CHENNAI PORT TRUST

INTERNSHIP REPORT – OPERATIONS MANAGEMENT

July 2010

DEPARTMENT OF MANAGEMENT STUDIES

UNIVERSITY OF MADRAS
CHEPAUK, CHENNAI - 600 005

Prepared by
K.N.JAKANATHAN (33230964)
MBA (2009 - 2011)
UNIVERSITY OF MADRAS
 2

ACKNOWLEDGEMENT

This report is on OPERATIONS of CHENNAI PORT

TRUST. Humble effort has been made in preparation of this report. As I sum
up draft of my study, I appreciatively reminisces the contribution of all those
people without whose support and help, this study would have not ever taken
its present form. I would like to thank everyone who assisted me in
preparation of this report. A visit of each department was conducted and a
meeting was arranged with the staff of each department where every in-
charge explained the functions and working of the department concerned. I
specially would like to thank the assistance and cooperation of:

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

Mr. Venkateswaralu (Traffic Manager)
Mr. Venkat (TM’s Office)
Mr. Gobinath (TM’s Office)
Mr. Mahadevan (Operations)
Mr. Jayakanth (Portage)
Mr. Raja Kumar (P & R cell)
All members from Traffic Department
Mr. Soundararajan (Docks Manger)
Mr. Anbanand (TM’s Office)
Mr. Chandrasekhar (CDO)
Mr. Senthil Kumaran (Sr. AO Portage)
Mr. Ramesh (Computer cell)
Mr. Haridoss (Marketing AO)
 3
I would have been unable to make this report without the
assistance of these people. I deem it my pleasure to convey the deepest of
my heart-full thanks to the Chennai Port Trust.

Many people have helped me, but I accept total responsibility

for any errors in this report. Please contact me for any query.

LETTER OF TRANSMITTAL
Date:

University of Madras
Chepauk Campus
Chennai.

This report is on “Operations Management of Chennai Port

Trust” it is ready for your perusal.

I, K.N.JAKANTHAN, as Part of MBA curriculum, have undergone

this internship. In this report I have shared my knowledge learned from
Chennai Port. This report highlights the whole Operation processes of
Chennai Port and the functions of Traffic department.

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

 4

Sincerely

(K.N.JAKANATHAN)

Management Summary

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

the Chennai Port Trust and its services for Import and Export. Chennai Port, the Largest Port in
East Coast of India. Chennai Port Trust is a service rendering organization governed by Ministry
of Shipping, India.
Almost 77% by value and 90% by volume of Indian - Foreign and Domestic
EXIM Trades made by Sea route, where Chennai Port Trust is playing a major role. Chennai Port
is rendering its service in user friendly manner. Here I have showed the milestone where ever
Chennai Port shines in advancement.
In initial part, I have discussed about the Location and Layout of Chennai Port,
which is perfectly set to provide good service and I have talked about the Docks and Docks wise
cargo handlings.
I have showed a complete view of facilities in Chennai Port which are offered to
the customers to do their Import and Export in a better way. Then I have indicated the
remarkable Performance of Port which is gradually increasing.
What ever be the facilities, all should be properly maintained and worked in right
manner for that there is well planned organizational structure and Departments are there in
Chennai Port to serve the Customers. Then I have given the data given by Port function
Authorities about the Operations, Import and Export Procedures in Chennai Port, Which are
absolute and are logical Operations.
 5
All we know that for an analysis of an organisation, SWOT analysis is the most
important, that’s why from the data on hand I have done a SWOT analysis and Porter’s 5 force
analysis, these analysis have given me the information which are attracting the customers
towards Chennai Port and which are to be improved and I have included it in this report.
Based on the analysis and learned knowledge of Port, I have given some
suggestions which are discussive rather than recommendatory.

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

THANK YOU

CONTENTS
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Topic
Page

Acknowledgement …………………………………………. 2
Letter of Transmittal …………………………………………. 3
Managerial Summary …………………………………………. 4
Mile stones ………………………………………… 10
Indian Port ………………………………………… 14
Chennai Port Trust ………………………………………… 15
Port Location & Lay-out ………………………………………… 16
Dock Details …………………………………………. 19
Facilities ………………………………………… 21
Performance …………………………………………. 28
Organizational Structure …………………………………………. 32
Procedures …………………………………………. 34
Learnt from port …………………………………………. 39
Analysis …………………………………………. 46
Suggestions …………………………………………. 52
Conclusion …………………………………………. 53
Webliography …………………………………………. 54
 7
LIST OF TABLES

TOPICS PAGE

Mission And Vision …….. 15

Plant Location and Details ……... 16

Example : Dock wise Berth ……... 18

Dock wise operations ……... 1 9 & 20

Improvements: Oil Pump …….... 21

Awards : National Tourism Award ……… 22

Note : Ro-Ro Terminal ……… 26

Cargo Handling Equipments ……… 27

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

C Container Performance ……… 30

Cargo wise Performance ……… 30

Organisational Structure : Hierarchy ……… 33

Note : Berth Meeting ……… 36

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

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

Example : 4 Demurrage calculation ………. 44

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

SWOT analysis ……… 49 & 50

 8
LIST OF FIGURES

TOPIC PAGE

Chennai Port Initial Stage ……… 10

Current Chennai Port ……… 12
Chennai Port Logo ……… 13
Major and Intermediate Ports in Chennai ……… 14
Hinterland Connectivity of Chennai Port ……… 15
International sea Route Connecting Chennai ……… 15
Chennai Port Lay-out ……… 16
Container terminal ……… 23
DP World logo ……… 23
New container Terminal ……… 23
THE HINDU Report on Mega container terminal ……… 24
Break Bulk Cargo ……… 25
Dry bulk Cargo ……… 25
Ro-Ro Terminal ……… 26
Port Crane ……… 27
Average Ship Berth day Output - in Tones 2009-10 ……… 29
Vessel Handled in Numbers 2009-10 ……… 29
Average Turnaround Time of Vessels Cargo wise (In Days) 2009-10 ……… 29
Traffic Handled During Mar-10 and up to Mar-10 (Pie chart) ……… 31
Traffic Handled During Year 1999-2000 to 2009-2010 (Graph) ……… 31
Porter’s Five Force Analysis ……… 47

Abbreviations
 9
AD Ambedkar Dock
ATM Asst.Traffic Manager
BD Bharathi Dock
BOT Build Operate Transport
CDO Commercial Documentation Office
CFS Container Freight Service
CHAs Custom House Agents
ChPT Chennai Port Trust
C&F Clearance & Forwarding
CISF Central Industry Security Force
CPCL Chennai Petroleum Corporation Limited
CWC Container Warehousing Corporation
DWT Dead Weight Tonnage
ECR Export Cargo Receiver
EIA Environnemental Impact Assermente
EPL Ennore Port Limited
ETA Expected Time of Arrival
EXIM Export Import
FCI Food Corporation of India
FEU Forty Feet Equivalent Unit
FRM Fertilizer Raw Materials
GAIL Gas Authority of India Limited
GDP Gross Domestic Product
GRT Gross Registered Tonnage
HMIL Hyundai Motors India Ltd.
HoM Harbor of Madras
IH Inner Harbor
IMO International Maritime Organization
IOC Indian Oil Corporation
IPA Indian Port Association
ISPL International Sea Ports (India) Limited

ISS International Sea Security

JD Jawahar Dock
 10
LDP Light Dead Tonnage
MoE Ministry of Environment
MoS Ministry of Shipping
MPA Major Ports Act
M.T Million Tones
OA Outer Anchorage
O-D Origin - Destination
ODC over Dimensional Cargo
ODO Over side Delivery Order
POL Petroleum Oil Lubricants
PPP Public Private Partnership
RDC Rational Distribution of Cargoes
Ro – Ro Roll on – Roll off
RMGC Rail Mounted Gantry Cranes
RMQC Rail Mounted Quay Cranes
RTGC Rubber Tyre Gantry Cranes
SICAL South India Corporation Agencies Limited
SOR Scale of Rates
SPIC Southern Petrochemicals Industries Corporation
SPV Special Purpose Vehicle
SRLY Southern Railways
SSA Stevedore Services of America
TAMP Tariff Authority for Major Ports
TEU Twenty feet Equivalent Unit
TNEB Tamil Nadu Electricity Board
ULCC Ultra Large Crude Carriers
UNCTAD United Nations Conference on Trade & Development
VLCC Very Large Crude Carriers
WCC Wharf Cleaning Charge
 11

Milestones in Chennai Port

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

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

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

1904 Sir Francis Spring, Chairman of ChPT created a new North-Eastern

Entrance after closing the original Eastern Entrance to control the siltation
of the channel in front of the basin.

1913 South Quay-I was constructed.

1916 Five West Quay berths was constructed

To
1920

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

1931 North Quay was constructed

 12

1936 South Quay was constructed

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

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

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

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

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

1974 An Iron Ore quay was constructed

1975 Dredging Corporation of India is set up by Government of India to

undertake dredging operation.

1983 Container Terminal of 380 M length was constructed

1986 Inland Waterway Authority of India (IWAI) is constituted under the IWAI
Act, entrusted with the responsibility of developing inland waterways in
India.
 13

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

into Chennai port.

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

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

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

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

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

2007 Chennai International Terminal (p) ltd. (PSA – SICAL CONSORTIUM)

take over the Second container terminal in AD - East Quay ,operating from
2009

2009 Chennai International container Terminal stared in East Quay of AD

2010 Computerized Pass section is inaugurated.

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INTRODUCTION
 15
INTRODUCTION – INDIAN PORT

India, one of the biggest peninsulas in the world, has a long coastline spanning
7600 kilometers. It is serviced by 11 governments and 1 corporate major port and 185
notified minor and intermediate ports.
Indian seaports are today more than just government owned public
utilities; they are indeed focal points of convergence for several contending and
competing business interests starting from shipping lines, port authorities, and individual
terminal operators to freight forwarders and inland logistics agencies including the
shippers (the exporter-importer fraternity) whose cargo is what is being ultimately
transported.
Maritime Transport is a critical infrastructure for the social and economic
development of a country. It influences the pace, structure and pattern of development.
The Ministry of Shipping, India (current Minister – Sri. G.K.VASAN) encompasses
within its fold shipping and ports sectors, Major Ports, Port Trusts.
The major ports are Chennai, Cochin, Jawaharlal Nehru, Kolkata, Halida,
Kandla, Marmugao, Mumbai, New Mangalore, Paradip, Tuticorin, Visakhapatanam,
Ennore (Corporate) and 185 notified minor and intermediate ports.
 16
CHENNAI PORT TRUST

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

Corporative) major ports and 2nd largest, is an emerging hub port in the East Coast of
India. Situated in the Coromandel Coast in South-East India, Chennai, TamilNadu.
Chennai Port is an artificial harbor, started its operations in 1875 (more than 100 years of
tradition) by East India Company.
Operations of Chennai port comes under Indian MINISTRY OF
SHIPPING Chennai port is governed by Chennai Board of Trustees. Both Import and
Export are carried out in this port.
Diversity of cargoes is handled from sugar to food grains, coal to iron
and steel, cars etc. Break Bulk, Liquid Bulk, and Dry Bulk and Containers are handled in
this port in RDC basis. All these operational works are done by Traffic department.
The total quay length available is around 5.5 km. It has in all 24 berths spread over 3
docks.
Hinterland Connectivity is established in this port through highways,
railways and by sea route. Chennai Port Handles both Coastal And Foreign EXIMs.
MISSION & VISION
• Achieve excellence in Port operations with State-of-the-Art technologies.
• Enhance competence and enthuse workforce to maximize customer Satisfaction.
• Anticipate and adapt to the changing global scenario.
• Act as a catalyst for sustained development of the Region.

§ To be recognized as a futuristic Port with foresight.

PORT LOCATION & LAYOUT

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LATITUDE 13° 06’ N

LONGITUDE 80° 18’ E
CLIMATE TROPICAL
TIME 5hrs 30min +GMT

TEMPERATURE 30°C (max) 18°C (min)

ANNUAL RAINFALL ABOUT 125 CM

SPRING TIDES 1.2 m

Though it is about 600 nautical miles away from the international maritime
route, because of its location, proximity to market, competitive pricing, safe and secure
operations this is one of the preferred Ports for the trade.
Chennai port was vulnerable to cyclones, accretion of sand inside the basin
due to underwater currents that reduced the draught. And due to paucity of funds Chennai
port could not over come these problems. Anyhow Sir Francis Spring a visionary skilful
person drew a long term plan in that he charted out the course of port in scientific
manner. This new layout is helping the port to do its service in an efficient way and the
drenching also done in affordable funds.

Chennai Port Trust – Service organisation

 18
Chennai port Trust is a service rending organization. Importers and
Exporters avail these services for their business purpose. Chennai Port Trust proving
these services for both coastal and foreign customers. . Chennai port Trust also improving
its facilities, in such a way ChPT shows its Image as a Customer Friendly Organization.
And it is protected by CISF (Ministry of Defense).
Chennai port is having a total length of 5.5 km. For Operational purpose
the port is classified as docks. It has in all 24 berths spread over 3 docks namely,

1. Dr.Ambedkar Dock - 11 Berths

2. Jawahar Dock - 6 Berths
3. Bharathi Dock - 3 Berths + 4 container Berths (leased
to Private agents (DP world for 30 years)
4. Mega Container Terminal (Under Construction)

Each Dock Berths are facilities in such a way to handle a particular type
of cargoes. According to the Cargoes in the vessel, the vessels are berthed in the Docks.
More facilities are there near the berths like, Warf, Cranes, Storage point, and Storage
facilities.

Services
Chennai port provides 24 hours service. It controls all movements of
ships from entry to departure.
1) Controlling Entering and leaving of ships.
2) Providing Customer Plots.
3) Providing Infrastructure, equipments, manpower as a service.
4) Warehousing of Goods for 7 days.
5) Port Railway transport service (Rake).

EXAMPLE :1
 19

In Oil Terminal, Only Oil Carrying vessels are berthed and there are oil
arms that suck the crude oil, Furnace oil, White oil products, from the vessel and store it in
the storage point (Tankage). Now CPCL have an arrangement that the oil pipe line that
transport the oil directly to their oil refinery, from there they refine and use the pure oil.

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

is also helpful to customers (avail those facilities).

Features
1. Chennai Port is an ISPS (International Ship and Port Facility Security)
Compliant port. There are 2 types of ISPS code, one is for Compliance
and another one is for Coastal.
2. 24-Hours (around the clock) working of port
3. Can park nearly 5000 cars for export/import operations.
4. Railway facility to carry the goods.
5. Container Parking space.
6. Separate oil pipelines.
7. Closed Godown facility for keeping food articles.
8. Separate goal shed for customers.
9. Tripper facilities.
10. Closed conveyer to reduce pollution.
11. Closed Conveyers for coal movement.

Dock wise cargo handling are given below,

Dock wise Cargo Operations:

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Dock Quays length Draft Commodities

North
Mainly for Inland passenger
Quay 198 m 8.53 m vessels
(1 Berth)
(Mostly Andaman &
Nicobar vessels), Palm oil

West 1 – Cars (Hyundai)

855 m 7.29 to 9.14m
Quay 2 – Break bulk (steel)
(5 Berths) CB – Foreign cruise
Dr.Ambedkar Dock 3 – Food (closed godown
( Break bulk) available)
4 – coke (Type of coal)

South Handles heavy lift cargo,

1 – 246 m 1 – 9.5 m
Quay minor minerals
2 – 179 m 2 – 9.5 m
(3 Berths)
3 – 254 m

East Now leased to private

832 m
Quay Agent [PSA – SICAL]

Naval Naval Ships

200 m
Berth

Mega Container Container Handling

2 km 18 – 21 m
Terminal
Long Quay
(Under Construction)
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JD 1
Molasses
Jawahar Dock 218.33 m 10.1 m
Fertilizers
(Dry bulk) JD 3 each each
Crude Palm oil

JD 5

JD 2 Coal [closed coal

218.33 m 10.7 m
conveyer is available]
each each

Importing Coal
JD 4
&
Exporting Iron
JD 6 [ In return ]

BD 1 338.94m 14.6m Oil Terminal (crude oil)

& & [separate pipelines are
&
304m 17m available for each
Bharathi Dock BD 3 customers, directly
towards their refineries]
(Liquid bulk)
Iron Ore Terminals
16.5 m [Tippler only in Chennai
BD 2 274.32 m
& vizag.]

Container Terminal
Container 885 m 13.4 m
High tech. equipments
4 Berths are used
[ Leased to DP World for
30 years ]

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

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

OIL BERTH

2 dedicated oil jetty (Bharathi Dock) with capacity to

handle 1 – 1.5
Lakhs of DWT tankers.

Cargo handling capacity of more than 13 million tonnes

per annum.

5 Marine loading arms in each berth, 3 nos. for crude &

Furnace oil and
2 nos. for White oil Products.

Separate pipelines provided for Crude, Furnace oil,

White Oil Products,
Deballasting, Tower Moniter, Fire Hydrant and Fresh water

Service Lines for LDO bunker, Furnace Oil bunker and

Lubricant Oil
Bunker

Wide range of petroleum oil and lubricant cargo mix

Pipe line connecting to tankage farms and refinery

The terminals are equipped with the latest fire fighting

facilities

MARPOL connection compliant oil reception facilities

for oily ballast,
Sludge and slop.

Well equipped fire fighting facilities.

World class facilities

IMPROVEMENTS : 1
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Modernization of the Existing Fire Fighting Facilities (commissioned during

1972/86). Due to corrosion atmosphere (Salty air from sea), its essential to replace and
modernizing the Fire Fighting Facility at oil Dock. IPA submitted the study and accordingly
modernizing work is going on as long term measure.
Laying of 42” Dia pipeline in replacement of 30”Dia pipeline is proposed at an
estimated cost of Rs.9.05 crores. The work will be carried by M/s. CPCL as a deposit work.

IRON ORE TERMINAL

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

Can handle ore vessels up to 1.5 lakhs DWT

Capacity – Million Tonnes per annum

Ore handling facilities consist of two c, 10 lines of conveyors, 2 Rail-

Mounted stackers, 2 Rail-Mounted Bucket-wheel, Re-claimers and 2
Rail-Mounted ship loaders.

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

2 ship loaders with capacity of 4000 tonnes per hour.

Back-up-stock yard of 8 lakh tonne capacity

Equipped with automatic belt weigher, sampling facilities, Self-

Container maintance workshop and a service station

CRUISE TERMINAL

State-of-Art Cruise Terminal

Cruise/Passenger Terminal with modern Infrastructure facilities for

Immigration, Customs formalities, Communication Centre, etc.,

Excellent Road, Rail, Air Connectivity to Tourist locations

Chennai’s hospitality industry complements port’s facilities

Foreign and coastal (mostly Andaman & Nicobar) Designated cruises

are handled here.

AWARDS
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Chennai port on the strength of its untiring efforts in promoting crews shipping has
achieved 50% over the previous 3 years. In recognition for these efforts, Chennai Port has
submitted its nomination for the NATIONAL TOURISM AWARD 2008 given in the AGIS of
Ministry if Tourism, India under the Category of “BEST TOURISM FRIENDLY PORT”.

CONTAINER TERMINAL

Productivity on par with International Terminals

7 Gantry quay cranes including a crane with

Twin lift facility are used

Excellent Yard facility – 24 RTG’s 250 reefer

Points, 3960 ground lots are used

On arrival berthing for container vessels

Window berthing

Continuous carting for special containers

Streamlined gate cut-off

Web/SMS based container tracking system

Direct service to US, UK, Europe, China, Thailand, Korea,

Mediterranean and West Africa

Container Terminal on par with International standard

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

PSA- SICAL Consortium leased the New Container Terminal in Chennai

Port and is ideally positioned to tap the high growth Chennai region.
Serving an ever growing hinterland and catering to the fast growing
Automobile, Pharmaceuticals, Textile, Leather, Light engineering and
 25
Chemicals units. Rated capacity 1 million TEUs p.a.

MEGA CONTAINER TERMINAL

100 ha (250 acres) of back up Area

Rate Capacity of 5 million TEU p.a

Development of Mega container terminal id formulated to the north of

existing BD

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

Rs.3686

Request for qualification application with an investment of Rs.3125

crores by BOT operator. Evaluation of application is in Progress.

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

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

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

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

This Terminal will come to action in 2015

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BREAK BULK BERTH

Only Port with 5 nos. Break bulk Terminal (General Cargo)

Sufficient Shed and Open Storage Space

Higher Capacity and productive cargo handling equipment

150 T floating crane for heavy lift cargoes

Bulk Cargoes which are covered in bags, bales, barrels,

boxes, cartons, drums, pallets, sacks, Vehicles come
under Break bulk cargo.

Break Bulk Cargoes are handled in AD – North and West

Quay

DRY BULK BERTH

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

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

Storage points (Plots) are available near the Berths

 27
Company importing Coal, avails the storage area on lease basis from Port

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

RO – RO TERMINAL

Roll-on & Roll-Off Terminal is at

the south side of container terminal

Terminal to operate cruise and Ro-Ro Vessels

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

area

Car washing facility proposed to be installed in the

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

NOTE : 1
 28

Multilevel Car park with Ro-Ro Terminal is mainly used by HMIL (Hyundai).Hyundai
Exports lot of finished cars in a year. For such companies port provides 47500 sqm area, there
Company can accommodate nearly of 4500 cars at a time.
Before using this Ro-Ro method, cars were handled by cranes (Vulnerable to damage).
But, Now using this Ro-Ro, cars are derived (Roll) by labors directly inside the vessel. This
Method restricts Vulnerability to damage and it reduces the time of loading the cars into vessels

Port serves the importers and exporters by providing these berths, Warf, cranes,
Transport facility, Sheds.
Now, new closed conveyers, dippers, advanced equipments to handle ODC are
available in Chennai port. These are strengths of ChPT.
Using above facilities ChPT is performing well and achieving its Target.

CRANES
More number of cranes are available to handle the cargo

New 150 tones floating crane is introduced import

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

Cranes to handle ODC also available.

CARGO HANDLING DEPARTMENT

SL.NO. EQUIPMENT NUMBERS CAPACITY

FLOATING CRANE 1 150 TONS

1
MOBILE CRANE 3 10 Tons
2
3 LOW CAPACITY DIESEL
10 3 TONS
FORK-LIFT TRUCK
4 HIGH CAPACITY DIESEL 10 T10 TONS - 3 No. & 15 TONS – 5No.
10
FORK-LIFT TRUCK & 2 TONS – 2 No.
PAYLOADER 2 3 TONS
5
DIESEL ELECTRIC
14 700HP- 12 No. & 1400HP-2 No.
6 LOCOMOTIVE
 29
RAILWAYS
Facilities the dispatch and receipt of wagons, by taking over of rakes from SRLY for
loading and unloading

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

Used to carry Coal, Iron ore, Granite blocks, Food Grains & Fertilizer, Containers
Iron ore wagons are directly used in Tripling work
HoM station controls the shunting

PERFORMANCE
 30

PERFORMANCE:
Average Turnaround Time of Vessels Cargo wise (In Days)
2009-2010
2006-2007 2007-2008 2008-2009
(Upto Mar 2010)
Comm
odity Non Non Non Non
Port Port Port Port
Port Port Port Port
Account Account Account Account
Account Account Account Account
Liquid
1.60 1.30 1.76 2.04 1.73 1.94 1.74 2.45
Bulk
Dry
3.50 2.10 3.60 4.30 3.44 3.71 3.45 3.38
Bulk
Break
2.50 1.90 2.38 2.76 2.21 2.78 2.07 2.59
Bulk
Overall 2.10 1.30 2.25 2.30 2.11 2.04 2.01 2.03
 31

Liquid Bulk
Dry Bulk
Break Bulk
Containers
total

2009-2010

Liquid Bulk
Dry Bulk
Break Bulk
Overall

2009-2010

Average Ship Berth day Vessels Handled In Numbers

Output - in Tones

4
3.5
3
2.5
2
1.5
1
0.5
0 Average Turnaround
Time of Vessels Cargo
MOUTarget

Draft MOU
Draft MOU

Draft MOU
Upto Mar-
Mar-10

Mar-10

Upto Mar-
Target

Target

Target

wise (In Days)

Draft

10

10

Port Non Port Port Non Port

Account Account Account Account

Liquid Bulk Dry Bulk

Break Bulk Overall

Container Performance
Container Handling
as on 11/06/2010 06:00
Import Export Total
Containers Handled
Box TEUS Box TEUS Box TEUS
 32
Day 1775 2366 1765 2590 3540 4956
Month 16264 22025 17025 22889 33289 44914
Year 108186 146567 107032 145795 215218 292362

Cargo Wise Performance Indicators

Traffic Handled During March 2010 and up to March 2010

TOTAL 2009
For the Month of Mar 2010 Up to the month of Mar 2010
& 2010
Commodity Export TOTAL
Impor
Total TGT Import Export Total TGT TARG
t
ET
P.O.L 949 228 1177 1090 11881 1545 13426 13000 14603 14090
IRON ORE 701 701 970 - 7881 7881 11500 8582 12470
Fertilizer 0 - 0 100 357 - 357 760 357 860
Fertilizer
49 - 49 70 254 - 254 310
(RAW) 303 380

NON COKING COAL 737 - 737 690 8292 - 8292 8100

9029 8790

COKING COAL 70 - 70 180 1522 5 1527 1960

1597 2140

CONT. CARGO 1154 1189 2343 1900 12067 11410 23477 22500
25820 24400

OTHER CARGO 285 207 492 530 3723 2120 5843 5870
6373 6400
TOTAL 3244 2325 5569 5530 38096 22961 61057 64000 66626 69530
Container
121413 12164
in TEU's 1337851

Traffic Handled During March 2010 and up to March 2010

(PIE CHART)
 33
For the Month of Mar 2010 Import

P.O.L
IRON ORE
Fertilizer
Fertilizer
(RAW)
NON COKING COAL

COKING COAL

CONT. CARGO

OTHER CARGO

TOTAL
Container
in TEU's

Traffic Handled During Year 1999-2000 to 2009-2010

70
TONNES(MILLION)

60
50
IMPORT
40
EXPORT
30
TOTAL
20
10

0
00

02

06
04

08

10
0

0
0

0
2

2
-2

-2

-2
9-

1-

5-
3

9
9

0
0

0
19

20

20

20

20

20

YEARS

* Data collected from P&R section

 34

ORGANISATIONAL
STRUCTURE

DEPARTMENTS
There are 9 departments working together. These departments are classified
according to their nature of work.
 35
The departments in Chennai Port Trust are

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

2. Vigilance Dept. (CISF)
3. Mechanical Engineering & (Mechanical equipments - Cranes
Electrical Engineering Dept. & Maintance of electrical equip.)
4. Civil Engineering Dept. (Maintenance of Warf, Plot)
5. Finance Dept. (Worksheet, collecting Charges)
6. Traffic Dept. (Cargo handling, Shipping)
7. Stores Dept. (Plot Arrangement, Storage)
8. Medical Dept. (Labours, officers, crew members)
9. Marine Dept. (Drenching, vessel related)
Main operations are done by Traffic Department. This Department involves
Documentation, Commercial, Operations, Portage, Railways.

Hierarchy
CHAIRMAN

TRAFFIC MANGER

DIVISION Mngr DIVISION Mngr DIVISION Mngr DIVISION Mngr

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

ADMIN Mngr ADMIN Mngr

 36

PROCEDURES
 37
Chennai Sea Port is constituted of shipping Department. It deals both Goods and
Passengers.
Goods are considered as Import and Export items.
Export – Any Goods which leaves the port
Import – Any Goods which enters the port
* Export/Import is independent of To/From Destination.
Chennai port provides 24 hours service. It controls all movements of ships from
entry to departure. Procedures for Importing and Exporting in Chennai Port Trust are
very simple. Importing gives profit to our country.

Importing Process
I) This process commences with an agreement between the customer (Importer) and the
supplier (Exporter).The supplier will export the cargo as per Exporting policy of his country.

II) a. After Customs Clearance from Exporting Country Shipping agent will bring
the cargo through the vessel. Before arrival of vessel, customer should get
• Bill of Lading - Receipt
• Packing list
• Invoice (By any means, mostly Airmail is used)

b. For approval from India Government, customer has to make a request and get
approval through Stemmer agent by the Manifest list which indicates the Nature of Cargo,
classification of good, Owner, Weight, and Value etc. and ETA of vessel.
This approval work has to be done by both Customs and Port. Stemmer Agent gives
a copy of Manifest to Customs Department, Customs has to approve and accept to bring the
cargo into India Territory. This Authority comes under Customs Act, 1962.
Then Stemmer agent gives approved copy to Chennai port Authority – Commercial
Department. Then Stemmer agent intimates the Customer about arrival of the vessel containing
customer’s cargo. Customer has to pay Freight Charges to the Stemmer Agent.

III) In the mean time, customer hands over the bill of lading, packing list, Invoice to the
Clearance & Forwarding Agent (C&F). C&F Agent will collect the documentation charge from
 38
customer for its service. Now C&F agent starts to attend the Berth Meeting (11:00AM) from a
week early of arriving of vessel. And C&F agent will produce the Packing List and he demand
the equipments according to the Nature of cargo E.g. Berth, Warf, Cranes [RTGC, RMGC ,
RMQC], Hopers, oil pumps, Closed conveyers, Shed, Man power etc.,

Note : Berth Meeting

Berth meeting will be conducted by Chairman of ChPT daily at 11:00Am in ChPT hall. The
availability Berth is checked daily & Vessel position is analysed by the potential players, forecasting the
position for next day and also for the whole upcoming week. As per the forecasted details, manpower,
cranes and hooks are assigned in each berth. Priority also discussed there. Along with them Port
Members also attend the meeting especially from the Marine Department.
Potential Players are 1) Stemmer agent (Shipping Agents)
2) Stevedoring Agents (loading / unloading)
3) C& F Agents (Customs and forwarding)
Now, Stemmer agents are sending and update their details about arrival of vessel through
Internet itself.

IV) If the Birth availability is confirmed, C&F agent will file the Import
Application forms in the CDO with the particulars of Cargo. On comparing to the Manifest given
by the Stemmer agent, Documentation Officer gives him an Import Application Number.
Then C&F has to pay the Port dues for Warfage, Crainage, Pilotage, Berth hire
charges, Portage, CWC, CMC, WCC and Storage to the Accounts Department according to the
cargo Importing.

• All Fees are collected according to SOR advised by TAMP.

V) When Vessel comes to the Outer Anchorage (OA), first signal of arrival is given and
according to the Priority, Vessel got inside the port area as a cold move [Moved by Tug Boats
Only] and berthed. From the time of Berth, 7 days of free for the customers to remove the cargo
from port starts. If it takes more than 7 days, Demurrage fee [collected according to SOR] has
 39
to be paid by the customer. If it goes more than 60 days to clear the cargo, it will put for auction.
If it is not even removed from vessel itself, means additional Birth Hire Charge has to be paid by
the Customer. And customer also has to pay Return Pilotage.

VI) Now, after paying of all Port dues, Customer contacts stevedores [Stuffing/Destuffing
agent], they work as On-Board Labours. At that same time cranes, Labours from port (Off-
Shore) come to the vessel and Customer has to arrange for Transport facility (Private Lorries –
Should get the Entry pass by giving Vehicle’s register number, Driver’s photo) to carry the cargo
to the Storage plot (or) to outside the port. If through Railways customer has to pay freight
charges.

VII) Port Authority (Tally Clark) will check Unloading of Cargoes and make a note and
count on the cargo, at that same time Customs department also will check the cargo using the
Manifest given to them, only after the approval of Tally Clerk and CHAs, cargo can be moved
away from the Warf.

VIII) After completing all the above process C&F can get the Delivery order from the Port.
C&F agent has to give a Copy of Delivery Order to the CHAs; they will collect charges
according to the Tariff – Duty Rate (under Policy of India) and give a Bill Of entry (Into India)
and Custodian Copy (Customs Release Order) to the C&F agent.

IX) C&F agent will give a copy of above 3 Documents to the CISF in the gate; CISF will
give a Gate pass, using that Gate pass Lorries go out of the port.

Export Process

I) This process commences with an agreement between the customer (Importer) and the
supplier (Exporter). The supplier will export the cargo as per Exporting policy of India.
 40
II) Exporter will contact a C&F agent. C&F has to file the Exporting Application Forms
with all details about the Cargo, request for requirement for loading of cargo like Storage plot,
Warfage, Crainage, and Portage in CDO and has to pay for all in accounts Department and get
the Export Number. Exporter also contacts the stemmer agent for vessel.

III) From the filing date, Exporter will provide with 30 free days to export, within that period
Exporter bring the cargo with copy of packing list and Invoice into the Port and the C&F agent
handover the cargo to ECR. After arrival of vessel C&F agent have to load the Cargo into the
vessel (brought by stemmer agent) with the help of Stevedoring agent.

IV) ECR will give the cargo to the Captain (Receiver) along with a memo (Boat Note), it is
also called as Export Gate Chit. Captain will keep the cargo into the Hatch of the vessel and give
a Mate Receipt (Acknowledgement). ECR has to Register the Receipt and give the Receipt, Bill
of Lading to the C&F agent.

V) Now, C&F agent will give the Export Application-B form, Mate Receipt, Bill of lading
to the Exporter. Then Exporter sends these documents along with original Invoice and Packing
list to the Importer (Original Receiver).

~~~~~~~
 41

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

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

Even though Port is not doing Import or Export, a Target in terms of has to be
fixed by Government which is to be achieved by Port on a monthly basis for a year.
Because then only port will do its work more faster to reach the target .Government fixes
a yearly goal to port which will be always more advanced than the previous year goal.
Taking it as a motivation, Port would do its work faster to achieve the goal. Previous year
achieved tonnes is said to be the Capacity of the port.
 42
Fixing of Port Target/capacity may change according to Local and
International market trend. All India Port Chairman Meet will be held periodically to
discuss and to take step according to the market trend.

II) WHAT IS RDC?

The target set by the government should not be achieved by handling a single
cargo of that much tonnes, the handling of cargo should be on the basis of Rational
Distribution of Cargo.
The Cargo categories are:
a) P.O.L - Petroleum - Oil - Lubricant
b) Iron ore – Lumps, fines, pallets
c) Fertiliser – Urea
d) Raw Fertiliser – Potassium,Sulphur
e) Coal – Coking coal (Pet, Metallurgic)
f) Other Coal
g) Containers – 20ft, 40ft
h) Others
All the above cargo types have its individual Target.

III) WHY IS PRIORITY BASIS IN BRINGING THE VESSEL INTO THE PORT?
• Priority - Ships are normally served in First come First Served (FCFS)
basis. But, because of various valid and vindicated reasons vessel
priorities are assigned in the Berth Meeting.

Priority will go as follows,

* 1st priority goes to Passengers Vessels
* 2nd priority goes to Government Orders (Essential Commodities)
* 3rd priority goes to Requesting Stemmer Agent (They have to pay more)
* 4th priority goes by Berth reservation Scheme (Nearer to Customer Plot)
For 3rd and 4th type of priority Customer has to pay for it in account
department. In that basis only vessels are brought from the OA into the Port.
 43

IV) WHAT ARE IMPORT APPLICATION FORMS AND THEIR USES?

Sea Import Application form consists of 3 forms namely A, B, C.
FORM – A - It’s delivery purpose and delivery order will be issued only using
this form, this will be issued only when there is no problem in cargo.
FORM – B - This form is applying for Short landed of cargo (Noted by Tally
Clerk).If like this C&F agent gives the Form-B with details to port and send it to Customs
and get back the duty paid for unlanded cargo.
Using that form customer contact the supplier and get the back the money for
that unlanded cargo. Then Supplier Contacts the Shipment captain and captain check for
cargo hatch-by-hatch and return it back to the supplier.
(OR) Using the form, customer can contact shipping agent and get back his
cargo form Shipment captain directly. (Only can when the vessel is sailing near the
Port).This comes under the HIGH SEAS CONTRACT.
If there is surplus (Excess landed) of cargo is noted by Tally Clerk. Customs
will penalize the customer up to 135% of cargo value. If there variation between the
manifested cargo’s natures, customer will be penalized and has to pay for that cargo
value, if variation is more, cargo will not be given to the customer.
FORM – C - THEFT form, this form is used when the cargo is missing inside the
port. First C&F agent has to file a report to police, if it is unable to find, chairman will
take response for that and report the Customs. Customs will fix the Government value of
the cargo missing, according to that value Port will give compensation to the Customer.
If the cargo gets damaged inside the port, Government survivor surveys
(Customer has to pay for it) the damage and give the % of damage – certificate, using that
customer can go for Insurance.

V) WHAT ARE EXPORT APPLICATION FORMS AND THEIR USES?

Sea Export Application form consists of 4 forms namely A, B, B1 and C.
FORM – A - It’s for Exporting purpose and this will be issued only when there is
no problem in cargo.
FORM – B - Acknowledgement Purpose, signed by ECR (Cargo received by Port)
FORM – B1 -Endorsement Form (Weight of cargo, Lorry No.,)
FORM- C - Theft while in Stock Point.
 44

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

NOT ARRIVED ON TIME?
Vessel may not come on ETA due to some reasons
i) Natural calamities
ii) Going to near by harbor
iii) Capacity of ship
iv) Delay in previous Port
After 30 days of free to place the cargo in port, port allow for some days with a
charge for that, according to SOR - Cargo Rate * weight * no. of days

EXAMPLE : 2

If cargo weight is 25 tones, then

Rs.4 for first 15 days => 4*25*15 = Rs.1500
Rs.79.2 for next 15 days =>79.2*25*15 =Rs. 29700
This second 15 days shows more amount, even then vessel is not arrived customer will
take out the cargo (Gate pass will be issued),i.e. shutting out of cargo

VII) WHAT IS SOR AND IT’S CALCULATIONS?

Scale of Rates was fixed by TAMP. It is a Cargo wise Classification rate. In
that detailed rate calculation for each and every item Imported or Exported is available. It
can be calculated in
i) Weight - All weighable items
ii) Advalaram – Electronics, Machines [Custom assessment value]
This charge is for 7 days (Free days) according to International Maritime Law.

Calculation
I) Weight Basis (or) Advalaram Basis
i) Warfage collection
Weight basis - [cargo weight * Classification rate]
Advalaram basis – [Customs value (duty)* Advalaram%]
ii) Crainage collection – calculated at Landing & stocking, Delivery
iii) Slap wise – Up to 5, 5 to 10,10 to 20.. (Tones)
iv) 3% of Service tax as Educational Cess
 45
iv) 10% service tax for total amount paid

Example : 3
Warfage collection
a) Classification rate for cotton – Rs. 85.69/ton
If 100 tones is Imported the Warfage = 100*85.69 = Rs.8569
b) Advalaram % for Motor car – 0.43%
If the car value is Rs.12,15,000 = Rs.12,15,000 *0.43= Rs.522450
Crainage collection
Up to 20 tones = Rs.279*2 = Rs.558

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

It is a penalty fee, if cargo is not removed from port even after 7 free days
Demurrage is collected according to SOR.
Calculation: After 7 days of free period
Rate: ¬ For first 7 days Rs. 13/day/ton

¬ Next 10 days Rs. 26/day/ton

¬ Next 30 days Rs. 39/day/ton

¬ Thereafter Rs. 65/day/ton

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

Amount = Cargo weight * Rate * No. of days
EXAMPLE : 4

If cargo weight is 25 tones, then

25*13*7 = 2275 (in Rs.)
25*26*10 = 6500
25*39*30 = 29250
25*65*60 = 97500
Penal Demurrage
25*79.2*15(if) = 29700
Total of 6 months = Rs. 2,80,065
If the delay is by Port, Natural Calamities then Waiver (DISCOUNT) will be given by
Port on the Paid amount. (Only for those days)

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

 46
Even though the Demurrage fee is increasing, Port only waits for 60 days, on
61st day detail will be published in Gazette publication and send a copy to customer.
After 15 days of publishing (according to Sec. 61, 62) port meet the customer directly
and give a sale of notice. After 15 days, cargo will put for Direct Auction. Customs and
port make the auction; Customs will fix the minimum duty value. Only Government
Auctioneers (approved) can bit for cargo. [Port can get the profit only if the cargo is
auctioned above the Minimum rate]. If Customer claims for the profit within 6 months,
Port will give it after detecting the Demurrage fee. If Port incurs lose, Port can sue the
customer in court for the lose amount.

X) HOW CUSTOMS INTERFERES WITH PORT SERVICE?

While checking the cargo, CHAs can suspect the cargo as illegal they open the
package of cargo and do analytical Test (If needed). If their suspect is true, Customs
confiscate the cargo and legal action will be initiated against the Importer within 24Hrs.
If the suspect went wrong, port will fine Customs and Customs has to pay the
Demurrage fee, pack the cargo and return to port.

XI) WHY EXPORT PROCEDURE IS EASIER THAN IMPORT PROCESS?

EXPORT – brings profit to INDIA. So we have to encourage the Indian
business men to Export more by simple procedure with minimum process time. A
committee under Mr.Pranab Mugerjee (Ministry of Finance) has worked out a simple
procedure for Exporting. And to encourage the Exporters the Warfage charges are
reduced for Exporting.

XII) HOW WORK IS ASSIGNED TO PORT LABOURS?

Labors come under Portage which is the back bone of Port Trust. Portage
controls the labors work in the Port as off-shore workers (90 Gangs).Labors are splitted
into Gangs – 12 Mazdors + 1 Mesentery. There are 3 shifts in a day.
i) Establishment Section – Administration Indoor attendance, Disciplinary
ii) Job card section – Attendance on field, now thump Impression also used
iii) Processing section – Labors schedules are pasted(Shift schedule),
 47
according to that gangs go for that field and work.

XIII) HOW WEB BASED SERVICE IS WORKING?

Chennai Port Trust is a web based shipping service. Each and every Customer
can get day-to-day updated details, Vessel handling from Port website
(www.chennaiport.gov.in). Moreover, recognized stemmer agent can updates the full
Vessel details (Even whether vessel is coming from Yellow Fever Zone) and cargo
details, through Internet itself. Their updates are checked and submitted in the Berth
meeting. This reduces the Gap between the Customer and the Port.

XIV) HOW RAILWAYS INVOVES IN PORT SERVICE?

Port takeovers rakes from southern railway for loading and unloading.
Customer has to pay in Port. Charges are calculated as prescribed by S.Rly based on
Distance Slab & Commodity Class. Freight charges differ in Busy season and in Lean
season (July to September).There are some Punitive Charges if Excess weighted is
carried.

ANALYSIS
 48

Competitive Position
The competitive position of ChPT was determined using “Porter’s five force
Analysis” model. As per the model, there are five competitive forces affecting an
organization:
Threat of New
Entrants
Porter Five Force Analysis

Competitiv
e
Bargaining Rivalry Bargaining
Power of Suppliers Within Power of Customers
the
industry

Threat of
Substitutes
 49

Threat of New
Entrants

§ Project New port facilities

planned by minor and
major ports
§ Sethusamundram Project

Bargaining power of Rivalry among existing Bargaining power of

service providers Competitors users

§ Contractors/equipments § Better tariff terms

suppliers § Better efficiency
§ Cargo traffic enablers
§ Concessionaires § Better connectivity
§ Importers/ exporters, CHA
§ Labour unions
§ Shippers, steamer agents

Potential for global

Substitute

§ Other sources of supply

§ Substitute products

THEAT AND NEGATIVE IMPACT OPPURTUNITY POSITIVE / NEUTRAL

IMPACT
Threat of New Entrants

§ Chennai port enjoys monopoly § Proactive measures by nearby major ports

because of location committed investments by and minor ports to attract customers through
users. efficient services and modern technology.

§ The new port facility requires huge § Increasing containerization and upcoming
investment and long gestation period. projects through the international shipping route
in the Indian Ocean is increasing the International
competition.

Bargaining power of service providers

§ Chennai port faces very negligible § However, this scenario may change if
pressures from various service provides like initiates action to solve existing Labour issues.
stevedores, CHA, concessionaires. § Labour issues faced by CCTPL will
§ The relations with Labour unions are impact future plan of becoming a hub port
under good balance under present § The agreements with concessionaires
Circumstances. However, they do possess lot
provide them the power to enforce fulfillment of
of bargaining power.
obligations of ChPT.
 50
Bargaining power of port users

§ Increasing containerization and rise in

§ Chennai port is dependent on few port
variety of break bulk cargo, project export,
users for its cargo like iron ore, coal & POL
auto exports, etc. provide avenue for
diversification. § Enabling policies of state Govt. to
promote captive ports leading to increased
§ Monopoly status
bargaining power
§ Chennai port is the entry point of sea
§ User friendly attitude and efficient
trade & generates employment for local
services by competing ports coupled with
community, giving bargaining power to ChPT
probable decrease in hinterland transport costs.

Potential for global substitute

§ Chennai port has negligible threat
from competing transport modes like rail/road
congestion. In fact, there is a possible
opportunity for promoting coastal trade.
§ Substitutes for principal cargo unlikely.
§ Principal Cargo can shift to other ports
§ Minerals export cargo (iron ore,
manganese) might also face reduction because of
government policy to impose restrictions on
minerals export to avoid domestic shortage.

SWOT for Chennai Port as a whole

Strengths, Weaknesses, Opportunities and Threats (SWOT)

STRENGTH
• Strategic Geographical location and layout
• Dedicated facilities for handling all major
cargo types
• Good Hinterland connectivity
• First Mover advantage and an established
base of customers
• Long term agreements with users like
CPCL and Hyundai
• Best location on the East Coast for cruise
operations in view of good air
connectivity and proximity to cruise
destinations like Bangkok/ Pattaya/
Singapore/Malaysia/ Indonesia /
Andaman & Nicobar
• ISO 9001: 2000 compliant port
• ISPS Compliant port
• Good IT implementation, web enabled
port-user interaction
• Good labour relations
• Uninterrupted pilotage operations
• Port trust has diverse representation of
different interest groups
• Port’s own training institute
• Sufficient reserves & surplus
• Good traffic growth and revenues in
recent years
• Sufficient working capital to meet its
current obligations
• Ongoing MEGA container Project
• Elevated corridor to Maduravayul
(connects NH4)
• EMRIP
51
WEAKNESS
• Congested approach road
• Traffic evacuation not allowed during
the day
• Restricted land availability
• Higher tariffs for use of plots &
equipments
• Sub-optimal usage of rail connectivity
• Exposure to dust & saline
environment, requiring higher
maintenance expense
• Perceived need for improvement in
service levels to retain existing clients,
avoid them being lost to other ports
and for developing new ones
• Efficiencies lower and tariffs levels
higher than those in international ports
in the region like Singapore, Colombo,
Hong Kong and Dubai
• Ageing workforce
• Need for additional environment /
pollution management
• Surplus labour of about 600 in
different department
• Restriction on investment of surplus
fund to government securities and
nationalized banks fixed deposits
• High turnover among skilled staff in
Marine department like pilots and
marine engineers
• Inadequate manpower to operate the
dredgers round the clock resulting in
lower utilization of dredgers and
higher fixed costs thereby increasing
overall cost of dredging
• Port does not have fully computerized
management accounting system
• Lack of systematic marketing and
Customer Relationship Management
skills / systems

OPPURTUNITES
• Positive economic environment in the
years to come with an anticipated 7%
GDP growth rate, stable inflation and
foreign exchange rates and rising
international trade
• Increasing containerization and good
forecasted demand with strong business
potential
• Strong forecasted growth in automobile
exports
• Increased ship sizes
• Increasing automation
• Possibility to tap other sources of revenue
• Ship Repair facilities and services to Ship
Owners
• Engineering Consultancy Services to
Other Ports
• Provision of Marine Services/BOT
services to other Ports
• Management & Technical consultancy &
training services to other smaller ports
• JV or strategic investment with minor/
intermediate ports
• Potential to attract main line vessels
• Better road connectivity after construction
of proposed road projects
• To facilitate cruise tourism by construction
of a cruise terminal and marina
• Increased focus on private-public
Partnerships and the landlord model of
port operations
52
THREATS
• Competition from major ports
specially from Ennore and Tuticorin
port
• Ennore Mechanized conveyer
• Competition from minor ports mainly
from Krishnapatnam
• Expected ban on export of minerals
• Loss of lucrative cargo like coal & iron
ore
• Increase in awareness among
common public about environmental
issues
• There are too many gates providing
access to port, increasing vulnerability
and efforts to maintain security
• High possibility of reduction in
government funding
• Agitation of neighbors regarding the
pollution made by coal and they
demand for non handling of coal by
port
 53
CALCULATION
Portage controls the off-shore labors in the port. For their entry into the port and
for attendance purpose there is a job card and thump impression method. For a shift,
nearly of 250 labors will come for work inside the port (after the bell). Now there are 3
machines to note their attendance. This process takes more time it subsequently affects
the working hours.
Solution
For that, we can increase the number of machines.
Data
Labors work in the field in terms of gangs [1 Gang = 12 mazdures + 1 mesentery]
Arrival of Crowd (250 members)
Multi channel Facility
Card dropping and Thump impression are near (No multi stage)
Machine takes 1 min for each man (Dusty area so Thump impression takes time)
First in First out.

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

Now I suggest 7 machines [6 for mazdures and 1 for mesentry, priority] and
machines can be used by other queue members if it is free.
Now we can get a 1 Gang and 1 mesentry in 2 min. If this process goes on, at
18th min all mesentry will enters the Port, then that machine can be used for mazdures
entry. If that process goes on at 36th min all poratage labors will enter the Port. Thus Port
can get 19 Gangs (249 members) within 36 min.
* In most of the private companies they prefer to bell 15 min early than the
shift. If we use this method also we can get all gang within 25 min of work started.
 54
CHENNAI PORT –AN USERS ATTRACTIVE DESTINY
• Efficiency through continuous innovation and modernization
• Quality service at minimal cost
• User friendly, productivity facilitator of your business
• Strategically located on the east coast to meet customer’s EXIM needs
• Multi faceted and comprehensive port
• Harmonious industry relations facilitating your business
• A vibrant and comprehensive port community to met all customer’s
shipping needs
• Multimodal transit for Customer’s Cargo needs
• Low dwell time for vessels and cargo
• Icegate – Boundary less Custom’s interface
• Largest free days for import and export cargoes
• Hinterland connectivity
• Facility to handle wide spectrum of cargo mix
• Skilled and competent work force
• Web enabled shipping service
• Cost effective services through commodity based labour deployment
• High security for cargo
 55
Suggestions

1) To reduce the attendance taking time 7 Job card and thumb impression machines for
portage labor attendance and thus not to affect the working hours

2) Due to coal handling in port, Pollution level is always high in Port. To restrict that
Port is now using closed conveyer to handle the coal. Even though this method is good, it
is not sufficient to eradicate the pollution fully. So Port and Government have to take
correct measures to control and reduce the pollution by coal.

3) In this port the main lacuna is the spillage of coal into the Dock area which reduces
the draft as such berthing of vessels is affected severely which in turn demands the
frequent drenching process. Frequent drenching will affect the basement of berth. To
eradicate the spillage the transport of coal from ship may be done directly to the trucks
instead of heaping in the berth.

4) The truck clearance is badly delayed for security (CISF) reasons on account of
identity of truck drivers, which in turn affects overall process of transporting
commodities from the Port. To eradicate this problem, holding of permanent ID card
(which can be electronically verified) by the Truck drivers should be made mandatory.

5) Under going work of elevated corridor upto Maduravoyal connecting NH4 will reduce
the Traffic Density near the Port area thus to help the freely movement of trucks in and
around port during day and night.

Conclusion
 56

Now in INDIA, Service sectors are booming up like sea ports, Air ports,
banks. Among these sectors Sea Ports helps more for the Foreign Trade, this
subsequently develops the economic level of India.

Among the Sea Ports in India, Chennai Port shows its Unique Performance.
SWOT analysis also showed more Positive Points. All Operations in Chennai Port are
well planned and it renders its service in a friendly manner. Chennai Port also offers
advanced equipments and skilled labors; this saves the time of Importers and Exporter.

More and more inception of Infrastructure and sophisticated equipments will

bring more development in Chennai port trust in future.
 57
Webliography

www.chennaiport.gov.in

www.giantlogistics.com/container-shipping.php

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

www. en.wikipedia.org/wiki/

www.shipping.nic.in

Chennai Port Trust

Rajaji Salai, Chennai 600 001, India.

Phone: (91 44) 25362201, 25361139

Fax: (91 44) 25361228, 25360278

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