What is Hub Port? The benefits of Hub Port

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In this article, LEC Group experts will help you clarify what the Hub Port concept is. Stay tuned now!

What is Hub Port?

Hub Port is an area of ​​activity with the function of being a hub for goods transshipment and a gateway for economic and manufacturing sectors through the connection of inland transport systems and ship feeder systems.

Hub Port is built on a large scale. Included in it is a system of multiple wharves, shore cranes and rear cargo storage areas.

In Hub Port, the wharves are designed so that mother ships can be accommodated (mother ships are ships with a weight of over 80,000 - 100,000 DWT and a capacity of over 8,000 TEU). The mother ships will carry out the work of loading and unloading, then transport the ocean to other continents at Hub Port.

These jetties usually have a specification of about 400m in length. The draft depth is greater than 14m and the crane for loading and unloading onshore has a lifting capacity of over 40 tons, a reach of more than 40m.

The criteria constitute Hub Port

To better understand what is the Hub Port concept? Let's dive into the categories that make up Hub Port.

The basic criteria that makeup Hub Port include:

1. Location

In order to be able to build and constitute Hub Port, it is very important to select and locate the right location. So what position is considered appropriate for Hub Port.

These are the areas along the main shipping route and are surrounded by many large industrial zones. In addition, the port must also be located in areas with a deep water level, over 14m. When these requirements are met, the new port can accommodate mother ships with a tonnage of 100,000 DWT.

2. Free trade area

In addition to meeting the aforementioned location requirements, the Hub Port must establish free-trade zones. This will contribute to attracting cargo flows from surrounding countries to focus on Hub Port. That is the reason why the transit time is shortened, increasing the rotation of goods to the port.

3. Port charges

For Hub Port, the port rates, as well as the cost of handling services in the port area, must always be attractive, transparent and specific.

4. Additional utility services

In Hub Port, the following services are indispensable:

• Telecommunication services.

• Ship repair service.

• Providing water, fuel and crew members.

• Customs support at the port throughout the operation.

5. Capacity

Hub Port must be fully equipped with modern equipment to coordinate operations and subdivisions within the port reasonably. In addition, the application of information technology to the optimal management of port operations and container information stored on the yards.

The benefits of Hub Port

The construction and use of Hub Port will bring the following specific benefits:

1. Create the ability to take advantage of scale

Why using a Hub Port can create the ability to take advantage of scale. That is because when it is possible to maximize the size of ships between the two hubs. Meanwhile, it ensures no wastage of ship space when transporting goods to the surrounding small ports, because it has been replaced by a feeder.

2. Minimize the level of complexity

Without Hub Port, feeder ports must work directly with feeder ports on other continents. Now that there is a Hub Port, each feeder only exists for transactions with a few entrepot ports concentrated in each region.

3. Shorten the rotation time of goods, storage time of goods

In fact, without the Hub Port, freight transports directly to the destination port. At this time, the goods must remain on the beach until the goods on the transport route reach a sufficient quantity.

In contrast, Hub Port supports bulk and bulk cargo from hundreds of small feeder ports in the region. Thanks to that, the freight route will be quickly filled. Helps save time and cost of storage goods.

Currently, the main hub ports in the world are in the following countries: Singapore, Hong Kong, Shanghai, Long Beach, Rotterdam, ...

Above is all the information related to Hub Port by LEC Group experts. If you are looking for a company that provides port services, warehousing, transportation, ... with large scale and reasonable cost. Please contact us from today to get the best support!

LEC GROUP

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Add: No. 28 Thao Dien Street, Thao Dien ward, District 2, Ho Chi Minh City, Viet Nam.

Hotline: (+84) 909 800 136 & (+84) 901 388 136.

Email: info@lecvietnam.com & thao.nguyen@lecvietnam.com

Website: https://lecvietnam.com/

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