Recommendation: That twelve additional lighters be furnished and one additional tugboat to take care of the additional lighters. Pallets 9. The present loading of lighters at shipts side and unloading at the Customs wharf is slow due to the use of small lifts and the employment of unnecessary manpower. As a result, the cranes at the Customs are being used to less than 50 percent capacity. The use of pallets and lift-trucks would be a most important;factor in speeding the flow of cargo and obtaining greater efficiency. Recommendation: That pallets be furnished as shown on the list at- tached. Pallets would be loaded by the ship stevedores, then moved with ship's tackle to the lighters, and then from the lighters to the Customs dock with the present and additional cranes recommended. From that point, the loaded pallets would move to the classification point by lift-trucks. It should also be possible to use the pallets for the movement of some freight from the classification section to the point of delivery or stor- age. Platform and Housing 10. At the present time, there are many obstructions to the free handling and uninterrupted flow of freight from lighters to the classi- fication section. Some of the railroad track is unnecessary, the platform space is encumbered with freight, and the condition of the floors is bad; all this prevents the proper and safe movement of lift-trucks, tractors, and trailers. The present buildings assigned for the handling and trans- fer of freight are inadequate as to size and design. Recommendation: A portion of railroad track should be removed and the heavy shipments should move directly and promptly to allocated stor- age spaces. Also, repairs should be made in the present concrete floor and the surface covered with a 2-inch carpet of asphalt. Some of the -4- present buildings should be removed and replaced with two new open sheds; this will allow a more efficient handling of freight and protectioh aga.inst weather conditions. Direct movement of freight to Quito 11. It is estimated that approximately 25 percent of the import freight now received at Guayaquil is consigned to ruito. This freight, after being classified at the Customs sheds should be loaded into rail- road cars at the Customs dock, the cars sealed by the Customs and moved directly to ruito. This arrangement would eliminate the movements between the classification point and the present warehouses and delivery points and thus result in considerable operational benefits. 12. In October 1954, arrangements were made between the Railroad management and the Director General of the Customs to move freight con- signed to Quito directly in railroad cars to Quito. Arrangements have been made in Quito for Customs facilities to take care of the handling, collection of duties, clearance, etc., but it is understood that action has been delayed because of the Railroad's inability to furnish a car ferry for the movement of freight across the Guayas River from the Customs wharf at Guayaquil to the railhead at Duran. It is understood that the Railroad should be in a position to inaugurate this service within the next 30 days. At that time it will have a car ferry available and car transfer facilities at Duran, Recommendation: Freight consigned to Quito, after being classified, should be loaded in railroad cars at the Customs dock, sealed by the Customs, and then moved directly to Quito. Checking and Classification of Freight 13. The present arrangements for checking and classifying freight have been in effect for many years and do not meet the requirements of present-day standard practice. Recommendation: That new and modern methods be inaugurated which are standard in most ports. This would greatly speed handling. Transfer of Freight 14. The present methods of loading goods ar,d utilizing equipment, particularly in the movement of freight from the classification section to the point of delivery and storage, are inadequate and slow the move- ment. Recommendation: That (1) freight be moved by tractors and trailers; (2) that shorter routes be provided; (3) that a cement or asphalt pave- ment be provided; and (4) that the railroad trackage serving the unpaved storage sheds be kept in service. "5- Equipment 15. Much of the present equipment has become obsolete and is generally in a worn-out condition. Recommendation: Part of the present equipment should be replaced with new and modern equipment as shown in the attached list. The remain- ing equipment should be repaired. Storage 16. The amount of freight that can be handled is limited by the present schedule of storage charges in the Customs warehouses and by the present methods of using the storage space. Freight is allowed to be stored for 30 days at the low charge of U.S. $0.60 per ton per month, which is generally an advantage to the consignee and encourages delay in removing goods from the Customs warehouses. Owing to a lack of lift- trucks, storage space is not being utilized fully because goods are not piled as high as they could be. Recommendation: That the allowable storage time be reduced and the present storage charges be increased to stimulate more rapid movement, and that lift-trucks be used for higher piling of the freight in the warehouses. Delivery of Freight to Trucks 17. At the present time, the driveway for the delivery of freight to consigneps is unpaved and in bad condition. There is no arrangement for the orderly and efficient movement of the freight from the storage points to the trucks. This results in damage to freight, delay, and un- satisfactory service. Recommendation: That a paved central location be provided with paved routes leading from this section to the different warehouses by the short- est feasible routes. This is a much needed improvement. YAnagement 18. The above reconendations would require a substantial admini- strative reorganization and radical changes in the present methods of hahdling freight. It is believed that if they are to be put into effect, it would be necessary to obtain the services of an experienced Technical Director. He should be supported by two assistants who are acquainted with the proper operation and maintenance of handling equipment and modern methods of handling freight. One of these assistants would be assigned to the outside operation of the waterfront and the other to storage. This would permit the Director to supervise and coordinate all phases of the work, inaugurate new methods, and arrange for an improved and more effi- cient port operation, including fuller utilization of floating equipment. - 6 - 19. Other factors which affect the movement of both import and export freight are: (1) the narrow channel and restricted area of the Port zone. The maximum capacity is restricted to twelve ships, and the turning basin is inadequate; (2) due to abrupt change in the tides, an insecure anchorage is afforded for the ships, and it is necessary to keep the ship's engines operating most of the time; (3) a large amount of debris is brought down the rivers into the harbor, particularly dur- ing the rainy season; this causes damage to lighters and lading, tied up alongside ships; (4) large ships cannot navigate the Guayas River upstream from Puna. 20. These factors cannot be overcome at reasonable cost and will eventually, as traffic grows beyond certain limits, necessitate the con- struction of a new port on the Estero Salado. In the meantime, the ship delays caused by inefficient cargo handling at the Customs wharf, the damages to freight moving across this wharf, and the poor quality of the present services, can and should be corrected by the improvements recom- mended above. 21. Although it is commonly assumed that the Customs operate the entire Port, this is only partially true. They do furnish a lighterage service and storage for import freight beyond the usual practice at other ports. However, export freight with few exceptions is delivered direct to the ships by private lighters. Although most of the imports are lightered to the Customswharf, some bulk imports are brought by ocean ships which dock alongside piers serving a few riverfront indus- trial plants such as a flour mill, a cement mill, and a brewery. The movement of ships is regulated and supervised by the Captain of the Port who is attached to the Ecuadorean Navy. 22. With the above proposed improvements and methods of operation, it should be possible to handle at least 450,000 tons a year. August 25, 1955 PROPOSED EQUIPMENT, BUILDINGS _EPVING AND INPROVEMENTS (Including Estimated Cost) PRESENT ADUANAS, GUAIAQUIL Items 1LS/. 3 Movable Cranes - 9-ton cap. (Rubber tires) 51,000 1 Tractor (Latel) )heavy 7,500 2 Platform trailers - Pneumatic tires)loads 17,000 100 Hand Trucks - Hard rubber tires 2,000 8 Tractors (Huskie) - Pneumatic tires 22,000 80 Trailers (Mercury) - Hard rubber tires 12,500' 8 Fork Lift-Trucks (Slinger) - Cushion tires 6000# Op. 84" Lift 52,000 1 Platform Scale - Cap. 24 tons 6,000 1 Tugboat (Diesel) - 200 HP 37o500 10 Lighters - 100 Ton 180,000 320,000 2 Lighters - 100 Ton - Flat-top 45,000 60,000 560 Pallets (Airplane type) 75,000 60 Tarpaulins (59'4" x 2614?) 15,000 2 Patrol Launches 66,000 Miscellaneous and Spare Parts 76,500 Equipment total 6.000 455:000 1 Open Type Bldg. 60' x 120' 80,000 1 Open Type Bldg. 40 x 180' 65,000 Roofing material for above buildings 1,500 15,000 Concrete and cement pavement for Tractor- trailers operations and trucks 119,329 Repairs to present concrete floor (Dock) ) Asphalt (2") 11 " " ) _ 113 500 - JQxQ Buildings and Pavement Total 15x000 6893329 GRAND TOTAL 6151000 1.14 3 The type of equipment shown is that recommended by the Customs officers and the cost based on quotations received, by Customs, from bidders on a suppliers' credit basis.