Abstract
Risk management provides an effective method for ensuring safety and preventing accidents towards achieving port sustainability. This article describes a study of the implementation of a risk management framework for handling of cargo at ports. To achieve the study’s objectives, data was collected using a questionnaire and disseminated to port experts at three major ports in Malaysia. The collected data were analyzed using the Statistical Package for the Social Sciences (SPSS) software and calculated using risk matrix calculations. Based on the calculations, for port A and port B, 42% of risk falls under risk category II and 58% under risk category III. Meanwhile, for Port C, 31% under risk category II and 69% under risk category III. Risk reduction measures should be implemented within a defined period of time (12 months). Additional risk control measures were proposed accordingly. The novelty of the study was an improvement of risk management framework. The risk management framework was proposed with an introduction of risk frequency into risk rating calculation, risk criteria parameter for risk likelihood and risk severity, new risk matrix dimension and instruments to evaluate the existing control measure factor and new risk categories with five levels which provide more details and sustainable risk assessment method.
Highlights
In Malaysia, seaports are an important component of the maritime and trade industry which have led to the tremendous growth of ports and shipping activities
The main contribution of this research is the development of risk management frameworks for the handling and storage of cargo with enhanced risk assessment methods to improve the risk management framework
The risk management framework was proposed with an introduction of risk frequency into risk rating calculations, risk criteria parameters for risk likelihood and risk severity, new risk matrix dimensions and instruments to evaluate the existing control measure factors and new risk categories with five levels which provide more details and a sustainable risk assessment method
Summary
In Malaysia, seaports are an important component of the maritime and trade industry which have led to the tremendous growth of ports and shipping activities. Ports and shipping are recognized as vital economic contributors in facilitating Malaysia’s trade via exports, imports and transshipments and is crucial to the economic prosperity of the country. Ports have taken on a central position in industries engaged in international maritime transport, and issues of economic stability and corporate responsibility have acquired great importance in port operations. Under United Nations Sustainability Goal Development Number Nine: “Industry, Innovation and Infrastructure”, it has been reported that efficient transportation services are key drivers of economic development, and more than 80% of world merchandise trade by volume is transported by sea, making maritime transport a critical enabler of trade and globalization. It was reported that international maritime freight increased globally by an estimated 3.7% in 2017 and the projected growth will test the capacity of the existing maritime transport infrastructure to support increased freight volumes
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