future potential of container terminal

8/12/2019 Future Potential of Container Terminal..

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FUTURE POTENTIAL OF CONTAINER TERMINAL

at

KOLKATA PORT TRUST

(Submitted in partial fulfillment of the requirements for

PGDM )

By

Ankur Yadav

Roll No. DM1214031

Batch of 2012-14

ACCURATE INSTITUTE OF MANAGEMENT & TECHNOLOGY,

PLOT NO 49, Knowledge Park 3, GREATER NOIDA-201306 (UP)

August 2013


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CERTIFICATE OF ORIGINALITY

I______________________ Roll No_________________ of 2013,is a fulltime bonafide

student of first year of PGDM Program of Accurate Institute of Management &

Technology, Greater Noida. I hereby certify that this project work carried out by me at

___________________________ the report submitted in partial fulfillment of the

requirements of the program is an original work of mine under the guidance of the

industry mentor _____________________________________and the faculty mentor

___________________________ and is not based or reproduced from any existing work

of any other person or on any earlier work undertaken at any other time or for any other

purpose, and has not been submitted anywhere else at any time

(Student's Signature)

Date: July, 2013

(Faculty Mentor's Signature)

Date: July 2013


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ACKNOWLEDGEMENT

This work is a outcome of not just my effort but also the help, Endeavour and encouragement ofmany people around, some directly and some indirectly

Through this acknowledgement I hereby thank all those people who have been my continuous

motivation and support during the completion of the project, without whom the project would

not have been completed.

I express my gratitude to the Accurate Institute of Management & Technology for

providing me an opportunity for my Summer Internship with the constant support of excellentfaculty guide Prof. Rajeev Mathew . I am grateful to him for guiding and correcting this report

with attention and care.

My deepest sense of gratitude to Kolkata Port Trust for giving me an opportunity to do my

internship in their esteemed organization. I also take this opportunity to express profound

gratitude to my industry guide Smt. Paromita Chakraborty, Asst Supdt. for her

guidance and monitoring my progress all through my tenure in the organization. My deep

regards to Asst. Spudt. Rajendra Kumar Singh for his exemplary guidance and constant

dedicated encouragement throughout the training. I also wish to thank Supdt. R. Naskar for

his valuable inputs that have been helpful in completion of the project. I am grateful to all the

people of the organization who have been there to help me through my training with their

constant support.

Ankur Yadav


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Table of Contents

S.No Particulars Page No.

1. Chapter 1:- Introduction

1.1: Introduction of KoPT

1.2: Performance of KoPT

1.3: Berth Particulars1.4: On Going Modernisation

1.5: Plans Container Terminal

6-37

2. Chapter 2:- Literature Review 38-39

3. Chapter 3:- Research Methodology 40-44

4. Chapter 4:- Findings and Analysis

4.1: Pestle Analysis

4.2: Traffic Assesment

44-58

5. SWOT Analysis 59

6. Recommendation & Conclusion 60-61

7. Bibliography 62


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KOL KATA PORT A CONTI NUI NG VOYAGE


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INTRODUCTION

Kolkata port is the gateway to Eastern India for the rest of the world. This is the first Major port

in India, whose appearance in the maritime map dates back to 1870 and this is the 141 st year of

its existence. Kolkata port is the only riverine major port in India. Its 232 kms long navigational

channel is one of the longest channels in the world. The port has two dock system viz. Haldia

Dock Complex (HDC) and Kolkata Dock System (KDS).

Haldia Dock Complex, a modern dock complex of Kolkata Port Trust, was set up in 1977 for

handling larger vessels, carrying bulk cargo with optimum economy, keeping Kolkata Dock

System primarily for handling break bulk cargo, container etc. The two dock system of Kolkata

Port viz. KDS and HDC are complementary to each other.

Kolkata Port has a vast hinterland, comprising the entire Eastern India including West Bengal,

Bihar, Uttar Pradesh, Punjab, Haryana, Rajasthan, Assam, North Eastern State and the two

landlocked neighboring countries viz. Nepal and Bhutan. The industrial development, commerce

and trade of this vast hinterland are inseparably linked to the life and development of Kolkata

port and vice-versa.

CONNECTIVITY:

Kolkata Port is well-connected with national and state highway, railways and national

waterways. KDS is connected with NH-6, NH-2 and NH-34 through city roads.NH-41 connects

Haldia with NH-6 and rest of the country. KDS is connected to Eastern Railway through Sealdah

and Budge Budge sections.HDC is connected to the South Eastern Railway via Panskura.

Kolkata Port is connected to National Waterway No.1(Ganga), National Waterway

No.2(Brahmaputra) and Waterway through Sundarban.


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Performance Highlight for 2011-2012

Kolkata Port handled 43.248 million tones of traffic in 2011-2012. KDS handled a traffic

of 12.233 million tones in 2011-2012 and HDC, 31.015 million tones of traffic was

handled in 2010-2011.

During the last eight year period, from 2000-01 to 2008-09,Kolkata Port increased its

cargo volume by 24.22 million tones (80.73%). However, traffic decreased since 2009-

10 owing to decreased in POL Crude, consequent on commissioning of Paradip-Haldia

Crude pipeline and also due to decline in Iron Ore, Coking Coal, etc. due to draft

restriction. At Kolkata Port, Container traffic increased to 5,52,241 TEUs in 2011-12 from 5,26,474

TEUs in 2010-11 i.e. a growth of 5%. Container traffic at Kolkata Port crossed the 5.5

lakh TEU mark during 2011-12. At KDS, 4,12,425 TEUs were handled during 2011-12

as against 3,77,135 TEUs in 2010-11, registering a growth of 9.36%, which was the

highest among Indian Major Ports.

KoPT ranked third amongst Indian Major Ports in terms of Container handling in 2011-

2012.

Number of vessels handled at Kolkata Port during the last nine years was the highest

amongst all India Major Port. KoPT handled around 16-17% of the total number of

vessels, which worked at Indian Major Ports. During the year 2011-2012, 3183 vessels

called at KoPT.

During 2011-2012, the port excelled in all efficiency parameters as compared to previous

year, such as, reduction in Turn-Round Time(TRT) of ships, reduction of Pre-Berthing

Detention(PBD) of ships and above all, improvement in average Ship Berth-day Output

etc.

During 2011-2012 high growth were registered at KoPT as compared to 2010-11 in

respect of LPG, Vegetable Oil, Manganese Ore, Rock Phosphate, Thermal Coal,

Petroleum Coke, Other Coke, Machinery, Coal Tar Pitch, Maize, Pulses, Container,

other General Cargo, IWT Traffic, etc.


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During the course of 11 th Five Year Plan (2007-12), aggregate plan capital expenditure

of Rs. 271.80 crore was expended vis--vis cumulative annual plan outlays of Rs. 261.45

crore which implied a healthy utilization percentage of around 104%.

PERFORMANCE INDICATORS:

AVERAGE TURN-ROUND TIME

Type of Vessel Avg. Turn Round Time per Vessel

(In days) 2010-2011 2011-2012

A. Kolkata Dock System : Liquid Bulk 4.52 3.77 Dry Bulk 10.17 6.38 Break Bulk 7.52 7.32

Container 4.45 4.21 Overall 5.37 4.95

B. Haldia Dock Complex : Liquid Bulk 2.85 2.67 Dry Bulk 7.18 4.94 Break Bulk 7.03 7.35 Container 2.90 2.43 Overall 4.53 3.66


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AVERAGE PRE-BERTHING DETENTION

Type of Vessel Avg. Pre-Berthing Detention per Vessel (In days) 2010-2011 2011-2012

A. Kolkata Dock System : Liquid Bulk 1.66 0.99

Dry Bulk 1.65 - Break Bulk 0.89 0.60 Container 0.67 0.61 Overall 0.97 0.69

B. Haldia Dock Complex : Liquid Bulk 3.39 2.94 Dry Bulk 5.14 2.71 Break Bulk 7.38 4.55 Container 1.33 0.70 Overall 3.80 2.57


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BERTH PARTICULARS:

The facility at Kolkata Port are as following:

1. HALDIA DOCK COMPLEX: Haldia oil jetties(HOJ)-3 Reverine jetties 2Mehanized berth for handling iron ore/thermal core 2 Berths for handling containers

10 Multipurpose Berths 2 Riverine Barge Jetties


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2. KOLKATA DOCK SYSTEM:

Kidderpore Dock (KPD)

17 Multipurpose Berth(including 3 berth for heavy-lift cargo) 1 Berth for Passenger-cum-cargo vessels 6 Buoys/moorings 3 Dry Docks


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Netaji Subhas Dock (NSD):

4Dedicated container berths 1 liquid cargo berth

1 Birth for heavy-lift cargo 4 Multipurpose berths 2 buoys/moorings

2Dry Docks


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Budge Budge(BB):

6 Petroleum Wharves

Anchorages:

Diamond Horbour Saugor Road

Sandhead Haldia Anchorage


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DRY DOCK FACILITIES:

Kolkata port has five dry docks inside the impounded dock system to cater to the diverse

repair and maintenance need of the vessels. The dry docks can serve vessels of dimensions as

given below.

Dry Dock Maximum size of vessels(Length*Breath)

N.S. Dry Dock No.1 & 2 172.21m*22.86m

K.P. Dry Dock no.1 160.02m*19.5m




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In recent years, the ship repair facilities at the dry docks have been upgraded with modern

equipment. The port has also rationalized its dry dock charges, making it an attractive destination

for quality repair at competitive cost.


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ON GOING MODERNISATION PLANS

A major challenge for a riverine major port like Kolkata has been its inadequate draft preventing

vessels of higher dimension/parcel size of visit the port. Simultianeously, being a riverine port

and strategically connected to national waterway no.1 and waterway no.2 Kolkata port has huge

potential in respect of movement of cargo through inland water transport(IWT),mode. The port

of Kolkata has made investment decision both for KDS and HDC, keeping in mind the river

morphology and traffic that can best be handled in these two location harnessing the respective

potential of two dock systems. A well diversified investment programme, aimed at improvement

of infrastructure/capacity augmentation, has been embarked in the 11 th/12 th five year plan at

Kolkata port, encompassing, Interalia, construction /mechanization of birth with improvement of

back-end facility; integrated development of infrastructure facilities including road/rail

connectivity ,improved storage /yard logistic, of birth; induction of state of- the- art equipment

,river regulatory measures for improvement of draft at Hooghly estuary. Comprehensive

improvement of Information Technology (IT).etc

Major Projects of Underway - Prime-mover of Growth

Development of Haldia Dock II.

Development of Haldia Dock-ii on PPP basis in the west bank at Salukhhali/Rupnarayanchak is

envisaged where the river draft in 9 meters without dredging and the land connectivity is

conducive to cargo handling operation. Necessary land for this project, has already been taken

over from the state government with a grant of long term lease. The indicative cost of the project

is around Rs.2000 crore and 4 jetties are being planned for construction of handling dry bulk

cargo like coal, iron ore, etc. providing 20 mt per annum capacity. Two separate RFQ for Haldia

Dock-ii(NORTH) AND Haldia Dock-ii(south),have been issued in may 2011 and applications

received are now being evaluated.


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Consruction of riveriene outer terminal at Haldia Dock, integrating it with

Transloading facilities at Sandheads and its vicinity for midstream handling

of Dry Bulk Cargo

KoPT has embarked on creation of facilities within the limits of the port in an integrated

manner with construction of a riverine terminal (OT-1) outside the lock gate at Haldia Dock. The

Model policy for transloading operation within KoPT limits has been approved by the Ministry

and the port limits of KoPT have recently been extended which would ensure the transloading

operation to continue seamlessly throughout the year. RFQ for this project was invited in

February 2011 and PPPAC Memo/draft Concession Agreement, etc has been forwarded to the

Ministry. After receipt of requisite clearances from the Ministry regarding PPPAC memo, etc.,

the RPF document would be issued.

Construction of Jetties at the proposed Diamond Harbour Container

Terminal

Development of a container terminal at Diamond Harbour in the east bank of river Hooghly

is around 50 km south KoPT by road, with river draft of 9 meters without dredging. The first

phase of the project will comprise 900 mtrs. quay length with a designed capacity of 1.2 million

TEUs. The requirement of land in the first phase will be met from Defence, DGLL and State

Government, apart from additional land available through reclamation. KoPT engaged Eastern

Railway for preparat ion of a survey report to provide the vital railway linkage between KoPTs

Jetty site with nearest rail head at Diamond Harbour, which has since been submitted. The

project is to be connected to the Eastern Dedicated Freight Corridor from Dankuni. RFQ for this

project has been issued in July 2011 and the due date of receipt of applications is 16 th February

2012.


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Development of Port Facility at Sagar Island

Sager Island-about 150m south of Kolkata is being envisaged for development of full-fledged

port facilities with the initial potential to handle about 60 million tonnes of dry bulk/break-bulk

cargo and containers. Around 10-12 jetties are initially envisaged. KoPT has already engaged

M/s RITES Ltd. along with WAPCOS and CWPRS for conducting an integrated feasibility study

for development of port facilities at Sagar Island, Including rail-road connectivity. Rail

connectivity is to be a core component for this project since most of the projected cargo viz

coking coal, thermal coal, ore, coke, etc. are likely to be evacuated/aggregated by rail. Interim

Report has already been submitted and Draft feasibility report is expected shortly.

Other Major Initiative and Achievement at Kolkata Port

LOI was placed by KoPT on a private for equipping/providing integrated cargo handling

service at the berth, 2 and 8 at HDC, aimed at catering to gearless vessels, leading to

improved cargo handling capacity. The equipment has been mobilized at the site and the

mechanized berths have since been commissioned.

A Stand Alone Vessel Traffic Management System (VTMS) alongwith Automatic

Identification System (AIS) was installed in March 2005. Upgradation/replacement of

three Rader Stations with replacement/renovation of infrastructure facilities, including

installation/ commissioning of AIS at Frasergunj and Haldia, have also been completed

recently.

Information Technology (IT) and IT enabled Service (ITeS)With customer as its focus, on-going development on IT and ITeS are full swing, aimed at

increased customer satisfaction alongwith improved efficiency in port management by

introducing web-based application and interchange, thus ensuring wide coverage, minimized cost

on transactions and port operations with gradual evolution towards paperless offices. In this


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respect, implementation of POMS(Port Operations Management), PCS(Port community System-

an implementation of Electronic Data Interchange(EDI) among the port community) and

provision for catering to online queries from port users on the ports website deserve special

mention. This is further strengthened by a comprehensive enterprise-wide application software,

EIS (executive information system) and FMS (Facility management system), already in place

with enterprise resource planning (ERP) being envisaged as one of the key business solution.

...PROMIESS TO KEEP

The future shines bright for Kolkata port trust with several new project on the anvil in the

hinterland, coupled with I ndias policy of co -operation with ASEAN countries- the LOOKEAST policy. The proposed trans Asian railways corridor, opening of India-China roads and

proximity to Lasha will all contribute to making Kolkata the hub port for Asia. With these

myriad opportunities and multi-faceted development programmes on the anvil, setting up of 2 nd

Dock at Haldia (Salukkhali), transloading operation at Sandheads full-fledged cargo handling

facility at Sagar and Diamond Harbour, Kolkata port trust is poised to emerge as a premier port

of the country.


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Container terminals are designated for the handling, storage, and possibly loading or unloading

of cargo into or out of containers, and where containers can be picked up, dropped off,

maintained, stored, or loaded or unloaded from one mode of transport to another (that is, vessel,

truck, barge, or rail).

World container terminals are classified into five categories by their ownerships: public

terminals, carrier-leased dedicated terminals, terminal-operator built and operation terminals,

carrier built and operation terminals, and joint venture of carriers and terminal operators. The

operation characteristics of the five patterns are specified as bellow.

Public terminals

All the shipping lines share with each other the facilities of public terminals in loading and

discharging, and are charged at tariff rates, generally with a first come, firstserve principle and

without any priority in berth usage except paying priority tolls. Container handling and other

charges are calculated at common tariff National Taiwan Ocean University Eric Ting

Department of Transportation and Navigation Science rates, or paid at quantity discount rates in

case container volume is over the fixed quantity agreed upon in contracts. Singapore (PSA

before 1997), Busan, Keelung are categorized into this operation pattern.

Carrier-leased dedicated terminals

Carriers sign long-term lease contracts with the port authorities for their own exclusive use.

Carriers pay rents and facility charges and the port authorities entitle contract carriers to right

and priority in berth usage. Carrier could be entitled to purchase or install container handling

facilities at his own account to compensate for rents and facility charges. Owing to the joint

services among shipping lines, single user long-term contracts are transferred to multi-user

contracts so that several shipping lines share terminal usage. Kaohsiung, Keelung (some parts of

the port), Kobe, Yokohama, Tokyo are categorized into this operation pattern.


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Terminal-operator built and operation terminals

By making a deposit and allocating to the port authorities in proportion to the total handling

charges as agreed in the contract, a terminal operator leases container terminals or invests

directly in the construction, operation of container terminals and handling facilities. Hong Kong

(HIT, MTL, CHT), Shanghai (SCT), Tianjin (CSXOT), Singapore (PSA after 1997) are

categorized into this operation pattern.

Carrier built and operation terminals


charges as agreed in the contract, a carrier or several carriers lease container terminals or invest

directly in the construction, operation of container terminals and handling facilities. Except the

usage of their fleet, the carriers are entitled to provide other shipping lines with berthing and

container handling services. Malaysia (PTP), Taipei Port (invested by Yang Ming Line,

Evergreen, Wan-Hai), Qingdao (Zhunguang, Kuaikuei, Tiasing) are categorized into this

operation pattern.

Joint venture of carriers and terminal operators


charges as agreed in the contract, a joint venture of shipping lines and terminal operators

establishes a company, or makes a joint investment in leasing container terminals or invest

directly in the construction, operation of container National Taiwan Ocean University Eric Ting

Department of Transportation and Navigation Science terminals and handling facilities.

Shanghai (Yangshan terminals, Zhunghai terminals), Shenzhen, Shekou.


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Container Handling

To keep pace with global technological advancement in the field of transportation, Kolkata Port

was the first in the country to develop modern container handling facilities. A container terminal,

with quay crane and rail mounted gantry crane (RMGC), tractor/trailer combination and a

Container Freight Station, was commissioned at HDC in 1977.

Containers are handled at Haldia using ship's gear operated by port workers or gearless vessels

using shore side cranes. Movement between the quay and the container packing yard is carried

out Port-owned tractor/trailers and/or by private operators appointed by the shipping companies

or their agents. Handling at parking yard is done by port tansfer crane or private equipment.

HDC presently handle around 30% of total container throughput of Kolkata Port and rest is

handled at Kolkata Dock System.

The major share (about 98%) of container traffic flowing through Kolkata Port is carried by

feeder ships having connection with mother ships at connecting relay ports like Singapore,

Colombo and Port Kelang and the rest are covered by Combi-ships. The container traffic in

Kolkata Dock System is presently handled by mobile harbour cranes as well as by Ships

Cranes. Containers are moved to and from the stacking yard and stacked/unstacked at the

container yard by rubber-tyred gantry cranes, prime-movers, reach stackers, etc .

Equipment used for handling of container in container terminal

Chassis A frame with wheels and container locking devices to secure the container for movement.

PalletA flat tray, generally made of wood, but occasionally steel or other materials, on which goods

can be stacked. There are two principal sizes: the ISO pallet, which measures 1 x 1.2 meters, and

the euro pallet at 0.8 x 1.2 meters.


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Gantry craneA crane fixed on a frame or structure spanning an intervening space typically designed to

traverse fixed structures such as cargo (container) storage areas or quays and which is used to

hoist containers or other cargo in and out of vessels and place or lift from a vessel, barge, trucks,

chassis, or train.

Straddle carrierType of equipment that picks up and transports containers between its legs for movement within

a container terminal.

Rubber-tired gantry (RTG)A RTG crane is a mobile gantry crane used for stacking intermodal containers within the

stacking areas of a container terminal. RTGs are used at container terminals and container

storage yards to straddle multiple lanes of rail/road and container storage, or when maximum

storage density in the container stack is desired. A normal container crane runs on steel rails,

instead of rubber-tires. The side-view appearance of a RTG and a straddle carrier are fairly

similar, but the top of a RTG also features a movable crane.


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Forklift TruckA forklift truck (also called a lift truck , a fork truck , or a forklift ) is a powered

industrial truck used to lift and transport materials. The modern forklift was developed in the1960s by various companies including the transmission manufacturing company Clark and the

hoist company Yale & Towne Manufacturing. The forklift has since become an indispensable

piece of equipment in manufacturing and warehousing operations.


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Mobile harbor CraneThe mobile harbor cranes range with lifting capacities from 42 tones up to 208 tones offers

practical solutions to various customers needs in any market field - from container handling to

bulk operations, from heavy lifts to the handling of general cargo.


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Reach Stacker

A reach stacker is a vehicle used for handling intermodal cargo containers in small terminals or

a medium-sized ports. Reach stackers are able to transport a container short distances very

quickly and pile them in various rows depending on its access. Reach stackers have gainedground in container handling in most markets because of their flexibility and higher stacking and

storage capacity when compared to forklift trucks. Using reach stackers, container blocks can be

kept 4-deep due to second row access.


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Operation on Export/Import in Container Terminal

For Export

Vessel agent apply a application to Traffic Manager for opening of export. Traffic Manager will nominate the berth. After nomination of berth application will move on DDMS (Deputy Dock MastersShipping) for opening of VCN No. of Vessel.

After opening of VCN vessel agent apply for export gate opening to Dock Manager, forLCL & FCL boxes and advise to container Supdt. for export planning for LCL boxes.

LCL operation are done at 2 NSD Shed, after receiving cargo, Staffing that cargo intoLCL boxes takes place.

After staffing these LCL boxes are moved to Container parking yard. And FCL boxes aredirectly received at Container parking yard.

For Import

Vessel agent file an IGM (Import General Manifest) to Customs.

After verifying the IGM Customs allot a import rotation number. After allotting import rotation number Customs send the IGM to Supdt. with importrotation no. through EDI(Electronic Data Interchange)

Then planning meeting take place with all Supdt., Traffic Manager & Vessel agent.Where Traffic Manager allocate the berth & equipments needed for unloading of

Container.

As per the vessel plan given by Captain of vessel unloading & Shipment of Containertake place.

Then Container are transferred to Container Parking Yard.


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Model of berthing process logic (a) & Terminal transportation process (b)

YV Yard VehicleQC Quay CraneYC Yard Crane


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Document Required in Container Terminal

In Case of Import

Deposit Import Challan Container Bill IGM (Import General Manifest) Bill of Entry Invoice Packing List Jetty Challan Bill of Lading Local Delivery Order Letter of Credit

In Case of Export

Export Challan Container Bill Check List Delivery Order Shipping Bill Invoice Packing List Letter of Credit Mate Receipt


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Implementation of Port Operations Management System (POMS)

Kolkata Port Trust implemented and operating Port Operations Management System (POMS)

from 01/10/10.The System has been developed with an aim to integrate the operational activities

of Kolkata Dock System viz. Vessel, Cargo, Container and Railways with the Finance module.The system is also being integrated seamlessly by accepting the inputs from Customs and Port

Community System (PCS) in the form of electronic messages with an objective to minimizing

user intervention and attaining eventually the goal of paperless regime. All the concerned Stake

Holders would be benefitted in their daily transactions with KDS. Once the system is fully in

place. They are requested to extend full co-operation to make the system a success.

Through this Import cargo manifest entry form manifest entry of cargo

Ships VCN no. Product line no.

Importers name & adress Trade type.


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Through this Import cargo manifest entry form manifest entry of cargo Container Agent Type of Container Size of Container Type of Boxes

Here cargo description is recorded


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Such as Marks, Weight, No of packets/packages & its type

Similarily for export cargo- ship VCN no, exporters name & address, port or origin, port ofdestination, trade type are recorded.


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Chapter 2


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Literature Review

This is the first project on topic thermal future potential of container terminal at KoPT in

comparison with other eastern coastal port successfully completed by me. I have searched on

internet but I did not find any project on this topic .I have also searched at KoPT library but there

also no any project on this topic.

This report will help KoPT to come to know them that where they are lagging in infrastructure in

comparison to other Eastern coast ports.This report will also help port to add some point of mine

in their future business plan proposal.This will also help them in finding the point if they miss

any point in their repot.


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Chapter 3


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Research Method

Research is the systematic approach towards purposeful investigation through formulation of

hypothesis, collection of data on relevant variables, analysis and interpretation of results and

reaching conclusion either in the form of a solution or certain generalization.

Formulative or Exploratory Research : a research which investigate any problem with suitable

hypothesis. It is particularly important for clarification of any concept and throwing new light

for further research on principles of developing hypothesis and its testing with statistical tools.I

have taken this exploratory research because I have to investigate why the port lost first rank?

I had also investigated about the charges of the different port of eastern coast and compare it

with Kolkata Port Trust. After collecting all the data analysis part on charges had done and port

come to know their strength.

3.1 Research Problem

My research problem is on topic future potential in container terminal at KoPT. In this topic I

had also mentioned the name of country from where container comes and where they are export

from port.I had also research about the port charge during the container handling at KoPT and

then analysis is done.

3.2 Research Methodology

The information for study is obtained from two sources namely:

Primary Data Sources Secondary Data Sources

Secondary Data Sources:

It is the data already been collected by others which may be published or unpublished. This datais primary data for the agency that collects it and becomes secondary data for someone else who

uses this data for his own purpose. This data is from the number of books and records of the

company.


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Methods of Secondary Data Collection

Various publications of the central and state govt. Various publication of foreign governments/institutions Technical & trade journals Book, magazines and news-paper Reports and publications of KoPT Reports prepared by research scholars Researcher must ensure the reliability, suitability and adequacy of secondary

data

3.2.1 Research Objective

To study the future import potential of container terminal at KoPT. To study the annual handling of the container terminal in India. To study the container handling at Kolkata Port Trust. To study the importance of logistics management in operation activities of port. To study the various charges impose while handling the containerized cargo at port. To study the various connectivity of the port. To study the comparison between all the other ports of eastern coast.

To know the status of KoPT among all major Indian Eastern Coastal Port.

3.2.2 Scope & Rationale of the study

Shipping is basic process of transporting goods and cargo. Virtually every product ever made,

bought, or sold has been affected by shipping. Despite the many variables in shipped products

and locations there are only three types of basic types of shipments; land, air, and sea.

The shipping industry is a truly global community. It is intrinsically international indeed it wasthe very first global industry because of the international nature of shipping it is regulated by

United Nations agencies and the international maritime organization (which is based in London).

There are other closely inter-related sectors of the shipping industry. These include Linear

Agents, chartering brokers, maritime insurers and insurers and ship surveyors, as well as export /


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import brokers and wide range of ancillary industries also. Port of Kolkata, the terminal to the

east coast of india, plays a crucial role as the last point distribution base for southern, eastern,

central and northern states of india. Described as the Brightest Jewel of all Indian major ports

for its outstanding performance and productivity over the years, Kolkata Port serves as a catalyst

in spurring domestic and international trade. KoPT offers cost effective, reliable and trustworthy

services to the EXIM trade and facilities opportunities for business development. The

containerized shipment is currently being handled at NSD/HDS.

The Kolkata Port Trust is the 2 nd container handling facilities on the major port. Inspite of the

increase in the number of vessels waiting time similarly,the average turn around time of the

vessels had come down reduced and average turn around time.


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Chapter 4


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Findings and Analysis

Pestle Analysis

Political:There is no intervention of West Bengal government on Kolkata Port Trust, because it is an

major port out of 12 major ports of India which is governed by Central Government.

As Kolkata port is a riverine port and it suffers allot due to draft problem.

Kolkata port was receiving around 400 Cr. Per annum as a dredging subsidy from central

government. But this subsidy is being decreased annually to some extent and in upcoming year itis being said by the ministry that they are not going to provide subsidy.

Kolkata Port Trust Chairman Mr. R.P.S Kahlon, who was present in the seminar organized by

Bengal Chamber of Commerce & Industry, said that we have been hearing abou t the

withdrawal of dredging subsidy, through the ministry has not given this in written, there is a

thinking at the planning commission - level and cabinet level, they are considering whether to

continue to this or not.

Phase out of dredging subsidy could impact the efficiency of Kolkata Port Trust and cargo

handling could dip up to 30 million tons per annum.

Economic:

Left front government ruler west Bengal for last 30 years, CM Shree Budhadeb Bhattachargee

did nothing for the development of west Bengal, there was no such industrialization during these

30 years, but now TMC has taken over the left front.CM Mamta Banarjee is trying to develop the

state to a for extent industrial growth rate has developed to 7.6% as an base of 3.4%. Per capital

Income is Rs. 55.222, earlier it was Rs. 49.218(unless left front govt.)


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As there is no such industrialization in Bengal, due to this port not getting the business Mamta

Banerjee is trying hard to attract the industries, if she can than the port will definitely get the

business and which will help Kolkata port to accelerate its revenue.

Social:

West Bengal is located in eastern India, is the cultural hot state of India, Kolkata, the capital city

in popularity nickname as The city of joy. This city is the epicenter of the glorious Bengali

tradition and is the commercial capital of eastern India.

Here youth love to work as an IT professionals, they only prefer the job only of IT background

thats why west Bengal government is only attracting IT investors . W.B. govt. is providing fiscal

&non-fiscal incentives to the IT investors leading call centre companies like GE capital,

Spectramind (Next Genix) were contacted and convinced by the govt. to come in Kolkata. Thats

why there is no social effect on Kolkata port.

All IT investors who have invest or planning to invest, they dont need much of cargo or project

cargo, so they dont need port for importing the cargo for their new set up

Environmental:

Environment of west Bengal is of medicate type, neither hot nor cold t hats why employees feel

comfortable during their working hours, they all try to give their 100% in every shift to increase

the productivity of port, So there is no such environmental effect which disturb the working of

Kolkata port

Technology

Due to globalization, lots of private players of India and outside from India have invested in

Kolkata. Through them Kolkata port is getting business such as- Electrosteel & Casting ltd. has

its manufacturing unit at Haldia in west Bengal, it export per month 1200 to 1500 container

across the global boundaries.


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To make the work more efficient port is using following technology

EDI- electronic data interchange port has its own software called POMS(port operation

management system) all the port operational activity are done through this software, after

implementation of this software time taken in operational activity has reduced twice. GPS- Global Positioning System, due to riverine port, the ports pilot has to bring the

vessel from Sandhead, so to trace the position of vessel the marine department of Kolkata

port trust in using GPS to reduce the turn round time of vessel, s o that vessel doesnt has

to wait for port pilot to come and take the vessel to ports lock gate .

WMS - (Wireless Marinetime Service) This is being successfully used by the dock master

&dock pilot, with the help of Walky Talky they talk to each other while entering the

vessel into dock and operating it

E-PORT - (Electronic Port) With the help of POMS the container agent book their cargo

online and vessel agent declares the no. of container which his vessel will take of which

container agent. In this Superintendent or Asst. Superintendent easily trace the position of

container in container yard for loading or delivery

RFID- ( Radio Frequency Identification) It is yet to be implemented. All planning has

been done for its execution.

Legal

Legal formalities of Kolkata port is same as all major ports Such as-

For import - importer will have to give manifest and pay shore handling charges, warehouse

charges, custom will pass the good after checking and imposing import duty.


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For export -exporter will have to file an application to dock manager for opening of export

,exporter will also have to file a cargo description in customs and will have to pay the loading

charges.

Shore handling charges is being fixed by the traffic authority of major Ports (TAMPS) they givea scale rate to the port and according to that scale rate port charges to the importer/exporter.


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Traffic Assessment

1. How many traffics Kolkata port handles annually in qty in TEU's

CONTAINER TRAFIC: 600235 TEUs

2. Financial Indicators

YEAR KOLKTA DOCK

SYSTEM

HALDIA DOCK

COMPLEX

TOTAL

2003-04 122429 136657 259076

2004-05 159242 128750 287992

2005-06 203481 110272 313753

2006-07 239431 109638 349069

2007-08 297287 128118 425405

2008-09 302169 127248 4294172009-10 377510 124112 501622

2010-11 377135 149339 526474

2011-12 412425 139816 552241

2012-13 463212 137023 600235

Description 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

i) Operating Income (Rs. Crores)

1366.22 1382.16 1424.20 1495.15 1548.64 1489.33

ii) Operating Expenditure(Rs. Crores)

753.21 864.14 1057.97 1067.71 1109.53 1078.40

iii) Operating Surplus (Rs. Crores)

(+)613.01 (+) 518.02

(+) 366.23 (+) 427.44 (+) 439.11 (+)410.92

iv) Net Surplus (Rs. Crores)

(+)529.86 (+) 77.77 (+) 121.29 (+) 144.05 (+) 138.24

(+)134.52

v) Operating Ratio (%) 55.13% 62.52% 74.28% 71.41% 71.64% 74.44%


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3. The Profile of Export/Import Commodities


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4. Maximum size of vessel calling at Kolkata port

KPD K.P. Docks 157m * 21.35m (515 * 70)

No.1 KPD 155.45m * 19. 55m (510 * 64)

No.2 KPD 153.90m * 19.5m (505 * 64)

No.3 KPD 102.10m * 14.70m (335 * 48)

NSD N.S. Docks 172m * 24.30m (564 * 80)

No.1 NSD 172m * 22.90m (565 * 75) No.2 NSD 172m * 22.90m (565 * 75)

5. Loading & unloading rate for containerized cargo

S. No. TypeRate in Rs. In per TEUKDS HDS

ImportExport Import ExportCaregory-1 Category-2 Category-3

1. Loaded 1980.00 3600.00 5580.00 1980.00 1980.00 1980.002. Empty 405.00 405.00 405.00 405.00 405.00 405.00

Note:

1. Category -1 means container-containing cargo consigned to Nepal, Bhutan and cargo other

than that of Category 2 & Category 3.

2. Category - 2 means container (other than for Nepal and Bhutan) containing Edible Oil /

Non- Edible Oil, Ferrous/ Non ferrous Alloys, Pig Leads and All type of Metal Ingot.

3. Category - 3 means container containing Electric & Electronic goods, All types of

Chemical, Resin, Wine & Beverage, Machinery & Spares, Ball Bearings, Paper & Paper


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Product (other than newsprint), polythene Granules, Personal Effect, Diplomatic Goods,

Silk.

6. loading & unloading rate per hour for bulk cargo

7. PPP (Public Private Participation) in Kolkata port

In yet another setback post the pull-out of India-French joint venture Haldia Bulk terminal

(HBT) from Haldia, Kolkata Port Trust (KoPT) has now failed to get any private player to build

the proposed Salukhali Dock.

Despite the controversy over HBT's pull out from Haldia in November last year, KoPT went

ahead with its capacity expansion plan inviting Request for Proposal (RFP) for the Haldia Dock

II project, at Salukhali, close to the existing Haldia dock.

The Rs 1,700-crore project to build four berths at Salukhali, was proposed to be executed under

PPP model. Although, KoPT had earlier claimed many private players were keen to participate,the tender floated seeking a interested private player for the project, has seen no response. The

project would have added 23.4 million tonne capacity.

This is true that there was no proposal. But we have got 160 acres land from the state for the


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project. Also, KoPT has nod from the public private partnership appraisal committee (PPPAC)

for the project. KoPT can always float a tender for the project, an KoPT official said.

8. The challenges Kolkata port is facing Pensioners:

It has 25000 pensioners and port has to pay around 125 Cr. per annum as a

pension.

Draft:

During high tide muddy water flow inside the port and when low tide come these

mud and clay silt down, which reduce the draft of port, and for dredging port has

to pay approx 400 Cr. per annum.

9. How many traffics your port handles annually in qty in TEU;s in

domestic.

Ans . 24.27 in million tones.

10. What is the berthing time per ship - Bulk .

Ans. 7.32 (TRT in days)

11. What is the berthing time per ship - container.

Ans. 4.71(TRT in days)

12. In your port what is the max.vessel size?

Ans. 195 mtr container terminal

13. In your port what is the min vessel size?

Ans .155 mtr


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14. How many berths are there in your port?

Ans: NSD- 14, KPD-27, HDC-19, BB-6

15. Is your port doing any CSR (Corporate social responsibilty)Practises?

Ans. No.

16. What facilities your port provides to the employees?

Ans . The only facility is Medical facilities which includes 450 bedded hospital equipped

with a complete range of medical instrument.

17. From which country max import cargo comes?

Ans. Singapore

18. To which country we send the max no of cargoes from your port?

Ans. Singapore

19. How many employees are working in your port?

Ans. Around 9000

20. Is your port using high-Tech Cranes and other equipment to reduced

the turn around time ,if not then why and if yes then to what extent?

Ans. Yes

Description Capacity Availability in Nos.

Harbour Mobile Cranes (on hire) 140 T 03


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RTG Cranes UP to 45 met. 02

Cantilever Crane 200T 01

Forklift Truck 20T 14

Forklift Truck 60T 02

21. Future Investments Profile of Kolkata Port

The journey of the first major as well as the only riverine port of the country continues

through the tortuous process of ebb and tide, expectancy and challenges, intricately woven with

the varying draft/siltation of the river Hooghly which cradles it, as it continues to adapt and re-

engineer itself in newer locales and diversifying functions. The port of Kolkata has made

investment decision both for KDS and HDC, keeping in mind the river morphology and traffic

that can best be handled in these two locations harnessing the respective potentials of the two

dock systems. A major challenge for a riverine major port like Kolkata has been its inadequate

draft preventing vessels of higher dimensions/parcel size to visit the port. Simultaneously, being

a riverine Port and strategically connected to National Waterway No.1 and National Waterway

No.2, Kolkata Port has huge potential in respect of movement of cargo through Inland Water

Transport (IWT) mode.

A well diversified investment programme, costing around Rs.1400 crore, aimed at

improvement of infrastructure / capacity augmentation to be funded through internal resources ofthe Port/Grant-in-Aid by Government of India, has been embarked upon in the 11 th / 12 th Five

Year Plan, encompassing, inter-alia, construction of riverine terminals with improvement of

back-end facilities; integrated development of infrastructure including road / rail connectivity,

improved storage /yard logistics, induction of state-of-the-art equipment, viz. Stacker-cum-


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Reclaimer, new VTM System alongwith AIS with interfacing/ integration etc, augmentation of

IT, River Regulatory Measures for improvement of draft at Hooghly estuary etc.

Apart from above, various PPP projects with an investment commitment of around

Rs.12000 crore have been/are being taken up. Illustratively, Kolkata Port has been vigorouslyexploring its deep-drafted areas while continually gravitating southwards and envisages setting

up of cargo handling facilities there, like, deep-drafted port at Sagar, development of an

alternative Dock System at Haldia Dock II, Diamond Harbour Container Terminal, construction

of an Outer Riverine Terminal at HDC, operationally linking it with transloading operations for

Midstream handling of dry bulk cargo at Sandheads and its close vicinity while, for rejuvenation

and expansion of Kolkata Port.

22. Meaning and description of the following

CFS

The term CFS at loading port means the location designated by carriers for the receiving of

cargo to be packed into containers by the carrier. At discharge ports, the term CFS means the

bonded location designated by carriers in the port area for unpacking and delivery of cargo.

DWT

Deadweight tonnage is a measure of how much weight a ship is carrying or can safely carry.

It is the sum of the weights of cargo, fuel, fresh water, ballast water, provisions, passengers,

and crew. The term is often used to specify a ship's maximum permissible deadweight, the

DWT when the ship is fully loaded so that its Plimsoll line is at the point of submersion,

although it may also denote the actual DWT of a ship not loaded to capacity.

MV

The mother vessel is the carrier that will actually carry your cargo overseas, so a bulk carrier

or a container carrier. The reason for the distinction is that it might take several vessels until

your cargo actually reaches the seaport.


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THC

Terminal handling charges is an ancillary charge on some ocean freight shipments to cover

the cost of moving the container from the container yard to ocean vessel.

IPA

IPA (Indian Port Association) is an organization that was conceived and constituted by the

Major Ports of India under the Societies Registration act in 1966 with the prime objective of

developing and increasing efficiency and productivity in ports and its working environment.

The functioning body of IPA comprises of the Chairman of all Major Ports, which are the

local authorities formed by a statute and function under the regulatory control of Ministry of

Shipping, Road Transport & Highways, Govt of India. The Chairman of Association is

elected in the Annual General Meeting while the Secretariat of IPA is headed by the

Managing Director who operates from New Delhi.

PCS

Port Community System (PCS) is intended to integrate the electronic flow of trade related

document/information and function as the centralized hub for the ports of India and other

stakeholders like Shipping Lines/Agents, Surveyors, Stevedores, Banks, Container Freight

Stations, Customs House agents, Importers, Exporters, Railways/CONCOR, Governmentregulatory agencies, etc. for exchanging electronic messages in secure manner.


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SWOT Analysis of Kolkata Port Trust

Strength:The major strength of Kolkata Port Trust

It is situated in the middle of Kolkata City. It is connected to National highway & Eastern Railway, through this

Importer/Exporter easily transports their goods.

Custom office is in the port premises by which Importer/Exporter easily do their

shipment.

It has vast land.

Weaknesses Major weakness of Kolkata Port Trust is draft problem. Non-Mechanized berth. Non utilization of dry dock and some oil-jetty. Improper stacking of container in container terminal. Non-utilization of vacant area in the port premises and out of it.

Opportunity: Kolkata Port Trust attracts more Container Vessel. Few more berth required for container. Container must be stacked properly and trace accordingly.

Threat:There is only threat and it is a major threat, that is Silting of Sand and Clay which reduce

the draft of port.


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Recommendation

Clerk level employees knowledge should be enhanced by giving them proper computer training.

Employees should be sent for seminars where they can meet and talk to

other ports employee, where they can know the other ports are handling

the problem which they are facing.

Top level management must interact with lower level to find out the

solution, if there is any problem.

All unutilized berth must be utilized and berths should be highly

mechanized and multipurpose.

Dredging of port should be privatized Private Player are attracted for

the dredging of port.

Except main line operations, All other should be outsourcing, such as

hospitality, gardening, sweeper, mechanize lighting and fixture etc.

The cantilever crane which has the capacity to handle 200 tones, should

be utilized properly, non utilization is causing the damage and the crane

is depreciating .


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Bibliography

On spot training. http://www.kolkataporttrust.gov.in/container.html http://www.kolkataporttrust.gov.in/highlights.html http://www.kolkataporttrust.gov.in/future.html http://www.kolkataporttrust.gov.in/salhds.html Seminar held on Importance of Waterways for Economic

development Organized by The Bengal Chambe r of Commerce and

Industry.
http://www.kolkataporttrust.gov.in/container.htmlhttp://www.kolkataporttrust.gov.in/container.htmlhttp://www.kolkataporttrust.gov.in/highlights.htmlhttp://www.kolkataporttrust.gov.in/highlights.htmlhttp://www.kolkataporttrust.gov.in/future.htmlhttp://www.kolkataporttrust.gov.in/future.htmlhttp://www.kolkataporttrust.gov.in/salhds.htmlhttp://www.kolkataporttrust.gov.in/salhds.htmlhttp://www.kolkataporttrust.gov.in/salhds.htmlhttp://www.kolkataporttrust.gov.in/future.htmlhttp://www.kolkataporttrust.gov.in/highlights.htmlhttp://www.kolkataporttrust.gov.in/container.html

future potential of container terminal

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