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Guest session report - 17th Feb 2020

PORT OPERATION & MANAGEMENT

Batch: Operations & Supply Chain Management

Submitted by:  Name: Asmita.B.Prasad,Roll No: 020530019031, Program: PGDM, Batch: Operations & SCM

Institute for Technology and Management Plot No. 25 / 26, Institutional Area, Sector – 4, Kharghar, Navi Mumbai

                                               INDEX

Contents

I.   Overview: India’s Port Sector…...………………………………4

II.  Sea Ports Importance………………………..…………………...5

III. Main Features And Operation Of Ports ………….……………6

  • Value Added Activities Range From…………………….....6
  • Civil Engineering Features………………………………….6
  • Administrative Features………………………………..........6

IV. Operational Functions………..…………..……………………...7

V.  Evolution Of Ports…………………………………………….….7

VI.Different Types Of Ports…………………………………………8

VII.Port Management………………………………………………....9

  • Basic Types…………………………………………………9
  • Ports Are Governed By Various Types Of Boards…..……..9
  • Port Management Aims……………………………………..10

VIII.Terminals or Interchanges Occur In All Modes……………….10

IX.Intermodal Transportation…………………………………...….11

X.Container Terminal Operation…………………………………..12

  • Bulk Cargo……………………………………………….…12
  • General Cargo………………………………………………13
  • Intermodal Containers………………………………………13

XI.Growth Dynamics: India’s Port Sector………………………….14

  • Major Ports in India………………………………………...14
  • Major And Minor: Share in Cargo Traffic………………….15
  • World Top 10 Cargo Ports…………………………………16
  • World Top 10 Container Ports……………………………...17

XII.Conclusion…………………………………………………………18

OBJECTIVE

To give basic overview on Port Operation & Management

  • Importance Of Ports
  • India’s Port Sector
  • Main Features And Operation Of Ports
  • Evolution Of Ports
  • Types Of Ports & Port Management

 

The Chief Guest for the Session

Capt. Bijan Kumar Mohanty is an Alumni of T.S Rajendra1977-78 batch. He joined Shipping Corporation of India as a cadet and continued till his Masters with ascending responsibilities. He worked with Chevron Shipping, Great Eastern Shipping and Precious Shipping Limited. With five years of command experience, he joined as a pilot in Jawaharlal Nehru Port Trust. Since then he has been piloting in JNPT for last eighteen years. He docked the deepest vessel “MSC.SINDY (LOA 334m, Max Draft: 15.8m at India’s No.1 Container Port JNPT).

He was awarded as the best employee in Month of February 2019.After successful completion of 20 years of service in JNPT, he has joined as a Marine Advisor & Consultant at Karanja Terminal.

He is a member of Company Of Master Mariners India and The Nautical Institute London. Always a willing speaker in various forums and seminars, where his special areas of interest are Port Planning & Development, Port Security, Ship handling, Emergencies, Master-Pilot Relationship, Vessel Traffic Services and case studies of accidents, grounding, collision, contact damages in port and Harbors. He is a visiting faculty to MASSA Maritime and Lal Bahadur Shastri Nautical Institute, (Indian Maritime University-Mumbai) where he shares his extensive years of experience and knowledge on Ship handling, Manoeuvring and Emergencies. He is a certified VTS Supervisor and an active Social member.

 I. OVERVIEW: INDIA’S PORT SECTOR

Almost 90% of everything we buy arrives via ship, writes rose george in her actually mind-blowing new book ninety percent of everything which covers her adventures with the shipping industry.

”The biggest business that you know nothing about.”

1. India’s seaborne trade 95% by volume & 67% by value

2. Length of the coastline 7,517 km

  • 9 maritime States & 5 UTs ( including 2 island groups)

3.Parallel competing port management & legal Systems :

  • 12 under Major Ports Act, 1963
  • 1 (Ennore) under Company Act
  • 184 Non-major ports

4. Port legislation & Structure :

  • Indian Ports Act, 1908 allows Maritime States to set up their own port systems
  • Major Port trust Act, 1963, regulates 12 major ports.

5. Major Ports fall under operational & financial control of M/O shipping & subject to tariff regulation by Law.

6.     Minor ports: under State Maritime Boards & free from formal tariff regulation.

 

 II. SEA PORTS IMPORTANCE

Sea ports are a haven with facilities for berthing and anchoring ships and providing equipment for transfer of goods from ship to shore, shore to ship and ship to ship.

 

Ports Functions As

  • Ports form a vital aspect of the national transport infrastructure.
  • Distribution centre.
  • Industrial zones.
  • Energy supply bases.
  • Mercantile trading centres with banks, brokers and traders.
  • Urbanization and city Development centre.
  • Life activity bases in rural ports.
  • Maritime leisure bases in cruise passenger ship terminals.
  • Private yacht marinas.
  • Dock side recreation facility(seamen’s centre, coffee shop, pubs)
  • Port form the main transport link with their international trading partners and are a focal point for national and regional motorways and railways.
  • Ports create a hustle and bustle of industrial activities.
  • Ports are places where foreign cultures and ideas influence a nation.
  • Ports are a focal point with shallow water where ships converge there making them vulnerable to maritime accidents
  • Ports are places where valuables are concentrated and where cargo can be damaged or stolen during handling
  • Ports are places where repairs and or planned maintenance is carried out on ships.

 

Ports Are Places Where:

  • Costly delays can occur
  • Ships are surveyed
  • Most shipping services, agents, brokers etc. are located
  • Cargoes come and go
  • Customs and government policies are implemented

 

 III.MAIN FEATURES AND OPERATION OF PORTS

 

  • Ports reflect national heritage, local commercial attitudes, practices and laws that differ widely between nations.
  • Port require long term, expensive and specialised investment and resources that represent a substantial chunk of national economy
  • Ports are large civil engineering undertaking and a collection of activities entailing huge costs
  • Ports provide ship / shore intermodal interface

The advent of intermodals has caused ports to compete for cargoes. this has jolted business to increase port efficiency and value added activities in recent years.

 

a.Value Added Activities Range From:

  • Cargo loading and discharging
  • Industrial services in port
  • Combining and separating of cargoes
  • Up to date information on inventory and cargo movements
  • Stuffing and DE stuffing of containers
  • Loading cargo in crates and crates in pallets
  • Shrink-wrapping, labelling, weighing, repacking

 

b.Civil Engineering Features:

  • Sea and land access
  • Infrastructure for ship’s berthing & unbreathing
  • Road and rail network
  • Industrial area management

 

c. Administrative Features:

  • Control of all modes of vehicles entering and leaving the port
  • Environmental control
  • Dangerous and hazardous cargo control
  • Safety and security with in port area
  • Immigration, health, customs, commercial documentary control

 

 IV. OPPERATIONAL FUNCTIONS

  • Facilitating arrival and departure of ships
  • Providing navigational aids and vessel traffic services(vts)
  • Pilotage, tugs and mooring facilities
  • Use of berth, sheds etc.
  • Loading ,discharging, storage and distribution of cargo
  • Facilitating supply chain logistic management

 

V. EVOLUTION OF PORTS

 

Ports have evolved over time their development phases can be classified as

First generation port (Existed before and until 1960)

Second generation port( 1960-1980)

 Third generation port (from 1980 onwards)

  • Arose from global containerization, intermodal’s, booming trade requirements
  • They are hubs of international production and distribution
  • Combine traditional, specialized and integrated activities
  • Well planned infrastructure and information processing facilities
  • Offer value added services
  • User friendly
  • Offer simplified customs procedures
  • More environmentally conscious

 

 VI. DIFFERENT TYPES OF PORTS

Hub Port / Mega Port - A major port dealing with international trade. 

Example:

  • Singapore
  • Rotterdam
  • JNPT

 

2. Feeder Port - To feed and distribute cargo from major port.

Example:

  • Kandla
  • Cochin
  • Tuticorin

 

3. Transit Port - where the cargo is received for transit for other destination.

4. Dry Port - defined as inland terminals that can be interconnected with seaport via road or rail transportation facilities and they usually as centres of multimodal logistics.

Example:

  • Jalna
  • Wardha
  • Sangli
  • Nasik
  •  

5.Domestic Port - provides a natural outlet for surrounding hinder land.

Example:

  • Jafrabad port in India

 

 VII. PORT MANAGEMENT

  • Ports last longer than ships and this requires the port management to avoid any costly blunders.
  • Ports are classified according to their ownership or administration.

 

a.     Basic Types

  • State Owned Port
  • Autonomous Ports
  • Municipal Owned Ports
  • Private Owned Ports

There is an impetus to increase private ownership of ports

 

b.    Ports Are Governed By Various Types Of Boards

  • Representative Board - Consisting of persons representing interest concerned with port operation.
  • Board Of Exports - Consisting of members with proven expertise.
  • Two Tier Board - Consisting of one tier to run the port on day to day basis and other tier to plan and implement major policies.

 

Example of a Two Tier Board (JNPT)

 

  • BOARD MEMBERS - ( Policy Decision)
    • Chairman
    • Dy. Chairman
    • Joint Secretary( Ministry of shipping)
    • Joint Secretary(Ministry of Envrn,Forest& climate change)
    • Director General of Shipping.
    • Chief Commissioner of Customs
    • VC & Managing Director (CIDCO)
    • Naval Officer In charge(MAH) NOIC
    • Chief of Staff &HQ Coast Guard (W)Region
    • Central Railway(Chief Freight Transport Manager)
    • Other Interest
    • Labour Trustees

 

  • HEADS OF DEPARTMENTS - (Implementation of Policies)
    • Chief Administration
    • Chief Traffic
    • Chief Civil (Port Planning & Development)
    • Chief Marine(Dy.Conservator& PFSO)
    • Chief Finance
    • Chief Manager (M&EE)
    • Chief Medical Officer
    • SECURITY: Sr. Commandant CISF

 

c. Port Management Aims

  • Port to operate with overall cost-leadership
  • Minimize user payment by ensuring quick ship turn0ver in port
  • Minimize through transport costs
  • Minimize the port cost
  • Maximize benefits to port owners
  • Generate employment
  • Maximise benefits to the town, region and country

 

VIII. TERMINALS OR INTERCHANGES OCCUR IN ALL MODES

  • Airports
  • Bus terminals
  • Marine terminal or port
  • Ferry terminal
  • Train station
  • Rail yard or terminal
  • Cross-dock facility
  • Distribution center
  • Intermodal yard

They have common characteristics, I’ll focus today on marine ports and intermodal yards

 

 IX. INTERMODAL TRANSPORTATION

  • Intermodal transportation is the use of two or more modes, or carriers, to transport goods (freight) from shipper to consignee.
  • Special standardized containers are used for intermodal transport of cargo on trucks, freight trains, and ships.
  • These containers are large rectangular boxes, capable of being secured to special trailers. These durable, steel containers are built so they can be transferred between different modes of transportation easily.
  • This eliminates the risks of directly handling shipments.

 

How do you know when intermodal is the right choice for your shipment?

Here’s a few things to consider when deciding whether intermodal is a good fit for your shipments.

  • Intermodal transportation is most suitable for intermediate and finished goods in load units of less than 25 tons.
  • The longer the distance a shipment needs to travel, the more likely it is that intermodal will be a good choice. Freight moving more than 300 miles, or longer than one day by truck, are great candidates for intermodal transportation.
  • Cargo with intermediate values are most likely to be moved via intermodal. Those with high values are often sent via the most direct methods, such as air cargo, and low value shipments frequently travel via rail or ocean.
  • Intermodal transportation is a good selection when cargo flow needs to be continuous and in similar quantities. For example, if you’re sending multiple LTL shipments to the same location throughout the week, you may want to consider using intermodal instead.

 

 

X.CONTAINER TERMINAL OPERATION

Diagram shows chain of ship-related activities/processes.

Mainly two parts:

1.     Ship related activities

2.     Cargo related ones.

a. Bulk Cargo

  • Wet bulk cargo refers to fluids like oil, Dry bulk cargo refers to non-fluids such as grain, coal, etc.
  • Many goods that used to be shipped as bulk cargo (grain, bananas, coffee beans)are now shipped in containers (IP grain)

 

b.    General Cargo

  • In shipping, break bulk cargo or general cargo are goods that must be loaded individually, and not in intermodal containers nor in bulk as with oil or grain. Ships that carry this sort of cargo are called general cargo ships.

 

c.      Intermodal Containers

  • An intermodal container is a large standardized shipping container, designed and built for intermodal freight transport, meaning these containers can be used across different modes of transport – from ship to rail to truck – without unloading and reloading their cargo.

 

 XI.  GROWTH DYNAMICS: INDIA’S PORT SECTOR

Growth dynamics of cargo traffic (2000-2011)

  • Overall  annual growth (major & non-major) 9.2%
  • Major ports (7.3%) & Non major ports (13.7%)
  • As a consequence share of non-major ports in cargo handled rose from 24% in 2000-01 to 36% in 2010-11
  • Capacity utilization around 90% at Major ports
  • Highest annual growth in container traffic (15%)
  • Containerization at about 2/3rd of general cargo compared to global levels 80% plus.
  • Container traffic has grown, but is uneven in pace, demand centered in North West Hinterland (60%)
  • Indian ports have low draft, makes access of large bulk vessels problematic. Entails higher unit shipping cost for low value items.
  • Leads to higher turnaround time & small parcel size.

 

   XII.CONCLUSION

  • Ports have Historical, Commercial and Infrastructural significance
  • The ports form the Backbone of National and Regional Economics
  • Supporting efficient Port Operation and Management is vital for National prosperity