Hub Port: Understand What It Is, Its Function, and Logistics Examples

A hub port is a type of cargo concentration port that performs strategic functions capable of differentiating it from other categories of port infrastructure. Some Brazilian ports are already hubs, while others are suitable for becoming one due to characteristics such as infrastructure, draft depth, and location.

This is an important topic, especially for foreign trade. Therefore, this article highlights what a hub port is, its functions and characteristics, and we will also provide some examples.

Happy reading!

What is a hub port?

Hub ports are characterized by having strategic geographic locations and deeper drafts. For this reason, they serve large vessels and connect national and international companies to the Brazilian logistics chain.

Hubs supply other types of ports, known as feeders, which have draft limitations, making it impossible for large ships to dock at full capacity. Therefore, they feed hub ports and are also supplied by them, receiving exported products and redistributing imported cargo.

Various transportation modal connections are used throughout the hub ports’ area of influence, performing feeder services via maritime, rail, or road transport, or even through multimodal combinations.

What are the functions of hub ports?

Hub ports are responsible for receiving large volumes of cargo and then distributing it to smaller ports. They are increasingly present in Brazil, thanks to the increase in Brazilian foreign trade volumes and the extensive coastline of our shores.

By concentrating a larger amount of cargo, hub ports allow container ships to take a more direct route for goods distribution.

This format optimizes port operations, with one of the main benefits being reduced costs and improved services in international trade transactions. That’s why it is widely implemented in Europe, Asia, and the United States, with the largest concentration of cargo hub ports in China, Singapore, South Korea, and Dubai.

What are the characteristics of hub ports and their differences compared to other ports?

The main characteristic of a hub port is the reception and movement of containers, via larger capacity ships. Thus, it is a concentration point for shipping lines. For this reason, it is recognized for accumulating a large quantity of cargo due to its always strategic location.

Hub ports are measured by TEU (Twenty-foot Equivalent Unit), a unit used to measure cargo capacity. Besides this specific classification, other indicators are used:

• Number of vessels docked per year;
• Cargo Handling Per Hour (MPH);
• Shipping lines.

The higher these indicators, the more significant the port is to the Brazilian economy.

These numbers are related to both the goods arriving at and departing from hub ports to smaller ports, generally known as feeders. Speaking of feeders, they are typically smaller in size and work in conjunction with hubs, either being supplied by them in import operations or feeding the hubs with exported goods.

Since feeders do not have the depth required for large vessels, they receive smaller ships, and their containers are transported to higher-capacity ports. Thus, the cargo will be unloaded in a warehouse to be reloaded onto larger ships, heading to countries along international shipping lines.

In maritime ports, you can rely on staff, services, and adequate facilities for passenger handling. There are also river and lake ports, which have similar characteristics to maritime ports but navigate along river or lake shores, transporting people from one point to another. It is worth noting that hub ports are usually maritime.

Example of a hub port in the world

Let’s talk about the Port of Rotterdam, one of the largest logistics centers for international operations in the world. It is a hub port with an area larger than the island of Manhattan and a cargo handling capacity of over one million tons per day.

It is also one of the most innovative hub ports globally, featuring automated terminals and vehicles that facilitate logistics operations in foreign trade, saving on both labor and time costs.

Tecon Rio Grande: A Brazilian Hub Port

Tecon Rio Grande is an important Brazilian hub port located in Rio Grande do Sul, capable of receiving ships up to 366 meters long and 59 meters wide. It is a key distribution center for Mercosur, connecting to Argentina and Uruguay.

It is also a modern and efficient terminal, the most automated in the country, with cutting-edge infrastructure and state-of-the-art equipment. It has a highly qualified and experienced team, ensuring operational security and efficiency.

What is needed to be a hub port?

The primary requirement for a hub port is to concentrate cargo and shipping lines, resulting from the strategy of larger ships, accumulating routes, and reducing the number of stops for maritime companies.

This type of port is considered the central and most important part of a location, as it is employed in many international trade routes due to globalization and global economic growth. It is directly tied to each country’s potential based on fundamental criteria such as:

• Infrastructure with high capacity for loading and unloading various and bulky goods;
• Strategic location to accommodate the maximum number of large vessels;
• Adequate draft depth to dock larger ships.

The formation of a cargo concentration port must always consider some key elements, such as efficiency, management, pricing, and service quality. After understanding this, it’s essential to strategically implement the needs to make the port competitive, based on its formation components.

Its efficiency depends mainly on physical aspects such as an adequate access channel, skilled labor, the speed of local customs, dock length to accommodate a suitable number of ships simultaneously, and a wide cargo loading/unloading area.

Skilled labor depends on the union’s focus on training multifunctional workers. The customs process needs to be fast, with integrated operational systems that ensure preventive security and reliability for users.

Good port management results from genuine relationships among operational parties working towards the common goal of making the port more profitable.

Port service pricing is highly valued as it should include initiatives to incentivize transshipment, reducing operational handling costs.

Service improvement can be fostered with systematic work in marketing and commercial areas, measuring customer satisfaction and meeting their needs for a consistently positive experience.

Conclusion

Hub ports ensure economies of scale through excellent connections to international markets and are specialized in transshipment operations.

Was this article helpful to you? Continue reading more topics directly from the port here on our blog.