RECOMMENDATIONS TO IMPROVE WAREHOUSE OPERATIONS IN QUANG NINH PORT JOINT STOCK COMPANY

MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: VU THI LUONG

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATIONS TO IMPROVE WAREHOUSE
OPERATIONS IN QUANG NINH PORT JOINT STOCK
COMPANY

HAI PHONG – 2015


MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: VU THI LUONG
CLASS:

GMA 02

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATIONS TO IMPROVE WAREHOUSE
OPERATIONS IN QUANG NINH PORT JOINT STOCK
COMPANY
Supervisor:

Hoang Thi Lich

Division

:

Global Studies and Maritime Affairs

Faculty

:

Economics

HAI PHONG – 2015


Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company

PREFACE
Because of globalization trend of economy, Viet Nam has had significant improvement
to integrate into general development of world economy. Trading and commercial
activities among states is more and more developing, this leads to high demand of
cargo transportation, therein port plays an important role. Ports are considered as

“connecting bridge” motivating economic exchange. Especially, since Viet Nam
implemented reform policies, port system in Viet Nam has expanded and upgraded to
satisfy demands of domestic and abroad cargo transportation.
The economic development of the country and around the world requires the exchange
of trade and commerce between countries and regions. Therefore, export and import
operations are increasingly improved leading to the speed of cargo throughput also
increases. However, cargo cannot always be adapted to go straight all the time.
Consequently, the appearance of storage services to store merchandise is really
necessary. That set off for now the question as: how is warehouse operation and how to
improve warehouse operations. These questions will be addressed according to the
specific characteristics of the business, from which each business sets the direction and
development goals are different. To do this, the company provides warehousing
services need to measure innovation, enhancements to improve warehouse operations.
Therefore, I chose the topic “Suggestions to improve warehouse operations in
Quang Ninh Port Joint Stock Company”.
I choose this topic because recently Vietnam is increasingly becoming a country, which
import a great volume of bulk cargoes like agricultural products and fertilizers, which
need to be stored if it cannot go straight. Therefore, warehouse operation activities play
an indispensable role in the efficiency of port operation. In this report, I will describe
the whole results of this study trip, reality that I see and some information as well as
some solutions I recommend to deal with some problems of warehouse operation in
Quang Ninh Port Joint Stock Company.

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Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company

The main contents of the dissertation consist of three main parts:

Chapter I: Literature overview
Chapter II: Evaluation warehouse operations in Quang Ninh Port Joint Stock
Company
Chapter III: Recommendations for a number of measures to improve warehouse
operations in Quang Ninh Port Joint Stock Company

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ACKNOWLEGEMENT

Although I have tried to learn and study documents in the fields of topic, but the
dissertation are inevitable shortcomings. Therefore, I would like to receive comments,
complement, and repair from the lecturers.
In particular, I would like to thank the lecturer Ms. Hoang Thi Lich, who guided me all
the time of research and writing of this thesis and the staffs in Quang Ninh Port Joint
Stock Company helped me to complete the dissertation.
I declare that this report is my own unaided work. It has not been submitted
before. If violated, I am solely responsible for and bear the punishments of the
Institution and University.

Student Name and Signature

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Table of Contents
PREFACE................................................................................................................................................................................ i
ACKNOWLEGEMENT...................................................................................................................................................... iii
Table of Contents.............................................................................................................................................................. iv
LIST OF ABBREVIATIONS.............................................................................................................................................. v
INTRODUCTION................................................................................................................................................................. 1
CHAPTER 1: LITERATURE OVERVIEW..................................................................................................................... 2
1.1. General information of warehouse................................................................................................................ 3

1.1.1. The definition of warehouse and warehouse operation..............................3
1.1.2. Justification for selection of warehouse capacity......................................4
1.1.3. Warehouse classification...........................................................................4
1.1.3.1. Warehouse classification based on ownership........................................................................4
Private warehouses are constructed and owned by the business enterprises in order to store the
products produced by them. These are exclusively owned and used by the producers themselves
and are not meant for other manufacturing or business units. (Kyle Lau, 2011)...................................4
1.1.3.2. Warehouse classification based on items................................................................................... 5
1.1.3.3. Warehouse classification based on architecture.....................................................................6
1.1.3.4. Main warehouse services.................................................................................................................. 6
1.2. The indicators to evaluate warehouse operations................................................................................... 7
The purpose of measurement the ability of operation is to find out whether things are
going the right way or not in order to find out what were the causes that created a poor
operation. Basing on that, people could found solutions for improving operational ability.
The main tools for evaluating operational ability are operational indicators, also named
key operational indicators. They are specific characteristics of the process is realized
according to pre-established standards. The best way to use indicators is to compare real
values with standard values. If there are poor results, poor operational ability, in reality,
improvements for the process have to be made...................................................................................... 7

1.2.1. Safety:.......................................................................................................7
1.2.2. Dwell Time:................................................................................................................................................ 8
1.2.3. Storage Space:........................................................................................................................................... 8
1.2.4. Cargo preservation.................................................................................................................................. 8
1.2.5. The area utilization................................................................................................................................. 9
CHAPTER 2: EVALUATION OF WAREHOUSE OPERATION IN QUANG NINH PORT JOINT STOCK
COMPAY.............................................................................................................................................................................. 10
2.1. Overview of Quang Ninh Port Joint Stock Company.............................................................................10

2.1.1 General information.................................................................................10
2.2. Evaluation of warehouse operations in Quang Ninh Port JSC...........................................................18
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2.2.1. General information of warehouses and yards of Quang Ninh Port JSC. 18
2.2.1.1. Types of warehouse and yards..................................................................................................... 18
2.2.1.2. Warehouse of dry bulk cargo........................................................................................................ 19
2.2.2.2. Dwell time............................................................................................................................................. 23
2.2.2.3. Storage Space...................................................................................................................................... 29
CHAPTER 3: RECOMMENDATIONS TO IMPROVE WAREHOUSE OPERATIONS IN QUANG NINH
PORT JOINT STOCK COMPANY.................................................................................................................................. 33
3.1 Strengths and Weaknesses.............................................................................................................................. 33

3.1.1. Strengths..................................................................................................33
3.1.2. Weaknesses..............................................................................................35
3.2. Recommendations............................................................................................................................................. 36

CONCLUSION.................................................................................................................................................................... 38
References......................................................................................................................................................................... 40

LIST OF ABBREVIATIONS
JSC

JOINT STOCK COMPANY

ISO

INTERNATIONAL ORGANIZATION FOR STANDARDISATION

CFS CONTAINER FREIGHT STATION
H

HEIHGT

W

WIDE

L

LENGTH

CV

CHEVAL VAPEUR

IPO

INITIAL PUBLIC OFFERING

ES

ELECTRIC SCALE

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LIST OF TABLES
TABLE 1: Business Status (2013 – 2014) ..................................................................14
TABLE 2: Business Results in the First Six Months in 2015......................................15
TABLE 3: Cargo Throughput and Revenue of Warehouse Operations (2013 – 2014 and
the First Nine Months in 2015) ..................................................................................19
TABLE 4: Summary Cargo Throughput of Warehouse in the First Nine Months in 2014
.................................................................................................................................... 21
TABLE 5: The Input, Output and Inventory for Each Months (2014) .......................23
TABLE 6: Summary Cargo Throughput of Warehouse in the First Nine Months in 2015
.................................................................................................................................... 24
TABLE 7: The Input, Output and Inventory for Each Months (2015) .......................26
TABLE 8: Maximum Capacity Utilization of Warehouse in the First Nine Months in
2014 - 2015................................................................................................................. 27
TABLE 9: Maximum Area Utilization of Warehouse in the First Nine Months in 2014 2015............................................................................................................................ 29

LIST OF CHARTS
CHART 1: The Volume of Cargo Throughput in Warehouses ……………………. 20

CHART 2: The Changes of Input, Output and Inventory (2014) …..………….….. 23
CHART 3: The Changes of Input, Output and Inventory (2014) …..…………….... 26
CHART 4: Real Cargo Loss (2014) ………………………………………………... 28
CHART 5: Real Cargo Loss (2015)………………………………………………… 28

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Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company

INTRODUCTION
1. Necessity
Vietnam is a developing country with high development speed. International economy
and finance organizations offered evaluation and positive forecast about economic
development of country in near future. Along with the economy development and
integration is the increase of logistics business sector. Logistics is a new field in
Vietnam in recent years, especially in the period of opened market, while import and
export activities is pushing up, logistics activities play a pivotal role creating suitable
conditions for Vietnam’s enterprises joining in international market. The development
of logistics services ensure produced operation, ensuring the time and the quality of
other business services. Logistics develop considerably would bring the ability of
reduce cost, improve the quality of products. This is an action meaning as a chain, the
efficiency of this activity plays an important role for the competition of industry and
commerce of each country. Therefore, with the extremely important position in the
whole chain of logistics services, warehousing are contributing in huge part to revenues
and profits as well as the development of logistics. Without warehouses, logistic
activities cannot take place effectively. It not only plays an important role for the
business but also plays a pivotal role for partner, organizations, national economy by
saving the cost of production, preservation and storage, transport costs. In other words,

warehouses contribute to increase the value of goods, increase service quality, meeting
customer needs. However, reality shows that this activity in our country is relatively
backward and inefficient. Thus, how to improve warehouse operations, the matter that
both business providing services and clients concerned. In order to better understand
the situation of warehouse activities of businesses providing storage services, I want to
mention directly to a particular company, such as Quang Ninh Joint Stock Company.
2. Research Purposes
First and foremost, this dissertation contributes to supplement the logistics knowledge
in general and specific warehouse operation insight in particular. Based on the
relationship with logistics system in logistics enterprises, this dissertation would like to
provide the specific theories of warehouse operation. Along with this, theoretical
knowledge will be applied in to real situations in order to solve troubles. This
dissertation focuses on the situation of warehouse operation of Quang Ninh Port Joint
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Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company

Stock Company in order to understand specifically about logistics activities of a
particular company. Additionally, this dissertation contributes to recommend a handful
of solutions to improve warehouse operations in particular and the business situation of
the company in general.
3. Research Object
Research object is dry bulk cargo warehouse in Quang Ninh Port Joint Stock Company
– where provides storage service
4. Research Scope
- Space: Logistics and Warehousing Enterprise – Quang Ninh Port Joint Stock
Company
- Time: the first nine months of 2014 and 2015

5. Methodology
To achieve this goal, in implementation process topic, I have used three main methods,
including:
 Secondary data collection
To evaluate the company’s business, I refer to data from the company and the Website
of Quang Ninh Port SJC, including the final report, financial statements, and reports of
personnel through the year of the company.
 Statistical analysis
Data analysis is based on comparative method which is commonly used, we can
compare the situation of business activities of the company over the years and
compares revenue, cargo volume, the total revenue or profit of the company over the
years.
 Observation
In the period of internship in Quang Ninh Port JSC, I used this method in order to
observe facilities as well as equipment which company has being utilized and working
manner of employees.

CHAPTER 1: LITERATURE OVERVIEW

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1.1. General information of warehouse
1.1.1. The definition of warehouse and warehouse operation
A warehouse is a commercial building for storage of goods. Warehouses are usually
large plain buildings locating in industrial areas of cities, towns and villages and used
by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.

They usually have loading docks to load and unload goods from trucks. Sometimes
warehouses are also designed for the loading and discharging of goods directly from
railways, seaports or airports. They often use equipment like cranes and forklifts for
moving goods, which are usually placed on ISO standard pallets loaded into pallet
racks. Stored goods can include any raw materials, packing materials, spare parts,
components, or finished goods associated with agriculture, manufacturing and
production. ( PhD. Nguyen Van Son & Master. Le Thi Nguyen)
A warehouse provides a central location for receiving, storing and distributing
products. When each import or export shipment arrives, responsibility for the goods
which is transferred to warehouse, cargoes are identified, sorted and dispatched to their
temporary storage location. Storage isn’t a static “thing” but rather a process that
includes measures of security and maintaining a preservation environment that ensures
the integrity and usefulness of the categories. When each item should be select and
move, each order is retrieved, grouped, packaged and checked for completeness before
being dispatched to their new destination. ( PhD. Nguyen Van Son & Master. Le Thi Nguyen)
In the other word, “warehousing” is the storage of goods until they are needed to
dispatch to customers. The purpose of warehouse operations is to satisfy the customers’
needs and requirements while using facilities, equipment and labor effectively. The
goods must be preserved and protected to ensure the quantity as well as quality of
cargoes. In order to meet this goal, company requires creating constant planning and
ongoing change. An effective warehouse operation must include all the equipment
which is needed for providing timely and accuracy shipping, receiving and perpetual
inventory control. (Swift technologies – Warehouse operation)
Warehouse operations and activity fall into the following activities:
-

Goods in or receiving: assessing when goods will actually be arriving and taking
action to scheduled receipts can help to improve the workload scheduling.

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Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company

-

-

Put away into the storage area: space utilization can be negatively impacted as
space is available and the location is determined by predetermined algorithms.
Order selection and picking/ packing: picking is often a large cause of customer
complaints due to wrong products being picked and dispatched to customers. A
1% pick error may however easily equate to a 20% or more increase in cost due
to having to make returns, replacements, as these all need more physical
movement and extra time to correct the mistake.
Goods outward or despatch: dispatching is a reflection of the goods receipt/
receiving area including establish the correct loading area, ensure that it is safe
and suitable for the operation; ensure that the vehicle is safe before loading;
obtain the driver’s signature.

1.1.2. Justification for selection of warehouse capacity
- If selecting warehouse capacity according to cargo volume, it means that warehouse
capacity (WC) is equal cargo volumes (CV), this will cause cargo congestion in
warehouse in the period of maximum cargo coming to the port. This was overcome by
setting up a temporary warehouse. Otherwise handling equipment must stop. ( PhD.
Nguyen Van Son & Master. Le Thi Nguyen)

- If selecting warehouse capacity according to cargo throughput of port, it means that
warehouse capacity is equal cargo volume through the wharf (CW), leading to waste

due to much excess empty capacity of the warehouse in these days when not much
cargo through the port. ( PhD. Nguyen Van Son & Master. Le Thi Nguyen)
Stemming from these arguments we should choose warehouse capacity in the
calculation of the limit: CV ≤ WC ≤ CW ( PhD. Nguyen Van Son & Master. Le Thi Nguyen)
1.1.3. Warehouse classification
1.1.3.1. Warehouse classification based on ownership
Private warehouses are constructed and owned by the business enterprises in order to
store the products produced by them. These are exclusively owned and used by the
producers themselves and are not meant for other manufacturing or business units.
(Kyle Lau, 2011)

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Public warehouses are open for public at large. Most of the business organizations,
especially small and medium scale, can’t afford to have their own warehouses on
account of large financial investment in their construction and maintenance. Public
warehouses are very useful to businessmen. These warehouses are usually situated near
railway lines or main roads, so as to provide quick transportation services. (Kyle Lau,
2011)

Bonded warehouses are used for imported goods which are not granted clearance on
account of non-payment of custom duty by the importer of these goods. Such
warehouses are situated near the ports. Goods can’t be removed from these warehouses
until the custom duties are paid. Bonded warehouses may be run by the government or
private agencies (when granted licenses to operate such warehouses). In both the cases
there is a strict control and supervision imposed by custom authorities on their

operation and functioning. (Kyle Lau, 2011)
A contract warehouse, as a third type of warehouse ownership classification, has the
attributes of both private and public warehouses. A contract warehouse can also be
understood as a customized extension of a public warehouse, which is a long-term
business arrangement to provide specific and customized logistic services to the
customers. (Kyle Lau, 2011)
1.1.3.2. Warehouse classification based on items
Special commodity warehouses: these warehouses are constituted for storing a
particular type of commodity, e.g., tobacco, cotton, wheat etc. Nature of commodity is
important in selecting the type of warehouse. For storing petrol, storage tanks are
needed and for storing agricultural products, warehouses are needed. ( PhD. Nguyen Van
Son & Master. Le Thi Nguyen)

Cold storage or refrigerated warehouses: these are the warehouses which are used for
storing perishable commodities like eggs, butter, fruits, vegetables, fish, fresh meat etc.
Goods stored in cold storages can be held for longer time. In fact, cold storages have
made possible the regular supply of certain commodities throughout the year. ( PhD.
Nguyen Van Son & Master. Le Thi Nguyen)

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1.1.3.3. Warehouse classification based on architecture
Closed warehouse are capable of producing closed storage environment, proactively
maintain preservation mode, less affected by the external environment parameters.
( PhD. Nguyen Van Son & Master. Le Thi Nguyen)

Semi – closed warehouse can only cover rain and sun for goods, without the structure
of wall separating the environment of outside warehouse. ( PhD. Nguyen Van Son & Master.
Le Thi Nguyen)

Opencast warehouse (yard of goods) just concentrates reserve goods which is less or
not affected by changes of weather. ( PhD. Nguyen Van Son & Master. Le Thi Nguyen)
1.1.3.4. Main warehouse services
- Warehouse renting service
- Delivery service, transportation and distribution of goods
- Store and preserve goods service
- Packaging and labeling service
- Cargo tallying service
- Stevedoring service
- Warehouse management service

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1.2. The indicators to evaluate warehouse operations
The purpose of measurement the ability of operation is to find out whether things are
going the right way or not in order to find out what were the causes that
created a poor operation. Basing on that, people could found solutions for
improving operational ability. The main tools for evaluating operational ability
are operational indicators, also named key operational indicators. They are
specific characteristics of the process is realized according to pre-established
standards. The best way to use indicators is to compare real values with
standard values. If there are poor results, poor operational ability, in reality,

improvements for the process have to be made.
According to the Occupational Safety & Health Administration, warehouse safety is
kept a priority in the warehouse operations. White Settlement shows that Warehouse
operations are by definition behind the scenes but the safety practices of all personnel
must be at the forefront of all actions.
The indicators that Colson and Dorigo (2014) used to choose a warehouse are storage
surface and volume; dangerous items; possibility for temperature control; separation of
storage areas; geographical distance to highway connection, train, waterways;
certification; opening hours; assistance with customs; use of technology; handling
equipment; number and characteristics of docks etc.
The indicators that Krauth (2005) used for assessing warehouse operations are storage
surface, storage volume, storage racks, number and characteristics of docks, pallets per
hour, pallet per square meter, opening hours, dwell time and assistance with customs.
The purpose of these indicators mentioned above is to identify the ability of warehouse
operations. Some key indicators presented below are used around the world to measure
warehouse operations:
1.2.1. Safety:
Warehouse structure must ensure conformity with the characteristics of the cargo
stored in warehouse. Based on the character of dry bulk cargoes, business should install
the equipment such as ventilation, temperature and humidity control, lightning

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Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company

protection, antistatic, guarantee meets the requirements for safety of warehouse.
(Vietnam Standard 48 -1996).

1.2.2. Dwell Time:
Dwell Time is the time that the cargo stays in the port (yard/ shed/ CFS/ warehouse…).
It allows determining the frequency of cargo through warehouse. (Dr. Nguyen Thanh Thuy,
2015)

1.2.3. Storage Space:
Storage space utilization refers to the average amount of warehouse, or storage,
capacity used over a specific amount of time. Storage space utilization can help
managers assess whether they should change the layout and size of the storage area and
identify obsolete products that should be removed. This formula can also be used to
determine if material flow should increase or decrease. However, it is important to
recognize that warehouses are not necessarily optimized if at maximum capacity. Some
studies suggest that a warehouse capacity of 80-85 percent is optimal because that
allows warehouse managers to respond to shifts in demand in a more feasible manner.
(Jesper Lilelund, 2015)

Ratio of storage space =
Note: 1 ton bulk cargo = 1.36 m3 (German marine insurers)
1.2.4. Cargo preservation
The number of cargo loss in warehouse may be caused by various factors, specifically
dry bulk cargo requires particular temperature, humidity/moisture and ventilation
conditions (storage climate conditions). Favorable temperature ranges between 20°C
and 30°C. In addition, at temperatures > 25°C, metabolic processes increase, leading to
increased CO2 production and self-heating of the dry bulk cargo (German marine insurers).
Good which during storage, must not exceed a maximum temperature or fall below a
minimum temperature and/or which are sensitive to temperature variations.

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Besides that, human factor is also a reason of cargo loss. Cargo theft is an international
problem affecting to warehouse operations. Cargo can be stolen in the period of
storing, compromising product integrity and availability. ( Jared S.Palmer, 2010)
This index represents the degree to preserve quality and quantity of the goods stored in
the warehouse. Based on the properties and storage conditions they calculate the real
loss of the goods:
Real loss of the goods =
1.2.5. The area utilization
Frazelle (2002) suggests that the optimum level of warehouse utilization, depending on
the type of operation is a maximum from 86% to 90% for real time, dynamic
operations. Beyond these levels productivity levels tend to decrease and safety
becomes an issue. A figure of 100% is not good practice.
Ratio of area utilization =

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Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company

CHAPTER 2: EVALUATION OF WAREHOUSE OPERATION
IN QUANG NINH PORT JOINT STOCK COMPAY
2.1. Overview of Quang Ninh Port Joint Stock Company
2.1.1 General information
Quang Ninh Port was established under decision no: 2226 in August, 29, 1977 of the
Navy Commander. 30th, August 2007, Quang Ninh Port changed into Quang Ninh Port
Limited Liability Company according to decision no: 2681/ Decisions – Ministry of

Transport. On 18th April, 2014, General Maritime Corporation Vietnam issued Decision
152 approving the plan and transfer Quang Ninh Port Limited Company into Quang
Ninh Port Join Stock Company, with 619 shareholder, the total number of employees
are 899, the structure of the charter capital of 500 billion VND. In which, the state
holds over 490 billion, accounting for 98.2% of share, sold to officers and employees
of over 7 billion, accounting for 1.41%; sold to trade unions nearly 757 million,
making up 0.15%; share IPO auction on 2 billion, accounting for 0.41%. On 27 th
March, 2015, pursuant to Decision No. 1047 / Decisions – Ministry of Transport all
shares of Corporation Maritime Vietnam is holding at JSC Quang Ninh port is
transferred to the T & T Group.

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Quang Ninh Port Joint Stock Company is located in the north of Vietnam, be shortest
distance by road and rail to Southwest China markets where with a population of over
100 million people. It is about 90 km from Quang Ninh Port to Bac Ninh and 150 km
to Noi Bai, Quang Ninh Port is the nearest terminal in the North of Vietnam to the
above locations. With the strategic location of Quang Ninh Port and the advantage of a
deep sea port, Quang Ninh Port can receive vessels with a carrying capacity of 55.000
DWT, unlimited water line and therefore can provide high quality carrier services, low
cost and productivity frees ship quickly. Beside that Quang Ninh Port located along the
highway system, be near Yen Vien –Pha Lai –Cai Lan rail route. Moreover connecting
inland waterways via inland waterways network connect to Mong Cai, Hai Phong,
Hanoi and Viet Tri and road connections via Highway 18, 10, Noi Bai – Ha Long
Expressway and Mong Cai Expressway (in the future). Facilitate to transfer and cost
savings.

CONTACT
+ Address: No 1 Cai Lan Street – Ha Long City – Quang Ninh Province
+ Phone: (+ 84) 33.3625 889 – 3640 644 – 385 627
+ Fax: (+ 84) 33.3826118 – 3640 644
+ Email: –
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Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company

+ Website: www.quangninhport.com.vn
2.1.2. Business lines
- Loading and unloading of goods
- Mechanical processing, handling and coating of metals
- Repair of machinery
- Warehousing and storage of goods
- Transportation of goods by road
- Transportation of goods by inland waterways
- Direct services for inland waterway transport
- Short-stay services
- Activities of other support services related to transportation
2.1.3. Company structure
General Meeting of
Shareholders

Board of
Managers

Control Board

Board of Directors

Labor
Organization –
Wages
Department

Technology
Supply
Department

General
Administration
Department

Finance and
Accounting
Department

Environment and
Infrastructure
Management
Department

Halong
Cai Lan
Loading and
Loading and
Unloading

Unloading
Vu Thi Luong
–
GMA
02
enterprise
enterprise

Logistics and
Warehousing
Enterprise

Security
Department

Mechanical
Repairs
Enterprise

Planning
Department

Port
Operation
Center

Technical
Workers
Department
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Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company

2.1.4 Facilities and Equipment
2.1.4.1. Facilities
- The total area of warehouse: 9.200 m2 including 02 warehouses
- The total area of yard: 142.000 m2 including 49.000 m2 of container yard and
93.000 m2 of other yards
- The depth of channel:
+ 10 meters at low tide (Hon Mot to Cai Lan)
+ From -13 meters to -20 meters at low tide (Float No.1 to Hon Mot)
- Depth at berth:
+ Berth 1: -9 meters _ maximum capacity of vessel: 25.000 DWT _
wharf length: 166 meters
+ Berth 5, 6, 7: -12 meters_ Maximum capacity of vessel: 40.000
DWT – 45.000 DWT_ wharf length: 680 meters
2.1.4.2. Equipment
No

Equipment

Quantity

Description

Front- Line
1

Gantry Cranes

02

2

01
01

Loading capacity 100 tons

4

Mobile 13arbor crane LHM
250
Mobile 13arbor crane LHM
1300
Liebherr rail mounted crane

Loading capacity 40 tons at 37
meters radius, hosit height 31
meters
Loading capacity 64 tons

02

40 T

5

Rail mounted crane

02

10 T

6

Mobile crane

03

14 T

7

Mobile crane

02

25 T

3

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8

Mobile crane

01

36 T

9

Mobile crane

01

50 T

10

Reach Stacker

01

40 T

No

Equipment

Quantity

Description

Rear – Line
1

Rubber tyred gantry crane

04

Lifting capacity 50T

2

Forklift

30

3

Trailer

13

Lifting capacity: from 1.5T to 10 T
with stripping
Transport goods from wharf to
warehouse and vice versa

4

Weighbridge

05

5

Bulldozer

09

6

Grab, orange peel grab

70

7

Wheel loader

06

8

Wheel loader

07

Service type purge, the hatches
trimmed

9

Empty container forklift

02

Loading capacity: 07 ton per piece,
5 level in height

10

Tugboat

02

Power 1.200 CV to 3.200 CV

11

Hopper

05

Volume: 10 m3/each hopper

12

Container terminal
management system

01

Software control ships container,
loading goods, online report,
billing.

Capacity 56T to 80T
Volume: 1.25 m3 to 25 m3

2.1.5.Personnel
Total number of employment (2015): 974
No

Criterion

I
1

According to labor skills
University degree and postgraduate

Quantity
(people)
974
217

Vu Thi Luong – GMA 02
Page 14

Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company

2
3
4
II
1
2
3
4
III
1
2
IV
1
2
3
4

College and intermediate
Technical workers
Workers unloading manually and other Labor
According to the labor contract
Labor without labor contract
The labor contract with indefinite term
Labor contracts with a term of 12 -36 months
Labor contracts under 12 months
By gender
Male
Female

By age
From 18 – 30 years old
From 31 – 40 years old
From 41 – 50 years old
Over 50 years old

141
365
251
974
7
793
170
4
974
849
125
974
305
379
166
124

2.1.6. Business status
Table 1: Business results (2013-2014)
Comparison
(%)
No

Norms

Total
1 throughput

Unit

2013

%

2014

%

2014/2013

Tons

6,305,659 100,0

7,013,500 100,0

111.2254881

1.1 Export

Tons

3,871,302

61.39409

3,509,710

50.042

90.65967987

1.2 Import
Domestic
1.3 export
Domestic
1.4 import
Total
2 revenue

Tons

1,279,387

20.28951

2,241,492

31.96

175.2004671

Tons

448,205

7.10798

716,931

10.222

159.9560469

Tons

706,765

11.20842

545,367

7.776

77.16383805

VND

236,699,074,129 100,0

262,744,276,137 100,0

111.0035082

3 Total cost

VND

224,856,376,012 100,0

247,801,435,329 100,0

110.2043179

4 Profit

VND

11,842,698,117 100,0
14,942,840,808 100,0
126.1776722
(Source: Logistics and Warehousing Enterprise, QNP JSC)

Overall, the business situation of the company within two years had many changes,
both the positives and limitations. However, when considering the indicators, I found
that the company is operating under positive direction as revenue as well as profit year
on year increased.
Vu Thi Luong – GMA 02
Page 15


Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company

In terms of total output, total cargo throughput increased but each item is not
increasing, especially with the decline in export cargo approximately 9.4%. Regarding

to the revenue, it had decreased significantly in the period of 2013 and 2014 and the
revenue mainly comes from the following sources: port services, freight scales,
weighing stations, container yards, warehouse service, and all kinds of other goods and
services.
As for the total cost, it increased from 224,856,376,012 VND (2013) to
247,801,435,329 VND (2014). The cause of the cost increase can be explained by
some reason, the equipment is relatively out of date, so there production is not enough
efficient as being new ones. Besides, salary costs have increased due to increased base
salaries of government’s policy.
It can be clearly seen that although the cost increased, the profit still went up by nearly
26% because a significant rise of revenue from 2013 to 2014.
Table 2: Business results in the first six months in 2015
Comparison (%)
Unit

Target of the
first six months

Cargo
1 throughput

Tons

3,252,820

1,055,106

2 Revenue

VND

120,315,670,000

3 Cost

VND

4 Profit

VND

No

Norms

II/I

(II+I)/
Target

1,624,506

153.97

82.37812114

43,669,102,304

57,560,790,105

131.81

84.13691451

110,425,085,700

40,305,154,769

55,069,810,225

136.63

86.3707412

9,890,584,300

3,363,947,535

2,490,979,880

74.049

59.19698207

Quarter I

Quarter II

(Source: Logistics and Warehousing Enterprise, QNP JSC)
The implementation of company’s targets in the first two quarters of 2015 have many

points to note, notable of which is the increase of costs and losses in the first quarter.
According to the data observed from the table above, output increased each quarter,
with growth of the second quarter increased 53% compared to the output of the first
quarter. However, when comparing the results of two quarter with the target of the first
six months, the company has just achieved 82.4 % compared to the plan.

Vu Thi Luong – GMA 02
Page 16


Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company

Revenue of enterprise have positive signs when realizing its upward trend in the first
two quarters, the second quarter rose nearly 32% with the previous quarter; but
compared to the targets setting out, the company’s implementation was just 84.14%.
With the same trends, the cost in the first two quarters follows an increasing trend, with
growth of 37% when compared the second quarter to the first quarter, and achieved
86.37% considering the yearly target.
In contrast, profit of the company’s has experienced a big difference in the first two
quarters; the second quarter decreased nearly 26% compared to the previous quarter
and the result of both quarter achieved approximately 59.2% compared to the plan. We
can clearly see that in the first six months in 2015, revenue of company followed an
upward trend but profit still went down due to a rise of cost for repairs, improve
infrastructure and so on.
2.1.7. Future development
In the near future, the company focus in investing infrastructure, enhancing
management measures, improving cargo handling capacity, expanding marketing
activities and reforming administrative procedures, do not let the transport enterprises
take time to wait. To attract vessels, improve the annual shipment, in addition to active
links, search partners of the port business, the State management agencies specialized

on sea ports in the province has stepped up administrative reform as prescribed.
Besides, focusing on developing marketing activities towards market depth in each
area, each client, maintaining and increasing market share of port operators, especially
warehousing services:
-

Investment in building 4,300 m2 of warehouse storage in berth 1 with 20 billion
VND
Investment in building executive office in berth 1 with 27 billion VND
Vehicles excluded sprocket (4 units) with 8 billion VND
Upgrading the control system gantry cranes with 11.3 billion VND
Invest China 95III Xiagong excavator (3 units) with nearly 4.4 billion VND
Investment in dump trucks (04 units) with more than 3.1 billion VND
Expand the berth 8, 9 for vessel up to 50,000 DWT with total investment capital of
about USD 300 million. Raise the capacity of Quang Ninh Port up to 17 million
tons per year for 2020.

Vu Thi Luong – GMA 02
Page 17