Supply Chain and Logistics for Ports

7/28/2019 Supply Chain and Logistics for Ports

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SUPPLY CHAIN AND LOGISTICS FOR

PORTS

Submitted to: Prof. Jyoti Trivedi

By:

HIMANSHU BAROCHIA(CP0212)MEGHA SINGH(CP1912)


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DEFINITION

Logistics is the process of planning,implementing and controlling the efficient,

cost-effective flow and storage of raw

materials, in-process inventory, finished goodsand related information from the point of

origin to point of consumption for the purpose

of conforming to customer requirements.

Council of Logistics Management


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THE LOGISTICS/SC MISSION

Getting the right goods or services to the right

place, at the right time, and in the desired

condition at the lowest cost and highest return oninvestment.


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CONCEPTS OF LOGISTICS

1. PhysicalDistributionThe broad range of

activities associated withefficient movement of

finished products from theend of the production line to

the consumers.

2.InternallyIntegratedLogistics

Physical distribution functionshould be integrated with pre-production activities such as

material sourcing and work-in-process inventory to form a

total material flowmanagement

3.ExternallyIntegratedLogistics

It has extended the conceptbeyond one firm to all firmsinvolved in the whole supply

chain.


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ROLE OF LOGISTICS

Y


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PHYSICAL DISTRIBUTION

COSTS


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SIGNIFICANCE OF LOGISTICS

Costs are high

Customers are more demanding of the supply chain

An integral part of company strategy

Logistical lines are lengthening

Logistics is a key to trade and an increased standard of living

Logistics adds value


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STRUCTURE OF PORT SUPPLCHAIN MODEL

The port SC-Model treats the port as a core, effectively integrates the

various service suppliers and customer into a whole, then delivers the

correct number of goods to the right place at the right time.

Its goal is to achieve the lowest cost throughout the supply chain.


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EFFECT ON LOGISTICS FOREIGN

OUTSOURCING


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THE LOGISTICS STRATEGY

TRIANGLE


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ELATIONSHIP OF LOGISTICS T

MARKETING AND PRODUCTION


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ACTIVITIES OF LOGISTICS

Procurement or purchasing

Inward transport or traffic

Receiving

Warehousing or stores

Stock control

Material handling

Order picking

Packaging

Outward transport


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IMPORTANCE OF LOGISTICS

It has strategic importance with decisions affecting long-termperformance and even survival

It is expensive, with costs often forming a large part of turnover

It directly affects profits, lead time, reliability and other measures of

organisational performance

It forms links with upstream suppliers, developing mutually

beneficial, long-term trading relationships

It forms links with downstream customers, contributing to customer

satisfaction and added value

It determines the best locations and sizes of facilities


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CASE STUDY


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Gujarat Pipavav Port Ltd (GPPL) is the first private sector port and the 3rd largest on the

western coast of India for handling container cargo.


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PIPAVAV PORT LAYOUT


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LOCATION

Port Pipavav is located in Saurashtra in the state of Gujarat,152 nautical miles northwest of Mumbai (less than ten hours

steaming time) on the west coast of India. Approximately

140 kilometres southwest of Bhavnagar.

Port Pipavav is directly across from two islands Shial Bet

and Savai Bet which act as a natural breakwater, making

the port safe in all weather conditions.


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STRENGTHS Part of the APM Terminals network

Port Pipavav leverages the shipping experience, strengths andnetwork of its parent, APM Terminals, which operates 60 ports andterminals and 132 inland services in 63 countries.

Strategically located all weather port

Port Pipavav is an all-weather port located just 152 nautical milesfrom Nhava Sheva in Mumbai. The port's location in the state ofGujarat provides immediate access to a rich hinterland and keymarkets in northwest India.

Large land bank available for growth

With a total land area of 631 hectares, there is plenty of land availablefor expansion of port-related services and businesses. The port hasleased out land for a variety of services including liquid cargofacilities.


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CONNECTIVITY

Performance - 2007-08 ( in lakh

tonnes)

Import 23.19

Export 1.23

Total 24.42

Rail Distances(Kms)Sabarmati - 298

Jaipur - 980

Jodhpur - 810

Amritsar - 1,726

Ludhiana - 1,590

Indore - 910

Road Distances(Kms)

New Delhi - 1,115

Jaipur - 873

Jodhpur - 775

Udaipur - 506Rajkot - 225

Ahmedabad - 300

Vadodara - 318

Amritsar - 1432

The port handles a variety of bulk cargo that

includes coal, clinker, cement, steel, soda ash,

iron ore, fertilizers salts etc.


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BULK FACILITIES

Gottwald Cranes 2

BM Titan 1

ZPMC Cranes 3

Coal & Mineral Static Capacity 700,000 MT

Fertilizer Static Capacity 100,000 MT

Conveyor system for coal 1.2 km

Rail Sidings with in-motion weighbridge 5


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CONTAINER FACILITIES

Panamax Quay Cranes 3, 13 across

Post Panamax Quay Cranes 5, 18 across

RTGs 8

Eco-RTGs 10 Container Yard 104,000 sq.m

Yard for empty containers 2

Capacity (TEUs) 850,000

(to be expanded to 1.3 million)

Rail Sidings


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STORAGE FACILITIES

CFS 7, 600 sq.m each

Warehouses 2, 3657 sq.m, 3252 sq.m

CWC 4, 6690 sq.m each

Private CFS 2

Sheds 100,000 sq.m

LOGISTIC MODEL FOR STEEL


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LOGISTIC MODEL FOR STEELPLATES

China,

Ukraine,Belgium

APMTerminals

Aegis Logistics,

Gulf Petrochemand IMC Ltd

Pipavav

Port Pvt.Ltd.


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INTERNAL HANDLING OF

STEEL PLATES

Storage inWarehouses

Blasting &cutting of

plates

Megablocks(Sub-

assembly)

Reblasting&

reprimming

Outfittingof block

Shiftingto EOU

LOGISTICS COSTING FOR


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LOGISTICS COSTING FORPIPAVAV PORT

Sr. No Description (Upto 40,000 GRT) Cost (INR)

1. Port Dues 2.16/ Ton of GWT

2. Berth Hire 0.20/ Ton of GWT

3. Pilotage and Towage 16.80/ Ton

4. Wharfage 70/Ton

5. Handling Charges 5000

6. Crane hire charges 1,400/ hour

7. Rail infrastructure facility charges 25 / MT

8. Truck Transportation Charges 2,000 per shift (8 hours)

LOGISTICS STORAGE COSTING


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LOGISTICS STORAGE COSTING

FOR PIPAVAV PORTSr. No Description Cost (INR)

1. Import Container Seal Verification 1300

2. Import Container Customs Examination 1300

3. Import De-Stuff & Direct Delivery for looseCargo 6000

4. Import De-Stuff -> Scrap 5450

5. Cargo storage charges Import/Export Free for 5 days 50/day/ton

6. Charges for container storage in the CFS

(Rate are per day basis)

Free for 2 days 108/day

8. Lift On / Off at CFS-Loaded 400

9. Transportation of Cont from CY to CFS 300

10. Rental Space at CFS: 25 per (sq.m)

per week


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CURRENT SCENARIO


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RESEARCH PAPER Research on Port Logistics Development Model Based on Supply Chain

Management 2006

(School of Logistics Engineering, Wuhan University of

Technology, Wuhan, P.R.China, 430063)

Abstract With the deepening of the Supply Chain Management (SCM) thinking,

the port is gradually applied the relevant theory to develop its logistics model.This paper uses the theoretical and empirical analysis method, summarizes and

compares the existing development models of port logistics, and then proposes

that the Supply Chain Model (SC-Model) is an important trend in the

development of port logistics, especially researches the structure and

characteristics of SC-Model. Finally, this paper analyzes the current problem ofSC-Model in Chinas ports, proposes the solutions accordingly, and obtains the

conclusion that the establishment of coordination and information mechanisms

is very important for the development of port supply chain.

Supply Chain and Logistics for Ports

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