INDUSTRY PROFILE

INTRODUCTION TO INDIAN SEA PORT:

Ports are commonly known as place of safe shelter with necessary infrastructure , for
purpose of trade. In that view, there are airports and seaports. Seaports are gateways to the world.
Seaports are an essential links in the international maritime transport chain .At present, over 85% of
the international trade goes by sea. In case of developing countries like ours, percentage of
international trade would be in the rand of 75%-85%.So, there is imperative need for all the seaports
in our country to expand rapidly.

CLASSIFICATION OF PORTS:

Ports in India are classified into 3 categories:

 Major ports
 Minor ports
 Satellite ports

Indian government has a federal structure, and according to its constitutions, maritime
transport need to be administrated by both the central and the state governments. While the
Central Governments Shipping Ministry Administers the major ports, the minor and intermediate
ports are administrated by the eleven departments or ministries in the 9 coastal states Andhra
Pradesh, Orissa ,West Bengal, Tamil Nadu, Kerala, Karnataka , Goa, Maharashtra and Gujarat.
Several of these 187 minor and intermediate ports have been identified by the respective
governments to be developed, in a phased minor, a good proportion of them involving public-private
partnership.

MAJOR PORTS:

 WEST COAST
 Deendayal port trust (Gujarat)
 Mumbai port trust (Maharashtra)
 Jawaharlal Nehru port trust (Maharashtra)
 Marmugao port trust (Goa)
 New Mangalore port trust (Karnataka)
 Cochin (Kerala)
 EAST COAST:
 VOC port trust (Tamil Nadu)
 Chennai port trust (Tamil Nadu)
 Ennore port trust (Tamil Nadu)
 Visakhapatnam port trust (Andhra Pradesh)
 Paradip port trust (Orissa)
 Kolkata, Haldia port trust(West Bengal)

SHIPPING:

Major ports handled over 74% of all cargo traffic in 2007.All major ports,
except one Ennore port are government administrated, but private sector participation in ports
has increased. There are also seven shipyards under the control of central government of
India, two shipyards controlled by state governments and 19 privately owned shipyards.

As of 2000,there were 102 shipping companies operating in India, of which 5

were privately owned and based in India and one was owned by shipping corporation of
India. There were 639 government-owned ships, including 91 oil tankers, 79 dry cargo bulk
carrier, and 10 cellular container vessel. Indian-flagged vessels carried about 15% of overseas
cargo at Indian ports for financial year 2003.
THE MAIN ACTIVITIES OF PORT:
 Maintenance of port approaches, navigable channels and alongside berths,
dredging, conservancy, hydro graphic surveys.
 Pilot age, towage, berthing and unearthing of visiting ships.
 Handling, warehousing and transportation of goods in port area.
 Civil, mechanical and electrical engineering and maintenance o harbour crafts
and plants.
 Fire fighting and fumigation.
 Stores.
 Medical, welfare, housing etc.
 Management of port properties and estates.

To carry out various activities, each port engages different types of labour. The
workers employed by the port authorities are generally called “port workers” and they work
on shore. For work on board the ship, workers registered with dock labour board (DLB)
known as ”DOCK LABOUR” are engaged. The DLB has been amalgamated into VPT
w.e.f.26.09.2008 duly rename as CHD (cargo handling division) functioning under the
control of traffic manager.

Ports are classified as major ports, medium ports and minor ports. The major port
trusts Act,1963 and the sea ports Act,1908, generate the major ports and the rules and
regulations framed there under.

Each major port has a board of trustees representing various interests connected
with the board operations and the shipping industries. The chairman of each major port trust
is appointed by the central government. Besides chairman ,the port trust board consists of
deputy chairman ,representatives of customs, railways, defence, state owners, shippers ,etc.
all the numbers of board, chairman and the Deputy chairman are part time members.
 COMPANY PROFILE

MEANING OF PORT:
 A PORT:
A transhipment point between sea and surface transport and entry and exit for
imports and exports trade plays unique roles in the countries transport system. A port is a
place by shore where ships may run into shelters to load and unload. According to the
encyclopaedia of the social equipped to facilitate the transhipment of fright between water
and land carriers.

 A HARBOUR:
It is a body of water protected from wind and wave action with sufficient depth
and with bottom of holding ground, in that vessel may find heaven in and anchor safe.

PORT VISION:
To be the most preferred port in South Asia offering services of global standards.

PORT MISSION:
To be major partner in meeting the logistic requirement of the importers and
exporters.

LOCATION OF PORT:
Visakhapatnam port is one of the leading major port of India. The port is located
on the east coast of India in between Chennai and Kolkata at a latitude of 17 42’00” north and
longitude of 83 23’00” east and the time zone is GTM+ 5:30.The port has three harbours
viz.,outer harbour, inner harbour and the fishing harbour. The outer harbour with a water
spread of 200 hectares has 6 berths and the inner harbour with a water spread of 100 hectares
has 1 berths.
 ORIGIN AND HISTORICAL MILESTONES:
Visakhapatnam Port is one of 13 major ports in India and the only major port
of Andhra Pradesh. It is India's second largest port by volume of cargo handled. It is located
on the east coast of India and is located midway between the Chennai and Kolkata Ports.

Although the need for building a port on the east coast to access Central
Provinces was felt by the British in the 19th century, the proposal of Col. H.Cartwright Reid
of British Admiralty for constructing a harbour at Visakhapatnam was approved by the
Government only after the First World War. The Inner Harbour was built by the Bengal
Nagpur Railway between 1927 and 1933 to facilitate the export of manganese ore from the
Central Provinces. The port, built at a cost of ₹378 lakhs was inaugurated by Lord
Willingdon on 19 December 1933.

During the Second World War, the military significance of the port increased.
After India's independence, the port witnessed growth under the various Five Year Plans.
Over time, the port has grown from one with 3 berths handling 1.3 lakh tonnes per annum to
one with 24 berths and annual traffic of 65 million tonnes. The port was notified as a major
port in 1964 under the Major Port Trusts Act, 1963. Under the Act, the Visakhapatnam Port
Trust is in charge of running the port.

Visakhapatnam Port has three harbours - the outer harbour, inner harbour and the
fishing harbour. The outer harbour has 6 berths capable of handling vessels with a draft up to
17 meters while the smaller inner harbour has 18 berths that are Panamax compatible. Vizag
Seaport owns two berths in the inner harbour; berth EQ-8 is fully mechanised and berth EQ-9
berth is not. The Dolphin's Nose Hill to the north of the entrance channel protects the harbour
from cyclones that strike the east coast.The port is located on the area of a creek through
which the coastal river Narava Gedda joins the sea.

The hinterland of the Visakhapatnam Port extends to north eastern Andhra

Pradesh, Chhattisgarh, southern Orissa. Iron ore, manganese ore, steel products, general
cargo, coal and crude oil are the main commodities handled at this port.

Visakhapatnam Port is undergoing a modernisation and expansion program aimed

at increasing its capacity to 130 million tonnes by 2016-17, entailing an investment
of ₹13,000 crores.The inauguration of the Gangavaram Port, located 15 km away from the
Visakhapatnam Port, has led to a significant diversion of traffic away from the
Visakhapatnam Port. This loss of cargo traffic is an important reason for the port's fall from
its position as the largest port in India. The Rashtriya Ispat Nigam Limited (RINL) which
runs the Vizag Steel Plant had shifted base to the new port, taking with it a large chunk of the
coal and iron ore traffic. The Visakhapatnam Port is now modernising its coal handling berth
in the outer harbour to enable it to handle capsize vessels.This will also solve the problem of
air pollution caused by the open handling of coal that had earlier led to citywide protests.
 As part of its modernisation program, the port is also upgrading its general cargo
berth in the outer harbour to accommodate vessels of 2 lakh DWT, deepening its inner
harbour entrance channel and strengthening five berths in the inner harbour to admit
vessels with 12.5 meter draft. Other steps being undertaken include the development of a
truck parking terminal and a multimodal logistics hub, the procurement of two 50
tonne tugs and the installation of mechanical handling facilities in the inner harbour for dry
bulk cargo. There are also plans to relocate the fishing harbour at the port to allow for the
expansion of berths and stacking areas and dredging of the Outer Harbour is also being
undertaken to increase the draft of the main channel to 21 meters.

GROWTH:
The metamorphosis of Visakhapatnam sleepy fisherman village into a industrial
beehive is not a sparkling event that occurred over night. This story is intimately connected
with the growth of the Visakhapatnam ports. Substantial investments were made during
successive plan period for the construction of additional births, modernisation of cargo
handling facilities, development of transit sheds, warehousing, open stacking spaces and
development of road and rail networks to meet the increasing requirements of the trade. Thus,
the pot which started with 3 berths has now grown into full-fledged front line port among the
ports of India.

Visakhapatnam port compromises of 2 harbour viz., the inner harbour in 100

hectares of water basin and the outer harbour in 200 hectares of water basin besides, there is a
fishing harbour developed adjacent to outer harbour in 24 hectares in 24 hectors of water
basin. The outer harbour is encompassed by 3 breakwaters viz., north break water(412 mts),
south break water (1543 meters) and east break water (1070 meters).
LIST OF CARGOS:

 Bulk cargo
 Project cargo

BULK CARGO
 Coal
 Iron ore
 Sulphur
 Fertilizer
 All POL’s
 All finished petroleum oils(naphtha, HSD, petrol, kerosene )
 Gases(LPG)
 Ammonia

PROJECT CARGO
Project cargos is a term use to broadly describe the national or international
transportation of large, heavy, high value or a critical(to the project they are intended
for)pieces of equipment. Also commonly refer to as a heavy left; this includes shipments
made of various components which need disassembly for shipment and reassembly after
delivery.
TARGET MARKETS:
 HPCL
 BPCL
 SR
 MMTC
 MNTC
 CORMMANDEL PVT LTD
 RAIN C2 INDIA LTD
 STEEL AUTHORITY LTD
 IOC

SHIFT SYSTEM IN VPT:

1. General shift 10:00am to 5:00pm
2. A shift 06:00am to 2:00pm
3. B shift 02:00pm to 06:00pm
4. C shift 10:00pm to 06:00am

OBJECTIVES OF VPT:
The following are the main objectives of the Visakhapatnam port trust:
 The quick turnaround time at ships.
 The fast clearance of cargos.
 Cost effective service by exemptions of levy on all export cargos.
 For exam part and containers part being developed.
 For regular container feeder services.
 The fastest growing port in country.
 To evolve a participative style of management resulting in a safe and healthy working
environment increased production ad productivity and good will amongst all the
employees.
 To strive toward improvement quality of life of employees and their families.
 To secure adequate return on the capital invested and general resources to finance
further development.
 To minimize the pollution of air and eater in the port and harbour sea.
FACILITIES:
Handling containers in a port requires the following facilities:
 Shore crane at berth for loading/unloading of containers.
 Tippers for bringing in/out container from to the berth quickly from/to the container
yard.
 Container yard duly segregated for import/export of container.
 Handling equipment of container in the yard.
 Computerised facilities of planning the yard to locate the container.
 Container fright stations to aggregate/segregate the container ad cargo.
 Movements of container by road/special trains.

HARBOUR FACILITIES IN VPT:

The port has three harbours, known as inner harbour, outer harbour fishing harbour.

 INNER HAR BOUR:

The Visakhapatnam inner harbour consists of entrance channel of length of 1.62kms and a
turning basin and three navigational arms one of which is the north western Arms occupied entirely
by the Head Quarters Easton naval command. The other arms are northern Arms which is main
commercial Arm of the port with 12 berths and 3 mooring. The Western Arm is occupied by the
Hindustan shipyard, Hindustan Petroleum Corporation limited, Indian Oil Corporation, Cormandal
Fertilizers and eastern naval command. Two oil berths are located in this Arm.

 OUTER HARBOUR:
Outer harbour has been commissioned in December 1976.It has two berths for Iron
Ore, which can accommodate two ships of 1.50 lakhs DWT. A general cum bulk cargo
berth(GCB) designed to accommodate vessels of 1 lakh DWT was commissioned on 23rd
march 195. And offshore oil tanker terminal(OSTT) which can accommodate tankers of size
1,50,000 DWT has the direct discharge facility from the ship refinery tankers were
commissioned in 1986.

 FISHING HARBOUR:
The Visakhapatnam fishing harbour adjacent to outer harbour was commissioned in
1978 of encloses a tranquil basin of 24 hectares and accommodates 52 to 200 mechanised
boards.

MAIN SOURCES OF REVENUE:

Ports mainly derive their revenue from cargo handling in their port areas, charges on
the ships visiting their areas and other related charges.

MAIN SOURCES FROM CARGO TRAFFIC:

 Warefare/lunching fees cargo realted charges.
 Cranes hire charges.
 Rentals from warehouse demurrage charges.
 Charges for providing rile and other transport or the cargo, movement and providing
water facilities for the visiting ships.

MAIN SOURCES OF REVENUE FROM SHIP TRAFFIC:

 Port dues
 Polite age
 Berth hire
 Survey and measuring fees.
 Ship repair in dock areas, charges for water supply.
DEFICIENCIES:
The deficiencies of India ports generally are:
 The ships have to wait long in the channel for berthing.
 The productivity of unload are so low that ships waiting at berth increases quite
consideration compare to international standards.
 Ports handling is labour intensive susceptible for not only low productivity but also to
the whims of labour. Labour of mechanised handling for low efficiency.
 Capital maintenance dredging is not adequate.
 Breathing of ship navigation wait for high tides.
 Adequate and proper cranes are not available for handling container.
 Insufficient yard for staking/handling containers.
 The railways do not provide adequate rakes for easy movements of cargo/containers.
 Lack of ICD’s facilities, where exists are insufficient.
 Due to resource crunch the development needed are lacking. Port trust official lack
authority and flexibility.
Each major port has a Board of trustee’s representing various interests with the port
operations and the shipping industry. The chairman of each major port trust is appointed by
central government. Besides, Chairman the Port Trust Board comprises Deputy Chairman,
Representatives of customs, Railways, Defence, State government, Ship owners, Shippers,
Labour etc.

There are 8 departments in Visakhapatnam port trust and those departments are categorised
under 2 heads:

DEPARTMENTS:
1.Operational departments:

 Marine Departments
 Traffic Departments

 Mechanical& Electrical Engineering Department

 Civil Engineering Department
2.Non-Operational Departments:

 General Administrative Department

 Finance Department
 Medical Department
 Vigilance Department
FUNCTIONS OF DIFFERENT DEPARTMENTS:

 GENERAL ADMINISTRATION DEPARTMENT:

It is headed by Secretary and is concerned with policy matters, legal matters and co-
ordination and the manager(operations), and is concern with personal including industrial
relations welfare, guest house administration, training and development.

 ACCONTS DEPARTMENT:
It is headed by Finance Advisor and Chief Account Officer(FA &CAO) and is
concerned with financial management and compilation of presentation of presentations of
accounts, budgets and other related books.

 CIVIL ENGINEERING DEPARTMENT:

It is headed by the Chief Engineer. It is concerned with plan, execution and
maintenance of civil engineering works and management of port estate.

 MECHANICAL & ELECTRICAL ENGINEERING

DEPARTMENT:
It is headed by the Chief Mechanical Engineer and is concerned with plan,
maintenance and repairs of mechanical, marine, electrical equipment and maintained and
operations.

 MARINE DEPARMENT:
It is under the control of Deputy Conservator. It is responsible for safe navigation of
vessels and breathing, pilot age, maintenance of dredging the port, fire services and other
functions this department.

 TRAFFIC DEPARTMENT:
It is headed by the Traffic Manager and is concerned with shipping cargo and rail
traffic operations, commercial matters, labour department and trade promotion.

 MEDICAL DEPARTMENT:
Chief Medical Officer is the in charge of medical department. It provides health,
sanitary and medical facilities to the employees of all Departments of Port Trust.

GOVERNMENT POLICY:
“Visakhapatnam Port Trust” is governed by Major Port Trust Act,1963. It began its
initial operations on 7th October,1993 and also governed by Indian Ports Act,1908,merchant
Shipping Act,1958 and Dock Labour conventions f IMO ratified by India.
ORGANISATIONAL STRUCTURE OF VPT:
VPT is managed by a board of trustees constituted under the major port trust act,1963.
The port trust board consists of Chairman; a Deputy Chairman.

Trustees appointed by the Government of India are shown below:

 Chairman

 Deputy Chairman
 Trustee representing the Ministry of Shipping
 Trustee representing the Indian Railway
 Trustee representing the Department of Customs
 Trustee representing the Mercantile Marine Department
 Trustee representing the other interests
 Trustee representing the Labour Unions
 Trustee representing the State Govt, of AP
 Trustee representing the Naval officers of AP
 Trustee representing the Coastguard of AP
 Trustee representing the Regional officer, Ministry of Environment, AP

UNIQUE FEATURE:
Island break-water, constructed of scuttling two old ships JANUS and
WELLESDON which from the skeleton around which a rubble mould is formed.
 It is a natural port endowed with deep water basin formed by a high promontory
into sea, known as Dolphin’s Nose Hill to the south and Ross Hill to the North of
the entrance channel.
 The only port in India and first of its kind SOUTH ASIA to have a cavern
facilities for LPG-a mined rock.
 Cavern at a depth of 200 mtrs. Below sea level(capacity:60000 T)

AWARDS AND ACHIVEMENTS:

The only Indian port to have three international certificates:

 ISO 9001-quality management system.

 ISO 14001-environmental management system.
 OHSAS 18001-occupational health and safety management system.
 The dredging to enable handling 200000 DWT vessels(18.10 mtrs draft)
cape size vessels in outer harbour was completed during 2014.
 An ISPS complaint port.
 Complimented by 7 the ministry of shipping, Government of India as the
Brightest jewel among all the major ports of INDIA.
 National safety award for outstanding performance in INDUSTRIAL
SAFETY WINNERS for the year 2002,2006,2007.
 RUNNERS UP for the year 1999,2000,2001,2003.
 GREENTECH safety 2015 gold, 2016 gold, 2017 platinum.
 GREENTECH gold award for environmental management for the year 2007.
 GREENTECH environmental excellent award in service sector for
outstanding achievement in environment management gold 2007-2009
Runner up award for Swach port for the year 2016-2017;2017-2018 among
all the major ports.