A Project report on

COMPARITVE STUDY OF FINANCIAL PERFORMANACE OF CHENNAI PORT WITH COCHIN PORT AND JAWAHARLAL NEHRU PORT

UNDER SUPERVISION OF Mr.RISHIRAMAN Sr. Lecturer, SMS

SUBMITTED BY SHIV MOHAN SINGH PGRM/02/42

School of Management Sciences, Varanasi 2008-09

DECLARATION

SHIV MOHAN SINGH student of PGDM-RM( 1st sem) at School Of Management Sciences, Varanasi hereby declare that the Industrial Analysis entitle “Comparative study of financial performance of Chennai Port withCochin Port and Jawaharlal Nehru Port ” is the result of my own effort and is raised on information collected and guidance given by my mentor & faculty members. The industrial analysis is correct to the best of my knowledge & this report so far has not been published anywhere else.

SHIV MOHAN SINGH PGDRM/02/42 SMS, VARANASI

ACKNOWLEDGEMENT

It is great honour for me to be assigned this topic. First of all I would like to bow before the all mighty presence of God without whose mercy this project would have not been possible. I am immensely thankful to Prof. P.N.JHA, Director, School Of Management Sciences, Varanasi, for providing us every able opportunity to bring up our latent. I would also like to thank my mentor Mr.RISHIRAMAN for Providing me the opportunity for industry analysis & helping me in Completing the industry analysis report. I would also like to thank here my parents who were there with Me when I needed their support & cooperation at each & every step Of the project.

PREFACE

This report has been conducted to get an overview of “Comparative study of financial performance of Chennai Port with Cochin Port and Jawaharlal Nehru Port.” The basic objectivity of this report is to touch the most of the important aspects of comparison between CHENNAI PORT, COCHIN PORT and JAWAHARLAL NEHRU PORT .This report comprises of Comparison in operating income , operating expenditure, operating ratio, dredging expenses, operating surplus and net surplus. Finally conclusions have been made. With my best efforts, I have incorporated all the necessary details which are required for the report. I hope that the report will be appreciated by all.

TABLE OF CONTENTS

INTRODUCTION

OBJECTIVES

METHODOLOGY

FINDINGS

ANALYSIS

CONCLUSION

SUGGESTIONS

LIMITATIONS OF STUDY

BIBLIOGRAPHY

INTRODUCTION

INTRODUCTION

The role of foreign trade in day to day to life of common man has increased so much that, now it’s next to impossible to end a day without consuming a commodity, which is not produced internationally. This has induced me to work on the topic “Analytical Study of Financial Performance of Shipping Industry” allotted by Mentor. The motive of this inclination was to understand the financial performance of Shipping Industry when foreign trade is increasing therefore the opportunity and prospect of shipping industry is growing simultaneously. Shipping, transportation of passengers and goods on waterways. From prehistoric times shipping has had a major influence on human social development. Water routes, unlike roads, did not need building, and the difficulties and dangers were

less than those offered by mountains, marshes, and enemy tribes. Therefore many early civilizations developed on navigable rivers or .on the coasts of warm seas. Ancient peoples famous for their shipping enterprises include the Phoenicians, the Cretans, the Egyptians, the Greeks, and the Romans. The shipping routes of those highly civilized peoples were chiefly in the Mediterranean, but their voyages extended to India, along the Atlantic coast of Africa, and to Britain, where n was secured. The goods shipped consisted largely of luxuries, including spices, perfumes, and such fine pottery as the famous Athenian ware; but shipments of grain became important as cities grew in size. The great modern merchant marines (national fleets of commercial ships) first appeared in the commercial revolution. Leaders in shipping included the Spanish, the Portuguese, and the Venetians. The activities of mariners of SW Europe included discovery and conquest in the New World. In the 13th and 14th cent. The Hanseatic League mercantile league of medieval German towns built up a great trading and fishing fleet, while the Italian city-republics developed marine insurance on modern lines. England's shipping industry was associated with colonization, with the development of manufacturing, and especially with leadership in the Industrial Revolution. The greatest competitors of the British were the French and the Dutch. Both were vanquished in war and strangled in peace by the British Navigation Acts, in English history, name given to certain parliamentary legislation, more properly called the British Acts of Trade. The acts were an outgrowth of mercantilism, and followed principles laid down by Tudor and early Stuart trade regulations The introduction of slave labour into the American colonies made the slave trade one of the most profitable branches of shipping for two centuries. America's vast resources in timber provided an advantage in building wooden ships, and swift sailing vessels of American design, such as the schooner and the clipper, dominated shipping until the mid19th cent. The introduction of steel steamships enabled Great Britain to reassume the chief place in shipbuilding and shipping.

Shipping in the Twentieth Century
From about 1900 until World War I, Germany held second place in the world in both navy and merchant marine, and its challenge to Great Britain's domination of the sea was an important cause of the war. In the period between the two world wars the principal maritime nations were Great Britain and its dominions, the United States, Japan, Norway, Germany, Italy, the Netherlands, and France. The United States merchant marine steadily declined, and in order to stimulate shipbuilding the Merchant Marine Act of 1936 created the U.S. Maritime Commission. At the beginning of World War II in Europe, U.S. shipping, handicapped by the Neutrality Act, law passed by the U.S. Congress and signed by President Franklin Delano Roosevelt in Aug.1935.

After the entry of the United States into the war (Dec., 1941), a huge shipbuilding program rapidly got under way, and standardized vessels were turned out by assemblyline methods. A brief period of United States dominance in world shipping followed the war. Subsequently, however, the U.S. merchant marine again declined steadily; as the expense of American labour and ship construction increased, the cost of operation went beyond competitive levels, despite the fact that the American shipping industry was receiving a large subsidy from the federal government. Since the 1960s, U.S. ports have modernized their facilities by automating operations, installing computerized tracking systems, and handling containers ("intermodal shipping") that can be transferred directly to truck trailers or rail cars. Older facilities that do not have the room to handle containerized shipping have declined. These changes have greatly reduced the number of jobs in the shipping industry. Much of the cargo formerly carried in American vessels and in those of other major nations is now carried by so-called flag of convenience fleets. Such lines arose with the tendency of large shippers, especially those of Greece and the United States, to avoid the high taxes of their home countries by registering their ships in low-tax nations such as Panama and Liberia. In 1998 about 1.08 trillion tons of goods were imported to or exported from the United States by ship, but vessels flying the U.S. flag handled only 3% of that shipping.

Shipping Industry in India

The Shipping Corporation of India Ltd., (SCI) was incorporated on 02.10.1961 by amalgamation of Eastern Shipping Corporation and Western Shipping Corporation, with an authorised capital of Rs.35.00 Crore and paid-up capital of Rs.23.45 Crore. On the day of amalgamation, the SCI s fleet stood at 19 vessels of 1.39 Lakh GT and 1.92 Lakh

DWT. Subsequently two more Shipping Companies viz. Jayanti Shipping Company and Mogul Line Ltd. were merged with the SCI in 1973 and 1986 respectively. Fortify and grow is a character with which SCI is very conversant. This defined its earlier growth path and catapulted SCI into a specialist category; the 1960 s recognized SCI as a complete liner services company. In fact, as much as 90% of its entire tonnage was a consequence of liner ships regularly plying coastlines. This proved to be a source of power and a point of contemplation; the goals and achievements only marked a progress route and were actually, just a brighter future in waiting. Diversification was the future eluding SCI, at that time. Quick expansions to its fleet were subsequently undertaken, in sync with its progress plans. The fleet structure thus adopted distinguished it as the most diversified fleet-owner in India. Chance caused it to make it to the top-most league in the international arena. Even by international standards, SCI employed a remarkably diversified ship line-up; liner, bulk carriers and tankers, technical and offshore services that transport everything, from iron-ore to fertilisers, crude oil to petroleum products and critical materials used in offshore installations, and even tow rigs. Representing India to the extent of 40% of its entire tonnage! Other critical points too, like a presence in almost every major sea route in the world, have been instrumental in classifying it as a global player, slotting it in the world s top 15 league. India has a long coastline spanning 7600 kilometres forming one of the biggest peninsulas in the world. It is serviced by 12 major ports and 185 notified minor and intermediate ports Major ports handled over 80% of all cargo traffic in 2007. However, the words "major", "intermediate" and "minor” do not have a strict association with the traffic volumes served by these ports. As an example, Mundra Port, a newly developed minor port in the state of Gujarat registered a cargo traffic of around 28.8 million tonnes per annum during the financial year of 2008, which is higher than that of many major ports. The classification of Indian ports into major, minor and intermediate has an administrative significance. Indian government has a federal structure, and according to its constitution, maritime transport falls under the "concurrent list", to be administered by both the Central and the State governments. While the Central Shipping Ministry administer the major ports, the minor and intermediate ports are administered by the relevant departments or ministries in the nine coastal states of West Bengal, Orissa, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Goa, Maharashtra and Gujarat. Several of these 185 minor and intermediate ports are merely "notified", with little or no cargo handling actually taking place. These ports have been identified by the respective governments to be developed, in a phased manner, a good proportion of them involving Public-private partnership.

There are also 7 shipyards under the control of the central government of India, 2 shipyards controlled by state governments, and 19 privately owned shipyards. The major ports handled 423.4 million tons of cargo for the financial year 2005-2006, with Vishakhapatnam, Cochin ,Kolkata Port, Chennai Port and Kandla carrying the greatest tonnage. Major ports can collectively handle 400+ million tons of cargo annually, and port operations have improved since the mid-1990s. All major ports, except one (Ennore Port), are government administered, but private-sector participation in ports has increased. Despite positive steps taken by the government and large size of its commercial fleet, India is a small player in the international shipping market and its export possibilities in this sector are, at present, quite limited. This is because India does not have adequate numbers of large modern tankers and high-speed containership. As a consequence, Indian fleet has been slow to enter the emerging shipping sector, particularly the high value, high volume container trade. This is evident from the fact that in July 2000, India had only 10 cellular container vessels which accounted for around 0.14 grt (0.18 million dwt) of Indian tonnage.26 Liberalisation and reforms of the 1990s have made the environment of shipping more competitive both in terms of cargo and resource mobilisation markets. In this environment, only those industries that have developed a comparative advantage can thrive. Indian shipping lags far behind its international competitors with respect to resource mobilisation, technological modernisation and expansion. As a consequence, although the volume of India’s overseas trade has more than doubled in the 1990s, the share of Indian ships in the trade has declined. In the post-independence period the share of Indian ships in the overseas trade increased steadily to over 40 per cent in 1987–88 but thereafter declined to around 30.8 per cent in 1998–99 and their share in liner cargo is only around 14 per cent. Currently, the Indian economy is paying around Rs 15,000– 18,000 crores per annum to foreign flagships which carries as much as 69 per cent of our overseas trade.27 the amount of outgo will increase progressively with the growth of Indian trade if the share of Indian shipping does not improve.

Indian shipping industry has pointed out that despite its vital role in the growth and development of the country’s economy and trade, shipping is not recognised as an infrastructure industry and, therefore, does not enjoy the developmental benefits that are available to other infrastructure sectors. Nor is shipping recognised as an export industry in spite of its substantial foreign exchange earnings.30 at present, Indian shipping is being taxed at the highest level in the world. In the 1990s the government withdrew the exemptions that were available under Section 33AC and 80I of the Income Tax Act and

introduced a Minimum Alternative Tax. This has resulted in an effective tax rate of 22 per cent31 which may seem low compared to other domestic industries and services, but is higher than what is paid by any of India’s international competitors. Thus, the major challenges before the Indian shipping industry today are the steep competition from large and sophisticated international shipping lines, constraints on fiscal and financial front and the declining share of national shipping in the carriage of the country's overseas trade. Although India has the largest merchant shipping fleet among the developing countries and ranks seventeenth in the world in terms of gross registered tonnage (grt) and fifteenth in terms of deadweight tonnes (dwt), the country has not been successful in exporting its maritime services or emerging as a forerunner in the arena of international trade. Given the locational advantage, strong maritime tradition and rich hinterland, India has the potential for expanding trade in this sector. It is therefore important to identify the country's opportunities and constraints to trade in maritime transport services for the current round of GATS 2000 negotiations

Role of Shipping Industry in Foreign Trade

India plays an important role in the world economy. It noticed with admiration the economic development in India within the last decade. India has experienced an almost twenty percent (20%) growth in foreign trade. That is the second largest development in economic growth worldwide. Trade is essential for the economy. And transportation is a significant facilitator of trade. It is well known, that maritime transport carry around eighty percent (80 %) of world trade. Maritime transport is a strong precondition for growth in trade!

The shipping industry has shown an impressive ability to adopt rapidly to the new global structures and innovations. It noted with satisfaction the large extent of openness of the Indian market to international maritime transport. Several shipping companies are servicing the Indian market in international trades. India is a vast country with a long coastline and many ports. Twelve of these are major ports. Traffic in Indian ports has risen over the last ten years. It is told, that this is due to a liberalisation process started by the Indian Government. Indian ports were opened for participation or investment by the private sector - in the area of cargo handling capacity. It is told, that the construction of the terminal has started and is running according to plan. The facility should be in operation in the first quarter of 2004. The Indian shipping industry is governed by the Merchant Shipping Act (MSA), 1958, and the Director General of Shipping is the regulatory authority for all activities of shipping, such as shipping administration, maritime safety, maritime training, examination and certification, shipping development, etc. The Director also ensures implementation of various international conventions relating to safety requirements, prevention of oil pollution and other mandatory requirements of the International Maritime Organisation (IMO). Recognising the role of the shipping industry in the context of overall growth strategy, in general, and the promotion of trade and foreign exchange earnings, in particular, the Indian government has made several amendments to the MSA to encourage the modernisation and diversification of this industry. Since the 1990s, the government has simplified the regulatory procedures for raising resources from commercial markets and external borrowing in order to facilitate the acquisition of new and second hand vessels at competitive prices. The shipping companies are now allowed to retain sales proceeds of their ships abroad and utilise them for fresh acquisition. Government approval is no longer required for raising foreign exchange loans from abroad by mortgaging the vessels with the lender. The government has also granted automatic approval for foreign direct investment up to a limit of 74 per cent and non-resident Indians (NRIs) are permitted to invest up to 100 per cent with full repatriation benefits. Apart from cabotage, the government also provides cargo support for Indian lines by implementing the policy of buying (importing) on FOB basis and selling (exporting) on CIF basis. The government owned/controlled cargo is channelled by the chartering wing

of the Ministry of Surface Transport, “Transchart”. As per this policy, the first right of refusal for carriage of such cargoes is given to Indian vessels. However, in case of nonavailability of suitable Indian vessels, foreign flag vessels can be used for transportation of these cargoes.

Government Policies for Shipping Industry
Maritime transport services have played a crucial role in the development of India’s economy since over 90 per cent of the country’s trade volume (77 per cent in terms of value) is moved by sea. The Indian peninsula is strategically located between the Atlantic Ocean in the west and Pacific Ocean in the east, with a 6,000 km long coastline, and 12 major20 and 139 operable minor and intermediate ports. At present, India has the largest merchant shipping fleet among the developing countries and ranks seventeenth in the world in shipping tonnage. There is also an urgent need to beef up the fiscal plicis to ensure that the shipping industry gets the right support to sustain its growth. The only fiscal benefit enjoyed currently by the shipping industry pertains to Section 33AC of the income tax Act, 1961, which enables shipping companies to claim tax deduction up to 50% of the funds generated from internal accruals and deployed in equisition or repairs of ships. The salient features of India’s shipping policy are the promotion of national shipping to increase self-reliance in the carriage of country’s overseas trade and protection of the interest of exporters and importers.21 India’s national flagships provide an essential means of transport for the import of crude oil, petroleum products, coal and fertilisers, export of iron ore and exports and imports of various general (liner) cargoes. National shipping also provides for a second line of defence in times of emergency – merchant ships help in transporting supplies, men and material for the navy. Indian shipping makes significant contributions to the foreign exchange earnings of the country. The foreign exchange earnings/savings of Indian shipping companies increased by over 50 per cent in the 1990s. The eve of independence, India had only 60 vessels and the Indian shipping tonnage was 1.92 lakhs grt. In July 2000, Indian fleet comprised of 517 vessels and the shipping tonnage is 7.02 million grt. The Ninth five-year plan has proposed a growth target of 2 million grt over the Eighth five-year plan taking the total shipping tonnage to 9 million grt. The Indian shipping industry is governed by the Merchant Shipping Act (MSA), 1958, and the Director General of Shipping is the regulatory authority for all activities of shipping, such as shipping administration, maritime safety, maritime training, examination and certification, shipping development, etc. The Director also ensures

implementation of various international conventions relating to safety requirements, prevention of oil pollution and other mandatory requirements of the International Maritime Organisation (IMO).24 In the past, Indian ships had to be repaired at Indian yards, which were not competitive either in terms of costs or time. This restriction has been removed and shipping companies can now get their ships repaired in any shipyard without seeking prior approval of the government. The Reserve Bank of India authorises foreign exchange for imported capital goods for ship repair/dry docking and spares without any value limits. Previously, shipping companies required a license from the Director General of shipping to operate a liner service. The government has now delicensed many liner routes. Moreover, foreign ships calling at Indian ports do not require a license for overseas trade. For coastal trade, licenses are given to foreign flag vessels on a case-by-case basis as per the cabotage regulations. The government has also set up the National Shipping Policy Committee (NSPC) under the Chairmanship of Director General of Shipping to provide fiscal, financial, administrative and legislative measures for growth and development of shipping in India. At present, Indian shipping is being taxed at the highest level in the world. In the 1990s the government withdrew the exemptions that were available under Section 33AC and 80I of the Income Tax Act and introduced a Minimum Alternative Tax. This has resulted in an effective tax rate of 22 per cent31 which may seem low compared to other domestic industries and services, but is higher than what is paid by any of India’s international competitors.32 Thus, the major challenges before the Indian shipping industry today are the steep competition from large and sophisticated international shipping lines, constraints on fiscal and financial front and the declining share of national shipping in the carriage of the country's overseas trade. The major ports are under the purview of the Ministry of Shipping (previously they were under the Ministry of Surface Transport – MOST) and are governed by the Major Port Trusts Act, 1963 which enables them to conduct regulatory and commercial functions. The intermediate and minor ports are administratively under the state governments and are governed by the Indian Ports Act 1908, which delineates the regulatory power of the Port Authority. Other acts applicable to the port sector includes The Dock Workers (Regulation and Employment) Act 1948 and Dock Workers (Safety, Health and Welfare) Act of 1986 which regulates the conditions of employment, service and other matters relating to dock workers.

To increase the productivity and efficiency of the ports, the government has announced the following measures: The powers of the Port Trust Boards to sanction projects have been increased to Rs 50 crores in case of additional/new investments and to Rs 100 crores in case of replacement/renewal of assets. The Major Port Trust Act, 1963 was amended by Port Laws (Amendment) Act, 1997 to provide an independent Tariff Authority for Major Ports (TAMP) for fixing and revising the port tariff. To provide greater freedom and flexibility to the major ports, the government in the Union Budget 2000–2001 has recommended corporatisation of major ports. In May 2000 the Major Port Trusts Act 1963 has been amended to enable the major ports to enter into joint ventures with minor ports. The joint venture between major and minor ports can enhance the traffic handling capacity by diverting the traffic to the minor ports since the major ports have already reached a saturation level. The major ports are allowed to enter into joint ventures with foreign ports and foreign companies. Foreign direct investment in port projects is now allowed up to 100 per cent equity. An Empowered Committee on Environment Clearances (ECEC) has been constituted in the MOST to provide simplified and transparent guidelines for environment clearance for the expansion of existing port limits.

Ports in Indian Shipping Industry

India has a long coastline spanning 7600 kilometres forming one of the biggest peninsulas in the world. It is serviced by 12 major ports and 185 notified minor and intermediate ports [citation needed]. Major ports handled over 80% of all cargo traffic in 2007. However, the words "major", "intermediate" and "minor” do not have a strict association with the traffic volumes served by these ports. As an example, Mundra Port, a newly developed minor port in the state of Gujarat registered a cargo traffic of around 28.8 million tonnes per annum during the financial year of 2008, which is higher than that of many major ports.

The classification of Indian ports into major, minor and intermediate has an administrative significance. Indian government has a federal structure, and according to its constitution, maritime transport falls under the "concurrent list", to be administered by both the Central and the State governments. While the Central Shipping Ministry administer the major ports, the minor and intermediate ports are administered by the relevant departments or ministries in the nine coastal states of West Bengal, Orissa, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Goa, Maharashtra and Gujarat. Several of these 185 minor and intermediate ports are merely "notified", with little or no cargo handling actually taking place. These ports have been identified by the respective governments to be developed, in a phased manner, a good proportion of them involving partnership there are also 7 shipyards under the control of the central government of India, 2 shipyards controlled by state governments, and 19 privately owned shipyards. The major ports handled 423.4 million tons of cargo for the financial year 2005-2006, with Vishakhapatnam, Cochin ,Kolkata Port, Chennai Port and Kandla carrying the greatest tonnage. Major ports can collectively handle 400+ million tons of cargo annually, and port operations have improved since the mid-1990s. All major ports, except one (Ennore Port), are government administered, but private-sector participation in ports has increased.

LOCATION OF PORTS IN INDIA

Introduction of Jawaharlal Nehru Port

Pandit Jawaharlal Nehru laid the foundation stone of the Port on January 3, 1962. Construction work commenced in November 19, 1962 and dredging operations from March 15, 1964. During this period the Port was in the control of the government of Orissa. The management was formally handed over to the Government of India on June 1, 1965. The Port was declared eight major ports on April 18, 1966 making it the first Major Port in the East Coast commissioned in Independent India. The Port was opened to traffic in 1966. The main cargo handled was Iron Ore. Para dip Port has come a long way since then and its cargo profile has greatly increased. The Port started handling containers and transhipment of petroleum products in 1991.The Port is connected with Board Gauge Railway System of the South Eastern Railway. The Port is served by National highway No. 5-A. Pandit Jawaharlal Nehru laid the foundation stone of the Port on January 3, 1962. Construction work commenced in November 19, 1962 and dredging operations from March 15, 1964. During this period the Port was in the control of the government of Orissa. The management was formally handed over to the Government of India on June 1, 1965. The Port was declared eight major ports on April 18, 1966 making it the first Major Port in the East Coast commissioned in Independent India. The Port was opened to traffic in 1966. The main cargo handled was Iron Ore. Para dip Port has come a long way since then and its cargo profile has greatly increased. The Port started handling containers and transhipment of petroleum products in 1991.The Port is connected with Board Gauge Railway System of the South Eastern Railway. The Port is served by National highway No. 5-A.

Introduction of Chennai Port

Chennai Port is the second largest port of India, behind the Mumbai Port. It is over 125 years old. This was a major travel port before becoming a major container port. It is a substantial reason for the economic growth of Tamil Nadu, especially for the manufacturing boom in South India. Its container traffic crossed 1 million TEUs for the first time in 2008[1]. Though much smaller than ports such as Singapore, Hong Kong, Shanghai and Shenzhen, it is expanding in the coming years. Chennai Port is more than a century old artificial port, and located in Chennai, South India, is one of the major ports on the Coromandel Coast of India. The initial piers were built in 1861, but the storms of 1868 and 1872 made them inoperative. So the Masonry work for L shaped breakwaters was started in 1876, but the storm of 1881 completely washed the almost completed harbour. The Chennai Port Trust has taken the year of rebuilding 1881 as the starting year and is now celebrating its 125th anniversary. The port's quays (berths) were constructed at different periods — the South Quay I in 1913, the five West Quay berths between 1916 and 1920, the North Quay in 1931 and the South Quay II in 1936, in the Inner Harbour, later christened Dr Ambedkar Dock. It was under the stewardship of Sir Francis Dallas Refolds Spring from 1905-1919 that the major improvements took place. It can be said without doubt that the Madras Port was the main reason for the booming industry in Madras and contributed in no small measure to the development of the City. From handling a meagre volume of cargo in the early years, consisting chiefly of imports of oil and motors and the export of groundnuts, granite and ores, the port is moving towards handling 500 lakh (50 million) tonnes of cargo this year. From 1881 to 1945, the cargo handled in Madras port varied from 0.5 million tonnes to 1 million tonnes. By 1979-80, the traffic touched 10 million tonnes, and increased to 15 million tonnes in 1984-85. By 1991-92, the volume was 25 million tonnes, touching 41 million tonnes in 2000-01. Though there was a slump in the next three years, the port recovered, to handle 47.25 million tonnes in 2005-06. In the current fiscal, the cargo handled is expected to cross 50 million tonnes. The car exports from this port are expected to touch 300,000 by 2008. This has a volume growth of 20% per year and has 59% of the market share of South India. It has services to Singapore, Malaysia, Thailand,

Myanmar, Sri Lanka, Korea, China, Mediterranean, Europe, Australia and the US. It enjoys a better quay length of 885 m. It has a berth productivity of 22 moves per hour, and an average turnaround of 26 hours. The operator has invested around $128 million to get new equipment at the terminal.

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Introduction of Cochin Port

The modern Port of Cochin was developed during the period 1920-1940 due to the untiring efforts of Sir Robert Bristow. By 1930-31 the Port was formally opened for vessels up to 30 feet draught. Cochin was given the status of a Major Port in 1936. The Administration of the Port got vested in a Board of Trustees on 29th February 1964 under the Major Port Trusts Act, 1963 Cochin Port Trust is an Autonomous Body under Govt.of India and is managed by Board of Trustees constituted by the Govt. of India. The Board is headed by the Chairman who acts as the Chief Executive Officer. The Govt.of India may from time to time nominate the Trustees in the Board representing various interests. Chairman is assisted by the Dy. Chairman who in turn is assisted by Department Heads and officials of the following departments functioning in the Port. A draft of 38 ft. is maintained in the Ernakulam channel along with berthing facilities, which enables the Port to bring in larger vessels to the Port. In the Mattancherry channel a draft of 30 ft. is maintained. The Port provides round the clock pilot age to ships subject to certain restrictions on the size and draft of the vessels. There is an efficient network of railways, roads, waterways and airways, connecting the Port with the hinterland centres spread over the State of Kerala, Tamilnadu and Karnataka.

STATICAL DATA OF PORTS

Name

Cargo Handled (06-07) '000 Vessel Traffic (05- Container Traffic (05-06) '000 tonnes 06) TEUs

Chennai 53,798 Cochin 15,314 J.N.P.T. 44,818

1,857 1,225 2,395

735 203 2,267

RESEARCH OBJECTIVE:-

Research objective: - The Present Industry Analysis study will be based on the following objectives-

• • •

To compare the financial performance of Chennai port with Cochin port and Jawaharlal Nehru port To compare the operating income of Chennai port with Cochin port and Jawaharlal Nehru port The objective of comparative study will help us to know the financial miscellaneous income and expenditure of Chennai port as compared to Cochin port and Jawaharlal Nehru port

• • • •

To know the expenditure on dredging of these port To know the operating expenditure of these port To know the operating ratio of these port To know the net surplus of these port

METHODOLOGY:-

The present research work is analytical study to have the knowledge of concern industry, with the help of secondary source; therefore following methodology will be applied to complete the project.

• • • •

Type of Research: - Descriptive and Analytical Data Collection Method: - Secondary Source Source of Secondary Data: - CMIE Data Base i.e. Prowess and Industry Analysis Service Statistical Tools: - Bar Graph, Pie Chart apart from these during the studies other tools like mean, regression etc. could be applied if required.

BENEFIT OF THE PROJECT

 This project will help us to know the financial performance of Chennai port with Cochin port and Jawaharlal Nehru port

 This project will help us to know the operating income of Chennai port with Cochin port and Jawaharlal Nehru port

 This project will help us to know the operating expenditure of Chennai port with Cochin port and Jawaharlal Nehru port

 The benefit of this comparison will help us know the total income of these ports

 Comparative study will help us to know the performance and growth of weaker port among these and this it can be improved by the there means.

FINDINGS

REVENUE OF PORTS

FINDINGS Table 1

OPERATING INCOME OF CHENNAI PORT, COCHIN PORT JAWAHARLAL NEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 335.46 368.56 403.64 431.69 534.97

COCHIN 200.69 201.45 207.48 198.95 212.08

JNPT 459.81 579.61 630.09 670.32 802.79 RS in crores

GRAPH 1
OPERATING INCOME
900 800 700 600 500 400 300 200 100 0 2003 2004 2005 YEAR 2006 2007 CHENNAI COCHIN JLN

RS in crores

INTERPRETATION:-

The above tabular graph represents the operating income of Chennai port, Cochin port and Jawaharlal Nehru port. It shows the yearly wise performance of operating income of these ports. For the march -03 to march-2007,Chennai port show the successive growth during these during these five year with growth rate of range from 9.87% to 23.52% while in march-07 it got massive growth over the preceding year. During the same period Cochin port has also the successive growth except the period march-06 in which its growth dipped over the preceding year by 4.11%.In this period, Jawaharlal Nehru port shows the overall successive growth during this period with growth rate. It has a consistent growth over its preceding year, during this year, in march-04; this port gained the highest growth rate of 26%, which was among all these three port during this period. So, comparatively, Jawaharlal Nehru port has the best growth rate among these ports having a growth rate of rang 6.38% to 26.05%, while the Cochin port has the slowest growth rate having the rang of growth rate of 0.38% to 7.29% including a negative growth of -4.

Table 2

PORT & DOCK AND WAREHOSUING REVENUE OF CHENNAI,COCHIN AND JAWAHARLAL NEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 50.87 54.29 68.26 71.94 79.13

COCHIN 19.06 23.82 29.34 34.56 40.34

JLN 22.01 30.01 35.79 42.52 56.18 RS in crores

GRAPH 2
PORT & DOCK WAREHOUSIGH REVENUE
90 80 70 RS in crores 60 50 40 30 20 10 0 2003 2004 2005 YEAR 2006 2007 CHENNAI COCHIN JLN

INTERPRETATION:-

In the above table shows the change in port & dock warehousing revenue of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07. Chennai port has positive change in port & dock warehousing revenue in all over the period march-03 to march-07. Cochin port has also same trend it also show positive change in all over the period march-03 to march-07. Jawaharlal Nehru port has also same trend it also show positive change in all over the period march-03 to march-07.

Table 3 CARGO HANDLING AND WAREHOUSING REVENUE OF CHENNAI,COCHIN AND JAWAHARLAL NEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 147.27 154.16 163.13 175.82 189.54

COCHIN 45.57 52.46 71.52 94.56 104.9

JLN 76.26 115.96 183.9 185.19 234.66 RS in crores

GRAPH 3
CARGO HANDLING AND WAREHOUSIGH REVENUE
250 200 RS in crores 150 100 50 0 2003 2004 2005 YEAR 2006 2007 CHENNAI COCHIN JLN

INTERPRETATION:-

In the above table shows the change in cargo handling warehousing revenue of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07. Chennai port has positive change in cargo warehousing revenue in all over the period march-03 to march-07. Cochin port has same trend it show positive change in all over the period march-03 to march-07. Jawaharlal Nehru port has also same trend it also show positive change in all over the period.

Table 4

RAILWAYES REVENUE OF CHENNAI,COCHIN AND JAWAHARLAL NEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 16.01 17.02 19.87 22.92 28.87

COCHIN NA NA NA NA 9

JLN 1 1.4 1.4 1.94 2.01 RS in crores

GRAPH 4

RAILWAYES REVENUE
35 30 RS in crores 25 20 15 10 5 0 2003 2004 2005 YEAR 2006 2007 CHENNAI COCHIN JLN

INTERPRETATION:In the above table shows the change in railways revenue of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07. Chennai port has positive change in railways revenue in all over the period march-03 to march-07. There is not data available from march-03 to march-06.Only march-07 data available is 9 crores. Jawaharlal Nehru port has also same trend it also show positive change in all over the period

.

Table 5
LAND & BUILDING REVENUE OF CHENNAI,COCHIN AND JAWAHARLAL NEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 2.19 2.76 3.87 3.28 3.81

COCHIN 5 5.77 6.43 8.61 10.81

JLN 4.42 7.27 13.98 18.36 29.19 RS in crores

GRAPH 5

LAN D & B U LD IN G R EVEN U E
35 30 25 RS in crores 20 15 10 5 0 2003 2004 2005 YEAR 2006 2007 CHE NNAI COCHIN JLN

INTERPRETATION:In the above table shows the change in land and building revenue of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07. Chennai port has positive change in land and building revenue in all over the period march-03 to march-07. Cochin port has same trend it show positive change in all over the period march-03 to march-07. Jawaharlal Nehru port has also same trend it also show positive change in all over the period.

EXPENDITURE OF PORTS

OPERATING EXPENDITURE OF CHENNAI PORT, COCHIN PORT AND JAWAHARLAL NERHU PORT
YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 CHENNAI 270.25 261.4 286.47 312.94 348.08 COCHIN 147.22 141.89 146.25 135.13 147.57 JLN 213.18 234.06 271.81 270.33 287.95 RS in crores

Table 6

GRAPH 6
OPERATING EXPENDITURE
400 350 300 RS in crores 250 200 150 100 50 0 2003 2004 2005 YEAR 2006 2007 CHENNAI COCHIN JLN

INTERPRETATION:Operating expenditure table shows the change in operating expenditure of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07.

Chennai port has positive change in operating expenditure in march-05, march-06 and march-07.while in march-03 and march-04, it has negative change.

Cochin port has positive in only two years march-05 and march-07, while in other period it has negative change in operating expenditure.

Jawaharlal Nehru port has positive change during the period except march-03 and march-06, where it has negative in operating expenditure.

Table 7

SALARIES AND WAGES EXPENSES OF CHENNAI PORT, COCHIN PORT JAWAHARLAL NEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 174.79 159.76 161.16 180.08 198.17

COCHIN 64.99 65.19 65.95 60.9 62.87

JLN 33.74 36.19 40.48 46.56 54.63

RS in crores

GRAPH 7

SALARIES AND WAGES
250 200 RS in crores 150 100 50 0 2003 2004 2005 YEAR 2006 2007 CHENNAI COCHIN JLN

INTERPRETATION:In above table shows the change in salaries and wages expenses of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07.

Chennai port has positive change in salaries and wages expenses in march-04 by 8.6%.while in march-05, march-06 and march-07; it has negative change by0.88%, 11.74%and 10.05% respectively.

Cochin port has positive change in only one year march-06 by 7.6%, while in other period it has negative change in salaries and wages expenses.

Jawaharlal Nehru port has negative change during the period.

Table 8
STORE EXPENSES OF CHENNAI PORT,COCHIN PORT AND JAWAHARLAL NEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 2.46 1.82 1.88 3.3 3.41

COCHIN 11.94 11.62 11.53 9.4 8.43

JLN 36.77 29.13 30.66 30.12 30.63 RS in crores

GRAPH 8

STORE EXPENSES
40 35 30 RS in crores 25 20 15 10 5 0 2003 2004 2005 YEAR 2006 2007 CHENNAI COCHIN JLN

INTERPRETATION:In above table shows the change in stores expenses of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07. Chennai port has positive change in store expenses in march-04 by 26.02%.while in march-05, march-06 and march-07; it has negative change by 3.3%, 77.33% and 2.4% respectively. Cochin port has positive change in only one year march-05 by 3.65%, while in other period it has negative change in store expenses. Jawaharlal Nehru port has negative change during the period.

DEPRECIATION EXPENSES OF CHENNAI PORT,COCHIN PORT AND JAWAHARLAL NEHRU PORT
YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 CHENNAI 19.81 22.34 24.97 26.98 27.92 COCHIN 11.94 11.62 11.53 9.4 9.34 JLN 36.77 29.13 30.66 30.12 30.63 RS in crores

Table 9

GRAPH 9

DEPRECIATION EXPENSES
40 35 30 RS in crores 25 20 15 10 5 0 2003 2004 2005 YEAR 2006 2007 CHENNAI COCHIN JLN

INTERPRETATION:-

In above table shows the change in depreciation expenses of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07.

Chennai port has negative change in depreciation expenses in during the period.

Cochin port has positive change during the all period.

Jawaharlal Nehru port has positive change in march-04 and march-06 by 20.78% and1.76% while rest period it has negative change.

Table 10
OFFICE &ADMINISTRATION EXPENSES OF CHENNAI PORT,COCHIN PORT AND JAWAHARLAL NEHRU PORT
YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 CHENNAI 6.99 6.17 NA NA NA COCHIN 3.03 3.59 4.77 5.28 4.59 RS in crores JLN 4.95 7.67 6 3.55 3.3

GRAPH 10

OFFICE &ADMINISTRATION EXPENSES
9 8 7 RS in crores 6 5 4 3 2 1 0 2003 2004 2005 YEAR 2006 2007 CHENNAI COCHIN JLN

INTERPRETATION:In above table shows the change in office & administration expenses of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07. Chennai port has positive change in office & administration expenses in march-04 rest data are not available. Cochin port has positive change in only march-07 by13.07% while it has negative change in march-04, march-05, and march-06 by 18.48%, 32.47% and 10.69% respectively.

Jawaharlal Nehru port has positive change in march-05, march-06 and march-06 by 21.77, 40.83% and7.04% while in march-04it has negative change.

Table 11

OPERATION & MAINTENANCE EXPENSES CHENNAI PORT,COCHIN PORT AND JAWAHARLAL NEHRU PORT
YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 CHENNAI 20.85 12.93 24.06 20.72 25.02 COCHIN 13.6 9.43 11.09 13.69 11.28 RS in crores JLN 119.9 138.39 169.66 157.17 166.44

GRAPH 11
OPERATION & MAINTENANCE EXPENSES
180 160 140 RS in crores 120 100 80 60 40 20 0 2003 2004 2005 YEAR 2006 2007 CHENNAI COCHIN JLN

INTERPRETATION:-

In above table shows the change in operation & maintenances expenses of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07. Chennai port has positive change in operation & maintenances expenses in march04 and march-06 by 37.99% and 13.88% while it has negative change in march-05 and march-07 by 86.8% and 20.75% respectively. Cochin port has positive change in march-04 and march-07 by 30.66% and 17.25%, while it has negative change in march-05, and march-06 by17.6 %, and 22.9% respectively. Jawaharlal Nehru port has positive change in only march-06 by 7.36%, while in march-04, march-05 and march-07it has negative change by 15.42%,22.6% and5.9% respectively.

Table 12

SECURITY EXPENSES OF CHENNAI PORT,COCHIN PORT AND JAWAHARLAL NERHU PORT
YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 CHENNAI 8.89 8.92 9.95 10.27 10.78 COCHIN 5.82 5.75 5.86 6.58 7.51 RS in crores JLN 3.31 5.53 5.91 7.11 7.12

GRAPH 12

S E C U R IT Y E X P E N S E S
12 10 RS in crores 8 6 4 2 0 2003 2004 2005 YEAR 2006 2007 CHE NNA I COCHIN JLN

INTERPRETATION:The above tabular graph shows the change in security expenses of Chennai port, Cochin port and Jawaharlal Nehru port over the period of mar-03 to mar-07. Chennai port has negative change in all over the period mar-04, mar-05, mar-06 and mar-07 by 0.34%, 3.22%, 3.22% and 4.97% respectively. Cochin port has positive growth in only mar-04 by 1.2%, while in mar-05, mar-06, and mar-07 it has negative growth by 1.91%, 12.29%, and 14.13% respectively.

Jawaharlal Nehru port has negative change in all over the period mar-04, mar-05, mar06 and mar-07 by 67.07%, 6.87%, 20.3% and 0.14% respectively.

Table 13
MEDICAL EXPENSES OF CHENNAI PORT,COCHIN PORT AND JAWAHARLAL NEHRU PORT
YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 CHENNAI 5.97 5.88 6.53 10.06 15.73 COCHIN 7.39 6.68 6.91 6.48 7.6 RS in crores JLN 3.32 4.08 4.42 5.88 6.87

GRAPH 13

ME D IC AL E X P E N S E S
18 16 14 RS in crores 12 10 8 6 4 2 0 2003 2004 2005 YEAR 2006 2007 CHE NNA I COCHIN JLN

INTERPRETATION:-

In the above table shows the change in medical expenses of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07. Chennai port has positive change in medical expenses in march-04 by 1.51, while it has negative change in march-05, march-06 and march-07 by 11.05%, 54.92%and 56.36% respectively. Cochin port has positive change in march-04 and march-06 by 9.61% and 6.22%, while it has negative change in march-05 and march-07 by 3.44 %, and 17.28% respectively. Jawaharlal Nehru port has negative change in all period as march-04, march-05, march-06 and march-07 by 4.08%, 4.14%, 5.88% and 6.87% respectively.

Table 14

GRAPH 14
OTHER OPERATING EXPENDITURE OF CHENAI PORT,COCHIN PORT AND JAWAHARLAL NEHRU

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 30.49 49.75 57.92 61.5 67.05

COCHIN 33.13 31.4 32.21 23.07 35.95

JLN 7.11 8.38 9.35 12.85 11.19 RS in crores

OTH E R OP E R AT IN G E X P E N D IT U R E
80 70 60 RS in crores 50 40 30 20 10 0 2003 2004 2005 YEAR 2006 2007 CHE NNA I CO CHIN JLN

INTERPRETATION:In the above table shows the change in other operating expenditure of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07. Chennai port has negative change in other operating expenditure in all over the period. Cochin port has positive change in march-04 and march-06 by 5.22% and 28.38%, while it has negative change in march-05 and march-07 by 2.58 %, and 55.83% respectively. Jawaharlal Nehru port has negative change in march-04, march-05, and march-06 by 17.86%, 11.58%, and 37.43% respectively while only march-07 it has positive change by 12.92%.

Table 15
PORT & DOCK WAREHOUSING EXPENDITURE INCLUDING PILOTAGE OF CHENNAI,COCHIN AND JAWAHARLAL NEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 16.5 22.23 28.5 31.13 39.94

COCHIN 27.13 21.13 34.7 41.97 49.04

JLN 12.65 12.55 12 17.79 25.17 RS in crores

GRAPH 15
PORT & DOCK WAREHOUSIGH EXPENDITURE INCLUDING PIOTAGE
60 50 RS in crores 40 30 20 10 0 2003 2004 2005 YEAR 2006 2007 CHENNAI COCHIN JLN

INTERPRETATION:-

In the above table shows the change in port &dock warehousing expenditure of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07. Chennai port has negative change in port & dock warehousing revenue in all over the period march-03 to march-07. Cochin port has also same trend it also show negative change in all over the period march-03 to march-07. Jawaharlal Nehru port has also same trend it also show negative change excluding march-04 it has positive change by 40.32%.

Table 16
CARGO HANDLING AND WAREHOUSING EXPENDITURE OF CHENNAI,COCHIN AND

JAWAHARLAL NEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 45.88 52.3 61.73 68.16 77.23

COCHIN 12.06 16.04 19.84 20.59 21.93

JLN 47.11 57.99 79.25 92.34 114.13 RS in crores

GRAPH 16 CARGO HANDLING AND WAREHOUSIGH EXPENDITURE
120 100 RS in crores 80 60 40 20 0 2003 2004 2005 YEAR 2006 2007 CHENNAI COCHIN JLN

INTERPRETATION:-

In the above table shows the change in cargo handling warehousing expenditure of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march07. Chennai port has negative change in cargo warehousing revenue in all over the period march-03 to march-07. Cochin port has also same trend it also show negative change in all over the period march-03 to march-07. Jawaharlal Nehru port has also same trend it also show negative change in all over the period.

Table 17

LAND & BUILDING EXPENDITURE OF CHENNAI,COCHIN AND JAWAHARLAL NEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 1.43 1.69 1.7 1.87 2.32

COCHIN 1.99 3.33 3.34 3.21 4.22

JLN 4.4 6.68 7.28 9.69 10.47 RS in crores

GRAPH 17

LAND & BUILDING EXPENDITURE
12 10 RS in crores 8 6 4 2 0 2003 2004 2005 YEAR 2006 2007 CHENNAI COCHIN JLN

INTERPRETATION:In the above table shows the change in land and building expenditure of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march07. Chennai port has negative change in land and building expenditure in all over the period march-03 to march-07. Cochin port has same trend it show negative change in all over the period march-03 to march-07. Jawaharlal Nehru port has also same trend it also show negative change in all over the period.

Table 18
MANAGEMENT AND GENERAL ADMINISTRATION EXPENDITURE OF CHENNAI PORT, COCHIN PORT AND JAWAHARLAL NEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 34.92 41.32 48.59 52.84 64.73

COCHIN 17.61 21.57 23.47 29.42 35.81

JLN 52.94 54.94 59 61.01 62.79 RS in crores

GRAPH 18

M A N AG E M E N T & G E N E R AL AD M IN IS T R A T IO N E X P E N D IT U R E
70 60 50 RS in crores 40 30 20 10 0 2003 2004 2005 YEA R 2006 2007 CHE NNA I C O CH IN JLN

INTERPRETATION:In the above table shows the change in management & administration expenditure of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march07. Chennai port has negative change in management & administration cargo warehousing revenue in all over the period march-03 to march-07. Cochin port has same trend it show negative change in all over the period march-03 to march-07. Jawaharlal Nehru port has also same trend it also show negative change in all over the period.

Table 19
EXPENDITURE ON DREDGING OF CHENNAI PORT,COCHIN PORT AND JAWAHARLAL NEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 8.75 1.47 0.05 NA NA

COCHIN 33.13 31.4 32.21 44.38 35.95

JLN 7.11 8.38 9.35 12.85 11.19 RS in crores

GRAPH 19

E X P E N D IT U R E ON D R E D GIN G
50 45 40 35 30 25 20 15 10 5 0 2003 2004 2005 YEAR 2006 2007

RS in crores

CHE NNA I CO CHIN JLN

INTERPRETATION:-

In the above table shows the change in expenditure on dredging of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07. Chennai port has positive change in expenditure on dredging in march-04 and march-05 by 83.2% and 96.6% other data are not available.

Cochin port has positive change in march-04 and march-07 by 5.22% and 19%, while it has negative change in march-05 and march-06 by 2.58 %, and 37.78% respectively. Jawaharlal Nehru port has negative change in march-04, march-05, and march-06 by 17.86%, 11.58%, and 37.43% respectively while only march-07 it has positive change by 12.92%.

FIANANCIAL AND MISCELLNUOUS

Table 20
FINANCIAL AND MISCELLANEOUS INCOME OF CHENNAI PORT,COCHIN PORT AND JAWAHARLAL NEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 110.58 45.02 71.32 88.56 138.73

COCHIN 15.29 16 13.12 17.88 21.28

JLN 93.42 68.93 82.75 88.98 104.63 RS in crores

GRAPH 20

F IN AN C IAL AN D M IS C E L L AN E OU S IN C OM E
160 140 120 RS in crores 100 80 60 40 20 0 2003 2004 2005 YEAR 2006 2007 CHE NNA I CO CHIN JLN

INTERPRETATION:-

In the above table shows the change in financial and miscellaneous income of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07. Chennai port has positive change in financial and miscellaneous income in march05, march-06 and march-07 by58.42%, 24.17% and 56.65% respectively while in march04 it has negative change by59.29%. Cochin port has positive change in march-04 march-06 and march-07 by 4.64%, 36.28% and 19.02%, while it has negative change in march-05 by 18%. Jawaharlal Nehru port has positive change in march-05, march-06, and march-07 by 20.05%, 7.53%, and 17.59% respectively while only march-04 it has negative change by 26.21%.

Table 21

GRAPH 21

FINANCIAL AND MISCELLANEOUS EXPENDITURE OF CHENNAI PORT,COCHIN PORT AND JAWAHARLAL NEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 49.11 78 72.54 48.95 62.84

COCHIN 49.36 54.24 70.71 52.19 59.13

JLN 212.11 211.11 195.19 72.04 162.57 RS in crores

FIN AN C IAL AN D MIS C E LL AN E OU S E X P E N D ITU R E
250 200 RS in crores 150 100 50 0 2003 2004 2005 YEAR 2006 2007 CHE NNA I COCHIN JLN

INTERPRETATION:In the above table shows the change in financial and miscellaneous expenditure of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march07. Chennai port has positive change in financial and miscellaneous expenditure in march-05, and march-06 by 7% and 32.52% respectively while in march-04 and march07 it has negative change by 58.42% and 28.38%. Cochin port has positive change in only march-06 and by 26.19%, while it has negative change in march-04, march-05 and march-07 by 9.89%, 30.37% and 13.3% respectively. Jawaharlal Nehru port has positive change in march-04, march-05, and march-06 by 0.47%, 7.54%, and 63.09% respectively while only march-07 it has negative change by huge change 125.67%.

Table 22
PROFIT OR LOSS IN FINANCIAL AND MISCELLANEOUS OFCHENNAI,COCHIN AND JAWAHARLAL NNEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 61.47 -32.98 -1.22 36.61 75.89

COCHIN -33.46 -38.24 -57.58 -34.31 -37.85

JLN -118.69 -142.44 -112.44 16.94 -57.94 RS in crores

GRAPH 22

PROFIT OR LOSS IN FINANCIAL AND MISCELLANEOUS
100 50 RS in crores 0 -50 -100 -150 -200 YEAR 2003 2004 2005 2006 2007 CHENNAI COCHIN JLN

INTERPRETATION:In the above table shows the change in profit or loss financial and miscellaneous income and expenditure of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07. Chennai port has positive change in profit or loss financial and miscellaneous in march-04, march-06 and march-07 by 7%, and 32.52% respectively while in march-04 and march-07 while it has negative change in march-04 and march-05. Cochin port has negative change in all over the period. Jawaharlal Nehru port has positive change in march-06, while it has negative change in rest of the period.

OPERATING RATIO

OPERATNG RATIO OF CHENNAI PORT,COCHIN PORT AND JAWAHARLAL NEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 80.56 70.92 70.97 72.49 65.07

COCHIN 73.36 70.43 70.49 67.93 69.58

JLN 46.36 40.38 43.13 40.33 35.87 RS in crores

Table 23

GRAPH 23

OP E R ATIN G R ATIO
90 80 70 RS in crores 60 50 40 30 20 10 0 2003 2004 2005 YEAR 2006 2007 CHE NNA I COCHIN JLN

INTERPRETATION:-

In the above table shows the change in operating ratio of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07. Chennai port has positive change in operating ratio. Cochin port has performance well. Jawaharlal Nehru port has performing better among these ports.

OPERATING SURPULS OF PORTS

Table 24

OPERATING SURPLUS OF CHENNAI PORT, COCHIN PORT AND JAWAHARLAL NEHRU PORT
YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 CHENNAI 65.21 107.16 117.17 118.75 181.89 COCHIN 53.47 59.56 61.23 63.82 64.51 RS in crores JLN 246.63 345.55 358.28 399.99 514.84

GRAPH 24

O P E R AT IN G S U R P L U S
600 500 RS in crores 400 300 200 100 0 2003 2004 2005 YEA R 2006 2007 CH E NNA I CO CH IN JLN

INTERPRETATION:-

In the above table shows the change in cargo operating surplus of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07. Chennai port has positive change in cargo operating surplus in all over the period march-03 to march-07. Cochin port has same trend it show positive change in all over the period march-03 to march-07. Jawaharlal Nehru port has also same trend it also show positive change in all over the period

NET SURPLUS OF
TOTAL INCOME OF CHENNAI PORT, COCHIN PORT AND JAWAHARLAL NEHRU PORT
YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 CHENNAI 446.04 413.58 474.96 520.25 673.7 COCHIN 215.98 217.45 220.6 216.83 233.36 RS in crores JLN 553.23 648.54 712.84 759.3 907.42

PORTS

Table 25

GRAPH 25
TOTAL INCOME
1000 900 800 700 600 500 400 300 200 100 0 2003 2004 2005 YEAR 2006 2007

RS in crores

CHENNAI COCHIN JLN

INTERPRETATION:-

In the above table shows the change in total income of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07. Chennai port has positive change in total income in march-05, march-06 and march-07 by 14.84%, 9.54% and 29.5% respectively while in march-04 it has negative change by 7.28%. Cochin port has positive change in march-04 march-05 and march-07 by0.68%, 1.45% and 7.62% respectively while it has negative change in march-06 by 1.71%. Jawaharlal Nehru port has positive change in march-04, march-05, march-06 and march-07 by 9.82%, 17.23%, 9.91% and 19.51% respectively.

Table 26

TOTAL EXPENDITURE OF CHENNAI PORT, COCHIN PORT AND JAWAHARLAL NEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 319.36 339.36 359.01 361.89 410.92

COCHIN 196.58 196.13 216.96 187.32 206.7

JLN 425.29 445.17 467 342.37 450.52 RS in crores

GRAPH 26

TOTAL EXPENDITURE
500 450 400 350 300 250 200 150 100 50 0 2003 2004 2005 YEAR 2006 2007

RS in crores

CHENNAI COCHIN JLN

INTERPRETATION:In the above table shows the change in total expenditure of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07. Chennai port has negative change in total expenditure in march-04 march-05, march-06 and march-07 by 6.28%, 5.78%, 0.8% and 29.5% respectively. Cochin port has positive change in march-04 and march-06 by 0.23% and 13.66% respectively while it has negative change in march-06 and march-07 by 10.62% and 10.35% respectively. Jawaharlal Nehru port has positive change in only march-06 by 26.69%, while it has negative march-04, march-05 and march-07 by 4.67%, 4.9%, and 31.59% respectively.

Table 27
NET SURPLUS OF CHENNAI PORT, COCHIN PORT AND JAWAHARLAL NEHRU PORT

YEAR Mar-03 Mar-04 Mar-05 Mar-06 Mar-07

CHENNAI 126.68 74.18 115.95 158.36 262.78

COCHIN 19.4 21.32 3.64 29.51 26.66

JLN 127.94 203.37 245.84 416.93 456.9 RS in crores

GRAPH 27

NET SURPLUSE
500 450 400 350 300 250 200 150 100 50 0 2003 2004 2005 YEAR 2006 2007

RS in crores

CHENNAI COCHIN JLN

INTERPRETATION:Tabular graph comprises a comparative data of net surplus of Chennai port, Cochin port and Jawaharlal Nehru port over five year (march-03 to march-07).In march03 and march-04 have not any growth in to net surplus because total income dipped down by 31.05% and 7.28% consecutively, while next three year it had successive growth in net surplus. Total expenditure of this port was ascending order from march-03 to march07. In first few year, net surplus of this port was negative growth while next three year, it was positive growth with 56.31%, 36.58%, and 65.94% consecutively.

In this period the growth rate of total income of Cochin port was ascending order except march-06, it was down negatively and the rate of expenditure also same pattern. The growth of net surplus of this port was in alternate order according to net surplus to year. March-06, it has highest as it was 710.7%.

The growth rate of Jawaharlal Nehru port was positive in every year over preceding year and expenditure was in positive growth rate over five year.

Jawaharlal Nehru port performed well among all these three port preformed well among all these port as it had a consistent growth rate in total income, total expenditure and net surplus also.

ANALYSIS

ANALYSIS
1.

Total Income Performance :Chennai port has positive change in total income in march-05, march06 and march-07 by 14.84%, 9.54% and 29.5% respectively while in march-04 it has negative change by 7.28%. Cochin port has positive change in march-04 march-05 and march-07 by0.68%, 1.45% and 7.62% respectively while it has negative change in march-06 by 1.71%. Jawaharlal Nehru port has positive change in march-04, march05, march-06 and march-07 by 9.82%, 17.23%, 9.91% and 19.51% respectively. It shows JNPT performance better than Chennai port and Cochin port.

2.

Total Expenditure Performance :-

Chennai port has negative change in total expenditure in march-04 march-05, march-06 and march-07 by 6.28%, 5.78%, 0.8% and 29.5% respectively. Cochin port has positive change in march-04 and march-06 by 0.23% and 13.66% respectively while it has negative change in march-06 and march-07 by 10.62% and 10.35% respectively. Jawaharlal Nehru port has positive change in only march-06 by 26.69%, while it has negative march-04, march-05 and march-07 by 4.67%, 4.9%, and 31.59% respectively. It means Cochin port continuously controls its expenditures as other ports.

3.

Operating Ratio Performance :The change in operating ratio of Chennai port, Cochin port and Jawaharlal Nehru port over the period march-03 to march-07.Chennai port has positive change in operating ratio. Cochin port has performance well. Jawaharlal Nehru port has performing better among these ports.

4.

Net Surplus Performance of Ports:Net surplus of Chennai port, Cochin port and Jawaharlal Nehru port over five year (march-03 to march-07).In march-03 and march-04 have not any growth in to net surplus because total income dipped down by 31.05% and 7.28% consecutively, while next three year it had successive growth in net surplus. Total expenditure of this port was ascending order from march-03 to march-07. In first few year, net surplus of this port was negative growth while next three year, it was positive growth with 56.31%, 36.58%, and 65.94% consecutively. In this period the growth rate of total income of Cochin port was ascending order except march-06, it was down negatively and the rate of expenditure also same pattern. The growth of net surplus of this port was in alternate order according to net surplus to year. march-06, it has highest as it was 710.7%.The growth rate of Jawaharlal Nehru port was positive in every year over preceding year and expenditure was in positive growth rate over five year.

Jawaharlal Nehru port performed well among all these three port as it had a consistent growth rate in total income, total expenditure and net surplus also.

CONCLUSION

CONCLUSION

After analysing the whole data we can conclude that JAWAHARLAL NEHRU PORT is performing better than CHENNAI PORT AND COCHIN PORT in respect of total income, total operating surplus, & even in the respect of operations & maintenance.

Now when we talk about the operating ratio performance, we can conclude that CHENNAI PORT has performed better than JNPT & COCHIN PORT.

Now when we talk about the Dredging Expenses performance, we can conclude that COCHIN PORT expenses more than JNPT & CHENNAI PORT. Among all these three ports COCHIN PORT is weaker port because it spend more money for dredging (For cleaning the route between west ports and east ports).It increase its income by charging the fees of dredging from east-west ports.

SUGGESTION

SUGGESTION & RECOMMENDATION

In respect of the suggestion should be given regarding these three ports there is no such point to be pointed out because the ports are performing better according to there strength. But the only point is that of the operating ratio, in this case JNPT has to improve little bit more as comparing it with the CHENNAI PORT & COCHIN PORT. Because in this case COCHIN PORT has shown there best performance rather than in any other case. So I would like to recommend that COCHIN PORT has to take some specific steps or to implement some strategies regarding the enhancing of there Net Surplus so that the ultimate results should come in front of us.

LIMITATIONS

LIMITATIONS

Though this study provides better knowledge about this field but still it has some Limitations:

1. Due to short span time, study could not be so deep.

2. Due to data collected much earlier of submission of project report, the most current Data could not be well presented.

3. Only CMIE has been used as a source of data. Other source has been ignored.

Bibliography:-

• CMIE DATA BASE (PROWESS) • WWW.SCI.COM

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