CHENNAI PORT TRUST

INTERNSHIP REPORT – OPERATIONS MANAGEMENTJuly 2010

DEPARTMENT OF MANAGEMENT STUDIESUNIVERSITY OF MADRAS

CHEPAUK, CHENNAI - 600 005

Prepared by

K.N.JAKANATHAN (33230964)

MBA (2009 - 2011)

UNIVERSITY OF MADRAS

ACKNOWLEDGEMENT

This report is on OPERATIONS of CHENNAI PORT

TRUST. Humble effort has been made in preparation of this report. As I sum

up draft of my study, I appreciatively reminisces the contribution of all those

people without whose support and help, this study would have not ever taken

its present form. I would like to thank everyone who assisted me in

preparation of this report. A visit of each department was conducted and a

meeting was arranged with the staff of each department where every in-

charge explained the functions and working of the department concerned. I

specially would like to thank the assistance and cooperation of:

Mr. Suresh, I.A.S (Chairman) Mr. Mohan (HR Manager)

Mr. Venkateswaralu (Traffic Manager) Mr. Soundararajan (Docks Manger)

Mr. Venkat (TM’s Office) Mr. Anbanand (TM’s Office)

Mr. Gobinath (TM’s Office) Mr. Chandrasekhar (CDO)

Mr. Mahadevan (Operations) Mr. Senthil Kumaran (Sr. AO Portage)

Mr. Jayakanth (Portage) Mr. Ramesh (Computer cell)

Mr. Raja Kumar (P & R cell) Mr. Haridoss (Marketing AO)

All members from Traffic Department

2

I would have been unable to make this report without the assistance of these people. I deem it my pleasure to convey the deepest of my heart-full thanks to the Chennai Port Trust.

Many people have helped me, but I accept total responsibility for any errors in this report. Please contact me for any query.

LETTER OF TRANSMITTAL Date:

University of Madras

Chepauk Campus

Chennai.

This report is on “Operations Management of Chennai Port Trust” it is ready for your perusal.

I, K.N.JAKANTHAN, as Part of MBA curriculum, have undergone this internship. In this report I have shared my knowledge learned from Chennai Port. This report highlights the whole Operation processes of Chennai Port and the functions of Traffic department.

If there be any clarification demanded, I would be there for the answer.

3

Sincerely

(K.N.JAKANATHAN)

Management Summary

This Chennai Port Report is a maiden attempt to present a broader overview of

the Chennai Port Trust and its services for Import and Export. Chennai Port, the Largest Port in

East Coast of India. Chennai Port Trust is a service rendering organization governed by Ministry

of Shipping, India.

Almost 77% by value and 90% by volume of Indian - Foreign and Domestic

EXIM Trades made by Sea route, where Chennai Port Trust is playing a major role. Chennai Port

is rendering its service in user friendly manner. Here I have showed the milestone where ever

Chennai Port shines in advancement.

In initial part, I have discussed about the Location and Layout of Chennai Port,

which is perfectly set to provide good service and I have talked about the Docks and Docks wise

cargo handlings.

I have showed a complete view of facilities in Chennai Port which are offered to

the customers to do their Import and Export in a better way. Then I have indicated the

remarkable Performance of Port which is gradually increasing.

What ever be the facilities, all should be properly maintained and worked in right

manner for that there is well planned organizational structure and Departments are there in

Chennai Port to serve the Customers. Then I have given the data given by Port function

Authorities about the Operations, Import and Export Procedures in Chennai Port, Which are

absolute and are logical Operations.

4

All we know that for an analysis of an organisation, SWOT analysis is the most

important, that’s why from the data on hand I have done a SWOT analysis and Porter’s 5 force

analysis, these analysis have given me the information which are attracting the customers

towards Chennai Port and which are to be improved and I have included it in this report.

Based on the analysis and learned knowledge of Port, I have given some

suggestions which are discussive rather than recommendatory.

Note: Effort has been made to provide latest data and information from various sources and all is true to best of my knowledge.

THANK YOU

CONTENTS

5

Topic

Page

Acknowledgement …………………………………………. 2

Letter of Transmittal …………………………………………. 3

Managerial Summary …………………………………………. 4

Mile stones ………………………………………… 10

Indian Port ………………………………………… 14

Chennai Port Trust ………………………………………… 15

Port Location & Lay-out ………………………………………… 16

Dock Details …………………………………………. 19

Facilities ………………………………………… 21

Performance …………………………………………. 28

Organizational Structure …………………………………………. 32

Procedures …………………………………………. 34

Learnt from port …………………………………………. 39

Analysis …………………………………………. 46

Suggestions …………………………………………. 52

Conclusion …………………………………………. 53

Webliography …………………………………………. 54

6

LIST OF TABLES

TOPICS PAGE

Mission And Vision …….. 15

Plant Location and Details ……... 16

Example : Dock wise Berth ……... 18

Dock wise operations ……... 1 9 & 20

Improvements: Oil Pump …….... 21

Awards : National Tourism Award ……… 22

Note : Ro-Ro Terminal ……… 26

Cargo Handling Equipments ……… 27

Average Turnaround Time of Vessels Cargo wise (In Days) 2006 -10 ……… 29

C Container Performance ……… 30

Cargo wise Performance ……… 30

Organisational Structure : Hierarchy ……… 33

Note : Berth Meeting ……… 36

Example: 2 SOR calculations for waiting Cargo ………. 42

Example : 3 SOR Cargo wise calculation ………. 43

Example : 4 Demurrage calculation ………. 44

Porter’s Five Force analysis Summary ……… 47 & 48

SWOT analysis ……… 49 & 50

7

LIST OF FIGURES

TOPIC PAGE

Chennai Port Initial Stage ……… 10

Current Chennai Port ……… 12

Chennai Port Logo ……… 13

Major and Intermediate Ports in Chennai ……… 14

Hinterland Connectivity of Chennai Port ……… 15

International sea Route Connecting Chennai ……… 15

Chennai Port Lay-out ……… 16

Container terminal ……… 23

DP World logo ……… 23

New container Terminal ……… 23

THE HINDU Report on Mega container terminal ……… 24

Break Bulk Cargo ……… 25

Dry bulk Cargo ……… 25

Ro-Ro Terminal ……… 26

Port Crane ……… 27

Average Ship Berth day Output - in Tones 2009-10 ……… 29

Vessel Handled in Numbers 2009-10 ……… 29

Average Turnaround Time of Vessels Cargo wise (In Days) 2009-10 ……… 29

Traffic Handled During Mar-10 and up to Mar-10 (Pie chart) ……… 31

Traffic Handled During Year 1999-2000 to 2009-2010 (Graph) ……… 31

Porter’s Five Force Analysis ……… 47

Abbreviations

8

AD Ambedkar Dock

ATM Asst.Traffic Manager

BD Bharathi Dock

BOT Build Operate Transport

CDO Commercial Documentation Office

CFS Container Freight Service

CHAs Custom House Agents

ChPT Chennai Port Trust

C&F Clearance & Forwarding

CISF Central Industry Security Force

CPCL Chennai Petroleum Corporation Limited

CWC Container Warehousing Corporation

DWT Dead Weight Tonnage

ECR Export Cargo Receiver

EIA Environnemental Impact Assermente

EPL Ennore Port Limited

ETA Expected Time of Arrival

EXIM Export Import

FCI Food Corporation of India

FEU Forty Feet Equivalent Unit

FRM Fertilizer Raw Materials

GAIL Gas Authority of India Limited

GDP Gross Domestic Product

GRT Gross Registered Tonnage

HMIL Hyundai Motors India Ltd.

HoM Harbor of Madras

IH Inner Harbor

IMO International Maritime Organization

IOC Indian Oil Corporation

IPA Indian Port Association

ISPL International Sea Ports (India) Limited

ISS International Sea Security

JD Jawahar Dock

9

LDP Light Dead Tonnage

MoE Ministry of Environment

MoS Ministry of Shipping

MPA Major Ports Act

M.T Million Tones

OA Outer Anchorage

O-D Origin - Destination

ODC over Dimensional Cargo

ODO Over side Delivery Order

POL Petroleum Oil Lubricants

PPP Public Private Partnership

RDC Rational Distribution of Cargoes

Ro – Ro Roll on – Roll off

RMGC Rail Mounted Gantry Cranes

RMQC Rail Mounted Quay Cranes

RTGC Rubber Tyre Gantry Cranes

SICAL South India Corporation Agencies Limited

SOR Scale of Rates

SPIC Southern Petrochemicals Industries Corporation

SPV Special Purpose Vehicle

SRLY Southern Railways

SSA Stevedore Services of America

TAMP Tariff Authority for Major Ports

TEU Twenty feet Equivalent Unit

TNEB Tamil Nadu Electricity Board

ULCC Ultra Large Crude Carriers

UNCTAD United Nations Conference on Trade & Development

VLCC Very Large Crude Carriers

WCC Wharf Cleaning Charge

10

Milestones in Chennai Port

1639 Maritime Trade Started in Madras (Chennaipattanam) sea shore.Initial piers laid in 1861, but due to storm 1868 – 72 Operations were stopped.

1881 Madras (Chennai) port is commissioned, six years after the construction of the port was proposed by the Madras Chamber of Commerce and after the foundation stone was laid in 1875 by the Prince of Wales King Edward II as Artificial Port.

1908 The Indian Ports Act 1908 - the first-ever comprehensive Indian port law to be enacted for governing the administration of all ports in India.

1904 Sir Francis Spring, Chairman of ChPT created a new North-Eastern Entrance after closing the original Eastern Entrance to control the siltation of the channel in front of the basin.

1913 South Quay-I was constructed.

1916 Five West Quay berths was constructed To 1920 

1925 Carriage of Goods by Sea Act was passed, which led adoption of uniform rules declaring minimum rights, liabilities and immunities of a common carrier to be attached to bills of lading.

1931 North Quay was constructed

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1936 South Quay was constructed

1948 Dock Workers (Regulation of Employment) Act 1948 was enacted and laid the basis for creation of Dock Labour Boards at various major ports like Mumbai, Kolkata, Chennai and Visakhapatnam.

1958 Merchant Shipping Act 1958 is passed to regulate the Indian shipping Industry and define provide measure of protection to coastal shipping.

1963 Major Ports Trust Act 1963 passed by the Indian Parliament. The Major Port Trusts Act lays the basis for an institutional framework for creation of a Port trusts for each major port.

1964  The official inauguration of the wet dock was done by shri. Lal Bahadur shastri, Prime Minister of India, christened Jawahar Dock in Memory of Shri. Jawaharlal Nehru, India’s first Prime Minister.

1970 An Oil jetty to handle Crude Oil imported by the Manali Oil Refinery (Presently Chennai Petroleum Corporation Ltd) was constructed. And also started handling containers

1974 An Iron Ore quay was constructed

1975 Dredging Corporation of India is set up by Government of India to undertake dredging operation.

1983 Container Terminal of 380 M length was constructed 

1986 Inland Waterway Authority of India (IWAI) is constituted under the IWAI Act, entrusted with the responsibility of developing inland waterways in India.

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1996 Madras is renamed again as Chennai, subsequently Madras port changed into Chennai port.

1997 Port (Laws) Amendment Act was introduced to give teeth to the new policy guidelines on private sector participation in port sector and a TariffAuthority For Major Ports (TAMP) established to regulate tariffs for major ports.

2000 The Ministry of Shipping (holding charge for ports) is formed through bifurcation of erstwhile Ministry of Surface Transport.

2001 Chennai Container Terminal Private Ltd., (DP World - CCTL) on BOT basis for 30 years from November.

2002 As the container traffic was constantly increasing the terminal was further extended by 285 m, during July

2003 Chennai Port Trust awarded with Certification of ISO 14001: 2004

2007 Chennai International Terminal (p) ltd. (PSA – SICAL CONSORTIUM) take over the Second container terminal in AD - East Quay ,operating from 2009

2009 Chennai International container Terminal stared in East Quay of AD

2010 Computerized Pass section is inaugurated.

13

INTRODUCTION

14

INTRODUCTION – INDIAN PORT

India, one of the biggest peninsulas in the world, has a long coastline spanning

7600 kilometers. It is serviced by 11 governments and 1 corporate major port and 185

notified minor and intermediate ports.

Indian seaports are today more than just government owned public

utilities; they are indeed focal points of convergence for several contending and

competing business interests starting from shipping lines, port authorities, and individual

terminal operators to freight forwarders and inland logistics agencies including the

shippers (the exporter-importer fraternity) whose cargo is what is being ultimately

transported.

Maritime Transport is a critical infrastructure for the social and economic

development of a country. It influences the pace, structure and pattern of development.

The Ministry of Shipping, India (current Minister – Sri. G.K.VASAN) encompasses

within its fold shipping and ports sectors, Major Ports, Port Trusts.

The major ports are Chennai, Cochin, Jawaharlal Nehru, Kolkata, Halida,

Kandla, Marmugao, Mumbai, New Mangalore, Paradip, Tuticorin, Visakhapatanam,

Ennore (Corporate) and 185 notified minor and intermediate ports.

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CHENNAI PORT TRUST

Chennai Port, the 3rd oldest among the 12 (11 Governmental + 1

Corporative) major ports and 2nd largest, is an emerging hub port in the East Coast of

India. Situated in the Coromandel Coast in South-East India, Chennai, TamilNadu.

Chennai Port is an artificial harbor, started its operations in 1875 (more than 100 years of

tradition) by East India Company.

Operations of Chennai port comes under Indian MINISTRY OF

SHIPPING Chennai port is governed by Chennai Board of Trustees. Both Import and

Export are carried out in this port.

Diversity of cargoes is handled from sugar to food grains, coal to iron

and steel, cars etc. Break Bulk, Liquid Bulk, and Dry Bulk and Containers are handled in

this port in RDC basis. All these operational works are done by Traffic department.

The total quay length available is around 5.5 km. It has in all 24 berths spread over 3

docks.

Hinterland Connectivity is established in this port through highways,

railways and by sea route. Chennai Port Handles both Coastal And Foreign EXIMs.

MISSION & VISION

Achieve excellence in Port operations with State-of-the-Art technologies.

Enhance competence and enthuse workforce to maximize customer Satisfaction.

Anticipate and adapt to the changing global scenario.

Act as a catalyst for sustained development of the Region. 

§ To be recognized as a futuristic Port with foresight.

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PORT LOCATION & LAYOUT

LATITUDE 13° 06’ N

LONGITUDE 80° 18’ E

CLIMATE TROPICAL

TIME 5hrs 30min +GMT

TEMPERATURE30°C (max) 18°C

(min)

ANNUAL RAINFALL ABOUT 125 CM

SPRING TIDES 1.2 m

Though it is about 600 nautical miles away from the international maritime

route, because of its location, proximity to market, competitive pricing, safe and secure

operations this is one of the preferred Ports for the trade.

Chennai port was vulnerable to cyclones, accretion of sand inside the basin

due to underwater currents that reduced the draught. And due to paucity of funds Chennai

port could not over come these problems. Anyhow Sir Francis Spring a visionary skilful

person drew a long term plan in that he charted out the course of port in scientific

manner. This new layout is helping the port to do its service in an efficient way and the

drenching also done in affordable funds.

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Chennai Port Trust – Service organisation

Chennai port Trust is a service rending organization. Importers and

Exporters avail these services for their business purpose. Chennai Port Trust proving

these services for both coastal and foreign customers. . Chennai port Trust also improving

its facilities, in such a way ChPT shows its Image as a Customer Friendly Organization.

And it is protected by CISF (Ministry of Defense).

Chennai port is having a total length of 5.5 km. For Operational purpose

the port is classified as docks. It has in all 24 berths spread over 3 docks namely,

1. Dr.Ambedkar Dock - 11 Berths

2. Jawahar Dock - 6 Berths

3. Bharathi Dock - 3 Berths + 4 container Berths (leased

to Private agents (DP world for 30 years)

4. Mega Container Terminal (Under Construction)

Each Dock Berths are facilities in such a way to handle a particular type

of cargoes. According to the Cargoes in the vessel, the vessels are berthed in the Docks.

More facilities are there near the berths like, Warf, Cranes, Storage point, and Storage

facilities.

Services

Chennai port provides 24 hours service. It controls all movements of

ships from entry to departure.

1) Controlling Entering and leaving of ships.

2) Providing Customer Plots.

3) Providing Infrastructure, equipments, manpower as a service.

4) Warehousing of Goods for 7 days.

5) Port Railway transport service (Rake).

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EXAMPLE :1

In Oil Terminal, Only Oil Carrying vessels are berthed and there are oil

arms that suck the crude oil, Furnace oil, White oil products, from the vessel and store it in

the storage point (Tankage). Now CPCL have an arrangement that the oil pipe line that

transport the oil directly to their oil refinery, from there they refine and use the pure oil.

This arrangement is useful to port for easy handling of cargoes and it

is also helpful to customers (avail those facilities).

Features

1. Chennai Port is an ISPS (International Ship and Port Facility Security)

Compliant port. There are 2 types of ISPS code, one is for Compliance

and another one is for Coastal.

2. 24-Hours (around the clock) working of port

3. Can park nearly 5000 cars for export/import operations.

4. Railway facility to carry the goods.

5. Container Parking space.

6. Separate oil pipelines.

7. Closed Godown facility for keeping food articles.

8. Separate goal shed for customers.

9. Tripper facilities.

10. Closed conveyer to reduce pollution.

11. Closed Conveyers for coal movement.

Dock wise cargo handling are given below,

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Dock wise Cargo Operations:

Dock Quays length Draft Commodities

Dr.Ambedkar Dock

( Break bulk)

North Quay(1 Berth)

198 m

8.53 m

Mainly for Inland passenger vessels(Mostly Andaman &

Nicobar vessels), Palm oil

West Quay (5 Berths)

855 m 7.29 to 9.14m 1 – Cars (Hyundai)2 – Break bulk (steel)CB – Foreign cruise3 – Food (closed godown available)4 – coke (Type of coal)

South

Quay

(3 Berths)

1 – 246 m

2 – 179 m

3 – 254 m

1 – 9.5 m

2 – 9.5 m

Handles heavy lift cargo,

minor minerals

East

Quay 832 m Now leased to private

Agent [PSA – SICAL]

Naval

Berth

200 m Naval Ships

Mega Container

Terminal

(Under Construction)

2 km

Long Quay

18 – 21 m Container Handling

20

Jawahar Dock

(Dry bulk)

JD 1

JD 3

JD 5

218.33 m

each

10.1 m

each

Molasses

Fertilizers

Crude Palm oil

JD 2

JD 4

JD 6

218.33 m each

10.7 m each

Coal [closed coal conveyer is available]

Importing Coal & Exporting Iron [ In return ]

Bharathi Dock

(Liquid bulk)

BD 1

&

BD 3

338.94m &304m

14.6m & 17m

Oil Terminal (crude oil)[separate pipelines are available for each customers, directly towards their refineries]

BD 2 274.32 m

16.5 m Iron Ore Terminals[Tippler only in Chennai & vizag.]

Container

4 Berths

885 m 13.4 m Container TerminalHigh tech. equipments are used[ Leased to DP World for 30 years ]

* According to availability of dock space the vessel berthing can be changed.

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FACILITIES Each and every Berth is having its own style of facility.

OIL BERTH

2 dedicated oil jetty (Bharathi Dock) with capacity to handle 1 – 1.5 Lakhs of DWT tankers.

Cargo handling capacity of more than 13 million tonnes per annum. 5 Marine loading arms in each berth, 3 nos. for crude & Furnace oil and

2 nos. for White oil Products.

Separate pipelines provided for Crude, Furnace oil, White Oil Products, Deballasting, Tower Moniter, Fire Hydrant and Fresh water

Service Lines for LDO bunker, Furnace Oil bunker and Lubricant Oil

Bunker

Wide range of petroleum oil and lubricant cargo mix

Pipe line connecting to tankage farms and refinery

The terminals are equipped with the latest fire fighting facilities

MARPOL connection compliant oil reception facilities for oily ballast,

Sludge and slop.

Well equipped fire fighting facilities.

World class facilities

IMPROVEMENTS : 1

Modernization of the Existing Fire Fighting Facilities (commissioned during

1972/86). Due to corrosion atmosphere (Salty air from sea), its essential to replace and

modernizing the Fire Fighting Facility at oil Dock. IPA submitted the study and accordingly

modernizing work is going on as long term measure.

Laying of 42” Dia pipeline in replacement of 30”Dia pipeline is proposed at an

22

estimated cost of Rs.9.05 crores. The work will be carried by M/s. CPCL as a deposit work.

IRON ORE TERMINAL Fully Mechanised ore handling plant commissioned in 1977 at BD – II

Can handle ore vessels up to 1.5 lakhs DWT

Capacity – Million Tonnes per annum

Ore handling facilities consist of two c, 10 lines of conveyors, 2 Rail- Mounted stackers, 2 Rail-Mounted Bucket-wheel, Re-claimers and 2 Rail-Mounted ship loaders.

2 Rotary Wagon Tipplers with capacity of 3000 tonnes, handle 1200 MT/hr at the rate of 20 wagons per hour .It turns the wagon to 180º.

2 ship loaders with capacity of 4000 tonnes per hour.

Back-up-stock yard of 8 lakh tonne capacity

Equipped with automatic belt weigher, sampling facilities, Self- Container maintance workshop and a service station

CRUISE TERMINAL

State-of-Art Cruise Terminal

Cruise/Passenger Terminal with modern Infrastructure facilities for Immigration, Customs formalities, Communication Centre, etc.,

Excellent Road, Rail, Air Connectivity to Tourist locations

Chennai’s hospitality industry complements port’s facilities

Foreign and coastal (mostly Andaman & Nicobar) Designated cruises are handled here.

AWARDS

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Chennai port on the strength of its untiring efforts in promoting crews shipping has

achieved 50% over the previous 3 years. In recognition for these efforts, Chennai Port has

submitted its nomination for the NATIONAL TOURISM AWARD 2008 given in the AGIS of

Ministry if Tourism, India under the Category of “BEST TOURISM FRIENDLY PORT”.

CONTAINER TERMINAL

Productivity on par with International Terminals 7 Gantry quay cranes including a crane with Twin lift facility are used

Excellent Yard facility – 24 RTG’s 250 reefer Points, 3960 ground lots are used

On arrival berthing for container vessels Window berthing

Continuous carting for special containers

Streamlined gate cut-off

Web/SMS based container tracking system

Direct service to US, UK, Europe, China, Thailand, Korea, Mediterranean and West Africa

Container Terminal on par with International standard

BD - CCT (DP WORLD) offers its customers the services of a CFS for inspection, LCL destuffing and delivery of import cargo and Unaccompanied Baggage (personal effects).The presence of the CFS within the port premises enables prompt and convenient services to Importers as well as passengers

PSA- SICAL Consortium leased the New Container Terminal in Chennai

Port and is ideally positioned to tap the high growth Chennai region.

Serving an ever growing hinterland and catering to the fast growing

Automobile, Pharmaceuticals, Textile, Leather, Light engineering and

Chemicals units. Rated capacity 1 million TEUs p.a.

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MEGA CONTAINER TERMINAL

100 ha (250 acres) of back up Area

Rate Capacity of 5 million TEU p.a

Development of Mega container terminal id formulated to the north of existing BD

Mega Terminal’s estimated cost is Rs.3105 crores and revised to Rs.3686

Request for qualification application with an investment of Rs.3125 crores by BOT operator. Evaluation of application is in Progress.

This terminal will enable port to attract top container line and also pick up the cargo from Vizag. , Haldia, Chittangong and Myanmar Port

Can handle ultra large container ships of capacity over 15000 TEUs and length 400 m

Will be the first deep water terminal of its kind in India.

Two new breakwaters (total length 4.5 Km.) will come to action

This Terminal will come to action in 2015

25

BREAK BULK BERTH

Only Port with 5 nos. Break bulk Terminal (General Cargo) Sufficient Shed and Open Storage Space

Higher Capacity and productive cargo handling equipment

150 T floating crane for heavy lift cargoes

Bulk Cargoes which are covered in bags, bales, barrels, boxes, cartons, drums, pallets, sacks, Vehicles come under Break bulk cargo.

Break Bulk Cargoes are handled in AD – North and West Quay

DRY BULK BERTH

Cargoes which are in loose and in dry state (Not Packed) like loose coal, cement, grains, ores, etc., are termed as Dry Bulk

Dry Bulk Cargoes are handled in AD – South Quay and in JD

Storage points (Plots) are available near the Berths

26

Company importing Coal, avails the storage area on lease basis from Port

Hopers are provided by Port by which Company can move their cargo to their Plots from vessel

RO – RO TERMINAL

Roll-on & Roll-Off Terminal is at the south side of container terminal

Terminal to operate cruise and Ro-Ro Vessels

Ro-Ro berth area to be utilized as buffer car parking area

Car washing facility proposed to be installed in the buffer zone

Existing 6m wide Road + additional 5m wide area adjacent to the compound wall of passenger station building considered for entrance into the Ro-Ro berth and the existing jetty.

NOTE : 1

27

Multilevel Car park with Ro-Ro Terminal is mainly used by HMIL (Hyundai).Hyundai

Exports lot of finished cars in a year. For such companies port provides 47500 sqm area, there

Company can accommodate nearly of 4500 cars at a time.

Before using this Ro-Ro method, cars were handled by cranes (Vulnerable to damage).

But, Now using this Ro-Ro, cars are derived (Roll) by labors directly inside the vessel. This

Method restricts Vulnerability to damage and it reduces the time of loading the cars into vessels

Port serves the importers and exporters by providing these berths, Warf, cranes,

Transport facility, Sheds.

Now, new closed conveyers, dippers, advanced equipments to handle ODC are

available in Chennai port. These are strengths of ChPT.

Using above facilities ChPT is performing well and achieving its Target.

CRANES

More number of cranes are available to handle the cargo New 150 tones floating crane is introduced import

There are RMQC, RTGC, and RMGC cranes are there.

Cranes to handle ODC also available.

CARGO HANDLING DEPARTMENT

SL.NO. EQUIPMENT NUMBERS CAPACITY

1 FLOATING CRANE 1 150 TONS

2 MOBILE CRANE 3 10 Tons

3LOW CAPACITY DIESEL

FORK-LIFT TRUCK10

3 TONS

4HIGH CAPACITY DIESEL

FORK-LIFT TRUCK10

10 T10 TONS - 3 No. & 15 TONS – 5No.

& 2 TONS – 2 No.

5 PAYLOADER 23  TONS

6DIESEL ELECTRIC

LOCOMOTIVE14 700HP- 12 No. & 1400HP-2 No.

28

RAILWAYS

Facilities the dispatch and receipt of wagons, by taking over of rakes from SRLY for loading and unloading

58-BoxN, 45-BLC, 40-BCN type of wagons are used

Used to carry Coal, Iron ore, Granite blocks, Food Grains & Fertilizer, Containers

Iron ore wagons are directly used in Tripling work

HoM station controls the shunting

PERFORMANCE

29

PERFORMANCE:

Average Turnaround Time of Vessels Cargo wise (In Days)

Commodity

2006-2007 2007-2008  2008-2009  2009-2010(Upto Mar 2010)

Port Accoun

t

Non Port

Account

Port Accoun

t

Non Port

Account

Port Accoun

t

Non Port

Account

Port Accoun

t

Non Port

Account

Liquid Bulk

1.60 1.301.76 2.04 1.73 1.94 1.74 2.45

Dry Bulk

3.50 2.103.60 4.30 3.44 3.71 3.45 3.38

Break Bulk

2.50 1.902.38 2.76 2.21 2.78 2.07 2.59

Overall 2.10 1.302.25 2.30 2.11 2.04 2.01 2.03

30

Liquid Bulk

Dry Bulk

Break Bulk

Containers

total

Average Ship Berth day Vessels Handled In Numbers

Output - in Tones

00.5

11.5

22.5

33.5

4

Mar-

10

Dra

ft M

OU

Targ

et

Mar-

10

Dra

ft

MO

UT

arg

et

Up

to M

ar-

10

Dra

ft M

OU

Targ

et

Up

to  M

ar-

10

Dra

ft M

OU

Targ

et

PortAccount

Non PortAccount

PortAccount

Non PortAccount

Liquid Bulk Dry Bulk

Break Bulk Overall 

Container Performance

Container Handling

as on 11/06/2010 06:00

Containers HandledImport Export Total

Box TEUS Box TEUS Box TEUS

Day 1775 2366 1765 2590 3540 4956

Liquid Bulk

Dry Bulk

Break Bulk

Overall 

2009-2010

31

2009-2010

Average Turnaround Time of Vessels Cargo wise (In Days)

Month 16264 22025 17025 22889 33289 44914

Year 108186 146567 107032 145795 215218 292362

Cargo Wise Performance Indicators

Traffic Handled During March 2010 and up to March 2010

Commodity

For the Month of Mar 2010 Up to  the month of Mar 2010 TOTAL 2009

& 2010

Import

Export

Total TGT Import Export Total TGT

TOTALTARGET

P.O.L949 228 1177

109011881 1545 13426 13000 14603 14090

IRON ORE  701 701 970

-7881 7881 11500 8582 12470

Fertilizer0

-0 100 357

-357 760 357 860

Fertilizer(RAW)

49-

49 70 254-

254 310 303 380

NON COKING COAL737

-737 690 8292

-8292 8100 9029 8790

COKING COAL70

-70 180 1522

51527 1960 1597 2140

CONT. CARGO1154 1189 2343 1900 12067 11410 23477 22500 25820 24400

OTHER CARGO285 207 492 530 3723 2120 5843 5870 6373 6400

TOTAL3244 2325 5569 5530 38096 22961 61057 64000 66626 69530

Containerin TEU's

    121413       12164   1337851

Traffic Handled During March 2010 and up to March 2010

(PIE CHART)

32

 

For the Month of Mar 2010 Import

P.O.L

IRON ORE

Fertilizer

Fertilizer

(RAW)

NON COKING COAL

COKING COAL

CONT. CARGO

OTHER CARGO

TOTAL

Container

in TEU's

Traffic Handled During Year 1999-2000 to 2009-2010

0

10

20

30

40

50

60

70

YEARS

TO

NN

ES

(MIL

LIO

N)

IMPORT

EXPORT

TOTAL

* Data collected from P&R section

33

ORGANISATIONAL

STRUCTURE

34

DEPARTMENTS

There are 9 departments working together. These departments are classified

according to their nature of work.

The departments in Chennai Port Trust are

1. Secretaries Dept. (Administration,HR,MArketing)

2. Vigilance Dept. (CISF)

3. Mechanical Engineering & (Mechanical equipments - Cranes

Electrical Engineering Dept. & Maintance of electrical equip.)

4. Civil Engineering Dept. (Maintenance of Warf, Plot)

5. Finance Dept. (Worksheet, collecting Charges)

6. Traffic Dept. (Cargo handling, Shipping)

7. Stores Dept. (Plot Arrangement, Storage)

8. Medical Dept. (Labours, officers, crew members)

9. Marine Dept. (Drenching, vessel related)

Main operations are done by Traffic Department. This Department involves

Documentation, Commercial, Operations, Portage, Railways.

Hierarchy

CHAIRMAN

TRAFFIC MANGER

DIVISION Mngr DIVISION Mngr DIVISION Mngr DIVISION Mngr

ASST. Mngr ASST. Mngr ASST. Mngr ASST. Mngr

ADMIN Mngr ADMIN Mngr

35

PROCEDURES

36

Chennai Sea Port is constituted of shipping Department. It deals both Goods and

Passengers.

Goods are considered as Import and Export items.

Export – Any Goods which leaves the port

Import – Any Goods which enters the port

* Export/Import is independent of To/From Destination.

Chennai port provides 24 hours service. It controls all movements of ships from

entry to departure. Procedures for Importing and Exporting in Chennai Port Trust are

very simple. Importing gives profit to our country.

Importing Process

I) This process commences with an agreement between the customer (Importer) and the

supplier (Exporter).The supplier will export the cargo as per Exporting policy of his

country.

II) a. After Customs Clearance from Exporting Country Shipping agent will bring

the cargo through the vessel. Before arrival of vessel, customer should get

Bill of Lading - Receipt

Packing list

Invoice (By any means, mostly Airmail is used)

b. For approval from India Government, customer has to make a request and get

approval through Stemmer agent by the Manifest list which indicates the Nature of Cargo,

classification of good, Owner, Weight, and Value etc. and ETA of vessel.

This approval work has to be done by both Customs and Port. Stemmer Agent gives

a copy of Manifest to Customs Department, Customs has to approve and accept to bring the

cargo into India Territory. This Authority comes under Customs Act, 1962.

Then Stemmer agent gives approved copy to Chennai port Authority – Commercial

Department. Then Stemmer agent intimates the Customer about arrival of the vessel containing

customer’s cargo. Customer has to pay Freight Charges to the Stemmer Agent.

37

III) In the mean time, customer hands over the bill of lading, packing list, Invoice to the

Clearance & Forwarding Agent (C&F). C&F Agent will collect the documentation charge from

customer for its service. Now C&F agent starts to attend the Berth Meeting (11:00AM) from a

week early of arriving of vessel. And C&F agent will produce the Packing List and he demand

the equipments according to the Nature of cargo E.g. Berth, Warf, Cranes [RTGC, RMGC ,

RMQC], Hopers, oil pumps, Closed conveyers, Shed, Man power etc.,

Note : Berth Meeting

Berth meeting will be conducted by Chairman of ChPT daily at 11:00Am in ChPT hall. The

availability Berth is checked daily & Vessel position is analysed by the potential players, forecasting the

position for next day and also for the whole upcoming week. As per the forecasted details, manpower,

cranes and hooks are assigned in each berth. Priority also discussed there. Along with them Port

Members also attend the meeting especially from the Marine Department.

Potential Players are 1) Stemmer agent (Shipping Agents)

2) Stevedoring Agents (loading / unloading)

3) C& F Agents (Customs and forwarding)

Now, Stemmer agents are sending and update their details about arrival of vessel through

Internet itself.

IV) If the Birth availability is confirmed, C&F agent will file the Import

Application forms in the CDO with the particulars of Cargo. On comparing to the Manifest given

by the Stemmer agent, Documentation Officer gives him an Import Application Number.

Then C&F has to pay the Port dues for Warfage, Crainage, Pilotage, Berth hire

charges, Portage, CWC, CMC, WCC and Storage to the Accounts Department according to the

cargo Importing.

All Fees are collected according to SOR advised by TAMP.

38

V) When Vessel comes to the Outer Anchorage (OA), first signal of arrival is given and

according to the Priority, Vessel got inside the port area as a cold move [Moved by Tug Boats

Only] and berthed. From the time of Berth, 7 days of free for the customers to remove the cargo

from port starts. If it takes more than 7 days, Demurrage fee [collected according to SOR] has

to be paid by the customer. If it goes more than 60 days to clear the cargo, it will put for auction.

If it is not even removed from vessel itself, means additional Birth Hire Charge has to be paid by

the Customer. And customer also has to pay Return Pilotage.

VI) Now, after paying of all Port dues, Customer contacts stevedores [Stuffing/Destuffing

agent], they work as On-Board Labours. At that same time cranes, Labours from port (Off-

Shore) come to the vessel and Customer has to arrange for Transport facility (Private Lorries –

Should get the Entry pass by giving Vehicle’s register number, Driver’s photo) to carry the cargo

to the Storage plot (or) to outside the port. If through Railways customer has to pay freight

charges.

VII) Port Authority (Tally Clark) will check Unloading of Cargoes and make a note and

count on the cargo, at that same time Customs department also will check the cargo using the

Manifest given to them, only after the approval of Tally Clerk and CHAs, cargo can be moved

away from the Warf.

VIII) After completing all the above process C&F can get the Delivery order from the Port.

C&F agent has to give a Copy of Delivery Order to the CHAs; they will collect charges

according to the Tariff – Duty Rate (under Policy of India) and give a Bill Of entry (Into India)

and Custodian Copy (Customs Release Order) to the C&F agent.

IX) C&F agent will give a copy of above 3 Documents to the CISF in the gate; CISF will

give a Gate pass, using that Gate pass Lorries go out of the port.

39

Export Process

I) This process commences with an agreement between the customer (Importer) and the

supplier (Exporter). The supplier will export the cargo as per Exporting policy of India.

II) Exporter will contact a C&F agent. C&F has to file the Exporting Application Forms

with all details about the Cargo, request for requirement for loading of cargo like Storage plot,

Warfage, Crainage, and Portage in CDO and has to pay for all in accounts Department and get

the Export Number. Exporter also contacts the stemmer agent for vessel.

III) From the filing date, Exporter will provide with 30 free days to export, within that period

Exporter bring the cargo with copy of packing list and Invoice into the Port and the C&F agent

handover the cargo to ECR. After arrival of vessel C&F agent have to load the Cargo into the

vessel (brought by stemmer agent) with the help of Stevedoring agent.

IV) ECR will give the cargo to the Captain (Receiver) along with a memo (Boat Note), it is

also called as Export Gate Chit. Captain will keep the cargo into the Hatch of the vessel and give

a Mate Receipt (Acknowledgement). ECR has to Register the Receipt and give the Receipt, Bill

of Lading to the C&F agent.

V) Now, C&F agent will give the Export Application-B form, Mate Receipt, Bill of lading

to the Exporter. Then Exporter sends these documents along with original Invoice and Packing

list to the Importer (Original Receiver).

~~~~~~~

40

LEARNT FROM PORT

During my internship I gathered some knowledge by myself raising the following questions

41

I) WHY TARGET IS FIXED TO PORT- SERVICE PROVIDER?

Even though Port is not doing Import or Export, a Target in terms of has to be

fixed by Government which is to be achieved by Port on a monthly basis for a year.

Because then only port will do its work more faster to reach the target .Government fixes

a yearly goal to port which will be always more advanced than the previous year goal.

Taking it as a motivation, Port would do its work faster to achieve the goal. Previous year

achieved tonnes is said to be the Capacity of the port.

Fixing of Port Target/capacity may change according to Local and

International market trend. All India Port Chairman Meet will be held periodically to

discuss and to take step according to the market trend.

II) WHAT IS RDC?

The target set by the government should not be achieved by handling a single

cargo of that much tonnes, the handling of cargo should be on the basis of Rational

Distribution of Cargo.

The Cargo categories are:

a) P.O.L - Petroleum - Oil - Lubricant

b) Iron ore – Lumps, fines, pallets

c) Fertiliser – Urea

d) Raw Fertiliser – Potassium,Sulphur

e) Coal – Coking coal (Pet, Metallurgic)

f) Other Coal

g) Containers – 20ft, 40ft

h) Others

All the above cargo types have its individual Target.

III) WHY IS PRIORITY BASIS IN BRINGING THE VESSEL INTO THE PORT?

Priority - Ships are normally served in First come First Served (FCFS)

basis. But, because of various valid and vindicated reasons vessel

priorities are assigned in the Berth Meeting.

42

Priority will go as follows,

* 1st priority goes to Passengers Vessels

* 2nd priority goes to Government Orders (Essential Commodities)

* 3rd priority goes to Requesting Stemmer Agent (They have to pay more)

* 4th priority goes by Berth reservation Scheme (Nearer to Customer Plot)

For 3rd and 4th type of priority Customer has to pay for it in account

department. In that basis only vessels are brought from the OA into the Port.

IV) WHAT ARE IMPORT APPLICATION FORMS AND THEIR USES?

Sea Import Application form consists of 3 forms namely A, B, C.

FORM – A - It’s delivery purpose and delivery order will be issued only using

this form, this will be issued only when there is no problem in cargo.

FORM – B - This form is applying for Short landed of cargo (Noted by Tally

Clerk).If like this C&F agent gives the Form-B with details to port and send it to Customs

and get back the duty paid for unlanded cargo.

Using that form customer contact the supplier and get the back the money for

that unlanded cargo. Then Supplier Contacts the Shipment captain and captain check for

cargo hatch-by-hatch and return it back to the supplier.

(OR) Using the form, customer can contact shipping agent and get back his

cargo form Shipment captain directly. (Only can when the vessel is sailing near the

Port).This comes under the HIGH SEAS CONTRACT.

If there is surplus (Excess landed) of cargo is noted by Tally Clerk. Customs

will penalize the customer up to 135% of cargo value. If there variation between the

manifested cargo’s natures, customer will be penalized and has to pay for that cargo

value, if variation is more, cargo will not be given to the customer.

FORM – C - THEFT form, this form is used when the cargo is missing inside the

port. First C&F agent has to file a report to police, if it is unable to find, chairman will

take response for that and report the Customs. Customs will fix the Government value of

the cargo missing, according to that value Port will give compensation to the Customer.

If the cargo gets damaged inside the port, Government survivor surveys

(Customer has to pay for it) the damage and give the % of damage – certificate, using that

customer can go for Insurance.

43

V) WHAT ARE EXPORT APPLICATION FORMS AND THEIR USES?

Sea Export Application form consists of 4 forms namely A, B, B1 and C.

FORM – A - It’s for Exporting purpose and this will be issued only when there is

no problem in cargo.

FORM – B - Acknowledgement Purpose, signed by ECR (Cargo received by Port)

FORM – B1 -Endorsement Form (Weight of cargo, Lorry No.,)

FORM- C - Theft while in Stock Point.

VI) WHAT IS FOLLOWING UP ACTION BY EXPORTER WHEN VESSEL IS

NOT ARRIVED ON TIME?

Vessel may not come on ETA due to some reasons

i) Natural calamities

ii) Going to near by harbor

iii) Capacity of ship

iv) Delay in previous Port

After 30 days of free to place the cargo in port, port allow for some days with a

charge for that, according to SOR - Cargo Rate * weight * no. of days

EXAMPLE : 2

If cargo weight is 25 tones, then

Rs.4 for first 15 days => 4*25*15 = Rs.1500

Rs.79.2 for next 15 days =>79.2*25*15 =Rs. 29700

This second 15 days shows more amount, even then vessel is not arrived customer will

take out the cargo (Gate pass will be issued),i.e. shutting out of cargo

VII) WHAT IS SOR AND IT’S CALCULATIONS?

Scale of Rates was fixed by TAMP. It is a Cargo wise Classification rate. In

that detailed rate calculation for each and every item Imported or Exported is available. It

can be calculated in

i) Weight - All weighable items

ii) Advalaram – Electronics, Machines [Custom assessment value]

This charge is for 7 days (Free days) according to International Maritime Law.

44

Calculation

I) Weight Basis (or) Advalaram Basis

i) Warfage collection

Weight basis - [cargo weight * Classification rate]

Advalaram basis – [Customs value (duty)* Advalaram%]

ii) Crainage collection – calculated at Landing & stocking, Delivery

iii) Slap wise – Up to 5, 5 to 10,10 to 20.. (Tones)

iv) 3% of Service tax as Educational Cess

iv) 10% service tax for total amount paid

Example : 3

Warfage collection

a) Classification rate for cotton – Rs. 85.69/ton

If 100 tones is Imported the Warfage = 100*85.69 = Rs.8569

b) Advalaram % for Motor car – 0.43%

If the car value is Rs.12,15,000 = Rs.12,15,000 *0.43= Rs.522450

Crainage collection

Up to 20 tones = Rs.279*2 = Rs.558

VIII) WHAT IS DEMURRAGE FEE AND HOW IT IS CALCULATED?

It is a penalty fee, if cargo is not removed from port even after 7 free days

Demurrage is collected according to SOR.

Calculation: After 7 days of free period

Rate: ¬ For first 7 days Rs. 13/day/ton

¬ Next 10 days Rs. 26/day/ton

¬ Next 30 days Rs. 39/day/ton

¬ Thereafter Rs. 65/day/ton

¬ At last Rs. 79.25/day/ton (chairman’s decision)

Amount = Cargo weight * Rate * No. of days

45

EXAMPLE : 4

If cargo weight is 25 tones, then

25*13*7 = 2275 (in Rs.)

25*26*10 = 6500

25*39*30 = 29250

25*65*60 = 97500

Penal Demurrage

25*79.2*15(if) = 29700

Total of 6 months = Rs. 2,80,065

If the delay is by Port, Natural Calamities then Waiver (DISCOUNT) will be given by

Port on the Paid amount. (Only for those days)

IX) WHAT IS THE ACTION OF PORT ON UNCLAIMED CARGO?

Even though the Demurrage fee is increasing, Port only waits for 60 days, on

61st day detail will be published in Gazette publication and send a copy to customer.

After 15 days of publishing (according to Sec. 61, 62) port meet the customer directly

and give a sale of notice. After 15 days, cargo will put for Direct Auction. Customs and

port make the auction; Customs will fix the minimum duty value. Only Government

Auctioneers (approved) can bit for cargo. [Port can get the profit only if the cargo is

auctioned above the Minimum rate]. If Customer claims for the profit within 6 months,

Port will give it after detecting the Demurrage fee. If Port incurs lose, Port can sue the

customer in court for the lose amount.

X) HOW CUSTOMS INTERFERES WITH PORT SERVICE?

While checking the cargo, CHAs can suspect the cargo as illegal they open the

package of cargo and do analytical Test (If needed). If their suspect is true, Customs

confiscate the cargo and legal action will be initiated against the Importer within 24Hrs.

If the suspect went wrong, port will fine Customs and Customs has to pay the

Demurrage fee, pack the cargo and return to port.

46

XI) WHY EXPORT PROCEDURE IS EASIER THAN IMPORT PROCESS?

EXPORT – brings profit to INDIA. So we have to encourage the Indian

business men to Export more by simple procedure with minimum process time. A

committee under Mr.Pranab Mugerjee (Ministry of Finance) has worked out a simple

procedure for Exporting. And to encourage the Exporters the Warfage charges are

reduced for Exporting.

XII) HOW WORK IS ASSIGNED TO PORT LABOURS?

Labors come under Portage which is the back bone of Port Trust. Portage

controls the labors work in the Port as off-shore workers (90 Gangs).Labors are splitted

into Gangs – 12 Mazdors + 1 Mesentery. There are 3 shifts in a day.

i) Establishment Section – Administration Indoor attendance, Disciplinary

ii) Job card section – Attendance on field, now thump Impression also used

iii) Processing section – Labors schedules are pasted(Shift schedule),

according to that gangs go for that field and work.

XIII) HOW WEB BASED SERVICE IS WORKING?

Chennai Port Trust is a web based shipping service. Each and every Customer

can get day-to-day updated details, Vessel handling from Port website

(www.chennaiport.gov.in). Moreover, recognized stemmer agent can updates the full

Vessel details (Even whether vessel is coming from Yellow Fever Zone) and cargo

details, through Internet itself. Their updates are checked and submitted in the Berth

meeting. This reduces the Gap between the Customer and the Port.

XIV) HOW RAILWAYS INVOVES IN PORT SERVICE?

Port takeovers rakes from southern railway for loading and unloading.

Customer has to pay in Port. Charges are calculated as prescribed by S.Rly based on

Distance Slab & Commodity Class. Freight charges differ in Busy season and in Lean

season (July to September).There are some Punitive Charges if Excess weighted is

carried.

47

ANALYSIS

48

Competitive Position

The competitive position of ChPT was determined using “Porter’s five force

Analysis” model. As per the model, there are five competitive forces affecting an

organization:

Porter Five Force Analysis

49

Threat of New Entrants

Threat of Substitutes

Competitive Rivalry Withinthe industry

BargainingPower of Customers

Bargaining Power of Suppliers

THEAT AND NEGATIVE IMPACT OPPURTUNITY POSITIVE / NEUTRAL IMPACT

Threat of New Entrants

§ Chennai port enjoys monopoly because of location committed investments by users. § The new port facility requires huge investment and long gestation period.

§ Proactive measures by nearby major ports and minor ports to attract customers through efficient services and modern technology.

§ Increasing containerization and upcoming projects through the international shipping route in the Indian Ocean is increasing the International competition.

Bargaining power of service providers

§ Chennai port faces very negligible pressures from various service provides like stevedores, CHA, concessionaires. § The relations with Labour unions are

under good balance under present Circumstances. However, they do possess lot of bargaining power.

§ However, this scenario may change if initiates action to solve existing Labour issues. § Labour issues faced by CCTPL will impact future plan of becoming a hub port § The agreements with concessionaires provide them the power to enforce fulfillment of obligations of ChPT.

Bargaining power of port users

§ Increasing containerization and rise in § Chennai port is dependent on few port

50

Threat of New Entrants

§ Project New port facilities planned by minor and major ports § Sethusamundram Project

Rivalry among existingCompetitors

§ Better tariff terms§ Better efficiency§ Better connectivity

Bargaining power of users

§ Cargo traffic enablers§ Importers/ exporters, CHA§ Shippers, steamer agents

Potential for global Substitute

§ Other sources of supply

§ Substitute products

Bargaining power of service providers

§ Contractors/equipments suppliers§ Concessionaires§ Labour unions

variety of break bulk cargo, project export, auto exports, etc. provide avenue for diversification. § Monopoly status

§ Chennai port is the entry point of sea trade & generates employment for local community, giving bargaining power to ChPT

users for its cargo like iron ore, coal & POL § Enabling policies of state Govt. to promote captive ports leading to increased bargaining power § User friendly attitude and efficient services by competing ports coupled with probable decrease in hinterland transport costs.

Potential for global substitute

§ Chennai port has negligible threat from competing transport modes like rail/road congestion. In fact, there is a possible opportunity for promoting coastal trade.

§ Substitutes for principal cargo unlikely.

§ Principal Cargo can shift to other ports § Minerals export cargo (iron ore, manganese) might also face reduction because of government policy to impose restrictions on minerals export to avoid domestic shortage.

SWOT for Chennai Port as a wholeStrengths, Weaknesses, Opportunities and Threats (SWOT)

51

STRENGTH

• Strategic Geographical location and layout• Dedicated facilities for handling all major cargo types• Good Hinterland connectivity• First Mover advantage and an established base of customers• Long term agreements with users like CPCL and Hyundai• Best location on the East Coast for cruise operations in view of good air connectivity and proximity to cruise destinations like Bangkok/ Pattaya/ Singapore/Malaysia/ Indonesia / Andaman & Nicobar• ISO 9001: 2000 compliant port• ISPS Compliant port• Good IT implementation, web enabled port-user interaction• Good labour relations• Uninterrupted pilotage operations• Port trust has diverse representation of different interest groups• Port’s own training institute• Sufficient reserves & surplus• Good traffic growth and revenues in recent years• Sufficient working capital to meet its current obligations• Ongoing MEGA container Project• Elevated corridor to Maduravayul (connects NH4)• EMRIP

WEAKNESS

• Congested approach road• Traffic evacuation not allowed during the day • Restricted land availability• Higher tariffs for use of plots & equipments• Sub-optimal usage of rail connectivity• Exposure to dust & saline environment, requiring higher maintenance expense• Perceived need for improvement in service levels to retain existing clients, avoid them being lost to other ports and for developing new ones• Efficiencies lower and tariffs levels higher than those in international ports in the region like Singapore, Colombo, Hong Kong and Dubai• Ageing workforce • Need for additional environment / pollution management• Surplus labour of about 600 in different department• Restriction on investment of surplus fund to government securities and nationalized banks fixed deposits• High turnover among skilled staff in Marine department like pilots and marine engineers• Inadequate manpower to operate the dredgers round the clock resulting in lower utilization of dredgers and higher fixed costs thereby increasing overall cost of dredging• Port does not have fully computerized management accounting system• Lack of systematic marketing and Customer Relationship Management skills / systems

52

OPPURTUNITES

• Positive economic environment in the years to come with an anticipated 7% GDP growth rate, stable inflation and foreign exchange rates and rising international trade• Increasing containerization and good forecasted demand with strong business potential• Strong forecasted growth in automobile exports• Increased ship sizes• Increasing automation• Possibility to tap other sources of revenue• Ship Repair facilities and services to Ship Owners• Engineering Consultancy Services to Other Ports• Provision of Marine Services/BOT services to other Ports• Management & Technical consultancy & training services to other smaller ports• JV or strategic investment with minor/ intermediate ports• Potential to attract main line vessels• Better road connectivity after construction of proposed road projects• To facilitate cruise tourism by construction of a cruise terminal and marina• Increased focus on private-public Partnerships and the landlord model of port operations

THREATS

• Competition from major ports specially from Ennore and Tuticorin port• Ennore Mechanized conveyer• Competition from minor ports mainly from Krishnapatnam• Expected ban on export of minerals• Loss of lucrative cargo like coal & iron ore• Increase in awareness among common public about environmental issues• There are too many gates providing access to port, increasing vulnerability and efforts to maintain security• High possibility of reduction in government funding• Agitation of neighbors regarding the pollution made by coal and they demand for non handling of coal by port

53

CALCULATION

Portage controls the off-shore labors in the port. For their entry into the port and

for attendance purpose there is a job card and thump impression method. For a shift,

nearly of 250 labors will come for work inside the port (after the bell). Now there are 3

machines to note their attendance. This process takes more time it subsequently affects

the working hours.

Solution

For that, we can increase the number of machines.

Data

Labors work in the field in terms of gangs [1 Gang = 12 mazdures + 1 mesentery]

Arrival of Crowd (250 members)

Multi channel Facility

Card dropping and Thump impression are near (No multi stage)

Machine takes 1 min for each man (Dusty area so Thump impression takes time)

First in First out.

Now with 3 machines the process takes 1hr 23 min,

Now I suggest 7 machines [6 for mazdures and 1 for mesentry, priority] and

machines can be used by other queue members if it is free.

Now we can get a 1 Gang and 1 mesentry in 2 min. If this process goes on, at

18th min all mesentry will enters the Port, then that machine can be used for mazdures

entry. If that process goes on at 36th min all poratage labors will enter the Port. Thus Port

can get 19 Gangs (249 members) within 36 min.

* In most of the private companies they prefer to bell 15 min early than the

shift. If we use this method also we can get all gang within 25 min of work started.

54

CHENNAI PORT –AN USERS ATTRACTIVE DESTINY

Efficiency through continuous innovation and modernization

Quality service at minimal cost

User friendly, productivity facilitator of your business

Strategically located on the east coast to meet customer’s EXIM needs

Multi faceted and comprehensive port

Harmonious industry relations facilitating your business

A vibrant and comprehensive port community to met all customer’s

shipping needs

Multimodal transit for Customer’s Cargo needs

Low dwell time for vessels and cargo

Icegate – Boundary less Custom’s interface

Largest free days for import and export cargoes

Hinterland connectivity

Facility to handle wide spectrum of cargo mix

Skilled and competent work force

Web enabled shipping service

Cost effective services through commodity based labour deployment

High security for cargo

Suggestions

55

1) To reduce the attendance taking time 7 Job card and thumb impression machines for

portage labor attendance and thus not to affect the working hours

2) Due to coal handling in port, Pollution level is always high in Port. To restrict that

Port is now using closed conveyer to handle the coal. Even though this method is good, it

is not sufficient to eradicate the pollution fully. So Port and Government have to take

correct measures to control and reduce the pollution by coal.

3) In this port the main lacuna is the spillage of coal into the Dock area which reduces

the draft as such berthing of vessels is affected severely which in turn demands the

frequent drenching process. Frequent drenching will affect the basement of berth. To

eradicate the spillage the transport of coal from ship may be done directly to the trucks

instead of heaping in the berth.

4) The truck clearance is badly delayed for security (CISF) reasons on account of identity

of truck drivers, which in turn affects overall process of transporting commodities from

the Port. To eradicate this problem, holding of permanent ID card (which can be

electronically verified) by the Truck drivers should be made mandatory.

5) Under going work of elevated corridor upto Maduravoyal connecting NH4 will reduce

the Traffic Density near the Port area thus to help the freely movement of trucks in and

around port during day and night.

Conclusion

56

Now in INDIA, Service sectors are booming up like sea ports, Air ports,

banks. Among these sectors Sea Ports helps more for the Foreign Trade, this

subsequently develops the economic level of India.

Among the Sea Ports in India, Chennai Port shows its Unique Performance.

SWOT analysis also showed more Positive Points. All Operations in Chennai Port are

well planned and it renders its service in a friendly manner. Chennai Port also offers

advanced equipments and skilled labors; this saves the time of Importers and Exporter.

More and more inception of Infrastructure and sophisticated equipments will

bring more development in Chennai port trust in future.

Webliography

57

www.chennaiport.gov.in

www.giantlogistics.com/container-shipping.php

www.google.co.in/imghp?hl=en&tab=wi

www. en.wikipedia.org/wiki/

www.shipping.nic.in

Chennai Port Trust

Rajaji Salai, Chennai 600 001, India.

Phone: (91 44) 25362201, 25361139 

Fax: (91 44) 25361228, 25360278

E-mail: diredp@md3.vsnl.net.in, diredp@chennaiport.gov.in

58