Port Centric Logistics as a concept in

supply chain management In commerce, supply chain management (SCM) is the management of the flow of goods and services including all processes that transform raw materials into final products between businesses and locations. This can include the movement and stor ...

has developed since around the turn of the millennium.

Multimodal transport Multimodal transport (also known as combined transport) is the transportation of goods under a single contract, but performed with at least two different modes of transport; the carrier is liable (in a legal sense) for the entire carriage, even th ...

driven container logistics operations typically utilise ocean-going vessels for long-distance movements, with inland movements undertaken by

barge Barge nowadays generally refers to a flat-bottomed inland waterway vessel which does not have its own means of mechanical propulsion. The first modern barges were pulled by tugs, but nowadays most are pushed by pusher boats, or other vessels ...

, rail or truck. Conventionally the container is unloaded from the ship at the port and transported to an inland destination by

intermodal freight transport Intermodal freight transport involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transportation (e.g., rail, ship, aircraft, and truck), without any handling of the freight itself when changing ...

. In the port centric approach, the container is unloaded (or "unstuffed") at the port and its contents are then transported inland e.g. as palletised freight.Port Centric Logistics definition

Logistics Optimization

The port centric approach is not appropriate for all

supply chains In commerce, a supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products to customers through a distribution system. It refers to the network of organizations, people, activ ...

, but due to the complexities of modern logistics networks it can be difficult to quantify the benefits for each case. Operationally, port centric logistics offers significant benefits but also presents a number of planning and management issues which need to be overcome. For example, increased storage of goods, and corresponding handling activity could lead to increased congestion around the port. On the other hand, the greater flexibility for distributing the goods in (e.g.) palletised form can lead to savings in the relatively costly inland transport section of the supply chain.

References

{{reflist Freight transport