Study on impact of port disruptions : analysis on Japan

• Main Author: Oh, Benjamin Chee Pang
• Other Authors: Lam Siu Lee
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Engineering::Maritime studies::Maritime management and business
• Online Access: http://hdl.handle.net/10356/50994
• Institution: Nanyang Technological University

The extent of impact brought about by port disruptions is extensive and far-reaching, affecting port operators and stakeholders in the supply chain. The reasons for the extensive impacts of port disruptions are due to the changing role of ports and the increased vulnerability of modern supply chains. Due to the high damages, it is imperative to look into the area of port disruptions and the impacts they bring about. This paper aims to identify disruptive events, with higher occurrence probability and larger consequences, with reference to Japan ports and its related supply chain, with a focus on natural hazards. This paper will cover: (i) Occurrence probability of natural hazards in Japan. (ii) Quantification of short-term impact on Japan ports. (iii) Occurrence pattern of natural hazards in Japan (iv) Impact on supply chain due to port disruptions arising from natural hazards in Japan. Results revealed that typhoons and seismic activities are the 2 most probable natural hazards that might lead to port disruptions in Japan, with occurrence probability of 44.8% and 22.8% respectively. The short-term direct damages on Japan’s ports due to the typhoons and seismic activities were quantified using parameters such as percentage of Specially Designated Ports affects, port downtime and direct damages to ports. Seismic activities and typhoons caused an average of ¥197.401 billion yen (US$2.474 billion) and ¥27.11 billion yen (US$339.90 million) worth of direct damages to port per event occurrence. Using historical occurrence from 1900 – June 2012, this paper identified that the Hokkaido Prefecture and the Nagano Prefecture were the most affected by seismic activities and typhoons respectively. Drawing reference from the historical occurrence, this paper concluded the Port of Muroran, Port of Tomakomai, Port of Sendai-Shiogama and Port of Tokyo to be the most susceptible Specially Designated Ports to seismic activities, whereas Port of Tokyo is the most susceptible Specially Designated Ports to typhoons. In addition, this paper has identified the impacts on supply chain stakeholders due to Japan ports disruption, arising from the seismic activities and typhoons. With reference to the impacts discussed, mitigation measures to build up resilience in terminals operations against natural hazards, and building of resilience in supply chains involving Japan’s ports, were proposed. % This paper seeks to benefit Japan’s port operators, as well as stakeholders belonging to the supply chain involving Japanese ports. They will be able to gain a better understanding on the impacts of seismic activities and typhoons have on their businesses, thus will be able to make better decisions to mitigate these impacts.