Literature Survey Port Operations

8/13/2019 Literature Survey Port Operations

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LITERATURE SURVEY REPORT ON PORT

OPERATION

SUBMITTED TO - PROF. SHREEKANT IYENGER

PREPARED BY - ADITI DIXIT (PM0311)

SEMESTER- 6TH

SEMESTER OF MBAIM

SUBJECT- HANDS ON WORKSHOP


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CONTENT

1. Introduction2. Issues

a. High Volatility & Declining Profitability of Shipping industryb. Environmental Safety & Standards in International Shippingc. Global Terrorism & Piracyd. Economic Recession & Shifting Global Trade Patternse. Privatization of Terminals & Other Port Servicesf. Multiple Cargo, Common User Port to Specialist Terminal based

Ports

g. Separation of port authority & port operator3. Future prospects & opportunities

a. Privatization of ports and terminalsb. Emergence of global port developers & operatorsc. Significant Use Of Information Technologyd.

Integration of ports in logistics value chain

e. Integration of shipping in logistics and global supply chains4. Field report5. Reference


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INTRODUCTION

A port is the interface between intercontinental transport and a place in the hinterland beingconsidered for production, assembly, or final distribution. While ports have always been

important nodes in the logistics system, globalization of production has sharpened the need

for ports to be value adders, and has given ports a unique opportunity to become value-

adding entities.

Port capability and efficiency can greatly influence the decision for locating a plant ordistribution center, and often determine whether a local producer can compete globally or

regionally with other producers. The challenge is for ports to relate to the needs of their

customers and assist them in improving their competitive positions by providing low-cost,

efficient port services. Major technology changes are taking place in the ocean shipping sector that affects

requirements for port infrastructure and services. The ocean transport industry is employing

increasingly sophisticated information technology (IT) to manage logistics; and they have to

be the key players in future IT logistics network in order to remain competitive.

With over 90% of world trade channeled through ports, efficient and effective portoperations management is a critical requirement to maintain strong customer relations and

port reputation. Airports and seaports around the world face many modern operational

challenges and to ensure the highest level of service, ports require intensive port operational

planning and set procedures.

Legislative and corporate regulation, port security, and logistics are only a few of thechallenges that must be addressed on a daily basis. In addition, ports require intricate risk

management functions to ensure that accidents are avoided, and if they do happen, the

proper response is available.

Ports constitute an important economic activity in coastal areas. Ports are also important forthe support of economic activities in the hinterland since they act as a crucial connection

between sea and land transport.

ISSUES

a. High Volatility & Declining Profitability of Shipping industry


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Major global shipping companies are at the receiving end of market volatility. Worldwide

shipping industry is in a transitional phase of readjustment and restructuring and is likely

to witness significant level of consolidation through mergers and acquisitions and

expansion to new regional trade hubs.

b. Environmental Safety & Standards in International ShippingPoor monitoring and compliance with international safety standards by Flag of

Convenience (FOC) countries, coupled with recent ship accidents. The incremental costs

of a stringent international safety regime, administered multilaterally by a number of

countries, is bound to further impact the operations of global shipping companies through

added costs of redundancy and renewal of fleet.

c. Global Terrorism & PiracyFollowing the September 11 happenings, the worldwide concerns about national security

have resulted in unprecedented demands on national ship registries and ocean liners to

fall in line with series of new regulations and norms for port clearance of cargo. This is

likely to substantially increase legal and insurance costs and other indemnity obligations

and liabilities and build greater pressures on reorganization of terminal loading

operations, which will affect shipping. The US Terrorism Act, which seeks to tightly

regulate cargo movements into and out of the United States, a major partner in world

trade, now comes into force from December 2002 and is likely to seriously impact US

bound cargo logistics and trade supply chains across the world.

d.

Economic Recession & Shifting Global Trade Patterns

Economic recession in the developed economies and important shifts in global trade that

have come about since the formation of WTO have thrown up a number of surprises for

international shipping. Despite global merchandise trade volumes having increased, the

shipping freight rates have come down, mainly due to many structural changes in the


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world trade. Restructuring of the world trade flows is leading to concomitant effects on

the global shipping patterns.

e. Privatization of Terminals & Other Port ServicesPrivatization involves a transfer of deed of title from the public sector to a private

undertaking. It is important to recognize that since full privatization entails a shift of real

ownership, any ongoing governmental role or policy considerations must be dealt with in

the terms of sale or through regulatory mechanisms. A potential investor, therefore, will

be keen to know the existing and future regulatory climate within which he is expected to

operate as that will affect the value of the opportunity. Any perceived constraints (or the

absence thereof) through deed restrictions or land use regulations will affect the price to

be paid by the private investor. The absence of any restrictions may generate a certain

price while limitations on the cargo handling functions may generate another and a severe

regulatory climate on flexibility, diversification or expansion

f. Multiple Cargo, Common User Port to Specialist Terminal based PortsPorts have been historically viewed as one stop omnibus solution for all requirements of

shipping, in terms all loading and unloading operations for multiple types of cargo, on a

common access basis. However, the worldwide trend in port development is now veering

towards terminalisation of ports with focus towards freight specialization. LNG

terminals, Container terminals that involve high capital costs and intensive deployment of

cargo handling equipment and other facilities are some instances of what is likely to

emerge as future trend in port development

g. Separation of port authority & port operatorThere is a global trend in the port sector towards growing separation of port authority

from port operator impinging on all existing institutional models of port organizations.

Port organizations all over the world are experiencing wide ranging institutional reforms,


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as a part of the adoption to new demands of shipping and international trade. Port

authority is increasingly getting focused on policy and regulatory role while a range of

private port operators and port service providers are taking over a range of port related

services.

FUTURE PROSPECTS

a. Privatization of ports and terminals

The port sector all over the world is increasingly veering towards greater involvement of

private sector participants in creation and management of various port assets and

services. The privatization of ports is taking place in terms of both part privatization of

existing public ports and Greenfield port projects.

b. Emergence of global port developers & operators

With the development of liner shipping and container cargo trade, the demands on port

infrastructure have become quite intensive both in respect of level of capital investment

as also highly sophisticated technology for container handling. Leading international

shipping lines like P&O, Maersk, Sealand and APL have thus, long since diversified into

managing the port operations at several locations, especially in regard to container

terminal operations, combining the advantage of themselves being in the container line

trade. Today, port developers and operators work on a global scale and are likely to

dominate much of future port development.

c.

Significant Use Of Information TechnologyGrowing importance of information technology promises to make port operations highly

Cost efficient and substantially improve cargo handling turnaround times. EDI and MIS

systems using a range of customized software and network technology make shipping

and port operations highly standardized and customer friendly.


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d. Integration of ports in logistics value chain

Like in case of shipping lines, the port operations too are likely to become increasingly

part of a common logistics value chain that extend from point of origin of cargo to the

final destination of cargo in terms of a door to door delivery cycle. Ports have to

increasingly strive to facilitate in expediting the movement of cargo by ensuring that

ships enter their berths to unload cargo and leave them after loading cargoes in minimum

possible time and cost. Inability to deliver customer expectations is bound to shift the

cargo to another port in the fast emerging competitive market framework.

e. Integration of shipping in logistics and global supply chains

Major international shipping companies have themselves now started integrating their

services into a broader spectrum of doortodoor delivery systems, incorporating railroad

haulage movements of cargo, thereby substantially supplementing their ocean freight

income.

With global trade supply chains set to further expand with growing customer demands on

cargo turnover time and costs, the shipping industry is bound to go through a major

redefinition as a part of a larger maritime logistics web.


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A. FIELD REPORTMundra Port and Special Economic Zone Limited (MPSEZ),

Mundra Port and Special Economic Zone Ltd (MPSEZ) is one of the largest privately

managed ports in India, promoted by Adani Group which is one of the fastest growing

business houses in India. It is Indias first multi-product port-based special economic

zone. Mundra Port, located in the north of Gulf of Kutch, has Natural and location. The

port is well connected through rail, road, air & pipelines. The draft depths of Mundra port

makes it easy to handle the future generation of large size vessels carrying bulk, container

and crude oil cargo.

The port commenced its operations with one berth in October 1998. Mundra Port Special

Economic Zone Limited (MPSEZ) was incorporated in November 2003, to set up an SEZ

at Mundra. MPSEZ was merged with GAPL in April 2006 and the company was

renamed as Adani Ports and Special Economic Zone Ltd, to reflect the nature of business

It consists of 22 berths with a total quay length of 6.5 km, ten berths for handling dry

bulk & break bulk cargo, three berths for handling liquid cargo, six container berths

including a ro-ro berth, three mechanized import cargo berths and 2 single point

moorings for crude oil imports. The port also entered into long-term contracts with its

clients. It scaled up port infrastructure ahead of demand and invested Rs.12,000 crore in

developing the port. It laid great emphasis on mechanization of cargo handling thus

ensuring optimum turnaround time a key yardstick of efficiency. The turnaround time is

less than a day at Mundra compared to Kandla which is more than two to three days. Its

coal handling capacity is 46.5 MMT, cargo handling capacity is 90.7 MMT and power

generation capacity is 5320 MW.

Following are the key points captured during our visit.

Port Infrastructure details:

1. Cargo Terminal

1.1.Container Terminals


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a. Mundra International Container Terminal (MICT)

MICT has the most sophisticated and technically advanced port facilities in the

Indian Subcontinent, strategically located at Mundra port in the State of Gujarat,

MICT is the closest gateway to the largest cargo generating regions of North and

Northwest India. From its inception in 2003 MICT has had alternative thinking as

part of every aspect of its business. The result speaks clearly through the volume it

handles today, and the confidence it has built up within the trade community. From

handling 20,000 TEUs in its first year of operations, today MICT has developed the

port into a million TEU port.

Driving this customer acceptance is MICTs emphasis on enabling the faster

turnaround of vessels by increasing operational efficiency. MICT has today

emerged as Indias most promising mainline port receiving nearly 70 vessels each

month including 14 mainline services. MICT has invested in advanced port

management IT systems and state of the art equipment which are at par with the best

in the world. MICTs USP is that with a draught of 17.5m alongside, and the

terminal is one of the few container terminals in India with an ability to handle the

large 10,000 TEU vessels that require a deep draft.

b. Adani Mundra Container Terminal (AMCT)

The terminal operates 24 hours a day, all year round and has no tidal restrictions.

The terminal uses a real time tracking system. The terminal is equipped with the

most modern equipment like Electric RTG. Installed capacity is 1.25 million TEUs

per annum. It has the capability to berth and handle the latest containers vessels

sailing around the world. It has two in-line berths with a total quay length of 631

metres and alongside draft of 17.5 metres. It has 4,014 TEUs ground slots for

container storage.

c. West basin


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West Basin is being developed as the world largest capacity bulk import terminal

with international standard norms, excellent storage infrastructure, eco-friendly and

world class technology with total capacity of 50 MMTPA. The project is being

constructed in two phases

Phase 1 = For 33 MMTPA Cargo handling (03 Berths- Single quay of 1126 meters,

width 38.82 meters)

Phase 2 = For 50 MMTPA Cargo handling The facility is strategically located 09

miles west of Mundra Port.

The site has good rail links and natural & dredged deepwater channels suitable for

vessels of Displacement- 266,000, Loa- 325 meters, Beam- 55 meters.

d. South Basin

The terminal has all Cargo handling activities in port, including warehousing and

storage, internal transportation and cargo loading and unloading round- the-clock.

This basin has two RO-RO cum service berths, one Port craft berth and back up

facilities for these Terminals, by way of container Yard, Rail Sidings, Open Paved

Area and requisite buildings, Utilities etc.

1.2.Single Point Moorings

a. Adani Port SPM

In order to handle liquid cargo of very large crude carriers (VLCC) and ultra large

crude carriers (ULCC), the port has established a Single Point Mooring (SPM)

facility. The SPM is located at the distance of 4 nautical miles ( approx. 8 km)

offshore having water depth of 32 metres for handling VLCC and ULCC upto

3,00,000 lacs DWT (tons in dead weight). SPM is capable of evacuating crude at the

rate of 8,000 to 12,000 tons per hour (THP). Mundra port has in principle approval

for 4 (Four) SPM (Single point mooring) of which 2 are fully operational.


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b. HMEL SPM-1 (developed, maintained and operated by HMEL)

HMPL is wholly owned subsidiary of HMEL, a joint venture between Hindustan

Petroleum Corporation Limited (HPCL) and Mittal Energy Investment Pte Limited

(MEIL), Singapore - a L. N. Mittal group company to set up a refinery complex

with 9 million metric tonnes per annum (MMTPA) capacity at Bhatinda (Punjab).

To meet the crude receipt & storage facilities as well as to transport the crude for

HMEL refinery, HMPL has set up a Crude oil terminal (COT) and Single Buoy

Mooring (SBM) at Mundra Port, Gujarat and a 1017 km cross-country pipeline for

transportation of crude oil from Mundra to Bathinda.

2. Mundra Multi-Purpose terminalIt handles multiple types of cargo as shown below.

Terminal no. Berth nosType of cargo being

handledEquipment make & no.

Terminal-1

Berth-1

Berth-2 Berth-3 & 4

Bulk cargo

Liquid cargo Multiple dry & liquid

MHC - 4 nos.

Terminal-2 Berth-5 & 6 Berth-7 & 8

Bulk, break bulk & project

cargo MHC-6 nos.

Terminal-3 Berth-9 Berth-10-12

Agri. Products Break bulk & steel

cargo

MHC -3 nos.

CT-2/Adani

Mundra container

terminal (AMCT)

/ RORO

Berth-3 forRORO vessel

Containers, Project cargo

and Cars (239 cars/hour)

Rubber Tyre Gantry (RTG)Cranes6 nos.


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Terminal no. Berth nosType of cargo being

handledEquipment make & no.

CT-3/Mundra

international

container terminal

(MICT)/ south

basin

2 ships can be

berthed depending

on LOA, subject to

minimum of 35m

clearance between

each vessel.

Container / Projectcargo

Rail mounted quay Crane(RMQC) -4 nos.

Rail mounted gantry crane(RMGC) -2 nos.

Rail mounted gantry crane(RMGC)4 nos.

Reach stacker,4 nos.West basin 4 berth Coal Grab ship un loader -7 nos.

Single Point

Mooring - 2 no.

Liquid cargo of very large crude carriers (VLCC) and ultra large crude carriers(ULCC)

Capable of evacuating crude at the rate of 8000-12000 tonns / hour Port has potential to accommodate 4 SPMs

3. Cargo handling equipmentsSilent feature of cranes of APSEZ are given below:

a. Mobile harbor cranes (MHC) handling capacity of 750 tons per hourb. Ship loader of 1000 tons per hour capacityc. Rail mounted quay Crane (RMQC) : 37 nos of moves/hourd. Reach stacker : Capacity is 40T & max trolley speed = 25 moves/ mine. Empty Container Handler (ECH) : Trains capacity is 40trains/ day

4. Fertilizer Cargo ComplexFertilizer Cargo Complex (FCC) for bagging and evacuation of fertilizer cargo. The FCC is a

fully mechanized state-of-art dedicated fertilizer handling facility with 2 operational lines

and 44 bagging machines. The FCC has a capacity to bag 660 nos. of 50-kg bags per minute

and an effective capacity to load and evacuate 8-10 rakes per day i.e. 25,600 tonnes per day.


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It has dedicated godowns for storage of fertilizers and fully mechanized control rooms for

smooth & efficient handling of fertilizer cargo.

Mundra Port serves as the gateway Port to the North-Western hinterland of India. Mundra

SEZ provides a convenient international trade gateway to the Middle East, Africa, Europe

and America. Mundra port also equipped with state-of-the-art safety and security

measures and infrastructure to ensure and protect storage. Leveraging the advantage of the

multi-purpose Port, Mundra SEZ is the largest notified multi-product SEZ with state of art

infrastructure, spread over an area exceeding 135 sq kms offering attractive investment

opportunities for diversified large format industries.


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Reference:

1. www.portofmundra.com2. Report on Trends in Indian shipping3. Report on operational risk in major infrastructure projects
http://www.portofmundra.com/http://www.portofmundra.com/http://www.portofmundra.com/

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