Professional Documents
Culture Documents
1.1(a) INTRODUCTION
Ports function as major hubs of international trade and accordingly, they are
regarded as primary catalysts of local economic development in an era of
globalization. Approximately, 90%of international cargo is transported
through ships as it is the cheapest means to do so. There are about 4764 ports
around the world handling more than 80% of the trade. Ports from avital link
in the overall trading chain and consequently, their level of performance and
efficiency determines to a large extent, the international competitiveness of a
nation the growth of a modern port system as a whole is dependent on number
of factors such as volume, composition, size and expansion of trade of a
country.
1
Chennai port has completed 137 years of commercial operations and is one of
the oldest ports in India. It is the third major port of the country and is the
gateway to the coromandel coast. The Chennai port is a multi – cargo port,
handling continers, liquid bulk, dry bulk and break bulk cargo. It comprises
of 24 berths in 3 docks. The present capacity is 103 MTPA
The three distinct docks in the port consist of Ambedkar Dock which has 8
berths for handling RO – RO and general cargo. Next is the Jawahar dock
with 6 berths and bharati dock which has 3 berths. These seventeen berths are
handled directly by the port. In addition to the seventeen berths, there are
seven berths which can handle containers. Two of the terminals are on the
PPP mode. The first is Chennai Container Terminal Private Limited, Terminal
– 1, managed by Dubai ports International (DPI). The second is Chennai
International Terminal Limited, Terminal – 2, which is managed by the Port
of Singapore Authority. These 24 berths combined, handle the average of 52
million tonnes of cargo.
Ports (such as airport or seaport) are areas used for loading and unloading of
cargo and import and export of goods from one country to
another. Harbours are places where ships and other seafaring vessels
2
are anchored to be kept safe from bad weather. Docks are places where ships
are built and repaired. 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.
India has 12 major and 200 notified minor and intermediate ports. Cargo
traffic, which recorded 1,052 Million Metric Tonnes (MMT) in 2015, is
expected to reach 1,758 MMT by 2017. The Indian ports and shipping
industry plays a vital role in sustaining growth in the country’s trade and
commerce. India is the sixteenth largest maritime country in the world, with a
coastline of about 7,517 km. The Indian Government plays an important role
in supporting the ports sector. It has allowed Foreign Direct Investment (FDI)
of up to 100 per cent under the automatic route for port and harbour
3
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)
Classification of ports
Indian government has a federal structure, and according to
its constitution, maritime transport is to be administered by both the Central
and the State governments. While the central government's shipping
ministry administers the major ports, the minor and intermediate ports are
administered by the relevant departments or ministries in the nine coastal
states Andhra Pradesh, Odisha, 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 manner, a good proportion of them
involving public–private partnership.
4
Shipping
Major ports handled over 74% of all cargo traffic in 2007. All major ports,
except one Ennore Port are government administered, but private sector
participation in ports has increased. 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.
Cargo handled
The following table gives the detailed data about the major ports of
India (Source: Indian Ports Association): (Table: 1)
million to % % '000 TE %
nsnnes Increase Increase Us Increase
Kandla 87 (over-7% 2,734 0.74%
(over 29 -75.42%
(over
previous F previous previous↓
Paradip 68 20.25% 1,279 -4.96% 9 -30.77%
Y) FY) FY)
↓
JNPT 62 -3.32% 2,588 -11.25% 4,161 -2.30%
↓
Mumbai 59 1.98% 1,949 -5.25% 41 -14.58%
↓
Visakhapa 58 -0.91% 2,066 -16.36% 263 6.48%
tnam ↓
5
Chennai 51 -4.30% 1,928 -5.63% 1,468 -4.68%
(Source – www.chennaiport.gov.in)
7
(Figure 1)
(source:google images)
8
(Figure 2 ) (Source – www.chennaiport.gov.in)
9
(Figure 3) Chennai Port Dr. Ambedkar Dock View
CHENNAIPORT
From 1905 to 1919, major improvements took place in the port under the
stewardship of the visionary Sir Francis Spring. By the end of 1920, the port
had a dock consisting of four berths in the west quays, one each in the east
and south quay along with the transit sheds, warehouses and a marshalling
yard to facilitate the transfer of cargo from land to sea and vice versa. In 1929,
the Mercantile Marine Department, which was working directly under the
Ministry of Shipping till the establishment of the Directorate General of
Shipping at Mumbai in 1949, was established to implement the first SOLAS
and Load Line conventions. Additional berths were added in the 1940s with a
berth at south quay and another between WQ2 and WQ3
Post-Independence
Post-Independence, the development of the port gained momentum. In 1959,
a passenger station on the first floor of the transit shed at north quay was
commissioned. In 1961, construction of signal station at north quay was
completed. In the same year, the port's Jawahar Dock was inaugurated by the
11
then prime minister of India, Lal Bahadur Shastri. In 1964. The port
developed the outer harbour, named Bharathi Dock, for handling petroleum
in 1972 and for mechanised handling of iron ore in 1974. In 1972, the first oil
jetty was constructed at Bharathi Dock-I. Bharathi Dock-III in 1986 The iron
ore terminal is equipped with mechanised ore-handling plant commissioned
in 1977 at Bharathi Dock-II This oil terminal is capable of
handling Suezmax vessels.
When the city of Madras was renamed as Chennai in 1996, the Madras Port
Trust followed suit and was renamed as Chennai Port Trust. In 2000, the port
began to handle pure-car-carrier shipments of automobiles.
12
Cars exports
Year
(in units)
2000–01 5,260
2001–02 4,635
2002–03 8,482
2003–04 39,874
2004–05 83,121
2005–06 102,692
2006–07 114,756
2007–08 137,971
2008–09 248,697
2009–10 273,917
2010–11 234,762
2011–12 252,640
2012–13 272,345
2013-14 235653
2014-15 192747
2015-16 159334
2016-17 147644
2017-18 120565
13
Port layout and infrastructure
Chennai port is the second smallest in the country measured by surface area,
encompassing only 274 hectares. Chennai port area is divided into north,
central and south zones and fishing harbours.[53] The port has 26
alongside berths, including 21 deep-drafted berths and 2 oil jetties, in the
3 docks, viz., Dr. Ambedkar Dock, Jawahar Dock, and Bharathi Dock along
with the container terminal, and draft ranging from 12–16.5 m (39–54 ft). Dr.
Ambedkar Dock has 12 berths, Jawahar Dock has 6 berths, Bharathi Dock has
3 berths (for oil and iron ore), the container terminal has 3 berths and the
moorings has 1 berth. The berths can handle containers as well as liquid and
dry bulk and breakbulk cargoes. The approach channel to the port is 6,700 m
(22,000 ft) long, and the turning basin is 560 m (1,840 ft) in length.[54] A total
of 9 well-lit channels marks buoys for the approach channel.
The Jawahar Dock has six berths. The dock mainly handles coal, fertiliser,
iron ore lumps, pellets, edible oil, and phosperic acid. The Dr. Ambedkar
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Dock has 13 berths. The dock has car and cruise terminals and chiefly handles
general cargo, cars, granite steel, and food grains. The Bharathi Dock contains
three berths. The dock has three terminals, namely, container terminal, iron
ore terminal, and oil terminal. It mainly handles containers, iron ore, and POL
(petroleum, oil and lubricants).
The oil terminals at the port's Bharathi Dock (BD1 and BD3) can
accommodate tankers. Each berth is equipped with five marine loading arms,
and the berths have pipelines to convey crude oil, white oil, and furnace oil.
The container terminal has four berths. The berths are served by seven quay
cranes, including five super-post-Panamax and two post-Panamax cranes,
and 24 gantry cranes. Operated by Chennai Container Terminal Private
Limited, the container terminal has capacity for 950,000 TEUs. The container
terminal has direct services to Europe, China, the United
States, Korea, Thailand, the Mediterranean region, and West Africa.
Covered
Warehouses 12 65,686
16
Nam
Lengt Permissibl
Dock/Termin e of
Type h e
al bert
(m) draft (m)
h
Jawahar Dock JD-1 general/Project Cargo 218.33 11.50
JD-3 Project Cargo/general 218.33 11.50
JD-5 Project Cargo/general 218.33 11.50
general/other liquid
JD-2 218.33 11.50
bulk
general/other liquid
JD-4 218.33 11.00
bulk
No
JD-6 operations/berthing 218.33 11.00
vessel
Dr. Ambedkar Passenger/general/ot
NQ 198.00 8.50
Dock her liquid bulk
General/other liquid
WQ-1 170.60 11.00
bulk
General/RO-RO
WQ-2 170.60 12.00
operations
CB General 170.60 12.00
WQ-3 General 170.60 12.00
WQ-4 Fertilizer/general 170.60 11.00
SQ-1 Fertilizer/general 246.00 9.50
Fertilizer/general/oth
SQ-2 179.00 9.50
er liquid bulk
Container
CT-1 Containers 200.00 13.40
Terminal
2nd
– 12.0
CT-1
2nd
– 12.0
CT-2
17
2nd
– 12.0
CT-3
Naval
Berth 60.00 09.00
North
Naval
Berth 140.00 12.00
South
Bharathi Dock
BD-1 Oil 338.94 14.0
(oil & iron ore)
BD-3 Oil 304.00 16.50
BD-2 Iron ore 274.32 16.50
CT-2 Containers 200.00 13.40
CT-3 Containers 200.00 13.40
CT-4 Containers 285.00 13.40
Zone II
to
5950.00
Zone
VII
Turnin
g 560.00
Circle
The port has a current depth of 17 m (56 ft) and is capable of handling fourth-
generation vessels up to 150,000 DWT. It is going through an expansion and
will have a depth of 18–22 m (59–72 ft), a continuous quay length of 2 km
(1.2 mi) and back-up area of around 100 ha (250 acres). Two new breakwaters
for a total length of 4 km (2.5 mi) will be constructed – one as extension of
the existing outer arm and the other extending from the fishing harbor
breakwater. The consequent silting will reclaim about 300 ha (740 acres) of
land. The mega terminal will be built on a 100-hectare (250-acre) portion of
this land. The terminal will have a continuous quay length of 2 km (1.2 mi)
with 18–22 m (59–72 ft) side along draft, capable of handling ultra-large
container ships carrying over 15,000 TEUs. This will help it handle the latest
generation vessels. Though the port is largely a container port, it has strategic
importance as 3 service berths are allotted to the Indian Navy.
The approach channel to the port has two sections—the entrance channel
within the protection of outer arm and the outer channel beyond the protection
of outer arm. The total length of the entrance channel is 7 km. The width of
channel gradually increased from 244 m to 419 m at the bent portion, then
maintains a constant width of 305 m. The depth of the inner and the outer
channels are 18.6 m and 19.2 m, respectively, below chart datum, with a swell
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allowances of 3 m. The entrance is 350 m in Bharathi Dock and 125 m in Dr.
Ambedkar Dock. The draught in the navigational channel is maintained
by dredging approximately 1 million cubic metres annually.
Terminals
Container terminals
The port has two container terminals, run separately by DP World Pvt. Ltd
and Singapore's PSA International Pte Ltd, with a combined capacity to
handle 2.8 million standard containers a year. The two terminals loaded 1.11
million standard containers between April and December 2010, up from
886,000 containers a year earlier. Both the terminals have daily trains to
Inland Container Depots (ICDs). There are plans to build a mega container
terminal, the third one at the port, with private funds worth 36,860
million. The port is served by various container liner services,
namely, APL, K Line, Maersk Line, MOL, NYK, PIL and several regional
container lines.
Cruise terminal
Chennai Port is one of the five major ports in the country that have been
identified by the Ministry of Shipping for development of cruise terminals,
the other four being Goa, Kochi, Mumbai and Mangaluru. The port has had
passenger and tourist services to Burma, Malaya, Singapore, Manila,
London, Suez, Aden and Colombo for over 100 years. There was regular
passenger traffic during the British rule. Per official records, the port had an
annual passenger traffic of 60,000 in 1956. In 1959, the port built a dedicated
passenger terminal for coastal and cruise vessels. The passenger cruise
terminal is located in the West Quay. The Shipping Corporation of India
operated regular Chennai–Singapore services till 1984. On an average, 10
international cruise vessels dock in the port each year. The number of tourists
visiting the port in 2008–09 was 2,616, which rose to 3,401 in 2009–10. The
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country's first cruise ship, AMET Majesty, is registered in Chennai and is set
to start from Chennai on 8 June 2011.
Bunkering at the port is currently carried out through the barge jetty in the
extreme northern end of the Bharathi Dock. This is a 30 m temporary facility
with a draft of 2.5 to 3.0 m. This jetty is used exclusively by Indian Oil
Corporation for bunkering of Navy, Coast Guard, bulk carriers and container
ships—both coastal and foreign ships. However, the demand for bunker has
outpaced the supply of infrastructure needed for bunkering in recent years.
On 11 May 2011, the Madras High Court directed the Shipping Secretary that
only clean cargo such as containers and cars be allotted to the port for handling
from 1 October 2011. All dusty cargo such as coal and iron ore will be allotted
to the EnnorePort.
The port is one of the six ports in India through which drugs are permitted to
be imported, which is handled by the Central Drugs Standard Control
Organisation (CDSCO), the other ports being Kolkata, Mumbai, Nhava
Sheva, Kochi and Kandla ports. As of 2011, cargo movement to the port is
increasing by 21 per cent. Over 5,000 container trucks move through the port
every day. However, the number of containers coming into the port has
dropped by 30 per cent in the same year. In July 2012, a vessel traffic
management system was installed at the port to track vessel movements for
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nearly 2 km, which can be extended to 48 nautical miles.As of 2012, the port
consumed 38 MW of power every year, spending about 290 million per
annum on electricity charges.
25
Coastal Economic Zones (CEZs) are being developed under
"Sagarmala initiative" in close proximity to several ports comprising coal-
based plants, steel plants & oil refineries.
STATISTICS
Over 7500 kilometres of coastline with 12 major and about 200 minor
and intermediate ports.
Cargo handled at ports in 2014-15: Dry bulk (34% iron ore, coal,
fertilizer. food grains); liquid bulk (33% petrol, oil and lubricants); break
bulk (17%) and container (16%).
GROWTH DRIVERS
Increase trade activity and private participation in port infrastructure
development.
26
Rising cargo traffic and increase in the number of minor and
intermediate ports.
Existing ports are investing on improving their draft depth.
Focus on the development of terminals that deal with a particular type
of cargo, for eg: LNG (Liquified Natural Gas).
FDI POLICY
To attract investment for the growth of this sector, the Government
has allowed 100% Foreign Direct Investment (FDI) in the shipping
sector.
100% FDI is allowed under the automatic route for projects related to
the construction and maintenance of ports and harbours.
SECTOR POLICY
Major ports are under the jurisdiction of the Government of India and
are governed by the Major Port Trust Act, 1963 (except EnnorePort
which is administered under the Companies Act, 2013)
Non-major ports are under the jurisdiction of the respective state
governments maritime boards.
A perspective plan of the government defines priority areas of
investment in the Indian maritime sector. These include:
27
1.2 Scope of the study / Need and Importance of the study
Chennai Port has lost their capital cargo like coal and iron ore for
environmental protection. For this reason Chennai port vigorously moved to
alternate clean cargo. Clean cargo like crude oil, cruise and cars.Crude oil and
cruise are already going on at Chennai Port. Hence this study is concentrated
on car exports.Car cargo operations is a useful construct within which is used
to improve the operational effectiveness. Explanation of existing facilities and
to open the future needs of port users especially car exporters of Chennai port
trust. If Chennai port’s facilities are sufficient then how could we improve for
the future needs of the society.
This study can be used to diagnose possible deficiencies when dysfunctional
diversity is detected. This is used to promote more efficiency co-ordination
among dissimilar submits.
1.3 Objectives of the study
To study Chennai Port’s past 10 year’s import and export cargoes and
to know the automobile cargo operations.
To understand the various facilities provided by Chennai port for Car
cargo operations.
To know the car manufacturing units in and around Chennai.
To verify whether Chennai Port Trust is one of the major port for car
exports.
To analyze whether the Chennai Port has sufficient facilities for
exporting cars.
To make conclusion from this study and give suggestions.
To analyze how the Port can take steps to increase the car exporter’s
satisfaction level.
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1.4 Methodology
A descriptive research design taking a survey approach was used. This study
elaborates existing facilities. Car exports of previous years, car manufacturing
units in and around Chennai, so descriptive research design is most suitable
for this study. The tool for data collection was questionnaire. The
questionnaire consists of two parts. (i.e) demographic profile port users and
second part consists of effectiveness of cargo operations, effectiveness of
cargo operations, effectiveness of various facilities provided by Chennai port.
The target population of this study is Port users. Port users are the shipping
agents who bring the goods for export. (for RO-RO ships),Stevedores - they
are the people who stack the cars inside the ships and loading off the cargo,
Customs house agents / C&F agents - they file export application and
complete the customs formalities. A sample of 100 employees who were
engaged in the above companies were approached with a well structured
questionnaire for survey. The data analysis was done using statistical tools
like percentage analysis, frequency regression and correlation.Pilot study was
also taken before going to full survey. Through pilot study we identified the
availability of respondents. As pre test was conducted to test the effectiveness
of the questionnaire to be administered. The pre- test was conducted with ten
respondents. As per the feedback few changes were made in the questionnaire.
The changed questionnaire was administered for the actual survey.
Port users were always busy from their work schedule hence we waited for
their free time and issued the questionnaires and explained why this study was
conducted. This study adapted random sampling.
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1.5 Limitations of the study
This study’s aim is to analyze car cargo operations of Chennai Port. Hence,
collection of information was a tedious operation. even collecting of
secondary data took time. Past studies were not available, so this study fully
depended on existing information. Model questionnaire was not available so
construction of a questionnaire and pilot study took more time. Involvement
of port users was very limited and data was collected by going to them
personally.
30
CHAPTER - II
32
annum, has become a hot destination for global auto players like Volvo,
General Motors and Ford. The Indian automobile industry is going
through a phase of rapid change and high growth. With new projects
coming up on a regular basis, the industry is undergoing technological
change. The major players are expanding their plants and focusing on
mass customization, mass production.( International Journal of
Business and Management Invention ,Tharun Shastry)(September
2013)
Vehicles are driven inside the ship and secured onto the vessels car
deck. Simple, effective, economical and fast. Precisely, that’s Ro-Ro
vessels handling. These vessels also carry non-motorized vehicles like
boats on trailers or non-roadworthy vehicles like heavy plant and
machinery on steel tracks. On Ro-Ro vessels all cargo is shipped under
deck secured in the hold, wind and water tight. No packing is required.
Cars are driven on at the departure port, invariably Southampton,
Bristol or Tilbury, London if you are shipping from the UK. Vehicles
are then simply driven off at your destination port. Cars, trucks and
other modes of road transport are very useful on land but sometimes
when these modes of transport have to be transported to long distance,
it is not a very good option to drive them all the way ( unless of course
you plan some sort of a marathon or cross country race). So they can be
effectively transported using ships which are specifically designed for
such wheeled cargoes and such ships are known as Ro-Ro vessels or
Roll on Roll off vessels. The word “Roll” signifies that the vehicles can
33
be easily rolled for loading or unloading of the cargo. (J.Mark
Rowbotham).
The author has spoken about the necessity of proper ventilation and
drainage system, Vehicle stowage and securing on the vessel. While
writing about the inherent dangers associated with the Ro-Ro vessel, it
has been stated “the ships themselves generally have high freeboards
and expect to experience high wind age over and above the waterline,
cargo units are be necessity loaded with a high kg value, which can be
detrimental to the overall metacentric height (GM). In the event of bad
weather conditions, these features tend to lend to the vessel rolling
heavily, which may generate units shifting. (Manuel Ventura Ship
Design- MSc In Marine Engineering.)
34
lead-time reductions, compared to existing systems.( Hakon Lindstad,
Eirik Uthaug)
35
2.2 Ports in India
India has a coastline spanning 7516.6 kilometres, 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).
Classification of ports
Indian government has a federal structure, and according to
its constitution, maritime transport is to be administered by both the Central
and the State governments. While the central government's shipping
ministry administers the major ports, the minor and intermediate ports are
administered by the relevant departments or ministries in the nine coastal
36
states Andhra Pradesh, Odisha, 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 manner, a good proportion of them
involving public–private partnership.
Shipping
Major ports handled over 74% of all cargo traffic in 2007. All except Ennore
Port are government administered, but private sector participation in ports has
increased. 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.
38
Automobile import trends
Imports of automobiles are very rare in Chennai Port. The imports are a very
meager numbers. Volvo is the biggest importer of cars with a total of 57 units
in the year 2014. In the last financial year, 2017-2018 there were no imports
of automobiles through Chennai Port.
(Table 8)
Year Brand Number of Vessel’s name
units
2013 Toyota 31 GrandDuke,Curitiba,
Arcadiahighway,Hoegh
Kobe,Westernhighway.
2013 Rolls Royce 1 Glovis Cardinal.
2014 BMW 27 Hoegh Trident.
2014 Toyota 41 Dismond Express.
2014 Volvo 57 Glovis Clipper
(Source – www.chennaiport.gov.in)
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2.3 Southern Ports
Out of all 13 major ports in India 10 ports are from the south. They are Nhava
Sheva Port from Maharashtra, Mumbai Port,Margamao Port from
Goa.Panambur Port from Karnataka,Cochin Port from Kerela,Tuticorin port
,Chennai Port,Ennore port and Vishakhapatnam Port in Andhra Pradesh
40
Tuticorin Port- Tamil Nadu
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 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.
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Vizag Port- Andhra Pradesh
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 India’s
largest seaport and the oldest shipyard of country. The Visakhapatnam harbors
is the only Natural harbors in the bay of Bengal shore. Kakinada Port is second
port city in Andhra and Krishnapatnam Port is a privately built deep water
port in Andhra Pradesh.
EnnorePort
The southern ports handling cars are Mumbai Port,Chennai Port and Ennore
Port. Mumbai Port has set a new record of shipment of 6316 cars on a single
ship. This is a quantum jump over the previous record of shipment of 5376
cars. Mumbai Port has been focusing on the export and handling of cars and
has emerged as number one port on the West Coast of India growing at about
42
25% for last few years. It is committed to improve the facilities & help
reducing the cost of handling cargoes. Mumbai Port Trust is consistently
contributing to the 'Make in India' campaign by facilitating the export of Made
in India cars. The Mumbai Port Trust has achieved an impressive growth of
37% in handling vehicles for export at its facility as compared to previous
year. As against 98547 vehicles handled in 2013 -2014, 1,35,320 vehicles
were exported from MBPT this year. This includes cars, trucks, fire tenders,
earth moving equipments, ambulances, buses, etc. It is for the first time that
MBPT has handled more than 1,00,000 vehicles in a year. Mumbai Port Trust
as the only multipurpose Port in the State of Maharashtra effectively catered
to the needs of the automobile industries located in Pune and Nasik for export
of their products to different destinations in Australia, New Zealand, Central
America, South America, South Africa, Middle East and East Asia.
Volkswagen, Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Ashok
Leyland are some of the prime customers, which exported their brands from
Mumbai Port Trust. Chennai Port has come a long way since the first major
export-shipment of 760 cars (Accent and Santro) by Hyundai Motor India was
made in July 2000 to Algeria. While, over time, Hyundai has become one of
the largest car exporters from India, with an average shipment of 2-2.5 lakh
cars per annum Chennai Port is one of the top ports when it comes to exports
of automobiles from India. The central government’s thrust on coastal
movement of cargo and relaxation on cabotage law has further strengthened
the future growth potential for automobile shipments from the port. In fact,
recently, Hyundai shipped 800 cars from Chennai Port to APM Terminals
Pipavav in Gujarat. These cars were meant for distribution in the western parts
of India. Meanwhile, competition has also come up really strong for the port
43
when it comes to shipping cars overseas. Kamarajar Port at Ennore, which
was developed to handle polluting thermal coal imports, has started investing
in infrastructure to attract other types of cargo, and as a result the corporate
port has overtaken Chennai Port to become the largest shipper of passenger
cars in FY2015. Kamarajar handled 2.15 lakh passenger cars in 2015 as
against 1.93 lakh cars handled by Chennai Port during the same period. The
reason for Kamarajar gaining traction among car makers is the availability of
clean parking area in the port. Also with the port being located outside the
busy Chennai metropolis, car carriers can travel faster to the port due to the
absence of city traffic. Kamarajar port in Ennore is expected to handle nearly
2.25 lakh automobile units, including cars and trucks, for year ending March
31, the highest ever automobile volume handled in the port in a year. Till
March 16 of the current fiscal, the port handled 2.12 lakh automobile units as
against 1.98 lakh units in the same period last year, a 7 per cent growth, says
a press release from Kamarajar Port Ltd. The port commenced export/import
of automobiles through a dedicated general cargo berth from September 2010.
Cumulatively, the port has so far handled 11 lakh cars, of which Nissan Motor
alone exported over 7 lakh cars, the release said. It had executed agreements
with Nissan Motor, Ford India and Toyota Kirloskar with volume-based
rebates to export their cars through the port. Heavy machinery and equipment
manufacturers such as Komatsu, Kobelco and Caterpillarhave also started
exporting their cargoes through KPL, the release said.
Chennai Port has come a long way since the first major export-shipment of
760 cars (Accent and Santro) by Hyundai Motor India was made in July 2000
44
to Algeria. While, over time, Hyundai has become one of the largest car
exporters from India, with an average shipment of 2-2.5 lakh cars per annum
Chennai Port is one of the top ports when it comes to exports of automobiles
from India. The central government’s thrust on coastal movement of cargo
and relaxation on cabotage law has further strengthened the future growth
potential for automobile shipments from the port. In fact, recently, Hyundai
shipped 800 cars from Chennai Port to APM Terminals Pipavav in Gujarat.
These cars were meant for distribution in the western parts of India.
M/s.Ashok Leyland Ltd is currently exporting around 12,000 truck chassis to
Bangladesh, Sri Lanka and countries in Africa. The volume to Bangladesh
and Sri Lanka is likely toincrease by 80% in the coming years. Now, more
than 500 trucks per monthare expected to be exported via the sea route which
will take away a lot of traffic from our roads. The Coastal Shipping Agreement
between India and Bangladesh was signed during Prime Minister Shri
Narendra Modi’s visit to Bangladesh in June 2015. Based on the agreement
sea transportation from Indian ports to Bangladesh ports is being treated as
coastal movement, making it eligible for 40% concession on vessel related
and cargo related charges. For coastal movement through RoRo vessels, 80%
concession on vessel related and cargo related charges are applicable in Indian
Ports.
45
(Table 9) Past Ten Years different car export details at Chennai Port
46
2.5 No of Vessels and No of Cars Exported in Chennai Port
(Table 10)
TOTAL
YEAR
VSLS CARS
2010-11 98 234762
2011-12 104 252640
2012-13 95 272345
2013-14 92 235653
2014-15 109 192747
2015-16 83 159334
2016-17 55 147644
2017-18 39 120565
(Source – www.chennaiport.gov.in)
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2.6 Facilities at Chennai Port
BHARATI DOCK
Oil terminal
Handles the entire crude oil for CPCL and POL products for all major
companies.
Geared to meet the increasing demands in handling the entire petroleum
products.
Ore terminal
Mechanized ore handling plant.
Handled 7.88 million tons in the year 2009-2010.
Well connected to Rail to the Hospet and Bellary mines.
Container terminal
India’s longest container quay (855m).
India’s second largest terminal.
Handled 1.13 million TEUs in 2009-2010.
Car Terminal
India’s no.1 car Terminal.
Exported 273917 cars in 2009-2010.
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Container terminal
832m long quay with 15.5m draught.
Capable of handling post panama vessels-18 rows across.
Handled 77208 TEUs in 2009-2010.
JAWAHAR DOCK
Handles Dry bulk cargo - coal, iron ore, Fertilizer.
Coal Terminal
Dedicated berths equipped with semi-mechanized coal conveyor
system.
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Chapter - III
3.1 Introduction and History of Chennai Port
Chennai Port, the third oldest port among the 12 major ports, is an emerging
hub port in the East Coast of India. This gateway port for all cargo has
completed 137 years of glorious service to the nation’s maritime trade.
Maritime trade started way back in 1639 on the sea shore Chennai. It was an
open road -stead and exposed sandy coast till 1815. The initial piers were built
in 1861, but the storms of 1868 and 1872 made them inoperative. So an
artificial harbour was built and the operations were started in 1881. The cargo
operations were carried out on the northern pier, located on the northeastern
side of Fort St. George in Chennai. In the first couple of years the port
registered traffic of 3 lakh tonnes of cargo handling 600 ships.
Being an artificial harbour, the port was vulnerable to the cyclones, accretion
of sand inside the basin due to underwater currents, which reduced the draft.
Sir Francis Spring a visionary skillfully drew a long-term plan to charter the
course of the port in a scientific manner, overcoming both man-made and
natural challenges. The shifting of the entrance of the port from eastern side
to the North Eastern side protected the port to a large extent from the natural
vulnerabilities. By the end of 1920 the port was equipped with a dock
consisting of four berths in the West Quays, one each in the East & South
Quay along with the transit sheds, warehouses and a marshalling yard to
facilitate the transfer of cargo from land to sea and vice versa. Additional
berths were added with a berth at South Quay and another between WQ2 &
WQ3 in the forties.
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India’s Independence saw the port gathering development, momentum. The
topography of the Port changed in 1964 when the Jawahar dock with capacity
to berth 6 vessels to handle Dry Bulk cargoes such as Coal, Iron ore, Fertilizer
and non hazardous liquid cargoes was carved out on the southern side.
In tune with the international maritime developments, the port developed the
Outer Harbour, named Bharathi Dock for handling Petroleum in 1972 and for
mechanized handling of Iron Ore in 1974. The Iron ore terminal is equipped
with Mechanized ore handling plant, one of the three such facilities in the
country, with a capacity of handling 8 million tonnes. The Chennai port’s
share of Iron ore export from India is 12%. However, at present due to Hon'ble
High Court's order handling of Ore is stopped. The dedicated facility for oil
supports the expansion of the CPCL's oil refinery in the hinterland. This oil
terminal is capable of handling Suezmax vessels.
In 1983, the port heralded the country’s first dedicated container terminal
facility commissioned by the then Prime Minister Smt.Indira Gandhi on 18th
December 1983. The Port privatized this terminal and is operated by M/s.
D.P.World (Chennai Container Terminal Private Limited). The port is ranked
in the top 100 container ports in the world. Witnessing a phenomenal growth
in container handling year after in 2009 commenced the Second Container
Terminal operated by M/s. PSA (Chennai International Terminals Private
Limited) with a capacity to handle 1.5 M TEU's to meet the increasing
demand.
The Port now with three docks, 24 berths and draft ranging 8.5 m to 16.5
m has become a hub port for Containers, Cars and Project Cargo in the
East Coast
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Chennai Port is one among major ports having Terminal Shunting Yard and
running their own Railway operations inside the harbour. The port is having
railway lines running up to 41 Kms, 8 sidings to handle wide range of cargo
like Granite, Food grains, Dry Bulk, etc. For handling containers seperate
sidings are available.
The Port has handled 51.88 Million Tonnes of cargo volume for 2017-18 vis-
a-vis 50.21 Million Tonnes of Cargo in 2016-17. Container Volume increased
to 1549457 TEU's against 1494831 TEU's in 2016-17. Physical performance
parameters like Pre-Berthing Detention, Turn Around Time and Ship Berth
day Output continued to improve.
The Major Ports in India are witnessing sustained growth in the last few years,
thanks to the vision of Ministry of Shipping which has given the fillip to the
Port Sector by introducing vital and long overdue futuristic Port led
development programmes including Sagarmala. The Ministry is intent on
upgrading and developing the Major Ports of India on par with the
International Ports. Significantly, Chennai Port in its historic 137th year of
commercial operations is ranked among the growth generating major ports,
52
despite the threats and perceptions on diversion of cargo to emerging private
ports. During the financial year 2017-18, Chennai Port handled 51.88 MMT
of cargo compared to 50.21 MMT handled in 2016-17 registering a growth of
3.33% and the trend continues during the current year also. Ministry’s target
for the year 2018-19 is 53 MMT.
Among efficiency parameters, Turn Around Time came down to 2.21 days in
2017-18 when compared to 2.51 days in 2016-17 and the Overall Average
Ship Berthday Output increased from 15652 tonnes to 16014 tonnes while
handling multiple high / low productive cargoes. The cargo composition for
2017-18 has been Petroleum Oil & Lubricants(POL) - 26% (13.50 MMT),
Containerized cargo – 58% (29.91 MMT) and Others including bulk cargo –
16% (8.47 MMT). Container volume increased from 1,494,831 TEUs in
2016-17 to 1,549,457 TEUs in 2017-18. The container cargo handled by Rail
during April 2017-March 2018 is 100396 TEUs when compared to 95586
TEUs handled in 2016-17 registering a growth of 5.03%.
53
To attract new cargo and retain old cargo, business promotion activities and
various marketing initiatives (Interactive Session /Trade Meets) are being
organized. To evacuate containers en masse by rail and to facilitate trade by
reducing transit-time and offering economical tariff, containers are being
handled by CONCOR between Chennai Port (HOM) & Tondiarpet
Marshalling Yard (TNPM) and vice versa w.e.f. 28.03.2018, which also
facilitates Direct Port Delivery(DPD) / Direct Port Entry(DPE) movement
through rail and reduces road congestion. A fresh Memorandum of
Agreement (MOU) was signed on 10.05.2018 with M/s. HMIL for the
export of Hyundai cars exclusively through Chennai Port for a period of
10 years from 01.04.2018. Port earned a total income of `952.60 crores during
the year 2017-18 against `952.16 crores during the year 2016-17. The Net
surplus before tax for the year 2017-18 was `40.29 crores vis-a-vis `12.59
crores during 2016-17 with an increase of `27.70 crores.
A study for development of Multi-Modal Logistics Park (MMLP) with Rail
connectivity in the Railway land at Jolarpet and funded under Sagarmala is
nearing completion. Sagarmala Development Company Limited (SDCL) will
appoint a consultant shortly to examine if it is feasible for the land at Mappedu
to serve the Maritime Cluster in Tamilnadu.
56
BHARATHI DOCK
s.no Berth Type Rated Desired Draft Quay
capacity occupancy (meters) length
15 B.D.1 POL 6.7 4.7 14.60 355.65
16 B.D.2 POL/Other liquid 2.8 2.0 16.50 382.00
17 B.D.3 POL 25.7 18.0 16.50 325.10
CHENNAI CONTAINER TERMINAL PVT LTD (TERMINAL-1)
S.no Berth Type Rated Desired Draft Quay
capacity occupancy (meters) length
18 C.T.1 Containers 13.40 200.00
19 C.T.2 Containers 31.3 26.5 13.40 200.00
20 C.T.3 Containers 31.3 26.5 13.40 200.00
21 C.T.4 Containers 15.00 285.00
CHENNAI INTERNATIONAL TERMINAL PVT LTD (TERMINAL-2)
S.no Berth Type Rated Desired Draft Quay
capacity occupancy (meters) length
22 S.C.B.1 Containers 29.5 25.1 15.00 287.00
23 S.C.B.2 Containers 29.5 25.1 15.00 270.00
24 S.C.B.3 Containers 15.00 275.00
BREAK BULK
COMMODITY 2013-14 2014-15 2015-16 2016-17 2017-18
GRANITE 602 516 341 318 349
IRON&STEEL 1407 1419 1321 1498 1787
SUGAR 0 0 17 0 0
CEMENT 18 0 0 0 0
PROJECT CARGO 238 176 99 113 83
TIMBER AND LOGS 84 43 16 10 14
RO-RO 268 269 258 271 181
OTHER/MISC 45 35 44 65 19
TOTAL 2662 2458 2096 2275 2433
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3.4 Chennai Port’s Mission
Achieve excellence in Port operations with State-of-the-Art
technologies.
Enhance competence and enthuse workforce to maximize customer
satisfaction.
Anticipate and adapt to the changing global scenario.
Act as a catalyst for sustained development of the Region.
The Minister of Shipping, Road Transport & Highways and Water Resources,
River Development and Ganga Rejuvenation Shri Nitin Gadkari today
digitally flagged off a RoRo cum general cargo vessel M.V. IDM DOODLE
carrying a consignment of 185 trucks from Chennai Port to Mongla port in
Bangladesh. Shri Gadkari informed that these trucks, which are being
exported by M/s.Ashok Leyland Ltd, were being sent to Bangladesh through
the land route till now, travelling a distance of about 1500 km. Transport
through the sea route will save about 15-20 days of travel time. For this trip
alone that involves transport of 185 trucks, a total of about 3 lakh vehicle km
of road travel will be saved as the land route is longer and much time is lost
59
at the congested Petrapole-Benapole check point at the Indo- Bangladesh
border. Besides saving time, coastal transport will also be more cost effective
and environment friendly. The Minister called upon all automobile
manufactures to use coastal shipping mode for transporting their vehicles.
M/s.Ashok Leyland Ltd is currently exporting around 12,000 truck chassis to
Bangladesh, Sri Lanka and countries in Africa. The volume to Bangladesh
and Sri Lanka is likely to increase by 80% in the coming years. Now, more
than 500 trucks per month are expected to be exported via the sea route which
will take away a lot of traffic from our roads. The Coastal Shipping Agreement
between India and Bangladesh was signed during Prime Minister Shri
Narendra Modi’s visit to Bangladesh in June 2015. Based on the agreement
sea transportation from Indian ports to Bangladesh ports is being treated as
coastal movement, making it eligible for 40% concession on vessel related
and cargo related charges. For coastal movement through RoRo vessels, 80%
concession on vessel related and cargo related charges are applicable in Indian
Ports. Chennai Port started coastal RoRo voyage on 5.8.2016 when 800
Hyundai cars were shipped on RoRo vessels from Chennai to Pipavav for
local distribution. Initiatives like this are aimed at providing innovative
logistic chain solutions under Sagarmala. The ultimate objective is to save
logistic costs and time of transportation and boosting trade by making Indian
goods competitive in International markets. The fuel consumption at per tone
cargo is much lower via sea route, so transportation by sea will also reduce
carbon footprints on the environment. Further, the modal shift to coastal
shipping will save wear and tear of the new vehicles and also reduce traffic
on congested roads.
60
PORT DIGEST
Hon’ble Union Minister of State for Shipping Shri. Pon Radhakrishnan
participated in the Flag off ceremony and interacted with Press/Media. Shri.
P. Raveendran, IRTS, Chairman, Chennai Port Trust co-ordinated the event
from Chennai. Shri. Cyril C George, Deputy Chairman, Sr.Officers of
Chennai Port Trust, Private Secretary to Hon’ble Minister, Shri. Vinod. K.
Dasari, CEO & MD, Ashok Leyland, Chennai and Trustees of Chennai Port
participated in the function.
61
Chapter –IV Data Analysis
Chapter-5
5.1 Findings
According to the survey taken, the findings from the data analyzed are as
follows. Chennai port is one among the major ports handling more volume of
automobiles. Additional berths can be constructed in order to handle more
automobile(RO-RO) vessels. According to the study Chennai port is capable
to handle all types of automobile cargo with the present facilities available.
According to the study, if additional gates are opened for car cargo, it will
facilitate smooth movement. The study states that elevated expressway project
can be encouraged and furthermore it will attract more automobile cargo.
Road and railway connectivity should be improved and it is a must to enhance
more import and export of automobiles.
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5.2 Conclusion
Chennai port is one among the major ports handling more volume of
automobiles. The infrastructural facilities available are excellent and the
facilities for car cargo handling is impressive enough. The operational
facilities of car handling needs more appreciation. The port can do better with
a little more development in infrastructure. The shipping of cars are very well
planned and executed. The RO-RO movement is planned in such a way there
is no congestions. Overall the port is performing great and the operations are
fine.
5.3 Suggestions
These are the suggestions according to the port users for improving the
operational facilities of the port,
Dedicated entry gate/exit gate facilities.
Adequate parking area and maintenance of cars in the parking area,
security management, etc.
More berths needed.
Instead of giving discounts, port should invest on infrastructure, more
parking space and road infrastructure (outside port area) .
The port can provide more facilities and allocate more space.
Separate corridor for the movement of trucks bringing the cars inside
the port will facilitate quick movement of trucks in and out of port
premises.
63
Increasing the parking area for cars inside the port and facilitating more
number of free parking days for the export cars will boost cars export
in Chennai Port.
Bibliography
64
Questionnaire
Car Exporters Opinion about Chennai Port cargo operations/facilities
PART- I Demographic Factors
1. Name (Optional)
2. Gender Male Female
3. Educational Up to School UG PG ITI/Diploma
Qualifications Level
4. Experience < 10 Years 11-15 Years 16-20 21-25 Years
Years
>25 Years
5. Income <30K 31-50K 50-70K 71-90K
>90K
6. Designation Supervisory Executive Managerial Others
Level Level Level
Part-II - Statements
Kindly give your opinion. I assure you, this opinion is only for my study purpose:
1) You are aware that cars of different manufacturers are being exported from Chennai
port.
a) YES b) NO
2) In recent times most of the Automobile movement is through RO-RO vessels, it is less
time consuming.
a) YES b) NO
Sl.N factors Strongl No Disa Strongl
o y agree Agre opinion gree y
e disagree
5 3 2
4 1
3 Chennai Port is one among the major ports
handling more volume of Automobiles.
4 Chennai Port is capable of handling all
types of Automobile cargo.
5 Most of the car exporters are using Chennai
Port for Import/Export their consignments.
6 Limited number of berths to accommodate
car vessels is delaying vessel operations.
7 Scientific (RFID/GPS)yard operation
management will lead to increase in overall
efficiency of the port.
8 Do you feel modern technology is used to
improve the yard management system.
9 The present storage space available for
aggregating the export cargo is sufficient for
handling more car vessels.
65
10 If storage facility is allotted away from the
berth , movement of car cargo may face
some obstacle.
11 If the infrastructure facilities are improved
in the port it will maximize the operational
efficiency of cargo handling..
12 If road and rail connectivity is improved, it
will attract more automobile and car cargo
Import/Export.
13 Elevated Expressway project will attract
more automobile cargo.
14 If additional number of gates are opened for
car cargo it will facilitate smooth
movement.
15 Usage of passenger vessels for car cargo
will increase the volume of car cargo
handling.
16 Volume based discount would attract the
automobile manufacturers.
17 Giving concession for coastal car vessels
will attract the automobile manufacturers.
18 Chennai port is capable to handle modern
/present age car vessels.
19 Construction of additional berthing for
handling automobile vessel will attract the
automobile manufacturers.
20 To construct multilevel car parking inside
the port will attract more car cargo.
66
Layout of Chennai Port(Figure 4)
67
RO-RO vessel(Figure 5)
68
(source:google images)
Storage Yard(Figure 6)
69