PROJECT REPORT - International Container Transhipment Terminal

CHAPTER 1

Introduction

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Executive summary

In an era of economic globalization ports are evolving rapidly from being traditional land/sea

interfaces to providers of complete logistics networks. This has been a massive link in

establishing trade across countries i.e transferring goods from one place to another. Moreover

ports have proven to be a major determinant for the socio-economic growth of a country interms

of facilitating development of infrastructure, and establishment of businesses and firms which

provide jobs to lakh’s of people in every country. And over the years there has been fierce

competition between countries to develop their port infrastructure especially container terminals

and related facilities, and to expand their port hinterland through introducing free trade zones

with a hope of developing hub ports and international logistics centres to attract the best of deals

to the respective port which translates to economic benefits.

India faces stiff competition from the likes of Singapore , Oman which offers superior

infrastructure and Srilanka which currently handles a large majority of the Indian transshipment

cargo. In order to a bring about a change to this scenario India needed to develop container

related infrastructure to be competitive in the container transshipment sector which has seen a

boom of late.

In keeping with this plan on the 16th February 2005, Dubai Ports World announced that it has

formally signed an agreement with the Cochin Port Trust (CoPT) to construct, develop and

operate an International Container Transshipment Terminal (ICTT) – An India Gateway

Terminal – at Vallarpadam. Vallarpadam’ is the largest single operator container terminal

currently planned in India and the first in the country to operate in a special economic zone. The

new terminal will make Cochin a key centre in the shipping world reducing India’s dependence

on foreign ports to handle transshipment. With the commencement of the terminal India will

occupy a competitive position on the sea trade map with the likes of Singapore, Oman and

Srilanka. Hence it would be useful to make a study comparing the likes of the above mentioned

ports on various parameters to understand the level of competition and where India stands in

today’s world of sea trade.

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Background of the study

Ports play an important economic role in maritime nations by facilitating foreign trade. They

constitute an important economic activity in coastal areas. The higher the throughput of goods

and passengers year-on-year, the more infrastructure, provisions and associated services are

required. These will bring varying degrees of benefit or disadvantage to the local and regional

economy and to the environment. Ports are also important for the support of economic activities

in the hinterland since they act as a crucial connection between sea and land transport. They are

thus catalysts for social and economic development in any maritime nation. Maritime

transportation has been the life-blood of world trade since time immemorial. Though new modes

of transportation have grown enormously shipping shall continue to occupy the lions share in

world trade in the foreseeable future because of the economics inherent in sea transportation. The

development of port infrastructure provides a positive impact on the economic and social growth

of society.

Increasing competition among hub ports has been growing as previously less developed ports in

countries undergoing national economic growth have been developing port infrastructures to

compete with the existing hub ports. As competition among ports has been increased, shipping

alliances and major shipping lines have been taking advantage of their growing power in

negotiating concessions for dedicated terminals and/or in deciding ports of call. Ports are losing

thier bargaining power and have been forced to provide deep water, quality services,

productivity, efficiencies, infrastructures including rails and roads, all of which are frequently

demanded by shipping lines with bargaining power created by great amounts of container

volume. When a port fails to meet the shipping line’s demand, it may lose its major clients. Ports

and container terminal operators are under strong pressure from their clients, which means they

are forced to take part in the competition among ports by actively enhancing productivity and

investing a great amount of money in order to stay in the game.

The demands of shipping lines (customers of ports) exercising their growing bargaining

powerfor lower port tariffs, quick turnaround times, accommodation of super large ships and

many other quality services, and industry trends towards containerization, super larger

ships,consolidated port operations, and concessions to global operators allow for a

straightforward definition of the conditions for success as hub port:

_ location (proximity to major world routes)

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_ quick turnaround time

_ quality services with efficiencies and productivity

_ reasonable costs

_ ability to accommodate super larger ships – deep water, advanced equipment

_ excellent networks covering neighbouring feeder ports

_ existence of logistic cluster supporting value-added logistics activities

_ no red tapes and no burdensome paper works

_ advanced information technology

_ intermodal infrastructures- access to rail, air and road distribution networks

_ local markets producing freight volume.

With the new container transshipment terminal coming up at vallarpadam, to be the largest in

India cochin port is preparing itself to be the premier or hub port of india. Since ports have a

major role in attracting investments into a country and resulting in the economic and social

development in the region there is stiff competition between major ports to attract the best of

deals in import , export , transshipment etc.. With the commissioning of vallarpadam container

transshipment terminal cochin port will be providing stiff competition to the other container

ports in the Indian ocean region like Colombo port(Srilanka) , Salalah port(Oman) and the port

of Singapore(Singapore). Hence it is imperative that a study is conducted on the economic gains

the new container terminal will bring to India and the competitive features that will give cochin

port an edge over the other major container ports in the region in attracting major share of

container cargo.

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RESEARCH METHODOLOGY

The various objectives of the this study was

To analyze the impact of vallarpadam terminal on the economic growth of

india

To do a comparison study between vallarpadam terminal with major hub

ports in the Indian ocean region.

Primary Data

The Primary data are collected through informal personnel interviews with the

various officials of Cochin Port Trust, officials of Dubai Port World, Shipping Lines, Shipping

agents etc.

Secondary Data

The main method of data collection is secondary in nature. The data are

collected from the Administration report, Budget report and annual report of Cochin Port Trust,

report of Consultant Engineering Services, company records of Dubai Port World and Cochin

chamber of commerce and from the internet.

Analysis

The secondary data collected was analysed with data analyze tool, Microsoft Excel.

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CHAPTER 2

PORT AND SHIPPING CONCEPTS

Backhaul

To haul a shipment back over part of a route that it has already traveled; return movement of

cargo, usually opposite from the direction of its primary cargo destination.

Ballast keel

A heavy keel fitted to vessels to lower the center of gravity and improve stability.

Ballast tanks

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Compartments at the bottom of a ship that are filled with liquids for stability and to make the

ship seaworthy.

Beam

The width of a ship.

Berth

A place in which a vessel is moored or secured; place alongside a quay where a ship loads or

discharges cargo.

Berth term

Shipped under a rate that does not include the cost of loading or unloading.

Berth dues (or quay dues or dockage)

Charges for the use of a berth. Typically assessed based on the duration of a vessel’s stay and

length overall (LOA).

Bill of lading

A document that establishes the terms of contract between a shipper and a transportation

company. It serves as a document of title, a contract of carriage, and a receipt for goods.

Bond port

Port of a vessel’s initial customs entry to any country; also known as first port of call.

Bonded warehouse

A warehouse authorized by customs authorities for storage of goods on which payment of duties

is deferred until the goods are removed.

Breakbulk

Loose, non-containerized cargo stowed directly into a ship’s hold.

Broker

A person who arranges for transportation of loads for a percentage of the revenue from the load.

Build-operate-transfer (BOT)

A form of concession where a private party or consortium agrees to finance, construct, operate

and maintain a facility for a specific period and transfer the facility to the concerned government

or port authority after the term of the concession. The ownership of the concession area (port

land) remains with the government or port authority during the entire concession period. The

concessionaire bears the commercial risk of operating the facility.

Build-own-operate-transfer (BOOT)

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A form of concession where a private party or consortium agrees to finance, construct, own,

operate and maintain a facility for a specific period and transfer the facility to the concerned

government or port authority after the term of the concession. The ownership of the concession

area (port land) vests in the private party or consortium during the entire concession period and is

transferred to the government or port authority at the end of the concession period. As with the

BOT, the concessionaire bears the commercial risk of operating the facility.

Bulkhead

A structure to resist water; a partition separating one part of a ship from another part.

Bulk vessel

All vessels designed to carry bulk cargo such as grain, fertilizers, ore, and oil.

Bunkers

Fuel used aboard ships.

Cabotage

Shipments between ports of a single nation, frequently reserved to national flag vessels of that

nation.

Cargo tonnage

Ocean freight is frequently billed on the basis of weight or measurement tons. Weight tons can

be expressed in terms of short tons of 2,000 pounds, long tons of 2,240 pounds, or metric tons of

1,000 kilograms (2,204.62 pounds). Measurement tons are usually expressed as cargo

measurements of 40 cubic feet (1.12 cubic meters) or cubic meters (35.3 cubic feet).

Carrier

Any person or entity who, in a contract of carriage, undertakes to perform or to procure

the performance of carriage by sea, inland waterway, rail, road, air, or by a combination of such

modes.

Cartage

Intraport or local hauling of cargo by drays or trucks (also referred to as drayage).

Chassis

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

Clearance

The size beyond which vessels, cars, or loads cannot pass through, under, or over bridges,

tunnels, highways, and so forth.

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Cleat

A device secured on the floor of a container to provide additional support or strength to a cargo-

restraining device, or a device attached to a wharf to secure mooring lines.

Common carrier

A transportation company that provides service to the general public at published rates.

Concession

An arrangement whereby a private party (concessionaire) leases assets from an authorized public

entity for an extended period and has responsibility for financing specified new fixed

investments during the period and for providing specified services associated with the assets; in

return, the concessionaire receives specified revenues from the operation of the assets; the assets

revert to the public sector at expiration of the contract.

Container

Steel or aluminum frame forming a box in which cargo can be stowed meeting International

Standard Organization (ISO)-specified measurements, fitted with special castings on the corners

for securing to lifting equipment, vessels, chassis, rail cars, or stacking on other containers.

Containers come in many forms and types, including: ventilated, insulated, refrigerated, flat rack,

vehicle rack, open top, bulk liquid, dry bulk, or other special configurations. Typical containers

may be 10 feet, 20 feet, 30 feet, 40 feet, 45 feet, 48 feet, or 53 feet in length, 8 feet or 8.5 feet in

width, and 8.5 feet or 9.5 feet in height.

Container freight station

A dedicated port or container terminal area, usually consisting of one or more sheds or

warehouses and uncovered storage areas where cargo is loaded (“stuffed”) into or unloaded

(“stripped”) from containers and may be temporarily stored in the sheds or warehouses.

Container pool

An agreement between parties that allows the efficient use and supply of containers; a common

supply of containers available to the shipper as required.

Container vessel

Ship equipped with cells into which containers can be stacked; containerships may be full or

partial, depending on whether all or only some of its holds are fitted with container cells.

Container terminal

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An area 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).

Container yard

A container handling and storage facility either within a port or inland.

Contract carrier

Any person not a common carrier who, under special and individual contracts or agreements,

transports passengers or cargo for compensation.

Cut-off time (closing time)

The latest time a container may be delivered to a terminal for loading to a scheduled barge,

vessel, train, or truck.

Daily running cost

Cost per day of operating a ship.

Deconsolidation point

Place where cargo is ungrouped for delivery.

Demurrage

A penalty charge against shippers or consignees for delaying the carrier’s equipment beyond the

allowed free time. The free time and demurrage charges are set forth in the charter party or

freight tariff.

Dock or quay

A structure attached to land to which a vessel is moored.

Draft (or draught)

The depth of a ship while in the water. Measured as the vertical distance between the waterline

and the lowest edge of the keel.

Dredging

Removal of sediment to deepen access channels, provide turning basins for ships, and maintain

adequate water depth along waterside facilities.

Dry bulk

Loose, mostly uniform cargo, such as agribulk products, coal, fertilizer, and ores, that are

transported in bulk carriers.

Electronic data interchange (EDI)

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Transmission of transactional data between computer systems.

Feeder service

Transport service whereby loaded or empty containers in a regional area are transferred to a

“mother ship” for a long-haul ocean voyage.

Fixed costs

Costs that do not vary with the level of activity. Some fixed costs continue even if no cargo is

carried; for example, terminal leases, rent, and property taxes.

Foreign trade zone

A free port in a country divorced from customs authority, but under government control.

Merchandise, except contraband, may be stored in the zone without being subject to import duty

regulations.

Forty-foot equivalent unit (FEU)

Unit of measurement equivalent to one forty foot container. Two twenty-foot containers (TEUs)

equal one FEU.

Free trade zone

A zone, often within a port (but not always), designated by the government of a country for duty-

free entry of any non prohibited goods. Merchandise may be stored, displayed, or used for

manufacturing within the zone and re exported without duties being applied. Also referred to as

free port.

Gantry crane

A 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.

Gateway

A point at which freight moving from one territory to another is interchanged between

transportation lines.

Grounding

Contact by a ship with the ground while the ship is moored or anchored as a result of the water

level dropping, or when approaching the coast as a result of a navigational error.

Harbor dues (or port dues)

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Charges by a port authority to a vessel for each harbor entry, usually on a per gross tonnage

basis, to cover the costs of basic port infrastructure and marine facilities such as buoys, beacons,

and vessel traffic management system.

Hold

A ship’s interior storage compartment.

Liner

A vessel sailing between specified ports on a regular basis.

Mixed cargo

Two or more products carried on board one ship.

Mobile crane

General purpose crane capable of moving on its own wheels from one part of a port to another.

Moor

To attach a ship to the shore by ropes.

Panamax

Maximum beam that allows vessels to pass through the locks of the Panama Canal (specifically

used for dry bulk and container vessels).

Pilferage

Stealing of cargo.

Pilotage

The act of assisting the master of a ship in navigation when entering or leaving a port or in

confined water.

Pilotage dues

Fee payable by the owner or operator of a ship for the services of a pilot; the fee is normally

based on the ship’s tonnage, draft, or length.

Platform (or flat)

A shipping container without sides, ends, or a roof. Normally 20 or 40 feet long, it is used for

awkwardly shaped cargo that cannot fit on or in any other type of container.

Reefer

Refrigerated container or vessel designed to transport refrigerated or frozen cargo.

Relay

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To transfer containers from one ship to another.

Ro/ro

A shortening of the term “roll-on roll-off.” Ro/ro is a cargo handling method whereby vessels are

loaded via one or more ramps that are lowered on the quay.

Stevedore

Individual or firm that employs longshoremen (or dockers, dock workers, or port workers) to

load and unload vessels.

Terminal charge

A charge made for a service performed in a terminal area typically referring to handling

associated with receipt, delivery, or inspection of cargo via land-based operations.

Throughput charge

The charge for moving a container through a container yard off of or onto a ship.

Top off

To fill a ship that is already partly loaded with cargo. Typically occurs where there is a draught

restriction at the first load port—the ship loads a quantity of cargo corresponding to the

permissive draught, then fills up at the second port where there is no restriction.

Top stow cargo

Goods that are stowed on top of all others in a ship’s hold because of their relatively low density

and the probability that they would be damaged if overstowed.

Toplifter

Forklift truck capable of lifting a container by means of its spreader.

Towage

Charges for the services of tugs assisting a ship or other vessels in ports.

Tramp line

An ocean carrier company operating vessels on other than regular routes and schedules.

Transshipment

A distribution method whereby containers or cargo are transferred from one vessel to another to

reach their final destination, compared to a direct service from the load port of origin to the

discharge port of destination. This method is often used to gain better vessel utilization and

thereby economies of scale by consolidating cargo onto larger vessels while transiting in the

direction of main trade routes.

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Transshipment port

A port where cargo is transferred from one carrier to another or from one vessel of a carrier to

another vessel of the same carrier without the cargo leaving the port.

Turnaround time

The time it takes between the arrival of a vessel and its departure from port; frequently used as a

measure of port efficiency.

Twenty-foot equivalent unit (TEU)

Container size standard of twenty feet. Two twenty-foot containers (TEUs) equal one FEU.

Container vessel capacity and port throughput capacity are frequently referred to in TEUs.

Unitization

The consolidation of a quantity of individual items into one large shipping unit for easier and

faster handling through methods such as palletizing, stripping, slinging and containerization.

Unloader

Port equipment employed to unload ships carrying dry bulk cargo. (Note: Small movable and

hoistable unloaders are sometimes referred to as “vacuvators.”)

Unmoor

To remove the ropes that attach a ship to the shore.

Unstuffing (or stripping)

Unloading of a container.

Vessel traffic management system

Vessel control and management system (VTMS) usually under the authority of the harbormaster,

comprising equipment (such as radars, tracking software, and radio communications), personnel

(traffic operators), and regulations. Most larger maritime ports have relatively advanced vessel

traffic management systems for maritime safety, protection of the environment, and coordination

of marine services.

Warehouse

Covered area for the reception, delivery, consolidation, distribution, and storage of cargo.

Wharfage

The charge that an owner of a facility (terminal or port) charges for the movement of cargo

through that facility.

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CHAPTER 3

PROFILES

Industry profile

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In an era of economic globalization, ports are evolving rapidly from being traditional land

/sea interfaces to providers of complete logistics networks. That is, ports have had to face

many challenges due to unpredictable environmental changes and trends in the shipping,

port and logistics industries. Most ports in the world have attention to these challenges

and emerging issues, such as:

globalization of manufacturing and outsourcing.

Introduction of the super mega size containership.

global trends of logistics network restructuring and reposition

of regional and local distribution centre.

Increase of productivity and efficiency in ports.

Rapid growth in volume of world seaborne freight, especially

container etc..

To cope with these challenges and emerging issues, ports across

the world have been trying to develop their physical infrastructures, especially container

terminals and related facilities, and to expand their port hinterland through introducing

free trade zones with a hope of developing hub ports and international logistics centres.

The first container ship was the Ideal-X,

a converted T-2 tanker, owned by Malcom McLean, which carried 58 metal containers

between the port of Newark, New Jersey and the port of Houston, Texas, on its first

voyage, in April 1956.

The container terminal is the physical link between ocean and land

modes of transport and a major component of the containerization system. Maritime

container terminals tend to be part of a larger port which can be found situated around

major harbours. And also the container terminals usually provide storage facilities for

both loaded and empty containers. The industry is changing rapidly, with new structures

emerging in relations between shipping lines, terminal operators and cargo owners. In the

most general sense productivity measures output per unit of input. Container terminal

productivity deals with the efficient use of labour, equipment and land.Terminal

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http://en.wikipedia.org/wiki/Port

productivity measurement is a means of quantifying the efficiency of the use of these

three resources.

There are close to 600 container ports across the world with an estimated

combined handling capacity of 380 million TEU.The world busiest container ports are

Port of Singapore, Port of Hong Kong, Port of shanghai, Port of Shenzhen, Port of

Rotterdam, Port of Dubai etc.The largest ports, those that can handle in excess of 1

million TEU per annum,account for nearly two thirds of global capacity. By 2010

Shanghai container throughput is expected to have surpassed Hong Kong, currently the

world’s largest port, but by 2020 Shanghai is expected to be overtaken by Shenzhen to

become the world’s largest container port. Shanghai and Shenzhen are expected by 2020

to be moving 56.2 million and 57.9 million TEU respectively.

The container port and terminal business is changing rapidly. Against a

background of globalisation-driven rapid demand growth, the sector has been attracting

massive new inward investment - both from operating companies and external investors.

This means that the pressures on terminal operations and development strategies are

changing very rapidly. In addition, the general political environment within which

terminals are operated is becoming much more environmentally sensitive. All these

factors combine to place very great pressures on the sector.

Organization profile

History

The Port of Cochin was developed during the period 1920-1940 due to the

untiring efforts of Sir Robert Bristow. By 1930-31 the Port was formally opened for

vessels up to 30 feet draught. Cochin was given the status of a Major Port in 1936. The

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Administration of the Port got vested in a Board of Trustees on 29th February 1964 under

the Major Port Trusts Act,1963.

Organizational structure

Cochin Port Trust is an Autonomous Body under Govt.of India and is managed

by Board of Trustees constituted by the Govt. of India.The Board is headed by the

Chairman who acts as the Chief Executive Officer. The Govt.of India may from time to

time nominate the Trustees in the Board representing various interests. Chairman is

assisted by the Dy. Chairman who in turn is assisted by Department Heads and officials

of the following departments functioning in the Port.

a) General Administration Department

b) Traffic Department

c) Accounts Department

d) Marine Department

e) Civil Engineering Department

f) Mechanical Engineering Department

g) Medical Department

Port Description

Cochin Port Trust is one of the twelve major Ports in India. Port of Cochin is

located on the south-west coast of India in the state of Kerala. This region generates a

major part of maritime traffic and is situated near the main shipping routes. The port is

situated in the wellington island, which is an artificial island and was created by using

dredged soil. The wellington island divides the backwaters into Ernakulam channel on

the east and Mattanchery channel on the west. The Cochin Port is strategically located on

the East -West trade route, only 11 nautical miles away from the direct sea route tom

Australia and the Far East from Europe. No other port enjoys this closeness to the

maritime highway.

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Cochin is also one of the premier ports in India to introduce containerization in

cargo handling operations as far back as 1973 and it’s the first e-port in India. In recent

years container traffic through the port registered a quantum jump. The introduction of

house stuffing in 1992 and commissioning of the Rajiv Gandhi Container Terminal in

1995 greatly contributed to this significant growth.

FACILITIES AT A GLANCE

Well equipped container terminal

16 berths including 3 Oil jetties

Maximum draft of 12.5 metres

Vast Estate covering 1940 acres including land at Puthuvypeen,

Vallarpadam & South end reclamation area.

1 Dry Dock

Storage Facility

57485 sq.m of covered area and

1,00,000 sq.m of open area

Container Freight Station

10,732 sq.m. of Covered accommodation

Container Stack Yard (IGTPL)

1,300 ground slots including reefer.

Reefer Points (IGTPL)

126 points of 440 Volts

Dry Dock

66m x 12.5m x 4m

Computerized operations

For yard Planning, stacking and billing of Containers

Central Documentation Centre

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For providing Single window clearance for exports

PORT LAYOUT

The entrance to Port is through the Cochin Gut between the peninsular headland Vypeen

and Fort Cochin. The port limits extend up to the entire backwaters and the connecting

creeks and channels. From the Gut the channel divides into Mattancherry channel and

Ernakulam Channel, leading to west and east of Willingdon Island respectively and

berthing facilities for ships have been provided in the form of wharves, berths, jetties and

stream moorings alongside these channels.

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Dubai Port World ltd.

DP World is one of the largest marine terminal operators in the world, with 49 terminals and 12

new developments across 31 countries. Its dedicated, experienced and professional team of

nearly 30,000 people serves customers in some of the most dynamic economies in the world.

DP World aims to enhance customers’ supply chain efficiency by effectively managing

container, bulk and other terminal cargo.

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DP World was formed in September 2005 with the integration of the terminal operations of the

Dubai Ports Authority (DPA), which was focused on the UAE ports of Rashid and Jebel Ali, and

DPI (Dubai Ports International) which had been set up to export this success internationally.

When it was first established in 1999, DPI had initially applied its expertise to managing ports in

the Middle East, India and Europe. Its first project was at Jeddah Islamic Port (in 1999), where it

collaborated with its local partner on the management and operation of the South Container

Terminal (SCT). DPI then went on to develop successful operations at the ports of Djibouti

(2000), Vizag, India (2002) and Constanta, Romania (2003). In January 2005, DPI transformed

its network with the strategic acquisition of CSX World Terminals (CSX WT), the international

terminal business of CSX Corporation. This acquisition gave the company a strong presence in

Asia with major operations in Hong Kong and China as well as operations in Australia,

Germany, Dominican Republic and Venezuela.

In February 2005 DP World signed an agreement with the Cochin Port Trust (CoPT) to

construct, develop and operate an international container transhipment terminal at Vallarpadam,

Kochi, India. It is the largest single operator container terminal currently planned in India and the

first in the country to operate in a special economic zone. The new terminal will make Kochi a

key centre in the shipping world reducing India’s dependence on foreign ports to handle

transshipment.

They took another giant leap forward with the acquisition of P&O in March 2006, expanding our

portfolio of terminals and adding P&O Maritime Services to the group. The combined container

throughput of both companies for 2005 was more than 35 million TEU across terminals from the

Americas to Asia. This grew to nearly 42 million TEU in 2006. The acquisition also brought

with it an exciting pipeline of projects that will continue our future expansion, independent of

acquisitions, across key markets globally.

In 2009, DP World handled more than 43.4 million TEU (twenty-foot equivalent container units)

across its portfolio from the Americas to Asia. With a pipeline of expansion and development

projects in key growth markets, including India,China and the Middle East, capacity is expected

to rise to around 95 million TEU over the next ten years.

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International Container Transhipment Terminal (ICTT)

India's transshipment gateway is under construction at Vallarpadam near Kochi by Dubai Ports

World, world's biggest port operator.

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On the 16th February 2005, DP World announced that it has formally signed an agreement with

the Cochin Port Trust (CoPT) to construct, develop and operate an International Container

Transhipment Terminal (ICTT) – An India Gateway Terminal – at Vallarpadam.

The project was formally launched with the laying of the foundation stone by Mr. Manmohan

Singh, the Hon’ble Prime Minister of India. The ceremony was attended by Dr. Jacob Thomas,

Chairman, CoPT and Mr. Sultan Ahmed Bin Sulayem, Executive Chairman, DP World. The

proceedings were overseen by the Hon’ble Minister of Shipping, Government of India, Mr.T.R.

Baalu, the Hon’ble Chief Minister for Kerala, Mr.Oommen Chandy and His Excellency, the

Governor of Kerala, Mr. R.L. Bhatia.

‘Vallarpadam’ is the largest single operator container terminal currently planned in India and the

first in the country to operate in a special economic zone. The new terminal will make Cochin a

key centre in the shipping world reducing India’s dependence on foreign ports to handle

transhipment. Approval for the agreement was given by the Cabinet Committee of Economic

Affairs of the Government of India, Ministry of Finance and meanwhile, the DP World will

manage and subsequently transfer its operations at the ‘Rajiv Gandhi Container Terminal’

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(RGCT) in Cochin Port to the new terminal upon its completion. The DP World has been granted

a 38-year concession for the exclusive operation and management of the site.

Construction of the Terminal is expected to be completed in four years and commercial

operations to be started within a year of completion. The first phase of the new Terminal will

have a capacity of 1 million TEUs which consists of 600 metres of quay, six Super Post Panamax

Quay Cranes and an on-dock railhead serviced by rail-mounted gantry cranes. Construction of a

new four lane bridge and highway access to the ’golden quadrilateral’ road network is already

underway. Vallarpadam will be expanded ahead of demand to eventually total 1.8 km of quay

and at least 16 Quay Cranes capable of handling the largest vessels afloat, with associated yard-

handling equipment and a capacity of 3 million TEUs.

The total cost of the project is estimated at US$500 million and will be funded by DP World

through non-recourse debt funding. The debt is provided by a consortium of banks led by the

Infrastructure Development Fund Company (IDFC), set up to provide growth capital for

infrastructure projects in India.

With the finalization of this agreement, the DP World has taken over the management and

operation of the existing container handling facility at the RGCT prior to the transfer of its

operations to the new terminal upon its completion. DP World will actively manage and invest in

the facility focusing on improving productivity, investing in quayside and yard-handling

equipment and implementing state-of-the-art IT systems. DP World has estimated that the total

initial investment required will be approximately US$20 million which includes the immediate

provision of four RTGs and two Mobile Harbor Cranes to the Terminal - to improve yard

handling, truck turnaround time and quayside operations.

Strategically located on the main east-west global shipping lines and offering draft of about 16

m, Cochin is destined to develop as the premier gateway to southern India, as also offering an

alternative to Sri Lanka and Singapore for containers being transhipped for the Indian market.

Port of Singapore

The Port of Singapore refers to the collective facilities and terminals that conduct maritime

trade handling functions in Singapore's harbour sand which handle Singapore's shipping.

Page | 26

Currently the world's busiest port in terms of total shipping tonnage, it also tranships a fifth of

the world's shipping containers as the world's busiest container port, half of the world's annual

supply of crude oil, and is the world's busiest transshipment port. It was also the busiest port in

terms of total cargo tonnage handled until 2005, when it was surpassed by the Port of Shanghai.

Thousands of ships drop anchor in the harbour, connecting the port to over 600 other ports in 123

countries and spread over six continents.

The Port of Singapore is not a mere economic boon, but an economic necessity due to the fact

that Singapore is lacking in land and natural resources. The Port is critical for importing natural

resources, and then later re-exporting them after they have been refined and shaped in some

manner, for example wafer fabrication or oil refining to generate revenue. The Straits of

Johor are currently impassable to any ship as the Johor-Singapore Causeway links Singapore to

Malaysia.

The Port of Singapore's PSA terminals include four container terminals, operated as one

seamless facility, located at Pasir Panjang, Keppel, Brani, and Tanjong Pagar. The newest

terminal at Pasir Panjang can accommodate the latest mega-container vessels carrying over 13

thousand TEUs. PSA Singapore Terminals is developing 23 container berths at the Port of

Singapore's Pasir Panjang terminal, and another 16 berths will be added by 2018, bringing total

container-handling capacity at the Port of Singapore for 50 million TEUs per year.

Page | 27

PSA Singapore Terminals also manages two multi-purpose terminals at Pasir Panjang at the

Sembawang Wharves. These Port of Singapore terminals offer many port-related services

including warehouses, open storage, and facilities for breakbulk and specialized cargoes. The

Port of Singapore's Asia Automobile Terminal (Singapore) makes PSA terminals a fast-growing

major automotive transshipment hub for the region.

Port Location: Singapore

Port Name: Port of Singapore

Port Authority: Maritime and Port Authority of Singapore (MPA)

Latitude: 1° 17' 34" N

Longitude: 103° 43' 31" E

Port Type: Deepwater Seaport

Port Size: Very Large

Page | 28

Port of Singapore Authority(PSA)

The Port of Singapore Authority (PSA) was formed on 1 April 1964 to take over the functions,

assets and liabilities of the Singapore Harbour Board. With the development of Jurong Industrial

Estate, the Jurong Port was opened in 1965. Further expansion followed in 1971 when the PSA

converted the British Naval Base Store Basin into the Sembawang Wharves. Singapore became

the first port in South-East Asia to accommodate a third-generation container vessel with the

opening of a container berth at Tanjong Pagar on 23 June 1972. Pasir Panjang Wharves was set

up in 1974.

At that time, the PSA operated five maritime gateways: Keppel Wharves, Jurong Port,

Sembawang Wharves, Tanjong Pagar Container Terminal and Pasir Panjang Wharves. There

were about 12 km of wharves and more than 1.5 million sq m of warehouses. Lying at the

crossroads of international ocean-going trade routes, the Port of Singapore receives an average of

140 thousand vessels per year carrying about 30 million containers, 500 million tons of cargo,

and a million cruise passengers. The Port of Singapore is proud of its advanced technology,

allowing the MPA to provide reliable, efficient, and secure services 24 hours a day.

Terminals

Tajong Pagar Terminal

Page | 29

Container births 8

Quay length(m) 2300

Area(ha) 85

Max depth at chart datum(m) 14.8

Quay cranes 29

Keppel Terminal

Container births 14

Quay length(m) 3200

Area(ha) 100


Quay cranes 42

Page | 30

Brani Terminal

Container births 9

Quay length(m) 2600

Area(ha) 80

Max depth at chart datum(m) 15

Quay cranes 32

Pasir Panjang Terminal

Container births 23

Quay length(m) 7900

Page | 31

Area(ha) 335


Quay cranes 87

Performance

TOTAL CONTAINER THROUGHPUT (in '000 TEUs)

2002 16,940.92003 18,410.52004 21,329.12005 23,192.22006 24,792.42007 27,935.52008 29,918.22009 25,866.6

2010

Salalah port (Oman)

Page | 32

Jan 2,332.3Feb 2183.2

Mar 2409.6

Apr 2320.8

Port of Salalah is a world class transshipment hub in the West Central Asia Region. Situated

right at the major East-West shipping lanes, Salalah enjoys an attractive strategic location in the

heart of the Indian Ocean Rim and caters to some of the world’s largest ocean going vessels. The

Salalah Port Project is the largest privatization project in Oman and is hailed as a role model for

achieving the Sultanate's strategic direction of Diversification, Omanisation and Privatization.

The success of the port's development has been an engine for economic development in the

southern region of Oman, Dhofar and has created a significant number of job opportunities for

local nationals in addition to new business opportunities for local companies in the region.

The Port of Salalah is a common-user multi-purpose port, with facilities to handle bulk cargo,

containers, general and liquid cargoes and in addition offers value added services such as

bunkering, container repairs, a container freight station, warehousing and ship repairs. The

majority of the business comes from the container terminal, which handled about 2.64 million

TEU and more than 1,500 vessels in 2007.

Today the capacity of the container terminal is 4.5 million TEU. A tender for detailed design of

Terminal 2 which has just been launched which will add 1350 meters to the existing 2,205

meters linear quay.

Location detailsCountry Oman

Province/governorate Dhofar

Page | 33

Town or city (closest) Salalah

Port Name Salalah Port

Latitude (N/S Decimal Degrees) 16°56.50 N

Longitude (E/W Decimal Degrees) 054°05.4'.00 E

Container Terminal

Port of Salalah is one of the fastest growing terminals in the West Central Asia region situated

right at the major East-West shipping lanes. With the opening of the 5th deepwater berth in May

last year and the recent completion of berth 6, the annual throughput capacity has grown from

2.5 million TEU in 2006 to 4.5 million TEU in 2008.

With the increase in demand for port facilities in this region, the Port of Salalah has made

significant investment in providing new facilities to ensure it remains an industry leader. They

have, invested in eight more Super Post-Panamax gantry cranes to augment the 17 cranes that are

already operating. These machines, with their ability to reach containers stacked 24-across on

deck, can service the largest vessels in the world. This, the opening of the two new berths and

significant investment in new port handling equipment has brought the port’s capacity to about 6

million TEU annually by mid 2009.

Page | 34

The constant expansion and development of the Port of Salalah plays an important role in

meeting increasing customer requirements; at the same time, it also ensures increased efficiency

and faster vessel turnaround times. The Port’s growth strategy lays the foundation for success in

reaching its goal of becoming a main global transhipment hub. A minimum of three further

container berths have been approved, which will give us a total of nine berths, totaling 3,555

metres in length. Berths 7, 8 and 9 are known as “Terminal 2”. This project will add an

additional 1,350 metres of quay wall and another 3 million TEU to the Port’s annual capacity.

Berth 7 is expected to be operational during the first quarter of 2011, with Berths 8 and 9

scheduled for completion during the following year.

Port Limits

From the highest point of the high tide where the point intersect the coast at 054° 04 Min East

longitude and from that point in the direction of true South to the point intersecting the line 16 °

58 Min North latitude and from this point in the direction of true EAST to the point intersecting

the 54° 5.40 Min East longitude from that point in the direction of true South to the point

intersecting the line 16 ° 54 Min North latitude and from that point in the direction of true west

to the point intersecting the line 53° 58 Min East longitude and from this point in the direction of

true North to the point intersecting coastline and from this point following the coast back to the

starting point includes all wharves, quays, piers, landing places, decks, storage areas, road, and

buildings under the operational or administrative control of the Port authority.

Pilot Boarding Ground

Page | 35

Port Pilot will board the inbound vessel 3.4 NM East of the Breakwater “Lat. 16°56.50 N Long

054°05.4'.00 E”

Fairway & Approach Channel

Port of Salalah is entered from NE between East Breakwater and the Container Terminal.

Vessels approaching from the Fair way pass between a pair of light buoys (Port and Starboard)

and then between the head of East Breakwater and a light buoy 0.2nm NW.

Port Control

You can contact the Port of Salalah Port Control on:

VHF: Ch 12, 16

Tel: +968 2321 9052 / 2321 9500 ext 423/424

Email: [email protected]

Fax: +968 2321 9253

Pilotage

Pilotage is compulsory and pilots may board from launch or tug and are available 24 hours.

Pilots can be provided at 30 minutes notice.

Vessels exempt from pilotage are:

Vessels in the service of the Navy of the Sultanate of Oman

Any vessel under 200 gross tones

Country craft

Tenders of any recognized buoyage, lighting or navigational aid service

Not withstanding the above items, the Harbor Master may insist on the use of a Pilot in the

interest of Port Safety, in which case the appropriate tariff charges will apply.

Pilot boards in position 16° 57'N 54°04'E, 3nm East of the Breakwater Light. or as directed by

Salalah Port Control.

Anchorage

Three Anchorage areas are designated for Vessels calling at the Port of Salalah:

Page | 36

Area "A" for inbound vessels awaiting berthing. Area bounded by the following

coordinates:

Lat. 16°56'5 N Long 054°02'0 E

Lat. 16°56'5 N Long 054°04'0 E

Lat. 16°55'5 N Long 054°04'0 E

Lat. 16°55'5 N Long 054°02'0 E

Area "B" for vessels requiring off shore services. Area bounded by the following

coordinates:

Lat. 16°55'5 N Long 054°04'0 E

Lat. 16°55'5 N Long 054°02'0 E

Lat. 16°55'0 N Long 054°02'0 E

Lat. 16°55'0 N Long 054°04'0 E

Area "C" for ship to ship bunkering operations. Area bounded by the following

coordinates:

Lat. 16°55'0 N Long 054°02'0 E

Lat. 16°55'0 N Long 054°04'0 E

Lat. 16°54'0 N Long 054°04'0 E

Lat. 16°54'0 N Long 054°02'0 E

Area "D" for inbound large vessels waiting to be berthed. Bounded by the following

coordinates

Lat. 16°56'0 N Long 054°04'.00 E

Lat. 16°56'0 N Long 054°05'.40 E

Page | 37

Lat. 16°54'0 N Long 054°04'.00 E

Lat. 16°54'0 N Long 054°05’.40 E

Charts

BA 2895, 2896 and Oman 250, 1200, 1201 Admiralty pilot NP 4.

Port Approach

Vessels approaching the Port of Salalah meet the Pilots one mile east of the Fair Way Buoy (16

Degree 56.96 N and 54 Degree 02.64 E) and pass between a pair of light buoys (Port &

Starboard) leading to the entrance between East Break water and the Container Terminal.

Tidal Range & Flow

Tidal range averages 1.0m to 2.0m however; during the monsoon season (June to August) waves

can be up to 4.0 at max.

Dock Water Density

Density: 1.025.

Charts

BA. 2895,2896 and Oman 250,1200,1201 Admiralty Pilot NP 64.

Berth NoLength (m)

MPD*

1, 2, 3, 4 307 15.5 5, 6 488 17.521, 22, 23 173 924 200 6.825 115 4.326, 27, 28 115 4.129 260 2.630, 31 300 15Oil Jetty 130 10.0Ramp Lct 45 2.5

Weather

Prevailing winds: Monsoon wind, direction 230 deg, speed max

15-20kn during the period of June to August

Page | 38

November to March: Temperatures approx 24°C-34°C

March to May: Spring, temperatures approx 20° to high 30°

June to August: Summer, temperatures vary between 20° to 30° due to the

monsoon.

TugsFour tugs of 55 Ton Bollard pull are available.

Port Logistics

The Port of Salalah Container Terminal has 6 fully operational berths along 2,205 m of quay.

The Container Terminal is build and equipped to handle the world's largest container vessels

with its 16.5 - 18.5 m approach channel and is ready to welcome the next generation of vessels.

With opening of Berth 5 in May 2007 and inauguration of Berth 6 in May 2008, the Port of

Salalah has expanded the Container Terminal with 970 metres quay wall and increased the

capacity from 2.5 million TEU to 4.5 million TEU per annum, to meet customer demands and

prepare for the future. The expansions and planned growth of the Container Terminal does not

stop here and berth 7, 8 and 9 are already on the drawing board, as well as 4 additional Super

Post Panamax Cranes have been commissioned.

The Port of Salalah General Cargo Terminal has facilities to handle most other types of cargo

including general cargo, bulk oil, roll on/roll off cargo and also caters to cruise vessels. There are

facilities for over 980 refrigerated containers. The General Cargo Terminal has 12 berths ranging

in length from 115 meters to 600 meters with drafts up to16 meters and has a dedicated oil pier.

The General Cargo Terminal is also under expansion including 500 metres additional berth and

212,000 m2yard area.

The port operates 24 hours a day, seven days a week, divided in day and night shifts.

Container Terminal

The Container Terminal offers true one-stop-shopping with the full range of main and ancillary

services:

Stevedoring

Reefer Services

Page | 39

Container M&R

CFS, warehousing and real estate leasing

Bunkering through BP Marine

Cargo inspection through Henderson International

Several ships chandlers

Customs on-site

Port of Salalah has invested a great deal in superstructure equipment to provide an efficient,

effective, competitive and reliable service to its customers.

6 fully operational berths

Total yard area of 765,000 m2

2,205 m quay wall

16 m harbor depth

16.5-18.5 m approach channel

500 m turning basin

Vessel tracking system

17 Super Post Panamax Gantry Cranes

7 speed loaders

7 fork lifts

45 rubber tyre gantry cranes

123 tractors and 158 trailers

3 tugs

9 reach stackers

2 top loaders

NAVIS yard and vessel planning system

Radio data terminals

VHF radios

Multi cargo consolidation (Container Freight Station)

Container repair facility

Reefer wash facilities

Emergency power plant 2.8 MW

2 fuel tanker.

Page | 40

1 water tanker

Container Freight Station

In order to meet customer requirements at a modern container terminal the Port of Salalah

established a CFS (Container Freight Station) in 2002. It plays a vital role in adding value to its

existing services offered at the port.

The Port of Salalah manages and operates a Container Freight Stations (CFS) within the port

boundaries providing groupage services of Less than Container Loads (LCL) for exporters as

well as de-consolidation services especially for importers requiring distribution.

CFS is split into outbound & inbound Cargo.

Out Bound

Cargo receiving

Cargo Storage

Cargo consolidation/vanning

In Bound

Cargo Devanning

Cargo Storage

Cargo transfer to customers

Value Added Services

Palletization

Cross-stuffing

Heavy Cargo Handling

Damaged cargo tranloading

Inspection/ Surveying

Damaged Pallet Repairing

Marking & Labeling

Page | 41

Sea-Air cargo handling

Port of Colombo , Srilanka

The largest and one of the busiest ports in Sri Lanka, the Colombo Harbour is located in this city.

Colombo was established primarily as a port city during the colonial era, with an artificial

harbour that has been expanded over the years. Located on the southeast side of the island, the

Colombo Port facilities include two terminals, Jaya Container Terminal (JCT) and Queen

Elizabeth Quay (QEQ).

The Port of Colombo lets out into the Gulf of Mannar and is considered Sri Lanka’s international

hub for containers. Container offload time is approximately 3-4 days and the heaviest traffic days

are Monday, Wednesday and Friday. Warehousing at the port is divided over 9 storage facilities

with a total area of 34.317 m2. Four terminals are currently operated in the Port of Colombo. The

main terminal, Jaya Container, currently operates four main container berths and two feeder

berths. There is approximately 1,292 m of quay wall, 350m of cross-berth quay wall and a

dredged depth of 12-15 m. Capacity for dry container stacking is 44,120 TEU and 1,548 TEU for

reefer container stacking. There are 45.5 hectares of container terminal area and 15,000 m2 of

freight station area. The Unity Container Terminal holds two container berths and one

multipurpose berth. It has a dredged depth 9 – 11m and 590m of quay wall. There are 1.53

hectares of container terminal area and an 8,000 TEU stacking capacity. The South Asia

Gateway Terminal operates berths with a length of 940m and a depth alongside of 15 meters.

The total area is 20 hectares, with 12 hectares of stack area. The Peliyagoda container yard

belong to the SLPA but it is located outside the port, a warehouse is located on the yard.

Location detailsCountry Sri Lanka

Page | 42

Province/governorate Colombo

Town or city (closest) Colombo

Port Name Colombo Port

Latitude (N/S Decimal Degrees) 5 55’N to 9 50’N

Longitude (E/W Decimal Degrees) 79 42’E to 81 52’E

HISTORY

The city of Colombo derives its name from the port of kolomtota (Colombo harbor), which dates

back to the Sinhalese kotte kingdom of the 14th century. Kolomtota was the port first used by

merchants from china and the far east, India and Persia, who came to trade in the island's famous

spices in 1505, however, 443 years of foreign occupation began in Srilanka, when the Portuguese

fleet sailed in to Colombo’s harbor after more than a century and a half, the Dutch followed and

occupied the country from 1656 to 1796. then came the British, ruling the region as a colony

until a few years after world war ii.

It was during the latter part British rule that the port of Colombo was upgraded and converted to

a sheltered harbor. After independence was granted in 1948 the port was expanded with the

construction of the queen Elizabeth quay together with the completion of 16 alongside berths,

transit sheds, and warehouses the 1980’s saw the port undergo rapid modernization with the

installation of cranes, gantries and other staples of a contemporary container terminal. this

progress was to continue in to the 90’s with deepening the access channel and improving

throughput to record levels. to this day, the port of Colombo is rated as one of the top 35 ports in

the world.

Terminals

Unity Container Terminal

Two Container Berths

Page | 43

01 Multi Purpose Berth

-9.0m to -11.0m Dredged Depth

590 Meters of Quay Wall

1.53 Hectares of Container Terminal Area

8000 TEU Stacking Capacity

Inter Terminal Road Link with JCT and SAGT

03 Nos of quayside Container Cranes

08 Nos of RTG on Order

50 Units of Terminal Tractors

Jaya container terminal

4 Container Main Berths & 2 Feeder Berths

1,292m of Quay Wall + 350m of Feeder Berth Quay Wall. 12.0m - 15.0m Dredged

Depth

14 Nos. Quayside Container Cranes (Panamax & Super Post Panamax)

39 Nos. Rubber tired Container Transfer Cranes

4 Nos. Rail mounted Gantry Cranes to stack empty container 8high

45.5 Hectares of Container Terminal Area

48,056 TEU Dry Container Stacking Capacity

1,548 TEU Reefer Container Stacking Capacity

15,000 Sq.m of Container Freight Station Area

Ship Planning System with Electronic Bay Plan Transfers

Direct Link Computer Facilities to the Terminal Users (EDI)

Real time Computer systems for Yard Planning and Yard Operations

Convenient Access to Inland Container Depots and IPZ

Total Pier Frontage

Main Berth Length - 1292mFeeder Berth Length - 350m

Alongside Depth - 12.00 - 15.00m

Capacity

No of slots Stacking Height Max. Capacity

Page | 44

Tue

Dry Containers

JCT 1 (RTG) 1980 One over Three 7920

JCT 2 (RTG) 2184 One over Three 8736

JCT 3 (RTG) 2376 One over Five 14,256

JCT 4 (RTG) 1560 One over Four 9,360

Empty Stacks 814 One over Four 6512

(RTG Planned) 180 One over Eight 1272

Top Lifters 318 One over Four 720

Total Dry Container Capacity

9232 48,056

Reefer Containers

JCT 1 72 One over Two 144

JCT 2 72 One over Two 144

JCT 3 108 One over Three 324

JCT 4 312 One over Three 936

Total Container Capacity 564 1,548

Mobile Equipments

Type of Equipment Make Capacity No. of Units

Container Cranes Mitsui 35.5 6

Mitsui 41.0 8

Top Lifters Caterpillar 35 7

Mitsubishi 28 1

Valmet 25 1

Fantuzzi 10 3

Page | 45

Fork Lifts Mitsubishi 2.5 12

TCM 2.5 3

TCM 2 9

Terminal Tractors 31.8 160

Terminal Trailers 45 foot 24

40 foot 117

20 foot 09

South Asia Gateway Terminals

Berths

Length : 940mDepth Alongside

SAGT-01SAGT-02SAGT-03

15m15m15m

Area

Total Area 20 ha

Stack Area 12 ha

Capacity

Stack Slots Stacking Height Capacity

Reefer 540 Three High 1620

Mobile Equipment

Reach Stackers

Fantuzzi 45t 5ea

Forklift Handlers

Full container Fantuzzi 38t 7ea

Page | 46

Empty container Fantuzzi 8t 2ea

Terminal Tractors

Kalma Ottawa Commando 50 31.8t 30ea

Terminal Trailers

Dutch Lanka - 40' Trailer 55t 30ea

Gantry Crane

Outreach:

Rubber Tyred Gantry Cranes 28ea 51m from C/L quayside railLifting

Post Panamax 03ea

Outreach:

Super Post Panamax 06ea

51m from C/L quayside railLifting Height:

35.5m above quay

Expansions

The Colombo South Harbour Development Project, presently under construction, would be

positioned as the best transshipment cargo handling hub in the South Asia region. he Colombo

South Harbour will mainly focus on handling transshipment cargo in the subcontinent. At

present, the Port of Colombo alone handles 15 per cent of transshipment cargo in the

subcontinent.

The Colombo South Harbour will be located west of the present south-west breakwater in an

area of about 600 hectares.

Page | 47

The harbour will have four terminals of over 1,200m in length each to accommodate three berths

alongside depths of 18m and provision to deepen to 23m to accommodate deeper draft vessels of

the future.

The channel width of the harbour is to be 560m and depth of 20m, with harbour basin depth of

18m and a 600m turning circle. The harbour will boast the latest generation of yard planning and

container handling equipment and techniques.

The project will raise the capacity of the Colombo Port from the existing around four million

TEUs annually to about 12 million. The first terminal is likely to become operational in 2010 and

will have a nominal capacity of 2.4 million TEUs.

The project is part of the Colombo Port Expansion Project, the largest project undertaken by the

Sri Lanka Ports Authority with a $1200 million investment.

It is a Government built-and-owed harbour facility and will have a private-public partnership in

the provision of terminal services.

Competitive factors

Capacity and discharge rates

Capacity Bulk(MT/month) Container(MT/month)

General Cargo(MT/month)

Total handling cap 26,50000 2,50000 3000000

Page | 48

of the portMonthly activity of the port

470.000 200.000 2.220.525

Current monthly activity by wfp.

150

Potential monthly activity by wfp.

1000

Monthly use if augmented.

Port Container Facilities

Container facilities 20’ 40’

Container facilities Yes Yes

Daily off-take capacity(nb of containers)

7000(20’+40’) 7000(20’+40’)

Container Freight Stations Yes Yes

Number of cfs 4 4

Capacity of cfs 60 60

Page | 49

Chapter 4

ECONOMIC IMPACT OF VALLARPADAM CONTAINER TERMINAL

Economic impact of vallarpadam

Page | 50

Maritime trade has been an important source of revenue for the Indian economy over the years.

A major portion of the import and exports to and from India is facilitated through shipping. At

present India consists of 12 major ports with the Mumbai port being the biggest of the lot. Most

of the capacity across these ports facilitate the handling of bulk cargo (liquid bulk , dry bulk ,

break bulk). But recent years has seen a quantum leap in containerized cargo with huge container

ships coming into the picture. The Indian ports handle very less of containerized cargo with not

enough facilities to attract the huge container ships of present. Hence the huge potential of

containerized cargo was not being made use of. In view of changing this scenario around and

bringing India into prominence in global maritime trade map the Indian government entered into

an agreement with global terminal operators Dubai port world to construct, develop and operate

an International Container Transshipment Terminal (ICTT) – An India Gateway Terminal – at

Vallarpadam.

The new vallarpadam container transshipment terminal that will commence shortly will usher in

a new era in maritime trade in India. It’s been developed to handle the largest of container ships

which would turn the Cochin port into the hub port of India and is envisaged to be the premier

hub port in the region challenging the likes of Colombo, Salalah and Singapore ports. It would

undoubtedly result in a lot economic benefits to India and Kerala in particular which shall be

discussed below :-

The depth at the Vallarpadam terminal, together with the latest technology in equipment,

will allow mega container ships such as Emma Maersk, which has a capacity of at least

12,500 TEUs, to call for loading and unloading cargo.

The huge cost involved in deepening and widening the existing shipping channel to

accommodate large container vessels requiring a draught of 13-14 m and the recurring

expenditure to maintain the access channel over about 12 km from the sea.

Larger vessels bring about economies of scale and lower cost of operations for the

shipping lines, which then translates into lower freight rates for exporters, importers.

Page | 51

On commencement of the container transshipment terminal the industrial sector is said to

make gains in excess of 1000crs in the import-export sector.

Besides resulting in financial gains there will be considerable saving of time which will

give a new impetus to the industrial growth in the region. Exports can be delivered much

faster and the same goes for imports which will reach the Indian markets faster.

Since large container ships were not entertained in Indian ports the production cost in the

industrial sector is much higher compared to many of the other Asian countries. This

results in products being comparatively more expensive in the global market. With the

opening of the ICTT at vallarpadam these problems will be solved and Indian products

will be able to sell at competitive prices globally.

70% of the containerized cargo handled at Colombo port is from Indian states at present.

Out of this 60% belongs to the southern states of Karnataka, Tamilnadu etc. With the

starting of the ICTT these states will be able to save up to Rs. 6,000-12,000 per container.

Investments to the tune of a whopping Rs. 21,000 crores is expected to come in at

Vallarpadam SEZ and adjoining areas.

Louis Cruises India, a subsidiary of the 12-ship Louis Cruises fleet, had launched

operations in India using Kochi in Kerala as its homeport. Louis Cruises India will

operate three-day and one-day cruises to the Maldives and Colombo from December to

May 2010 on board the “Aquamarine”, a luxury cruise ship. Nearly 60,000 travelers

could be expected to embark on their voyage from Kochi. This would bring real

economic benefit in addition to generating new jobs for the local community.

It would enhance tourism potential, promotion of hospitality industry and other allied

industries besides creating more job opportunities.

Page | 52

the potential to develop that cargo base appears bright in view of the likely establishment

of a port-based Special Economic Zone, an international bunkering terminal, ship repair

facilities, an international cruise terminal, an SBM terminal for the oil refinery, an LNG

gasification terminal, rail and road connectivity to be funded by the Centre.

Page | 53

Chapter 5

COMPARISON

Page | 54

Determinants of port competitiveness

In order to study the effects of the determinants of port competitiveness, we should first justify

the indicators of port competitiveness. Since the environment in which ports operate has changed

dramatically,ports are affected by various new forces driving global competition, including the

far reaching unitization of general cargo, the rise of mega-carriers, the market entry of logistics

integrators, the creation of network linkages among port operators, the development of inland

transport networks,and so on.

In this context, eight key determinants of port competitiveness are proposed based on the

existing literature. These determinants include

1. port (terminal) operation efficiency level,

2. port cargo handling charges,

3. reliability,

4. port selection preferences of carriers and shippers,

5. the depth of the navigation channel,

6. adaptability to the changing market environment,

7. landside accessibility,

8. product differentiation.

1) Port (terminal) operation efficiency level

Since ships time at ports is an expensive activity, the speed of container handling and consequent

vessel turnaround time is a crucial factor in terms of competitiveness for port authorities and port

operators (Peters, 2001). Thus, substantial productivity improvements are generally required to

enable ports to meet the stringent service requirements of their customers and to obtain

competitive advantages. Productivity is a measure of the efficiency of port or terminal

operations, and accounts for the amount of resources usually required to perform a given task in

a given time. Therefore, the level of efficiency can represent how quickly containers are handled

and how quickly vessels are turned around at ports. The higher the efficiency level of a port or

terminal operation, the more port users are likely to choose it as their port of call, which, in turn,

will make the port gain more market shares.

2) Port cargo handling charges

Page | 55

The price of goods or services is always an important factor that consumers will consider when

selecting products with similar characteristics. This rationale will also happen, or even more

likely, to the services provided by port authorities or port operators since carriers or shippers

think that port charges constitute a significant part of their total transportation costs. In addition,

carriers are also confronted with severely competitive environment in shipping market and must

pursue the ways to reduce the total shipping costs to gain competitive advantages. Nowadays,

port charges become a major source for shipping lines to cut down total operation costs.

Therefore, they usually prefer ports that can offer relative lower service charges,4 which means

that a port with a lower charge is more competitive than its rivals, holding other factors constant.

Since the cargo handling services are most important for port users in terms of total charges,

these charges significantly affect a port’s competitive position.

3) Reliability

That price is an important factor for producers to attain more market shares does not mean that

price can decide all things. Reliability of port operations also influences a port_s performance

(Tongzon, 1995), which in turn will affect the choices of shipping lines and shippers. Reliability

means a steady and predictable performance adapted to shipping lines schedules. If a port

authority or port operator always makes delays during operation process due to strikes,

equipment breakdown, weather, etc, shipping companies and shippers will suffer huge losses due

to these kinds of unreliability. Definitely, carriers and shippers will bypass this kind of ports

even if they provide the most attractive price among their competitors.

4) Port selection preferences of carriers and shippers

Globalization of industry is fast breaking down the traditional practice whereby shipping

companies favored certain ports. Increasingly, carriers and shippers are showing less loyalty to

specific ports. Ports face the constant risk of losing important clients, not because of deficiencies

in port infrastructure or terminal operations, but because the client has rearranged its service

networks or has engaged in new partnerships with other carriers. Thus, this variable is not fully

correlated with port specific variables, such as efficiency and reliability, so it should be included

as an independent port competitiveness indicator.

5) The depth of the navigation channel

To accommodate trade growth and to offer economies of scale in a highly competitive market,

many shipping companies intend to increase the size of their container ships from Panamax5 to

Page | 56

Post-Panamax, or even to the Super Post-Panamax. Increasingly large tonnage, especially of

vessels deployed in the container shipping market, will have significant effects on port

competition. These larger size container ships are always used among loading centers or hub

ports, the kind of port that most ports want to be, to enhance the amount of total throughput. In

many cases, however, insufficient water depths in access channel and port basins prevent some

ports from being a transshipment center.

6) Adaptability to the changing market environment

The market environment in which ports operate has changed significantly, and this continuous

process of change raises the question about the role of port authorities. A successful port must

constantly be prepared to adopt new roles in order to cope with the changing market

environment. For instance, in order to improve terminal operation performance and to integrate

door-to-door transport, many shipping lines want to expand their scope to include terminal

operation. If port authorities cannot realize the importance of this trend, they will lose certain

competitive advantages. That Port of Singapore Authority (PSA) has recently lost its two most

important clients is a convincing example. Thus, seaports that will succeed in the 21 st century

will be those that have a good understanding of customer needs.

7) Landside accessibility

Originally, ships loaded and discharged their cargoes in towns or cities where producers and

consumers are located. Expansion of land transport systems has altered things somewhat. The

days when ships were forced to call at city terminals blocked in on the landside by congested city

street are long gone. New remote coastal terminals with good landside connections, and ports

strategically located close to the main global trade lanes, increasingly offer carriers and shippers

a more appropriate option. Efficiency of inland transport to serve an increasing and most often

disputed hinterland has become a critical factor of ports potential future as well as of their overall

trade growth prospects. Since ports have become a prominent node in integrated logistics chains,

quick and safe access to port facilities from an inland transport system becomes a basic

requirement for port users to evaluate their port selection options.

8) Product (service) differentiation

A differentiation strategy aims at providing specific port services in market niches distinct from

those provided by other ports, offering greater value to the port users. This is so-called

economies of scope. If a port authority or port operator has some specific competencies (e.g.,

Page | 57

advanced information system and high service quality) that are inimitable and durable, it is easier

to achieve competitive advantages than his competitors. Studies have shown the need for product

(service) differentiation in an environment in which total number of containers is steadily

increasing and terminal expansion becoming increasingly difficult.

Page | 58

Tariff

The most important factor determining the competitiveness of a port besides facilities is the Port Tariff. Port charges are generally divided into three broad categories, general tariffs, facility tariffs and service tariffs, each of which are subdivided into a series of individual charges.

a) Conservancy and port duesb) Wharfagec) Berth hire (dock or berth due) d) Transit storage e) Pilotage f) Towage g) Mooring/unmooring (berthing/unberthing) h) Stevedoragei) Warehousingj) Other tariffs

Page | 59

Singapore

Four kinds of port pricing approaches are basically applied in Singapore. PSA Corporation

adopts a market-based approach in that shipping companies are offered special offers according

to the long-term contracts. The port tariff structure of Singapore Port is nearly identified to Port

Tariff Structure Standards.

Navigation group

Tug and pilotage services are provided by the private sector and their charges are not included in

the port tariff.

Berth group

Berth hire is charged in the title of dockage on the basis of length overall of vessel-hours.

Mooring/unmooring is levied as berthing/unberthing services per berthing or unberthing.

Lashing/unlashing charge is levied per container (S$3).

Cargo operations group

Stevedorage consists of the basic rate, rehandling charge, lift on/off charge etc.

Storage charge is subdivided as follows: full/empty/trans-shipment and period.

For the trans-shipment cargoes, the Port of Singapore Authority (PSA) Corporation is

independently responsible for pricing. Port dues have been discounted at a 20 per cent rate since

1996.

Country Port

Name

Port

Code

Local

Currency

THC 20'

Dry

THC 40'

Dry

THC 20'

Reefer

THC 40'

Reefer

SINGAPOR

E

Singapore

,Singapore

SGSIN SGD 190 SGD 280 SGD 250 SGD 360 SGD

Port of Salalah

Marine Charges

The Consolidated Marine Charge shown below is applicable for all vessels calling at a berth on

the container terminal and includes Pilotage, Tugs, Berthing and Unberthing Charges, Port Dues

and daily Sanitary Charge. Rate includes up to 24 hrs free waiting at the anchorage when

available in case vessel arrives ahead of the berth availability.

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(All Charges in US$)

Charges for Containers

Up to 20’ Over 20’

Loaded Containers 75 115

Empty Containers 30 40

Terms & Conditions

• No volume incentive applicable on import / export container rates

• Additional charge of US$ 10 per container for hazardous containers including empty container

with cargo residue, and additional charge of US$ 50 per container for IMO classes 1, 5.2, 6.1,

6.2, 7 and other hazardous cargoes requiring special handling

• Direct delivery is not normally allowed and even if it is, no discount on these rates is applicable

• Non-cellular vessels are not normally handled at the terminal; in case Port agrees to handle

25% additional charge is applicable

• 10% additional charge for Public Holiday working

• Rates include lashing and unlashing charges

• Minimum billing of US$5,000 per vessel call for total loading/unloading of Import/Export and

Transhipment containers

Loading / Discharging of Transhipment Containers




Volume Discount rates are offered on Transhipment Container rates based on total number of

moves within a 12 month period as follows:

More than 10,000 moves Up to 20’ Over 20’



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More than 25,000 moves



More than 50,000 moves



Charges for Refrigerated Containers

Electric Supply / Monitoring of Refrigerated Containers per day 30 per container

Shifting Charges

Within Container Terminal 60 per container

Within Port Area 70 per container

Truck Loading / Unloading

For each loading or unloading 20 per container

Weighing of Containers

Use of Weighbridge 15 per weighment

Charges at CFS (Container Freight Station)

Composite Rate CY to CFS or V V


160 220

Colombo port

The port tariff structure of Colombo port is subdivided in detail, especially in stevedorage related

charges.

Navigation group

For port dues, entering dues and over hour dues and light dues are charged separately.

Pilotage consists of pilotage payable on each arrival and professional pilot fees on the basis of

30,000 DWT.

Anchorage is charged from the fifth day of using anchorage for port entry.

Berth Group

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Berth hire is charged per 100 gross tonnage as dockage. A rental charge for occupying a berth at

a wharf is levied after one hour from completion of discharging/unloading.

Cargo operations group

Harbour tonnage dues are levied on the ship in addition to stevedorage for the laden containers

discharged/loaded.

Movement of container is charged for the movement of containers from ship to marshalling yard.

Lifting-on/lifting-off is charged as mounting & de-mounting containers.

Hiring services consists of hire of forklift truck & cranes and other equipment.

Stevedorage-related charges are subdivided to a very detailed level. It would be possible to assist

users by simplifying them.

STEVEDORING US$ PER 20'

a) Transhipment

1. Discharging / Loading (One way) 37

2. Shut out 25

3. Storage (21 days free of rent and if not shipped

accrue from first day) 5.20

b) Domestic Cargo Operations

1. Discharging / Loading 140

2. Harbour Tonnage Dues 8

3. Mounting / Demounting 25

4. Stuffing & De-stuffing 22

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5. Shut Out 25

6. Export Laden (7 clear days free of rent will accrue from

the 1st day of receipt) 5.20

c) Other Services

1. Sorting of Container 25

2. Change of Status 25

d) MCC within port

1. Stevedoring 37

2. Stuffing & De-stuffing 47.35

e) MCC Outside port

1. 100% T/S 37

2. Local + T/S (inclusive of stuffing charges, but local CBM

should limit to 8) 148

Cochin Port

The tariff rates at the Rajiv Gandhi container terminal are as follows:

India Gateway Terminal Tariff

Normal MT Container Charges

Particular Foreign going Coastal (INR)

Equipment Type 20' 40' 45' 20' 40' 45'

Handling of Quay Crane (in

USD for foreign going) 27.26 40.89 54.52 712.8 1069.2 1425.6

Imp & Exp Stevedoring (in

USD for foreign going) 2.81 2.81 2.81 75 75 75

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Transportation from QC to

yard & Vice versa 237.6 356.4 475.2 142.56 213.84 285.12

Handling at Container Yard

including lift on/off,

delivery/receipt to and from

customers 178.2 267.3 356.4 106.92 160.38 213.84

Container wharfage 124.74 187.11 249.48 74.84 112.27 149.69

Normal FCL Container Charges


Equipment Type 20' 40' 45' 20' 40' 45'

Handling of Quay Crane (in

USD for foreign going) 27.26 40.89 54.52 712.8 1069.2 1425.6

Imp & Exp Stevedoring (in

USD for foreign going) 2.81 2.81 2.81 75 75 75

Transportation from QC to

yard & Vice versa 267.3 400.95 534.6 160.38 240.57 320.76

Handling at Container Yard

including lift on/off,

delivery/receipt to and from

customers 570.24 855.36 1140.48 342.14 513.22 684.29

Container wharfage 594 891 1188 356.4 534.6 712.8

Additional Charges for Reefer Container

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Equipment Type 20' 40' 45' 20' 40' 45'

Per container per 4 hrs or

part thereof (in USD for

foreign going) 3.18 4.76 6.35 138.4 207.58 276.8

The present charges at vallarpadam container terminal are 30-60 % higher compared to charges

at the Rajiv Gandhi container terminal.

Facilities

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Port of Singapore

The Port of Singapore's PSA terminals include four container terminals, operated as one

seamless facility, located at Pasir Panjang, Keppel, Brani, and Tanjong Pagar. The newest

terminal at Pasir Panjang can accommodate the latest mega-container vessels carrying over 13

thousand TEUs. PSA Singapore Terminals is developing 23 container berths at the Port of

Singapore's Pasir Panjang terminal, and another 16 berths will be added by 2018, bringing total

container-handling capacity at the Port of Singapore for 50 million TEUs per year.

Container berths 54

Quay length(m) 16000

Area(ha) 600


Cranes 190

Designed capacity(‘000 TEUs) 35000

Port of Colombo

Four terminals are currently operated in the Port of Colombo. The main terminal, Jaya Container,

currently operates four main container berths and two feeder berths. There is approximately

1,292 m of quay wall, 350m of cross-berth quay wall and a dredged depth of 12-15 m. Capacity

for dry container stacking is 44,120 TEU and 1,548 TEU for reefer container stacking. There are

45.5 hectares of container terminal area and 15,000 m2 of freight station area. The Unity

Container Terminal holds two container berths and one multipurpose berth. It has a dredged

depth 9 – 11m and 590m of quay wall. There are 1.53 hectares of container terminal area and an

8,000 TEU stacking capacity. The South Asia Gateway Terminal operates berths with a length of

940m and a depth alongside of 15 meters. The total area is 20 hectares, with 12 hectares of stack

area. The Peliyagoda container yard belong to the SLPA but it is located outside the port, a

warehouse is located on the yard.

Container berths 11

Quay length(m) 3172

Area(ha) 60

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Cranes

14 Quay Cranes

12 Super-Post Panamax Cranes

01 Twin_lift Super-Post Panamax Crane

Designed capacity(‘000 TEUs) Approx. 12000

Salalah port

The majority of the business comes from the container terminal, which handled about 2.64

million TEU and more than 1,500 vessels in 2007.

Today the capacity of the container terminal is 4.5 million TEU. A tender for detailed design of

Terminal 2 which has just been launched which will add 1350 meters to the existing 2,205

meters linear quay.

Container berths 6

Quay length(m) 2205

Area(ha) 76.5


Cranes

17 Super Post Panamax Gantry Cranes

45 rubber tyre gantry cranes

Designed capacity(‘000 TEUs) 4500

Power supply 2.8 MW

Cochin Port

Vallarpadam Terminal

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http://en.wikipedia.org/wiki/Container_crane



Container berths NA

Quay length(m) 1800

Area(ha) 110


Cranes 27

Designed capacity(‘000 TEUs) Approx. 3000

Throughput

Singapore Port

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2002 16,940.9

2003 18,410.5

2004 21,329.1

2005 23,192.2

2006 24,792.4

2007 27,935.5

2008 29,918.2

2009 25,866.6

Salalah Port

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2010Jan 2,332.3

Feb 2183.2

Mar 2409.6

Apr 2320.8

10

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

1999

200020012002

20032004

20052006

2007

2008

2009

As a

t May

201

0

19992000200120022003200420052006200720082009As at May 2010

Containers

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Containers(000’

Tonnes)

2323 2488 2949 3183 3521 3928

(TEUs) 185175 203112 226808 253715 260784 289817

Total 2323 2488 2949 3183 3521 3928

GRAND TOTAL 14103 13888 15257 15755 15494 17429

Cochin Port

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YEARS

Container Traffic Projection at Vallarpadam

(Million TEU's)

2010-11 0.583

2011-12 0.834

2012-13 0.931

2013-14 1.032

2014-15 1.148

2015-16 1.277

2016-17 1.417

Location

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Among the various factors that determine the competitiveness of a major port none could be

more important than the strategic location advantage the port has to offer to the shipping lines.

Shipping lines today choose their port of call mainly based on a port’s distance to the industrial

agglomeration region, distance to the main lines and strategic location in the global network.

Shippers are always trying to optimize their productivity by means of cutting costs and hence

adopting a route of travel that best suits their target markets is of high importance and so the

location of the port comes into picture.

Singapore port

Salalah port

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Located in the far south of Oman near the Yemeni border, the port is just 150 miles north of the

main Far East/Europe shipping lanes. This base on the Indian Ocean enables vessels trading to

and from the Gulf to bypass the Straits of Hormuz, avoiding potential zones of conflict and

shaving up to three and a half days off sailing times.

Colombo Port

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Strategically located at the center of the Indian ocean just close to the main sea route from far

east and Australia to Europe and America, Colombo is a major port of call for more than 30 main

lines including almost all the top container carriers and more than15 feeder carriers.

Cochin port

Cochin, an all weather natural Harbour is located strategically close to the busiest international

sea routes:

(1) Gulf to Singapore and Far East (Distance from Cochin Port -11 Nautical Miles)

(2) Suez to Singapore / Far East (Distance from Cochin Port -74 Nautical Miles)

Amongst all major Indian ports, Cochin is the closest to the International East West Shipping

routes. This geo-strategic location of Cochin gives it a distinct advantage.

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Security

In the wake of the 9/11 incident in USA security has become a prime concern for ports and

shippers around the world. Ports around the world are equipping themselves with all the latest

security measures to counter terrorism and other threats. Hence the level of security provided in

ports is a also a factor determining competitiveness.

What is the ISPS Code?

The International Ship and Port Facility Security Code (ISPS Code) is a comprehensive set of

measures to enhance the security of ships and port facilities, developed in response to the

perceived threats to ships and port facilities in the wake of the 9/11 attacks in the United States.

The ISPS Code and other maritime security measures were developed by IMO's Maritime Safety

Committee (MSC) and its Maritime Security Working Group before being adopted by a

Conference n Maritime Security in December 2002.

The purpose of the Code is to provide a standardised, consistent framework for evaluating risk,

enabling Governments to offset changes in threat with changes in vulnerability for ships and port

facilities through determination of appropriate security levels and corresponding security

measures.

Singapore Port

• One of the first countries in the world to comply with ISPS Code deadline of 1 Jul 2004.

• 1400 Singapore–registered ships & 126 port facilities are in compliance.

• ISPS Code focused on commercial facilities and larger vessels

To safeguard our ships and port facilities and to enhance maritime security, MPA developed

the following:

• Guidance for establishing security measures when calling non-ISPS compliant

ports

• Ship Self-Security Assessment Checklist

• Licensing Regime for Regional Ferry Operators

• Harbour Craft Security Code/Pleasure Craft Security Code

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• Vessels entering or leaving the port may be boarded by ASSeTs(Accompany Sea

Security Teams)

Colombo port

• Availability of crucial global compliances such as the International Ship and Port

Facility Security Code (ISPS Code) and Container Security Initiative (CSI).

• Port Of Colombo (All Cargo Handling Terminals, Ship Repair And Ancillary

Service Facilities Within The Limits Of Port Of Colombo.

• There is an international mandatory dead line until 2012, for all the ports in the world to

get CSI compliance and Sri Lanka has already complied five years ahead.

• Colombo Port had spent US$ 50 million in getting ISPS compliancy and CSI

compliancy for container scanning.

• There are four container X-Ray machines in place at the Colombo Port. It can now X-Ray

entire containers and can detect radiation emanating from those substances that go to

make nuclear bombs. An entire container could be examined in two minutes.

• The Colombo Port is the first in Asia to install the Spectroscopic Portal Monitor (SPM)

under the US Mega Port Surveillance System. This ultra modern portal monitor was

installed under the Megaports initiative in the Port of Colombo by the Department of

Energy of the USA.

Salalah port

Access to the port is restricted to port users and bona fide business community personnel.

To gain access to the port, personnel must be in possession of a gate pass. This can

be annual or a gate pass issued temporarily if the required documentation is provided.

The Port of Salalah has security personnel and members of the Royal Oman Police to

man the gates. All personnel and vehicles are checked on entry and exit and all goods

must be manifested before entry or a document provided to remove property or

equipment.

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http://encyclopedia2.thefreedictionary.com/SPM

• Access control

• Access permits

• 24/7 roving and static patrol

• Vessel and facility inspections

• ISPS compliant

• Liaise with ROP and other emergency services

• Vehicle checks

• Random checks

The Port of Salalah is a Container Security Initiative (CSI) port to target and pre-screen

maritime cargo containers for terrorists and terrorist weapons destined for U.S. ports. he

Port of Salalah utilizes large-scale and sophisticated radiological detection equipment to

identify nuclear material.

Cochin port

The port maintains high security arrangements and its security profile is ISPS compliant.

As per the requirements of the isps code all the provision in the code document were

implememnted. Security was tightened and all the port trust employees were provided

with tamper proof passes. Newer equipments like night patrol boat , night vision

binoculars , bomb proof blankets etc. were inducted to give the CISF an edge in

preventing intrusion into port property and also guarding against pilferage. The port

control was equipped with AIS (automatic identification system) which allowed it to

monitor all foreign going vessels entering or leaving the port.

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Chapter 6

COMPARATIVE ANALYSIS AND SUGGESTIONS

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Comparative Analysis

TARIFF

Port tariff is a major determinant of port competitiveness which is analysed in respect of the

ports under discussion. General port tariff structure comprises of lot of components which cannot

be covered here due to lack of information and complexity involved. Hence terminal handling

charges have been selected as the component for comparison.

It has been observed that of the 4 ports under study Colombo port has the lowest container

handling charges at approx. values in the ranges of 100 – 120 $ for 20’ and 40’ containers.

Singapore port imposes the highest charges at range of 160-240 $ for 20’ and 40’ containers.

The vallarpadam container terminal that is set to commence shortly has at present comparatively

higher charges compared to Colombo port. However, the cochin port management has decided to

bring down the charges so as to make it competitive with Colombo and other ports.this data is

not available as of present. Hence the Colombo port has a major advantage over the others in

this segment at present.

FACILITIES

Of the 4 ports the port of Singapore undoubtedly comes out on top in this segment with its vast

port infrastructure. Possessing 4 container terminals summing up to in excess of 16000m quay

length , 54 berths, 16m draft it has basically everything a shipper can ask for. The port is well

equipped to handle the largest of container vessels and with capacities of 35 million TEU’s

hence it is no surprise that the port of Singapore is a major port of call for most shippers.

The other 3 ports Colombo , Salalah and the cochin port with the commencement of vallarpadam

terminal will contesting for the best of deals in transhipement and import and export in the region

since all these three posses capacities and other facilities similar in size and number. At present

the capacity that can be handled at the Colombo port is significantly higher at 12million TEU

than the other two giving it a edge. On the technology front too these three are possessing similar

features.

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LOCATION

Location is a major factor of strategic advantage for hub ports that thrive on transshipment. With

its strategic location, Singapore has an unrivalled connectivity. There are daily sailings from the

Singapore port to every major port in the world. In this respect it has to be said that all the ports

are suitably located close to the international sea route and do not affect the business of each

other significantly as of now except in the case of Cochin and Colombo ports. It can be seen that

these two ports are well located with the potential to receive a lot more deals in comparison with

Singapore though the same cannot be said in the other fronts. The two ports are located very

close to each other and sharing a similar position in the international sea route. With the arrival

of the vallarpadam container terminal a large chunk of the shipping of goods between the Indian

states via the Colombo port is set to shift to the the Indian container terminal that will reduce the

transport cost of shippers in this respect. At present 70% of the transshipment that takes place at

Colombo is from India and the scenario is all set to change. Otherwise it’s a tough battle on the

cards between these two attract the best of deals in transshipment.

SECURITY

Security is a major concern of any sector in today’s world and ports are no different. Hence they

are taking all measures possible to counter threats in the form of terrorism , pilferage etc. A study

of the security level at the four ports revealed that all the ports are in compliance with the ISPS

code which is a set of regulatory measures for maritime security. The Colombo port has gone for

additional security gadgets in the form of x- ray machines and Spectroscopic Portal Monitor that

enhances security and Singapore on the other hand has gone for steps beyond the purview of the

ISPS code for dealing with various potential security issues. Salalah port too has all the required

latest security infrastructure and other measures in place to ensure secure business.

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Suggestions

In today’s world where time is money , being the fastest in the business goes a long way

into helping gain a larger market share and ports are no different. The speed and efficiency

of port operations is a major factor in being competitive and attracting the biggest deals.

Automation of port operations is a great way to achieve this edge and based on the

technology available at the Singapore container terminals the following can be suggested to

be implemented at the new container terminal at vallarpadam :

Automation could be explored in the following areas of operations:

• Yard and quay cranes – to automatically load and unload containers

• AGVs – autonomous driving of prime movers to move containers between quay

crane, yard crane areas and warehouses or distriparks.

• Dynamic weighing system – at the terminal gates to monitor the weight of

containers coming in and out of terminals

• Container number recognition system – at the terminal gates, to identify the

containers and integration to database

• Non-containerized cargoes – mechanized systems to aid human labor

• Warehousing and Logistics – space-efficient container storage and optimum

container layout for minimum loading and unloading times

The Cabotage law should be relaxed which will allow the foreign flag carriers to carry cargo

between Indian ports. This will help in utilizing the full potential of the terminal.

Provide a lot more container related services like chemical care , reefer care etc. which will

serve as a value addition and attract shippers to the port.

Have aggressive marketing strategies to attract a major share of the transshipment.

As for the Rajiv Gandhi container terminal the following can be suggested:

Increase the space for container stacking area.

Increase the draft of the berth at the container Terminal.

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Chapter 7

References

Page | 83

References

http://www.singaporepsa.com/

http://www.mpa.gov.sg/

http://www.skyscrapercity.com/

http://www.salalahport.com/

http://www.sagt.com.lk/

http://www.slpa.lk/

http://www.dpworld.com/

http://www.cochinport.com/

http://www.worldportsource.com/

http://en.wikipedia.org/

http://www.proquest.com

http://www. emerald insight.com/

Promoting Efficient and Competitive Intra-ASEAN Shipping Services – Singapore

Country Report – by PDP Australia Pty Ltd/Meyrick and Associates

SRI LANKA – Logistics Capacity Assessment Extract Ports

Comparison Of Port Tariff Structures

Port privatization, efficiency and competitiveness: Some empirical evidence from

container ports (terminals)I – by Jose Tongzon 1, Wu Heng

ATIP01.036: Automation at the Port of Singapore - ATIP/Singapore

Page | 84

http://www.emeraldinsight.com/

http://www.proquest.com/

http://en.wikipedia.org/

http://www.worldportsource.com/

http://www.cochinport.com/

http://www.dpworld.com/

http://www.slpa.lk/

http://www.sagt.com.lk/

http://www.salalahport.com/

http://www.skyscrapercity.com/

http://www.mpa.gov.sg/

http://www.singaporepsa.com/

PROJECT REPORT - International Container Transhipment Terminal

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