CHAPTER 1

INTRODUCTION OF THE
PROJECT

1
1.1 Introduction

Port operations in India are characterized by acute supply constraints. The major ports in India
are overseen by the Port Trust Boards and are regulated by the Tariff Authority for Maritime
Ports (TAMP). Minor ports are overseen by the state governments.

Large ports need to deal with a number of disparate activities: the movement of ships, containers,
and other cargo, the loading and unloading of ships and containers, customs activities. As well
as human resources, anchorages, channels, lighters, tugs, berths, warehouse, and other storage
spaces have to be allocated and released. The efficient management of a port involves managing
these activities and resources, managing the flows of money involved between the agents
providing and using these resources, and providing management information.

The work involves

Managing the movement of cargo containers between cargo ships,

Trucks and freight trains and optimizing the flow of goods through customs to minimize
the amount of time a ship spends in port.
Maintaining efficiency involves managing and upgrading gantry
cranes, berths, waterways, roads.
Storage facilities.

2
1.2 Objective of the study

To study about cargo traffic of major ports.

To study about cargo handling of major ports.

To identify benefits and problems of ports.

To understand the methods and procedures used in Port Operations.

To understand and gain knowledge on various containers handling tools (Machines)

3
1.3 Scope of the study

The scope of this study is limited to Port Operations out of maritime shipping industry.
The scope of this study is limited to 8 major ports out of 12 major ports.
The analysis of cargo handling is carried out on 5 major ports which are Kandla Port,
JNPT, Mumbai Port, Chennai Port, Tuticorin Port.
The analysis of container traffic is carried out on 5 major ports which are JNPT, Kolkata
Port, Tuticorin Port, Cochin Port, Vizag Port.
The analysis of average stay at berth of JNPT & Mumbai port.
The analysis of income & expenditure figures of 5 major ports.

1.4 Literature Review

4
Seaports are areas where there are facilities for berthing or anchoring ships and where there is the
equipment for the transfer of goods from ship to shore or ship to ship. To use more modern
jargon, it is a ship/shore interface or a maritime intermodal interface.

From an historical point of view the 18/429 customs facility is important because without it no
international commercial intercourse was legally possible. In many older ports the most
imposing piece of architecture on the waterfront is the Custom House. The major reference
books on ports list Between 3,500 to 9,000 ports in the world. The reason why the figure varies
is that the meaning and definition of a port can vary. At one end of the scale a large estuarial port
may contain many terminals which may be listed as separate ports. At the other end of the scale
not every place where a small vessel anchors to offload cargo may be listed as ports. Ports should
be considered as one of the most vital aspects of a national transport infrastructure. For most
trading nations they are:

1. The main transport link with their trading partners and thus a focal point for motorways
and railway systems.

2. A major economic multiplier for the nations prosperity. Not only is a port a gateway for
trade but most ports attract commercial infrastructure in the form of banks, agencies, etc.,
as well as industrial activity.

5
 CHAPTER 2

INTRODUCTION TO THE
INDUSTRY

2.1 Overview of the Industry

6
India has a coastline spanning 7516.6 kilometers, forming one of the biggest peninsulas in the
world. According to the Ministry of Shipping, around 95 per cent of India's trading by volume
and 70 per cent by value is done through maritime transport. It is serviced by 12 major ports, 200
notified minor and intermediate ports. The total 200 non-major ports are in the following States:-
Maharashtra (48); Gujarat (42); Tamil Nadu (15); Karnataka (10); Kerala (17); Andhra Pradesh
(12); Odisha (13); Goa (5); West Bengal (1); Daman and Diu (2); Lakshadweep (10);
Pondicherry (2); and Andaman & Nicobar (23).

Government of India plans to modernize these ports and has approved a project
called Sagarmala. The ports and shipping industry in India plays a vital role in sustaining growth
in the countrys trade and commerce. The Indian Government has allowed Foreign Direct
Investment (FDI) of up to 100 per cent under the automatic route for port and harbour
construction and maintenance projects. The government has also initiated National Maritime
Development Programme (NMDP), an initiative to develop the maritime sector with a planned
outlay of US$ 11.8 billion.

7
Market Size

Cargo traffic handled by Indias Major ports increased 4.6 per cent year-on-year to 264.73
million tonnes (MT) during April-August 2016. In terms of composition of cargo traffic, the
largest commodity was P.O.L. (32.44 per cent), followed by coal (24.09 per cent), container
traffic (19.65 per cent), other cargo (12.68 per cent), iron ore (4.6 per cent) and other liquids
(4.13 per cent).

The countrys major ports handled a combined volume of 718,000 Twenty-foot-Equivalent Units
(TEU) during August 2016, up from 679,000 TEUs during same month last year, while
containerized cargo tonnage rose 3.7 per cent to 10.5 MT during August 2016. During April-June
2016, the ports had handled a combined volume of 2.12 million TEUs, which is roughly around
70 per cent of the countrys overall container trade.

The government has taken several measures to improve operational efficiency through
mechanization, deepening the draft and speedy evacuations. In FY 2015-16, the Indian Port
sector witnessed capacity addition of 94 Million Tonnes Per Annum (MTPA), which is the
highest in the history of major ports.

The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry,
reported that the Indian ports sector received FDI worth US$ 1.64 billion between April 2000
and March 2016.

8
2.2 Major Players

1. Kandla Port Gujrat

Gujarat host the major seaport of west coast, The Kandla Port is situated on the Gulf of
Kutch near the Gandhidham city in Kutch District of Gujarat. The Port of Kandla is the
first special economic zone in India as well as in Asia, Kandla Port is hub for major
imports like petroleum, chemicals and iron also export grains,salt and textiles. Port of
Kandla is one of the highest earning ports of India, another port in Gujarat is
MundraPort,Indias largest private port.

9
2. Jawaharlal Nehru Port Trust Maharashtra

Jawaharlal Nehru Port is the largest container port in India, situated at the mainland of
Konkan area across the Navi Mumbai Maharashtra. Jawaharlal Nehru Port is the king
port of Arabian Sea at west coast and handle a large volume of international container
traffic and domestic cargo traffic. The major exports are textiles,carpets,boneless meat
and main imports are machinery,vegetable oils and chemicals.

10
3. Mumbai Port Trust Maharashtra

The Mumbai Port is located in the mainland of west Mumbai on the West coast of India
with natural deep-water harbor. Mumbai Port is the largest port in India and handles bulk
cargo traffic with its four jetties for handling Liquid chemicals, Crude and petroleum

11
products. International container traffic of Mumbai Port is directed to the new and big
NhavaSheva port.

12
4. Marmagao Port Goa

The main port of Goa, Marmagao port is a best natural harbors of India located in South
Goa. Marmagao port is one of the leading iron ores exporter port in India and raw
materials too. The port of Marmagao is one of the major attraction of Goa along with
the beautiful city of Vasco da Gama and international airport Dabolim. The natural harbor
of Goa is one of Indias earliest modern ports.

13
5. Panambur Port Karnataka

Panambur Port known as the New Mangalore Port, is a seaport located near to Surathkal
railway station in Dakshina Kannadadistrict of Karnataka. New Mangalore Port is a deep
water all weather port and the only major port of Karnataka and one of the largest port in
India. Port of Mangalore export major commodities like manganese, granite
stones, coffee and cashew and main imports includes timber logs,LPG,petroleum
products and cargo containers. There is a beautiful beach at south of sea port of
Panambur along with the shore of the Arabian Sea.

14
6. Cochin Port Kerla

The Cochin port is one of the largest port in India and the major port on the Arabian Sea
and Indian Ocean sea route. The port of Cochin lies on two islands of Willingdon and
Vallarpadam and the largest container transshipment facility in India. Kochi Port is
equipped with maritime facilities Cochin Shipyard,Kochi Refineries and Kochi Marina.
Kochi city is famous for its traditional spices and well known as the port city of Fort
Kochi during the European colonials. It also get its individual Kochi international airport,
third international airport in the state of Kerala.

15
7. Tuticorin Port Tamil Nadu

Tuticorin Port is an artificial deep-sea harbour and one of the 12 major ports of India. It is
also the second largest port in Tamil Nadu first is Chennai Port and one of the largest
container terminal in India. The artificial port of Tuticorin is an all-weather port and who
receive a large volume of international traffic. Port of Tuticorin are a used to be best port
for maritime trade and pearl fishery on the Bay of Bengal. The port city is also known as
Pearl City and is one of the beautiful sea gateways of India from Tamil Nadu state.

16
8. Chennai Port

Madras Port is the one of the oldest port of India and the second largest port in the
country. Chennai Port also the largest port in the Bay of Bengal and a hub port for cars,
big containers and cargo traffic in the east coast of India. Port of the Coromandel Coast

17
 handles a variety of cargo containers,automobiles,coal,fertilizers and petroleum products.
Chennai Port terminals have lighthouses around,Intra port connectivity,Pipelines and
railway terminus.

9. Vizag Port Andhra Pradesh

18
The port city Visakhapatnam is located on the southeast coast of India in the state of
Andhra Pradesh. Visakhapatnam or Vizag has one of the Indias largest seaport and the
oldest shipyard of country. The Visakhapatnam harbors is the only Natural harbors in the
Bay of Bengal shore. Vizag is second largest city in Andhra, nestled among the great hills
of Eastern Ghats and faces the Bay of Bengal.Krishnapatnam Port is a privately built
deep water port in Andhra Pradesh.

19
10. Paradip Port Orissa

The artificial, deep-water port of East Coast of India is located in the Jagatsinghpur
district of Orissa state. Port of Paradip is the major port in the east coast shore and
situated at the confluence of Great River Mahanadi and the Bay of Bengal. Paradip Port
has its own railway system,cold handling plant and a national highway connects the port
with rest of Indian road networks.

20
11. Kolkata Port

The Port of Kolkata is a riverine port in the city of Kolkata, India, located around 203
kilometers (126 mi) from the sea. It is the oldest operating port in India, and was
constructed by the British East India Company. The Port has two distinct dock systems -
Kolkata Docks at Kolkata and a deep water dock at Haldia Dock Complex, Haldia.

21
12. Ennore Port

Ennore Port, officially renamed Kamarajar Port Limited, is located on the Coromandel
Coast about 24 km north of Chennai Port, Chennai, it is the 12th major port of India, and
the first port in India which is a public company.TheKamarajar Port Limited is the only
corporatized major port and is registered as a company. The Centre holds a stake of about
68 per cent in the Kamarajar Port Limited and the remaining 32 per cent is held by
the Chennai Port Trust.

22
 2.3Future Trends

Increasing private participation -

Strong growth potential, favorable investment climate, and sops provided by state governments
have encouraged domestic and foreign private players to enter the Indian ports sector. In addition
to the development of ports and terminals

23
 The private sector has extensively participated in port logistics services.

By March15, around 99 Public Private Partnership (PPP) projects are operational with a
total cost of around USD8813.8 million and capacity of 683.29 million tonnes per
annum.

Setting up of port-based SEZs -

SEZs are being developed in close proximity to several ports, thereby providing strategic
advantage to industries within these zones. Plants being set up include

Coal-based power plants to take advantage of imported coal

Steel plants and edible oil refineries

Development of SEZs in Mundra, Krishnapatnam, Rewas and few others is underway.

Government has announced plans to develop 14 CEZs (coastal economic zones) in a

phased manner for port-led development in all the nine maritime states by advancing
efforts to develop one new port, each on the east and the west coast.

Focus on draft depth -

All the Greenfield ports are being developed at shores with natural deep drafts and the
existing ports are investing on improving their draft depth.

24
Higher draft depth is required to accommodate large sized vessels. Due to the cost and
time advantage associated with the large sized vehicles, much of the traffic is shifting to
large vessels from smaller ones, especially in coal transportation.

Specialist terminal-based ports -

Terminalisation: Focus on terminals that deal with a particular type of cargo

This is useful for handling specific cargo such as LNG that requires specific
equipment and hence high capital costs. Forming specialist terminals for such
cargo result in optimal use of resources and increased efficiencies.

Examples of specialist terminals: ICTT in Cochin, LNG terminal in Dahej Port.

Rising traffic at non major ports -

With the increasing private participation in establishing minor ports. Cargo traffic
handled by the minor ports are outpacing cargo traffic at major ports, cargo traffic at non
major port has expanded at a CAGR of 31.5 per cent during FY0715.

The cargo traffic at major ports was 606.37 MMT in FY16.

25
 CHAPTER 3

RESEARCH
METHODOLOGY

26
Research Methodology

A research cannot be conducted abruptly. Researcher has to proceed systematically in the already
planned direction with the help of a number of steps in sequence. To make the research
systemized the researcher has to adopt certain methods. The methods adopted by the researcher
for completing the project are called Research Methodology.

3.1 Sources of data

The various aspects of performance of various ports are analyzed with the help of the
information contained in the research papers, reports, journals, websites, newspapers, magazines.

Secondary data are used in the study. Magazines are referred for collection of secondary data.
Data provided in the internet have also been used.

27
 CHAPTER 4

DATA ANALYSIS AND

INTERPRETATION

28
DATA ANALYSIS

Income figures of 3 major ports from Profit or/and Loss Account Statement (In crores)

iNCOME FIGURES OF 3 MAJOR PORTS

JNPT Mumabi Port Kandla Port
723.03
559.13
497.21
426.21 403.92
285.75 262.22 235.28
193.71
96.58
13.26
1.29

0 0 0

29
Interpretation

The income figure is taken from annual report of JNPT, Mumbai Port, & Kandla Port in
FY2014-15.

Cargo (Bulk & Container) handling charges of JNPT is 426.21 crores, Cargo (Bulk & Container)
handling charges of Mumbai Port is 559.13 crores, Cargo (Bulk & Container) handling charges
of Kandla Port is 285.75 crores. Hence it can be interpreted that Cargo (Bulk & Container)
handling charges of Mumbai port is highest.

Port & Dock charges of JNPT is 262.22 crores, Port & Dock charges of Mumbai Port is 497.21
crores, and Port & Dock charges of Kandla Port is 403.92 crores. Hence it can be interpreted that
Port & Dock charges of Mumbai port is highest.

Estate rentals charges of JNPT is 96.58 crores, Estate rentals charges of Mumbai Port is 235.28
crores, and Estate rentals charges of Kandla Port is 193.71 crores. Hence it can be interpreted
that Estate rentals charges of Mumbai port is highest.

Railway earning charges of JNPT is NIL, Railway earning charges of Mumbai Port is 13.26
crores, and Railway earning charges of Kandla Port is 1.29 crores. Hence it can be interpreted
that Estate rentals charges of Mumbai port is highest.

Income from Bot contracts of JNPT is 723.03. And others income from Bot contracts is NIL.

So there is no comparison.

30
Conclusion of analysis

As seen in the above figures, cargo handling & storage charges, port & dock charges, and
estate rentals charges is highest in Mumbai Port.
Cargo handling & storage charges, port & dock charges, and estate rentals charges of
JNPT & Kandla Port is comparatively lower than Mumbai Port.
Hence, buyers or sellers are more likely to go to JNPT or Kandla port and are more likely
to avoid going to Mumbai Port as their charges & rentals are higher.
Mumbai Port is accessible to people and hence the cargo handling & storage charges, port
& dock charges, and estate rentals charges is higher.

31
Expenditure figures of 3 major ports from Profit or/and Loss Account
Statement (In crores)

EXPENDITURE FIGURES OF 3 MAJOR PORTS

JNPT Mumbai Port Kandla Port
384.9
284.97 302.98
255.35
220.17
147.37 148.18119.6
110.06
71.43
52.7349.62 74.33
33.97
1.21 1

0 0

32
Interpretation

The expenditure figure is taken from annual report of JNPT, Mumbai Port, & Kandla Port in
FY2014-15.

Expenditure on cargo (bulk & container) handling of JNPT is 284.97 crores, Expenditure on
cargo (bulk & container) handling of Mumbai port is 384.9 crores, and expenditure on cargo
(bulk & container) handling of Kandla Port is 147.37 crores. Hence it can be interpreted that
expenditure on cargo (bulk & container) handling of Mumbai port is highest.

Port & Dock expenditure of JNPT is 110.06 crores, Port & Dock expenditure of Mumbai port is
220.17 crores, and Port & Dock expenditure of Kandla Port is 302.98 crores. Hence it can be
interpreted that Port & Dock expenditureof Kandla port is highest.

Railway working expenditure of JNPT is 1.21 crores, Railway working expenditure of Mumbai
port is 33.97 crores, and Railway working expenditure of Kandla Port is 1.00 crores. Hence it
can be interpreted that Railway working expenditure of Mumbai port is highest.

Expenditure on Bot contracts of JNPT is 74.33. And others income from Bot contracts is NIL. So
there is no comparison.

Management & general administration of JNPT is 148.18 crores, Management & general
administration of Mumbai port is 255.35 crores, and Management & general administration of
Kandla Port is 119.6 crores. Hence it can be interpreted that Management & general
administration of Mumbai port is highest.

33
Conclusion of analysis

JNPT is situated in the outskirts of Mumbai where the area cost is less. Hence, the
expenditure of cargo handling, port & dock, rental land & building, Management &
general administration is less compare to Mumbai port.
Kandla Port provides tax benefits of 5 years. So it is beneficial for the buyers & sellers to
carryout import/export activities. Hence, the expenditure charges are low.

34
Performance measurement of JNPT & Mumbai Port

Average stay at berth (FY 2015-16)

Days
3

2.5
2.5

1.43
1.5

0.5

0
JNPT Mumbai Port

Days

Interpretation

The average stay at berth is 2.50 days for Mumbai Port while that of JNPT is only 1.43 days.

The main cause of high performance of JNPT is because of better loading/unloading facility as
compare to Mumbai port, and also proper infrastructure available for container handling at JNPT.

35
Cargo handling of 5 major ports (FY2015-16)

Cargo Handling per million tonnes

120

100

80

60 Cargo Handling per million

tonnes
40

20

Interpretation

Cargo handling of Kandla port in FY2015-16 is 100 million tonnes.

Kandla Port is the 1st major port to reach 100 MMT (Million Metric Tonnes).

Cargo handling of JNPT FY2015-16 is 64.03 million tonnes. Previous year it was 63.80 million
tonnes. This shows that there has been a rise of 0.35%.

Cargo handling of Mumbai port & Chennai port FY2015-16 is 61.11 million tonnes & 50.06
million tonnes respectively.

Cargo handling of Tuticorin Port FY2015-16 is 36.85 million tonnes which is highest than their
previous years.

36
Container Traffic of 5 major ports (FY2015-16)

Per Million TEUs

4
FY 2015-16
3 FY 2014-15

0
JNPT Kolkata Port Tuticorin Port Cochin Port Vizag Port

Interpretation

Container traffic of JNPT in FY 2015-16 is 4.49 million TEUs. In FY 2014-15 it was 4.47
million TEUs. This means there has been increase of 0.56%.

Container traffic of Kolkata Port in FY 2015-16 is 6.62 million TEUs. In FY 2014-15 it was 6.30
million TEUs. This means there has been increase of 5%.

Container traffic of Tuticorin Port in FY 2015-16 is 6.12 million TEUs. In FY 2014-15 it was
5.60 million TEUs. This means there has been increase of 9.3%.

37
Container traffic of Cochin Port & Vizag Port in FY 2015-16 is 4.21 million TEUs & 2.93
million TEUs respectively. In FY 2014-15 it was 3.66 million TEUs & 2.48 million TEUs
respectively.

Drop in Turnaround Time

Average Turnaround time (In days)

6

In days
3

0
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Interpretation

Average turnaround time is influenced by factors such as type of cargo, parcel size and
entrance channel.
The average turnaround time improved to 2.04 days in FY16 from 4.01 days in FY15.

38
 CHAPTER 5

FINDINGS AND
CONCLUSION

39
5.1 FINDINGS

Cargo handling & storage charges, port & dock charges, and estate rentals charges is
highest in Mumbai Port.
Average stay at berth in JNPT is low as compare to Mumbai Port.
JNPT is situated in the outskirts of Mumbai where the area cost is less. Hence, the
expenditure of cargo handling, port & dock, rental land & building, Management &
general administration is less compare to Mumbai port.
Kandla Port provides tax benefits of 5 years. So it is beneficial for the buyers & sellers to
carryout import/export activities. Hence, the expenditure charges are low.

40
5.2 CONCLUSION

The maritime sector was growing at a brisker pace and those plans took into consideration the
prospective growth rates. But, unfortunately, with the global slowdown and recession, the major
global economies have taken a tumble in every sector. Shipping and Ports are no exception.
Accordingly, cargo traffic which had been growing at a rate of approximately 11% annually has
shown lower growth rates. Although India has succeeded in effectively surviving the slowdown
with the fundamental strength of the economy and the systems and with the various policy
measures, achieving the earlier growth rates still remains a challenge for the economy. The
current economic indicators clearly point to a robust growth of the Indian economy.

41
BIBLIOGRAPHY

Port management and operations by Giuseppe Saieva.

Port operations, planning and logistics by Khalid Bichou.
Port management and operations by Maria Burns.

42