INTRODUCTION TO THE STUDY

Project Title

A study on the cargo operations at Cochin port trust with special reference to Break Bulk cargo.

Statement of problem

In shipping, break bulk cargo or general cargo is a term that covers a great variety of goods that must be loaded individually, and not in intermodal containers. The term break bulk derives from the phrase breaking bulk—the extraction of a portion of the cargo of a ship or the beginning of the unloading process from the ship's holds. Break bulk cargo is transported in bags, boxes, crates, drums, or barrels.

Break bulk was the most common form of cargo for most of the history of shipping. Since the late 1960s the volume of break bulk cargo has declined dramatically worldwide as containerization has grown. Moving cargo on and off ship in containers is much more efficient, allowing ships to spend less time in port. Break bulk cargo also suffered from greater theft and damage.

Cargo handling is one of the main services offered by Cochin port trust. The major types of cargo handled are as follows:

1. Break Bulk – iron and steel, timber 2. Dry Bulk – fertilizers, sulphur3. Liquid Bulk – liquid ammonia, petroleum products

This study focuses on finding the problems associated with the Break Bulk Cargo operations at Cochin Port Trust and to find out suggestions in improving the Break Bulk Cargo Operation.

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Objectives of the Study

To identify the traffic and cargo Profile at Cochin port trust. To identify the various problems faced during the operation of Break

Bulk Cargo. To give suggestions to improve the efficiency of Break Bulk Cargo

operations at Cochin Port Trust.

Methodology

The Research Methodology adopted for the study has been presented in the below paragraphs

In this study both primary and secondary data has been used.

Primary Data

The primary data was collected from the respondents by giving structured questionnaires and thereafter interpreting, compiling and analysing the data from the questionnaires.

Secondary Data

Apart from the primary data, secondary data was collected from the administration report, company websites and various reports.

Tools for Data Analysis

Percentage Average

Statistical Tools

The statistical tools used in this study are as follows:

Tables Pie Charts Bar Charts

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Limitations of the study

The respondents were busy with their own routine work, hence were not interested in spending time for filling up the questionnaires

Unwillingness of the employees in filling up the questionnaires The availability of the respondents were low Some of the employees were reluctant in revealing their honest views for

the questions answered

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LITERATURE REVIEW

Introduction

In shipping, break bulk cargo or general cargo is a term that covers a great variety of goods that must be loaded individually and not in intermodal containers. Ships that carry this sort of cargo are often called general cargo ships. The term break bulk derives from the phrase breaking bulk—the extraction of a portion of the cargo of a ship or the beginning of the unloading process from the ship's holds. These goods may not be in shipping containers. Break bulk cargo is transported in bags, boxes, crates, drums, or barrels.

A break-in-bulk point is a place where goods are transferred from one mode of transport to another, for example the docks where goods transfer from ship to truck.

Break bulk was the most common form of cargo for most of the history of shipping. Since the late 1960s the volume of break bulk cargo has declined dramatically worldwide as containerization has grown. Moving cargo on and off ship in containers is much more efficient, allowing ships to spend less time in port. Break bulk cargo also suffered from greater theft and damage.

Break Bulk cargo mainly includes the following:

Iron and steel Food grains Coffee Marine Products Cements Sugar Machinery Raw cashew Coal Spices

Loading and Unloading of Break Bulk Cargo

Although cargo of this sort can be delivered straight from a truck or train onto a ship the most common way is for the cargo to be delivered to the dock in advance of the arrival of the ship and for the cargo to be stored in warehouses. When the ship arrives the cargo is then taken from the warehouse to the quay and then lifted on board by either the ship's gear (derricks or cranes) or by the

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dockside cranes. The discharge of the ship is the reverse of the loading operation.

Loading and discharging by break bulk is labour intensive. The cargo is brought to the quay next to the ship and then each individual item is lifted on board separately. Some items such as sacks or bags can be loaded in batches by using a sling or cargo net and others such as cartons can be loaded onto trays before being lifted on board. Once on board each item must be stowed separately.

Advantages and Disadvantages of Break Bulk Cargo Operations

The biggest disadvantage with break bulk is that it requires more resources at the wharf at both ends of the transport—longshoremen, loading cranes, warehouses, transport vehicles—and often takes up more dock space due to multiple vessels carrying multiple loads of break bulk cargo. Indeed, the decline of break bulk did not start with containerisation; rather, the advent of tankers and bulk carriers reduced the need for transporting liquids in barrels and grains in sacks. Such tankers and carriers use specialised ships and shore facilities to deliver larger amounts of cargo to the dock and effect faster turnarounds with fewer personnel once the ship arrives; however, they do require large initial investments in ships, machinery, and training, slowing their spread to areas where funds to overhaul port operations and/or training for dock personnel in the handling of cargo on the newer vessels may not be available. As modernization of ports and shipping fleets spreads across the world, the advantages of using containerization and specialized ships over break-bulk has sped the overall decline of break-bulk operations around the world. In all, the new systems have reduced costs as well as spillage and turn round times, in the case of containerisation, damage and pilfering as well.

Break bulk continues to hold an advantage in areas where port development has not kept pace with shipping technology; break-bulk shipping requires relatively minimal shore facilities—a wharf for the ship to tie to, dock workers to assist in unloading, warehouses to store materials for later reloading onto other forms of transport. As a result, there are still some areas where break-bulk shipping continues to thrive. Goods shipped break-bulk can also be offloaded onto smaller vessels and lighters for transport into even the most minimally-developed port where the normally large container ships, tankers, and bulk carriers might not be able to access due to size and/or water depth. In addition,

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some ports capable of accepting larger container ships/tankers/bulk transporters still require goods to be offloaded in break-bulk fashion.

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INDUSTRY PROFILE

Introduction

A port is allocation on a coast or shore containing one or more harbours where ships can dock and transfer people and cargo to or from land. Port locations are selected to optimise access to land and navigable water, for commercial demand, and for shelter from wind and waves. Ports with deeper water are rarer, but can handle larger, more economical ships. Since ports throughout history handled every kind of traffic, support and storage facilities vary widely, may extend for miles, and dominate the local economy. Some ports have an important, perhaps exclusively military role. A port provides facility for receiving ships and transferring cargo and from them. They are usually situated at the edge of the ocean or sea, river or lake.

Ports often have cargo or handling equipments such as cranes and fort lifts for use in loading or unloading ships, which may be provided by private interest or public bodies. Harbour pilots burgs, and tug boats are often used to safety manoeuvre large ships in tight quarters as they approach and leave the docks. The ports that handle international traffic will have customer’s facilities. Cargo containers allow for efficient transport and distribution by eliminating the need for smaller packages to be loaded individually at each transportation point, and allowing the shipping unit to be sealed for its entire journey. Standard containers can just as easily be loaded on a ship; train, truck or plane, greatly implying intermeddle transfers. Cargo often arrives by train and truck to be consolidated at a port and loaded on to a large containership for international transport. At the destination port, it is distributed by ground transport once again.

Port and shipping containers are a vital part of modern just in time inventory management strategies. Port sometimes fall out of use Ryes, East Sussex, England was an important port in the Middle Ages, but the coastline changed and it is now two miles from the sea. Also in London, on the River Thames, and Manchester, on the Manchester ships canal, were once important international ports, but are no longer so.

The world’s busiest port is contested by several ports around the world, as there is as yet no standardised means of evaluating port performance and traffic. The most keenly fought over this for the past decade was between the port of Rotterdam and port of Singapore, with both ports claiming the busiest port.

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TYPES OF PORT

The term “port” and seaport are used for ports that handle ocean going vessels, and “river port” is used for facilities that handle river traffic. The different types of ports are as follows:

1. INLAND PORT

Some ports are on a lake, river or canal has access to a sea or ocean, and they are called inland ports. Inland Ports are located on rivers and do not handle deep draft ship traffic. The list includes familiar ports such as St. Louis, Cincinnati, Pittsburgh, and Memphis.

2. FISHING PORT

A fishing port is a port or harbour for landing and distributing fish. It may be a recreational facility, but it is usually commercial. A fishing port is the only port that depends on an ocean product, and depletion of fish may cause a fishing port to be uneconomical. In recent decades, regulations to save fishing stock may limit the use of a fishing port, perhaps effectively closing it.

3. DRY PORT

A dry port is a term sometime used to describe a yard used to place containers or conventional public cargo, usually connected to a seaport by rail or road. The presence of deep water in channels or berths, the provision of protection from the wind, waves and storm surges and access to intermeddle transportation such as trains or trucks are critical to the functioning.

4. WARM PORTS

A warm water port is one where the water does not freeze in winter time. Because they are available year-round, warm water ports can be of great geopolitical or economic interest. Such settlements as Vostochny Port, Murmansk and Petropavlovsk-Kamchatsky in Russia, Odessa in Ukraine, Kushiro in Japan and Valdez at the terminus of the Alaska Pipeline owe their very existence to being ice-free ports.

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5. CRUISE PORT

A cruise port is the port where cruise-ship passengers board (or embark) to start their cruise and disembark the cruise ship at the end of their cruise. It is also where the cruise ship's supplies are loaded for the cruise, which includes everything from fresh water and fuel to fruits, vegetable, champagne, and any other supplies needed for the cruise. Currently, the Cruise Capital of the World is the Port of Miami, Florida, closely followed behind by Port Everglades, Florida and the Port of San Juan, Puerto Rico.

6. PORT OF CALL

A port of call is an intermediate stop for a ship on its sailing itinerary, which may include up to half a dozen ports. At these ports, a cargo ship may take on supplies or fuel, as well as unloading and loading cargo is carried out. But for a cruise ship, it is their premier stop where the cruise lines take on passengers to enjoy their vacation.

7. CARGO PORTS

Cargo ports, on the other hand, are quite different from cruise ports, because each handles very different cargo, which has to be loaded and unloaded by very different mechanical means. The port may handle one particular type of cargo or it may handle numerous cargoes, such as grains, liquid fuels, liquid chemicals, wood, automobiles, etc. Such ports are known as the "bulk" or "break bulk ports". Those ports that handle containerized cargo are known as container ports. Most cargo ports handle all sorts of cargo, but some ports are very specific as to what cargo they handle. Additionally, the individual cargo ports are divided into different operating terminals which handle the different cargoes, and are operated by different companies, also known as terminal operators.

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ECONOMIC IMPORTANCE OF PORTS

Ports constitute an important economic activity in coastal areas. The higher the throughput of goods and passenger’s year-on-year, the more infrastructures, provisions and associated services are required. There will varying degrees of benefits to the local and regional economy and to the nation as a whole. 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. As a supplier of jobs ports do not only serve an economic but also a social function. Some of the importance ports are as follows:

Ports play an essential role in economic development Export of mineral ore become profitable Direct access to worldwide markets Excellent source of employment for workmen and commercial office Various auxiliary services to cargo and vessels Significant source of additional foreign exchange which represents

desirable regular earning from foreign sources like; Ports due on vessels Payment for stevedoring Payment for repairs Payment for ship suppliers Agency fees Promotes tourism (providing berthing facilities for cruise ships) Political dependence can easily develop

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PORT FUNCTIONS

Ports are a component of freight distribution as they offer a maritime / land interface for export and import activities. They are points of convergence of inland and coastal transportation systems, defining a port's hinterland. This function may be direct, as freight reaches a port directly through road transportation, or indirect as freight reaches a port though an inland port or through traffic consolidation at a regional port and shipped by coastal transportation. Likewise, ports are points of distribution to inland and coastal transportation systems, defining a port's foreland. At the local level, every port provides services to ships with berths, docks, navigation channels and repairs (occasionally), and services to merchandises with cranes, warehouses and access to inland distribution systems.

Within the port system, one or more organisations fill the following roles:

Landlord for private entities offering a variety of services

In view of the strategic significance of land, port property is rarely sold outright to private parties because of its direct and indirect effects on regional and often national economy and public welfare, its intrinsic value, and possible scarcity. Therefore, a key role for many port authorities is that of the landlord with the responsibility to manage the real estate within the port area. This management includes the economic exploitation, the long term development, and the upkeep of basic port infrastructure such as fairways, berths, access roads, and tunnels.

Regulator of economic activity and operations

Port authorities often have broad regulatory powers relating to both shipping and port operations. The authority is responsible for applying conventions, laws, rules, and regulations. Generally, as a public organ it is responsible for observance of conventions and laws regarding public safety and security, environment, navigation, and heath care. Port authorities also issue port bylaws, comprising many rules and regulations with respect to the behaviour of vessels in port, use of port area and other issues. Often extensive police powers are also assigned to the port authority.

Operator of nautical service and facilities

Oversight of nautical operations should be within a port authority’s mandate and is often referred to as Harbourmasters’ function. It generally comprises all

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legal and operational task related to the safety and efficiency of vessels management within the boundaries of the port area. The Traffic manager’s office allocates berths and Marine department coordinates all service necessary to berth and un-berth a vessel. These services include pilotage, mooring and unmooring, and vessel traffic services (VTS). Often, the harbourmaster is also in charge with leading role in management of shipping and port related crises (for example, collisions, explosions, natural disasters, or discharge of pollutants). In view of its general safety aspects, the harbourmasters function has a public character.

Marketer and promoter of port services and economic development

The port marketing and promotion function is a logical extension of port planning function. Port marketing id aimed at promoting the advantages of the entire port complex for both the port authority to attract new clients and for the port industry to generally promote its business. This type of broad marketing is distinct from customer- oriented marketing that is aimed at attracting specific clients and cargoes for specific terminals or services.

Cargo handler and storage

The cargo handling and storage comprises all activities related to loading and discharging seagoing and inland vessels, including warehousing and intra-port transport.

Provider of ancillary activities

A variety of ancillary functions such as pilotage, towage and ship chandelling, fire protection services, linesman services, port information services, and liner and shipping agencies exist within port community. Large port authorities usually do not provide these services, with the possible exception of pilotage and towage. In a number of smaller ports, however, these are part of the port authority operations because of the limited traffic base.

Planning for future operations and capital investments

The planning function of the port authority in coordination with the municipality is a complicated affair, especially for large ports located within or near a city. The port planner has to consider:

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The consistency of plans with the general terms of land use that have been set by the competent authority.

The impact of port development proposals on the immediate surroundings (environment, traffic, facilities and roads).

The appropriateness of port development proposals in the context of international, national, and regional port competition.

Actual port services and balancing of supply and demand occur at the levels of the port authority and individual port firms. Hence, the development of realistic investment projects for infrastructure and superstructure should be initiated at these levels. Investment plans of industrial and commercial port operators or projects for specific cargo handling, storage, and distribution should be integrated at the level of the port authority to arrive at a strategic master plan for the port. The individual master plans may then be integrated into national seaport policy, taking into account macroeconomic considerations. Integration of individual master plans will help to avoid duplication of expensive, technologically advanced facilities when different ports in a national system strive to attract the same customers as well as ensure the selection of the appropriate locations for specific seaport facilities that will interconnect maritime and land transport systems.

Regulator for maritime safety, security, and environmental control

Competition within and between ports has a bearing on the management structure of the port and the relations between the port authority and terminal operators and the cargo handling companies. These changing relations are often cited as an important reason for changing port management structure. Many ports authorities consider the creation of competitive conditions among port operators the cornerstone of their port policy. One can distinguish between inter-port competition (completion between different ports) and intra-port competition (competition between different enterprises within one port complex). To reduce the risk of monopolies, port authorities usually stimulate intra-port competition. However, medium sized and smaller ports, because of their limited traffic, often accommodate only one port terminal operator. In such cases, port authorities often use their quasi-governmental powers to regulate port charges and tariffs.

KEY FATORS AFFECTING INTER PORT COMPETITON:

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1. Geographic location : A port that is strategically located close to well established transport routes has competitive advantages. A strategic location typically possesses at least the following characteristics:

Proximity to one or major maritime routes. Natural deep water, good protection against waves and currents,

large waterfront and landside expansion possibilities. Proximity to major production or consumption areas. Good hinterland connections (road, rail, pipeline, and waterway)

with high frequency service offering good connectivity.

2. Legal Framework : The well-balanced national and local legal framework applicable to port management greatly bolsters investor confidence. Many countries have enacted specific port laws dealing with powers and responsibilities of the various actors in the sector. Moreover, land and competition laws are equally important, as well as an independent judiciary.

3. Financial resources : A port with sufficient financial means of its own or the capacity to raise the funds required to develop and improve the port has a competitive advantage over the ports with resources or no financial autonomy.

4. Institutional structure and socio-economic climate : The management structure of the port must be conducive to private sector investment. Related to this is the socioeconomic climate in the port; private investors prefer ports with a sufficient and well-trained labour force and good relations between employees and employers.

5. Efficiency and price : Various investigations indicate that port costs are an important, although not decisive, factor in making choices, especially for cargo owners or their representatives. In a world where manufacturers seek to trim costs and improve customer service through the adoption of sophisticated logistics processes, efficiency and the price performance ratio are increasingly important.

6. Image of the port : The image that the port projects is another factor in ist competitiveness. The preferred image is an optimum mix of the above mentioned components.

GLOBAL SCENARIO

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For many centuries, shipping has enabled collaboration around the world. Today, modern shipping business is a complex, global puzzle made out of many pieces. The past few years alone have brought about fundamental changes. The significance of East Asia has increased rapidly spearheaded by China. We could even say that Globalisation as we know it would not have happened without shipping.

Currently shipping is rightfully said to be the most efficient and cleanest way of transporting goods over long distances. Shipping would continue to continue to be part of transportation matrix.

Cartels and bilateral agreements have overtaken free markets. GDP growth is limited and unevenly distributed. Resources are scarce and have therefore become a source of power. Wealth is divided unequally among nations.

New trade routes have emerged as a result of two key developments, an increase in bilateral agreements and industries moving to resource areas. The volumes of water and agricultural products being transported have increased significantly.

The entire logistics chain is optimised regionally. Fleets are partly nationalised and era of flags of convenience (registering a ship in a foreign country to avoid regulation) has come to an end. Oil tankers are decreasing in number and LNG carriers take on a bigger role instead. In regional trade, smaller ships optimise cargo transports. The change pattern of goods has reduced container traffic and some major container terminals have closed down. In general, national governments control ports.

Climate change is perceived as a threat, not an opportunity, and only local and regional solutions are in place to cope up with this challenge. Environmental changes have led to the development of new types of vessels, desalination, waste management and recycling ships are anchored outside megacities, serving their needs.

Most of the big shipping companies are owned Chinese owned, and trade routes have shifted according to Chinese trade interests. New ports are being in build in Africa, Eastern Russia and India, and Chinese ports have grown into sophisticated, integrated logistics centres.

INDIAN SCENARIO

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Introduction

India has a long coastline spanning 7600 kilometres forming one the world’s biggest peninsulas of the world. It is serviced by 12 government and 1 corporate major port and 187 notified minor ports and intermediate ports. The latest addition to the major ports is Port Blair on June 2010. With the declaration Port Blair has become the 13th major port in the country. India is today among the top17 maritime nations in the world. The ministry of shipping has laid great emphasis on the productivity aspect and benchmarking of quality ports and most importantly in making the ports cost effective. Almost all the major ports acquired ISO-9000 certification. The major ports are now in the process of revising their standards in compliance with ISO 9002-2000 standards. Indian ports are the major players in the shipping industry. They play a prominent role in the import and export of materials via the sea route from and to various destinations around the globe.

The classification of Indian ports into major, minor and intermediate has an administrative significance. Indian government has a federal structure, and according to its constitution, maritime transport falls under the “concurrent list”, to be administered by both the central and the state governments. While the Central Shipping ministry administer the major ports, the minor and intermediate ports are administered by the relevant departments or ministries of the 9 coastal states of West Bengal, Orissa, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Goa, Maharashtra and Gujarat. Several of the 185 minor and intermediate ports are merely “notified”, with little or no cargo handling actually taking place. These ports have been identified by the respective governments to be developed, in a phased manner, a good proportion of them involving Public-private partnership.

Ports of India(Figure 1)

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India has total 13 major ports out of which there are 12 government ports and 1 corporate port. The Port Blair was declared 13th major port of the country in the year 2010. There are 200 minor port and intermediate ports out of which some are privately owned. The ports are classified into major, minor or intermediate as per administrative signification.

MAJOR PORTS OF INDIA

Kolkata Port Trust Mumbai Port Trust Chennai Port Trust Cochin Port Trust Visakhapatnam Port Trust Paradip Port Trust Mormugao Port Trust Jawaharlal Nehru Port Trust V. O. Chidambaranar Port Trust Bombay Port Trust Vizag Port Trust Haldia Port Trust Port Blair Port Trust

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INDIA’S MARITIME TRADE

India is almost an island as far as trade is concerned. There is limited trade by land with the countries neighbours and the bulk of the trade is seaborne. Ninety percent of India international trade by volume and seventy seven percent values is carried by sea. Exports in India increased to 1348.08 INR Billion in May of 2013 from 1313.95 INR Billion in April of 2013. Exports in India are reported by the Directorate General of Commerce. India Exports averaged 240.93 INR Billion from 1978 until 2013, reaching an all time high of 1678.36 INR Billion in March of 2013 and a record low of 3.75 INR Billion in May of 1978. India’s main exports are engineering goods (19 percent of total exports), gems and jewelry (15 percent), chemicals (13 percent), agricultural products (9 percent) and textiles (9 percent). India is also one of Asia’s largest refined product exporters with petroleum accounting for around 18 percent of total exports. India’s main export partners are United Arab Emirates (12 percent of total exports) and United States (11 percent). Others include: China, Singapore, Hong Kong and Netherlands.

In the 2012-13 fiscal, the value of the merchandise exports stood at USD 301 billion. Indian maritime has been prospering enough, to make it a nation counted amongst the elite. Indian maritime trade makes up for the lion’s share in the annual economic growth report.

The Indian Ocean comprises a fifth of the water surface of the earth, peopled by the third of the world’s population. India has been a grand maritime nation with a strategic geographical position in the Indian Ocean. The Indian peninsula juts into Indian Ocean, astride the major shipping lanes of the world, which provide the shortest route between the Atlantic and the pacific oceans. India’s place among the maritime nations was well recognised by the country’s foresighted ancestors. Indian maritime trade is replete with instances, where India benevolent influence spread to the east and west through the nation’s seafaring

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people and the medium of oceans. It was with the arrival of the Mughals, the landlocked tribe of Central Asia, that importance of the seas was forgotten. India paid a heavy price for it, becoming a susceptible prey to the advancing maritime colonial power. India derives its potential strength from being strong at sea. India is perhaps the only country whose name has been attached to a great ocean. The country also shares maritime boundaries with seven nations in the Indian Ocean. Its strategic geographic position with a long coastline and island territories provides India with a great advantage in the maritime field.

India’s strategic position in the Indian Ocean is clearly apparent when seen in the context of the massive flow of the trade through the sea-lines of communications, which join the major regions of west and east. Sea borne trade passing through the Indian Ocean amounted to almost fifteen percent of the entire world trade. Nearly 200 ships pass through Malacca strait every day. Twenty-eight passed through Strait of Hormuz, carrying nearly twenty percent of the world trade in volume. Over half of the United States requirement of oil passes through this route. One third of the total ships in the world and over half of the entire shipping capacity take passage through these choke points. With Indian Ocean and even Bay of Bengal administering and aiding in Indian maritime trade in significant amounts, the country can never fall short into a seaborne business and profit.

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MAJOR PLAYERS IN INDIAN SHIPPING INDUSTRY

The Indian shipping industry consists of about 616 ships, with a total capacity of 6.62 million tons Gross Registered Tonnage (GRT). Of these, about 258 ships are engaged in overseas trade and the rest ply inland routes. After a period of decline, both tonnage and fleet size have grown recently, with the Indian ships-tugs, survey vessels as wells as pilot vessels-belonging to ports and maritime boards. There are about 55 shipping companies in the sector, of which 19 deal exclusively in coastal trade, and 29 are engaged in overseas trade. The rest operate in both types of trade. The major players of shipping industry are as follows:

SHIPPING CORPORATION OF INDIA

The Shipping Corporation of India was established on October 2nd, 1961, by the amalgamation of Eastern Shipping Corporation and Western Shipping Corporation. Starting out as a marginal Liner shipping Company with just 19 vessels, the SCI has today evolved into the largest Indian shipping Company. The SCI also has substantial interests in various segments of the shipping trade. SCI’s owned fleet includes Bulk carriers, Crude oil tankers, Product tankers, Container vessels, and Passenger-cum-Cargo vessels, Phosphoric Acid/Chemical carriers, LPG/Ammonia carriers and Offshore Supply Vessels. Sailing through for nearly five decades, the SCI today has a significant presence on the global maritime map. As the country’s premier shipping line, the SCI owns and operates around one-third of the Indian tonnage, and has operating interests in practically all areas of the shipping business; servicing both national and international trades.

 In view of the demand from Indian trade, the SCI has diversified into a large number of areas. The SCI is today the only Indian shipping Company operating:

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break-bulk services, international container services, liquid/dry bulk services, offshore services, passenger services. In addition, the SCI mans and manages a large number of vessels on behalf of various government departments and organizations.

The services provided include:

Tankers Bulk carriers Chartering Coastal and passenger services Break Bulk services

GREAT EASTERN SHIPPING COMPANY

Great Eastern Shipping Company is India’s largest private sector shipping company having experience and expertise spanning over 6 decades. The company has two main businesses: shipping and offshore. The shipping business is involved in transportation of crude oil, petroleum products, gas and dry bulk commodities. The offshore business services to the oil companies in carrying out offshore exploration and production activities is through its subsidiary, “Great ship (India) Limited”. The shipping business has been awarded the ISO 9001: 2000 standard certification by DNV.

Backed by an enviable clientele comprising industry leaders, international oil companies and governments who vouch for its services, the division has earned the status of being the most preferred shipping service provider. With a pulse on the global market and a thorough understanding of the ever-evolving market needs, the division is well-equipped to anticipate the demands of its clients and to deliver on its commitments, successfully and satisfactorily.

JITF VECTOR

JITF Waterways Ltd. brings JITF Vector, the Short Sea & River Transport venture of Jindal SAW Ltd. The company is a part of the US$ 20 billion O.P. Jindal Group (4th largest business house in India) with established leadership positions in steel, mining, power, energy, infrastructure, water, wastewater, solid waste management and waste to energy. JITF Vector is India’s first total logistics solutions provider with a high-frequency and high reliability services.

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JITF Vector is setting new standards in cargo transportation along the Indian coastline and inland waterways. With a fleet of eight vessels, including five container ships, options from short sea shipping containers to break bulk ships and an assurance of reliability. The company has a network combining high-quality intermodal operations with state-of-the-art information technology.

ORGANISATIONAL PROFILE

Introduction

Cochin Port is a major port on the Arabian Sea – Indian Ocean sea-route and is one of the largest ports in India. The port lies on two islands in the Lake of Kochi: Willingdon Island and Vallarpadam, towards the Fort Kochi river mouth opening onto the Arabian Sea. The International Container Transhipment Terminal (ICTT), part of the Cochin Port, is the largest container transhipment facility in India.

The port is governed by the Cochin Port Trust (CPT), a government of India establishment. The modern port was established in 1926 and has completed 86 years of active service.

Cochin port is one of the major ports in India. Cochin Port Trust is a body of the government of India that manages the Port of Cochin. Operating from the Willingdon Island, the port is located at latitude 9 degree 58’ north and longitude 76 degree 14’ east. The port inaugurated India’s first international Container Transhipment Terminal on Build –operate – transfer basis with Dubai Ports World, in the island of Vallarpadam, north of Willingdon Island.

History

The Cochin port was formed naturally due the great floods of Periyar in 1341 AD, which choked the Muziris port (Kodungallur), one of the greatest ports in ancient world. Ever since, Cochin became one of the major ports with extensive trading relations with Romans, Chinese, Greeks and Arabs which were all lured by the traditional spice wealth of the state. The port further attracted European colonialists like Portuguese, Dutch and finally British who extended their supremacy over Kochi Kingdom and the port city of Fort Kochi. The traditional port was near Mattancherry (which still continues as Mattancherry Wharf).

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The need of a modern port was first felt by Lord Willingdon during his governorship of Madras Province of British India. The opening of the Suez Canal made several ships pass near the west coast and he felt the necessity of modern port in the southern part. He selected the newly joined Sir Robert Bristow who was a leading British harbour engineer with extensive experience with maintenance of the Suez Canal. Bristow took the charge of chief engineer of Kochi Kingdom's Port Department in 1920. Ever since then, he and his team were actively involved in making a Greenfield port. After studying the sea currents, observing tidal conditions and conducting experiments, he was convinced about the feasibility of developing Cochin. He believed that Cochin could become the safest harbour if the ships entered the inner channel. The challenge before the engineers was a rock-like sandbar that stood across the opening of the Cochin backwaters into the sea. It was a formidable ridge of heavy and densely packed sand that prevented the entry of all ships requiring more than eight or nine feet of water. It was thought that the removal of the sandbar was a technical impossibility. The potential consequence on the environment was beyond estimation. The harm could be anything like the destruction of the Vypeen foreshore or the destruction of the Vembanad Lake.

Bristow, after a detailed study, concluded that such data was history. He addressed the immediate problem of erosion of the Vypeen foreshore by building of rubble granite groynes nearly parallel with the shores and overlapping each other. The groynes first produced an automatic reclamation which naturally protected the shore from the monsoon seas. Confident at the initial success, Bristow planned out a detailed proposal of reclaiming part of the backwaters at a cost of Rs. 2.5 crores. An ad-hoc committee appointed by the Madras government examined and approved the plans submitted by Bristow.

The construction of the dredger 'Lord Willingdon' was completed in 1925. It arrived at Cochin in May 1926. It was estimated that the dredger had to be put to use for at least 20 hours a day for the next two years. The dredged sand was used to create a new island to house Cochin Port and other trade-related establishments. Around 3.2 km² of land was reclaimed in the dredging. The strong determination of Sir Bristow and his team was successful when the large steamship SS Padma, sailed into the newly constructed inner harbour of Kochi. Speaking to the BBC on that day, Bristow proudly proclaimed his achievements with the following words: "I live on a large Island made from the bottom of the

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sea. It is called Willingdon Island, after the present Viceroy of India. From the upper floor of my house, I look down on the finest harbour in the East."

In 1932, the Maritime Board of British India declared Port of Cochin as a major port. The port was opened to all vessels up to 30 feet draught. During the World War 2, the port was taken over by the Royal Navy to accommodate military cruisers and war ships. It was returned to civil authorities on May 19, 1945. After Independence, the port was taken over by the government of India. In 1964, the administration of the port got vested in a Board of Trustees under the Major Port Trusts Act. The port was listed as one of the 12 major ports of India.

Navigation Channel

The entrance to the Port of Cochin 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. The approach channel to the Cochin Gut is about 1000 metre long with a designed width of 200 meters and maintained dredged depth of 13.8 meters.

The port of Cochin is located on the south west coast of India, in the state of Kerala at 9o 58’ and longitude 76o 14’ east. The port is situated on the Willingdon Island which is an artificial island tucked inside the backwaters. An all weather natural port, Cochin is located strategically close to the busiest international sea route:

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.

Various Berths at Cochin Port Trust (Figure 2)

Mission

The Mission of the Cochin Port Trust is to provide dependable, cost-effective Port services through modern and efficient infrastructure coupled with high

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quality, customer friendly services. The Port shall manage its assets and resources for optimal economic use to the Nation and the community. The Port shall strive to be the main catalyst for the economic development of the region, with a strong commitment to environmentally sound policies and safe practices. The Board of Trustees, the employees and all stakeholders of the Port shall work as a team in an open, positive, collaborative and cooperative manner. In pursuit of this Mission, the Port Trust shall be guided by the principles of integrity, ethical behaviour, professional excellence, service to the community and respect for every individual.

Vision

  The vision of the Cochin Port is to serve the country as

A public service provider An economic development facilitator A business enterprise An environmental conservator

Goal

Strengthening our competitive position Maximising space and infrastructure utilisation

Company Motto

“We will go any extend to keep your cargo sailing”

Corporate Objectives

1. To provide adequate services to trade and commerce so as to observe the promotion of international trade.

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2. To ensure efficient handling of cargo at minimum unit cost and quick turnaround of ships.

3. To optimise the utilisation of human and material resources with due regards to safety, quality of output and efficiency.

4. To optimise the return of investment to maintain economy in all port spheres of port work.

5. To respond to the ports increase requirements’ of technically competent managerial personnel’s at various levels.

6. To afford to its workers and staffs facilities’ that take care of their medical, recreational and other welfare needs.

Features of Cochin Port Trust

All weather port ISO 9001 – 2008 port

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Closest Indian port on the international sea route “Walk in” berthing priority 24 hour pilotage No drafts restriction (10 – 12 metres around the year) Bunkering and water services Attractive tariff structure Free of congestion Higher labour productivity and cost effectiveness Linked to main centres of country by rail, road and air Single window clearance for customs, immigration and health clearance Port officers at service Least turnaround time Warehousing capacity 0% pilferage Star Hotels Yatch parking zone Marina of international standards being constructed Hydrofoil services to Trivandrum and Calicut ERP implemented port (first in India)

Administration of Cochin Port Trust

Cochin Port Trust is an Autonomous body under Government of India and is managed by Board of Trustees constituted by the Government of India. The Board is headed by the Chairman who acts as the Chief Executive Officer. The Government of India may from time to time nominate the trustees in the Board representing various interests interlinked with the port such as shipping agents, shippers, labour, customers, state government etc.

The Board of Trustees is the apex decision making board. As per the provisions of the major port trust act 1963, not less than two labourers respectively are appointed as trustees of port trust board by the central government. These trustees take active participation in all decision making processes especially in matters concerning to the interest of the labours. In addition to this, unions are taken into confidence while taking policy decisions affecting labour and management. Chairman is assisted by the deputy chairman who in turn is assisted by department heads and officials of the departments functioning in the port.

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Constitution of the Board of Trustees

Cochin Port Trust is an Autonomous body under Government of India and is managed by Board of Trustees constituted by the Government of India. The Board is headed by the Chairman who acts as the Chief Executive Officer.

The Board of Trustees consists of:

The Indian Navy Customs Cochin refinery Indian Railways Ministry of surface transport Government of Kerala Sea Food Industries Ship Owners Association Chamber of Commerce and Industries Labour Representatives Coast guard

The Board has a total strength of 19 members out of which 4 represent other interests and 2 represent labour trustees.

Organisational Structure (Figure 3)

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DEPARTMENTS

General Administration Department

The General administration department is headed by the secretary who is assisted by 3 deputy secretaries (administration), deputy secretary (estate), deputy secretary (establishment), deputy director (planning and research),law officer, Industrial Relations officer, Chief Vigilance officer, public relations officer, secretary officer and Hindi officer. The training s=cell under this department is in charge of the training activities in the organisation. The purpose of this department is to establish, document, implement, maintain. It

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Board of Trustees

Chairman

Deputy Chairman

Medical Department

Central Accounts Department

General Administration Department

Marine Department

Mechanical Engineering Department

Civil Engineering Department

Traffic Department

also aims to enhance customer satisfaction through effective application of technical system, including the process of continuous improvement.

Functions:

Arrange manpower requirements Labour welfare measures Settlement of labour disputes Appointments, promotions, transfers etc Conveying meetings of the board of trustees and its sub committees Preparation of agenda for the meetings and follow up actions taken for

the decisions taken Public relations work Managing ports land and allotment of quarters performing preventive

vigilance measures Implementation of the official language

SERVICES:

Personal administration and grievances Public relations work Allotment of land Issuance of annual pass for vehicles

The department has 5 sub-departments

1. Planning and research division : The main activity undertaken includes preparation of annual plan and 5 year plan, projection of traffic through statistical collection, analysis and interpretation of data related to shipping and port operations.

2. Labour division : The main activity of this division is implementation of various welfare measures for the benefit of labour and conveying meeting with unions.

3. Estate divisions : All matters relating to the land, building and other estates of the port are dealt with this department.

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4. Vigilance : The function of this department is vigilance inquiry.5. Central industrial security force : The force is entrusted with the safety

and security of vital installations of the port.

Central Accounts Department

To give financial advice on various matters of the administration of the port.

Custodian and accounting of receipts and expenditure from the port fund Compilation of budget estimates of financial statements Pre-audit and checking of bills as an instrument of control Financial and budgetary control Payment of salary, pension and other dues to the employees Accounting of expenditure on works Issue of bills towards cost of service rendered by the port and recovery of

amounts due Costing of service and operations to facilitate to cost control

Civil Engineering Department

Maintenance and development of general conservancy of the port from the civil engineering point of view

Implementation of new scheme in consultation with the other department for providing port facilities to cope with the needs of trade

Civil construction work and maintenance of the port structures Sanitation of port area and water supply Preparation of estimates of new work and award of contact for the new

contract work Procurement and distribution of electricity Beautification of port area Dredging for the maintenance of navigational channels.

Mechanical Engineering Department

It is responsible for procurement, supply, maintenance and operation of all cargo handling equipments and procurement and maintenance of flotilla required by the port.

Maintenance of equipment and floating crafts.

Traffic Department

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Allotment of berth Deployment of equipment such as shore cranes, mobile cranes etc. Deployment of labour gangs for loading and unloading operations Transit management and supervision of the cargo handling Cargo accounting and receipt and delivery Allotment of the ware house and open stacking yards and monitoring

their utilizations. Container freights station operation such as stuffing, de-stuffing,

movement of boxes and receipt and their deliveries. Container terminal documentation, receipt and delivery of containers.

Marine Department

It is mainly maintains the marine conservancy of the port. The piloting of the vessels in and out of the port, Hydro graphic survey, dredging operations, fire services, licensing of harbour crafts, single station including the operations and maintenance of the tanker terminals and of electronic equipment like VHF, etc are the responsibilities of the marine department.

Pollution control All harbour flotilla like tugs, launches, dredgers are operated by the

marine department.

Medical Department

This department provide medical facilities for the officers and staff of the port trust as well as their families.

Self-contained dispensary functioning at the port workshop and 6 first aid boxes located at different operational areas of the port trust.

The port has a hospital with 150 beds and is also capable of providing modern medical facilities to the patients.

Manages and runs a nursing college.

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WORKING ENVIRONMENT AND OTHER WELFARE MEASURES

Management development programme: As part of the ports efforts on imparting training to the port officers and staff, a number of officers and staff are deputed for different training courses, seminars, conferences during the year.

Family security fund: Every year a certain sum is paid from the family security fund on account of retirement, resignation and death.

Accident to shore workers: Compensation is paid to the workers as monitory compensation injury leave, medical reimbursement.

Group insurance scheme: The amount is paid during the year to retired employees/dependence of diseased employees.

EX-gratia relief: Every year certain amount is given towards the retired employees/ dependence of deceased employees.

Scholarships: Every year certain amount is given towards merit cum means scholarships to the children of port employees.

Co-operative society: There exists a fully fledged co-operative society for fulfilling the extra needs of the employees like day to day commodities used in the family.

Canteen: There exist a total of 15 canteens for the employees.

Schools: There are two nursery schools managed by the women’s club and the ladies club, one central school managed by central government and one school managed by Kerala government in memory of Sir Robert Bristow.

Sports and games: The port had always taken interest to encourage sports in the port campus.

Trade union: Port trust is having more than 5 trade unions. Most of themare registered trade unions. The main trade unions are as follows:

1. Cochin Port Staff Association (CPSA)2. Cochin Port Employees Organisation (CPEO)3. Cochin Port Wharf Staff Association4. Cochin Port Employees Sangh5. Cochin Thuramugha Thozhilaali Union

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FACILITIES AT THE PORT

Berth

Berth is a specific location where a vessel may be berthed, usually for the purpose of loading and unloading. The main inward shipping channel of the port divides in to the Ernakulam and Mattanchery channels. The 1024 metre long Ernakulam wharf has six alongside berths, out of which three are utilized as a full-fledged container terminal, two for general cargo and a fertilizer berth. Besides there are three oil berths in the Ernakulam channel. On the Mattanchery channel there are four alongside berths, for general cargo, one Boat Train Pier and two jetties for miscellaneous cargo.

APPROACH CHANNEL

Outer channel

Length: 10500 metres

Draft: 13.8 metres

Width: 17.5 metres

Inner channels

1. Ernakulam

Length: 5032 metres

Draft: 13.2 metres (up to RGCT and COT)

: 11 metres (at fertilizer berth)

: 10 metres (at Q5 to Q7 berths)

: 9.75 metres (at STB and NTB)

Width: 200 metres and turning basin of 500 metres

2. Mattachery Channel

Length: 2600 metres

Draft: 10.75 metres (up to south end of BTP)

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: 9.75 metres

Width: 183 metres

Location of Fair Way Buoy

Latitude – 09’ - 57’ -45’

Longitude– 76’ -08’ -59’

BERTHING FACILITIES

Number of wharfs: 2

Length of Ernakulam wharf: 917 metres

Length of Mattanchery wharf: 670 metres

Number of alongside shaded berths: 7

Permissible draft: 9.14 metres at Q5, Q6, Q7, Q8 & Q9 in Ernakulam wharf

: 9.14 metres at Mattanchery wharf

Fertilizer Berth- completely dedicated to FACT: 1 (accommodates ships of maximum 207 metres in length drawing a draft of 10.7 metres and having displacement of maximum 25000 tonnes)

Coal Berth: 2

NCB: accommodates ships of maximum 170 metres

SCB: accommodates ships of maximum 170 metres

Draft: 9.14 metres

Boat Train Peer: 1

Length: accommodates ships of maximum 290 metres length

Draft: 10 metres

Tanker berth: 3

COT: accommodates ships of length 231 metres with a displacement tonnage of 55000 loaded to 12.5 metres draft

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NTB: accommodates ships of length 213 metres with a displacement tonnage of 30000 loaded to 9.14 metres draft

STB: accommodates ships of length 266 metres with a displacement tonnage of 15000 loaded to 9.14 metres draft

Cargo Storage and Container Freight Station Facility (Table 1)

Particulars Total Sheds Area availableMattanchery wharf 13 36690Ernakulam 12 23032Container Freight Station 1 10000Open storage is also available

PORT FLOTILLA

Tugs:A tugboat (tug) is a boat that manoeuvres vessels by pushing or towing them. Tugs move vessels that either should not move themselves, such as ships in crowded harbour ora narrow canal, or those that cannot move themselves alone, such as barges, disabled ships, or platforms . Normally two tugs are used for each shipping movement as per the requirement of the Pilot and the cost of the tug is included in the Pilotage charges.

Pilot Boat:Pilot boat is a type of boat used to transport pilots between land and the inbound or outbound ships that they are piloting.

Dredgers:A dredger is a device for scraping or sucking the seabed, used for dredging. A dredger is a ship or boat equipped with a dredge.

Floating Crane:Floating crane are used mainly in bridge building and port construction, but they are used for occasional loading and unloading of especially heavy or awkward loads on and off ships.

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Water Barge:Water Barge is a flat bottom boat for carrying heavy loads especially on canals.

Flotilla at Cochin Port Trust (Table 2)

Tugs for shipping 4Grab hopper dredger 1Excavator 1Dump hopper barge 1Pilot launcher 2Mooring launcher 5Other tugs 8Fire float 1Floating crane 1Water barge 1Oil skimmer cum Buoy 1Handling vessel 6

FACILITIES OFFERED BY PORT

Berths for handling cargo and passenger ships Cargo handling equipments Storage accommodation Dry Dock Bunkering facilities Fisheries harbour Medical and other welfare facilities for its employees

SERVICE PROFILE

Cargo handling Pilotage Dredging Civil project works Power (11 KVA line replaced by 110 KVA at the cost of 21 crore)

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Fire freighting Water supply Land leasing

Goods Handled (Table 3)

DRY BULK BREAK BULK LIQUID BULK Fertilizer Sulphur Rock Phosphate Coal Zinc Clinker Wheat

Iron and steel Food grains Coffee Marine Products Cements Sugar Machinery Raw cashew Coal Spices

Crude POL Phosphoric Acid Liquid Ammonia Cashew shell

liquid Palm Oil Fatty Acids

CARGO HANDLING EQUIPMENTS

Ship to shore container gantry cranes Transfer cranes Reach stackers Mobile cranes Pork lift trucks Heavy duty top lift trucks Trailer chassis Heavy duty tractors Spreaders

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IMPORT AND EXPORT PROCEDURE

General procedure for export

Exporters/CHA requests the traffic manager for moving the cargo into the port and based on the permission given the cargo is moved into the port with cast chit

Exporters/CHA submits shipping bell with customs along with supporting documents like packing list, letters of credit etc

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After passing the shipping bill by the customs export department, goods are presented for examination and appraisal

Customs give pass order for loading of the cargo

CHA files export application along with invoice, packing test etc

The CHA submits the export application along with allowed for shipment by customs to the port. The documents are compared and note cessed

The steamer agent fills the vessel arrival intimation, drop prior to the expected arrival of the vessel

The port allocates the birth and vessel is berthed

Steamer agent files for entry outward

The vessel related charges are paid in advance by steamer agent

Customs officers verify the contents/cargo and permit clearance by giving let export and customs passed shipping bill

Stevedore indents for labour and equipment

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Cargo is loaded with proper tally and mate’s receipt is received. The consolidated cargo exported by the vessel is filed as EGM with customs

After loading the vessel sails out and the regularisation of the charges are done and settled

General procedure for import

The SA files the vessel arrival intimation 7 days prior to the expected arrival of the vessel

The steamer agent files IGM manually or electronically

The SA pays the vessel related charges in advance

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The port allocates the berth and the vessel is berthed

Customs, PHO, plant quarantine, immigration etc officials board the vessel and entry onward is granted

Port/terminal operator commences the cargo operations

Stevedore indents for labour equipment

Unload of cargo applications starts with tally

Cargo is stacked at the proper places

After the completion of the landing operations the vessels sails out and the charges are regularised

Bill of lading is submitted to the Steamer agent and delivery order is obtained and based on the delivery order, Bill of entry is filed by the CHA/importer

BE is cross checked with IGM and tallied

BE is sent examination and assessment.

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Selected packages are opened and customs examines the cargo. Value is assessed and payable duty is arrived at

Duty is paid by the importer or CHA

CHA files import application along with the delivery order. Port cargo related charges are paid. IA is verified with IGM

On obtaining the out of charges from the customs the CHA approaches the port for delivering of cargo with BE and IA

The documents are cross-verified while ticket is issued and delivery is affected. The delivered goods pass the port gate examination document of

the gate

MAJOR PARTIES INVOLVED IN THE IMPORT AND EXPORT OF GOODS IN THE PORT

EXPORTER

A person who transports goods abroad, especially for trade or sale is called an exporter.

IMPORTER

A person who brings in goods from an outside country for the purpose of trade or sale is called an importer.

CUSTOMS

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Assessment and collection of customs duties on import and export charges as per customs taxes (customs act, 1962 and customs tariff act, 1975).

Enforcement of the various provisions of the customs act processing imports and export of cargo, baggage, postal articles, and arrival and departure of vessels etc.

Discharge of various agency functions and enforcing various prohibitions and restrictions on imports and export under customs act and other allied enactments.

Responsible for the prevention of smuggling including, interdiction of drug trafficking, and international passenger processing.

PORT TRUSTS

Provides infrastructure facilities like berths, equipment, storage space, navigation channels and road and rail network within port area.

Perform vessel operation like berthing/ un -berthing of vessels, containers, cargo handling operations, movement to storage yard, stuffing and de-stuffing, examination of containers to CFS

Delivery/ aggregation of containers/ cargo, manpower and equipments

PORT HEALTH ORGANISATION

Inspection of hygiene in the ship and amongst crew, so as to control the spread of infectious diseases from incoming vessels

Inspecting food and agricultural products entering the port Edible oil are inspected by the PHO and permitted for domestic use

based on lab certification. Checking the hygiene in and around the port areas Providing immunisation

PLANT QUARANTINE ORGANISATION

To prevent the entry, establishment and spread of exotic pests in India as per the provisions of the Destructive Insects and Pests Act, 1914.

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Responsible for supervising the fumigation of cargo (timber, food grains)

IMMIGRATION AUTHORITIES

The agency that is responsible for applying the immigration laws of the country and providing the needed documents for foreign crew and passengers to disembark and embark

TERMINAL OPERATOR

Manages operations both at wharf and yard Acts as the custodian of cargo Functions of terminal operator are common to that of the port trusts

VESSEL OPERATING AGENTS (STAEMER AGENTS/ MAINLINE OPERATOR AGENTS)

The authorised representative in a specified territory acting on behalf of a steamer ship and attending to all matters relating to the vessels owned by his principal

The SA aliases with the port and other agencies like customs for the completion of formalities related to the various agencies

They compile the vessel plan and coordinates with the stevedore and port for loading and discharge operations

CONTAINER OPERATING AGENT (NVOCC/ VOCC)

They represent the container liner and provide the SA with the details of the container belonging to them in the vessel

They also give the delivery order to the clearing agent/ importer for clearing the container

The liner gives the authorisation for loading container to a vessel to the CA

They recover terminal handling charges and container detention charges and also issues Bill of leading and agent’s delivery order to the consignees

(NVOCC – Non vessel operating common carrier)

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(VOCC – Vessel operating common carriers)

STEVEDORE

Stevedoring agents manages loading and unloading ship.

CUSTOMS HOUSE AGENTS

Importer/ exporter are the owners of the goods being imported/ exported and they are mainly responsible for completion of customs and port formalities either themselves or through a CHA

CHA is any person engaged in providing any service, either directly or indirectly, connected with the C&F operation.

CHA are licensed to enter the customs premises and clear the goods through customs/ port after payment of all duties and port charges on behalf of the importer

CHA brings in the export cargo and complete all documentation for loading on behalf of the exporter

TRANSPORT OPERATORS

1. Road2. Rail (CONCOR)3. Indian Railways

CONTAINER FREIGHT STATIONS (CFS)/ INLAND CONTAINER DEPOTS

Receipt and despatch/ delivery of cargo Stuffing of containers Transit operation by rail/ road to and from servicing parts Customs clearance Temporary storage of cargo and containers Maintenance and repair of container units

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ONGOING AND UPCOMING PROJECTS AT COCHIN PORT TRUST

ONGOING PROJECTS

Cochin LNG Terminal

M/s Petronet LNG Ltd. has set up an LNG Terminal and Re-gasification Plant in Puthuvypeen at Cochin Port. The facility has a capacity of 5 MMTPA. The Terminal can berth LNG vessels up to 2,16,000 m3 with a length of 300 m and a draft of 12.0 m. The facility is expected to take its first consignment by July 2013.

International Ship Repair Facility

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Cochin Port Trust has awarded a project for development of an International Ship Repair Facility to the Cochin Shipyard Ltd. (CSL) on 19-9-2012.  The facility is to come up on 41 acres of land on the Western side of Willingdon Island along the Mattancherry channel. CSL is investing around Rs. 490 crores in the venture. The existing ship repair facilities of the Port including the dry dock (66 m x 12.5 m x 4 m), slipway and workshop complex are being taken over by CSL. The facilities will enable ships visiting Cochin Port to undertake both floating as well as docking repairs. 

Development of a Multi-User Liquid Terminal (MULT) at Puthuvypeen SEZ (International Bunkering Terminal)

Cochin Port Trust has awarded the construction of an Oil-cum-LPG Jetty at Puthuvypeen in March 2013. The project is scheduled for commissioning by end December 2015. The project has a total capacity of 4.10 MMTPA, with LPG forming 0.68 MMTPA and bunkers/POL products being 3.42 MMTPA. The terminal is designed as a Multi-User Liquid Terminal. IOCL will have use of the terminal for 161 days in a year, while other operators can use it for the balance 204 days. This jetty will service IOCL’s LPG storage facility in Puthuvypeen, and in the process, reduce road transport of LPG from Mangalore through Kerala. The jetty will also serve as an International Bunkering Terminal for supplying bunkers to vessels calling at the Port as well as plying in the high seas.

UPCOMING PROJECTS

Redevelopment of Q1-Q3 Berth

Cochin Port Trust intends to award on PPP basis in six months time a project for the redevelopment of Q1-Q3 berth on Mattancherry Wharf on the western side of Willingdon Island along the Mattancherry Channel. The quay length is around 400 m. The berths will be ideal for import/export of moderate parcels of bulk and break bulk cargoes. Containers, coal and finished fertilizers cannot be handled until the exclusivity period benefit conferred on other terminal operators in Cochin Port is exhausted. Non-containerised traditional cargoes like food grains, raw cashew, building materials, gypsum, industrial sugar, salt, and timber logs have been handled by this berth at various times. RO-RO car carriers are seriously considering using Mattancherry Wharf for coastal movement from Gujarat and Chennai.

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Modernisation of Coal Handling In Cochin Port

Cochin Port has been handling coal since its inception at the North Coal Berth and South Coal berth on the Mattancherry Wharf.  The report on the Master Plan for Redeveloping Willingdon Island has highlighted the great potential for coal handling in Cochin Port, especially in view of the fact that it is the major port lying nearest to the route to African coal.

Cochin Outer Harbour Project

Cochin Port experiences movement of substantial quantity of sand from north to south at its mouth due to the littoral drift phenomenon. Consequently, about 300 hectares of land has been accreted off Puthuvypeen along the west coast while the shoreline further south has been eroded over the years. Conceptual studies through IIT, Madras and CWPRS, Pune show that the intensity of the sea erosion experienced on the western coast of Cochin can be reduced if two breakwaters, each extending 6km into the sea, are put up at the mouth of the Port. The studies suggest that an associated benefit of the breakwaters could be a significant reduction in maintenance dredging loads.

Free Trade Warehousing Zone (FTWZ)

India has emerged as one of the fastest growing economies in the world. The Government of India announced Free Trade and Warehousing Zones (FTWZ) to create trade-related infrastructure to bridge the gap in the existing facilities available for trading and storage activities for foreign trade with freedom to carry out trade in free currency. The key benefits of an FTWZ are duty deferment, local tax exemption, service tax exemption on all activities within the FTWZ, income tax exemption for developers and users of the FTWZ, re-export without duty payment, excise duty exemption for products sourced from Domestic Traffic Area (DTA), shared warehousing and equipment thereby reducing the capital expense requirement, faster Customs clearance and improved logistics connectivity leading to reduced delivery time.

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SWOT Analysis (Table 4)

STRENGTHS WEAKNESS

Closest Indian Port on the International sea route

A natural weather port Single window facility for

customs, immigration and health clearance and hence reducing the overall time of operations

India’s first E-Port and ISO 9001-2008 certified port

24 hour pilotage Round the clock navigation

Old Infrastructure Limited water depth and high

dredging cost Old and inefficient cargo

handling systems Poor hinterland connectivity High Tariffs Overstaffing High operating and handling

cost

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Linked to main centres of country by rail, road and air

Free of congestion 0% pilferage Highly experienced staff

OPPURTUNITIES THREAT

Huge Indian Markets Invest in infrastructure, lower

cost for port users Invest in improving transport

facilities Encouraging for private

participation and joint venture prospects

An increase in the foreign vessels entering the port trust and thus boosting the economy

Huge scope for development at Cochin Port Trust as most the space is underutilised.

Emergence of minor ports Emergence of private ports Lack of industrial base in Kerala Labour unions influence on the

workers Poorly maintained roads in

Kerala Growth and stiff competition

from the neighbouring ports like V. O. Chidambaranar and New Mangalore ports

TRAFFIC AT COCHIN PORT TRUST

The total traffic handled by the Port during year recorded a decrease of 2.19% to 196.5 lakh tonnes as against 200.91 lakh tonnes handled in the preceding year. The increase in the traffic was mainly recorded in Liquid Bulk compared to the preceding year as may be seen from the following statement.

Traffic handled by Port during the past three years (Table 5) (In Lakh Tonnes)

2012-13 2011-12 2010-11

QUANTITY % to Total

QUANTITY % to Total

QUANTITY % to Total

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A. BULK CARGO

1) Liquid Cargo 141.98 72.60 142.39 70.87 124.81 69.832) Dry Bulk

a)Fertilizers & its raw materials

3.94 2.025 4.30 2.14 4.29 2.40

b) Food Grains (Wheat) 0.069 0.045 0 0.00 0 0.00c) Coal & Zinc Concentrate

1.10 0.55 0.83 0.41 1.17 0.65

d) Salt 0.646 0.328 1.37 0.68 0.63 0.35e) Others .8538 0.434 3.77 1.88 2.89 1.62

TOTAL 149.20 75.972

152.66 75.98 133.79 74.86

B. BREAK BULK CARGO

1.23 0.625 1.10 0.55 0.75 0.42

C. CONTAINERISED CARGO

46.07 23.41 47.15 23.47 44.19 24.72

GRAND TOTAL 196.5 100.00

200.91 100.00 178.73 100.00

Distribution of Cargo Traffic during the Past 6 Years (Table 6)

(In ‘000 tonnes)

SI. No CATEGORY 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13BREAK BULK1 Soda Ash 41 44 12 6 0 6.1302 Oil Cake 6 12 7 0 0 03 Timber Logs 34 51 77 61 64 94.7924 Others 58 31 29 7 46 .289

Total 139 138 125 74 110 101.211

DRY BULK5 Rock

phosphate182 126 55 158 145 182.963

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6 Sulphur 89 139 156 194 171 148.1417 Zinc

Concentrate

58 60 76 77 49 82.301

8 Coal 246 259 148 40 34 289 Murate of

Potash56 123 52 76 59 22

10 Shredded Scrap

104 91 82 27 27 28.6

11 Others 120 281 401 326 542 8.538

Total 855 1079 970 898 1027 500.543

LIQUID BULK12 POL 11300 10492 11957 12101 14010 1389513 OTHERS 278 264 449 380 229 303.203

TOTAL 11578 10756 12406 12481 14239 14198

GRAND TOTAL 12572 11973 13501 13453 15376 14800

GRAPH DEPICTING YEARLY VARIATION IN TRAFFIC (Figure 4)

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2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

1178337212264069127841751383323114468700

15780086

20088427

3474196 34904812709952 3596127

3404050 4310905

3190016

ImportExport

Figure 5

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72%

3%1%

24%

TYPE OF CARGO

Liquid cargoDry Bulk cargoBreak Bulk cargoContainerised cargo

55

During the year foreign cargo traffic decreased by 1.52% to 132.27 lakh tonnes from 134.31 lakh tonnes in the preceding year. Coastal cargo traffic has also decreased by 0.64% to 66.17 lakh tonnes from 66.60 lakh tonnes.

The details of coastal and foreign trade handled during the past 3 years (Table 7)

(In Lakh Tonnes)

Export Import Total

Traffic 2012-13

2011-12

2010-11

2012-13

2011-12

2010-11

2012-13

2011-12

2010-11

Coastal 13.97 14.86 12.04 52.20 51.74 48.22 66.17 66.60 60.26

Foreign 24.26 28.25 22.00 108.01 106.06 96.47 132.27 134.31

118.47

Total 38.23 43.11 34.04 160.21 157.80 144.69

198.44 200.91

178.73

56

Figure: 6

55%

26%

12%

7%

Percentage Composition of Traffic During 2012-13

Foreign ImportCoastal ImportForeign ExportCoastal Export

57

IMPORTS

Total import traffic handled during the year recorded an increase by 9.06% to 157.80 lakh tonnes from 144.69 lakh tonnes in the preceding year.

Commodity wise imports during the past 3 years (Table 8)

(In Tonnes)

Commodity2012-13 2011-12 2010-11

Quantity% to Total Quantity

% to Total Quantity

% to Total

POL11741489 58.44

11554895 73.22 10366236 71.86

Fertilizers & Raw Materials

3944304 19.63430797 2.73 428665 2.97

Coal28000 0.157

34000 0.22 40000 0.28

Containers2861220 14.24

2859977 18.12 2751432 19.02

Other Cargo1513414 7.533

900417 5.71 882368 6.10

Total 20088427 100.00

15780086 100.00 14468701 100.00

58

EXPORTS

Total export traffic handled during the year showed a decrease of 26% to 31.90 Lakh tonnes from 43.10 Lakh tonnes in the preceding year.

Commodity wise exports handled during the past 3 years (Table 9)

(In Lakh Tonnes)

Commodity 2012-13 2011-12 2010-11

Quantity

% to Total Quantit

y

% to Total Quantit

y

% to Total

1. POL 2154172 67.52

2455158 56.95 1734664 50.96

2. Containers

Tea 94165 2.95 111137 2.58 111366 3.27

Cashew Kernals 67067 2.11 71187 1.65 64298 1.89

Sea Foods 210986 6.61 207107 4.80 169408 4.98

Coir Products 140882 4.41 122521 2.84 131046 3.85

Rubber & Rubber Products

105289 3.31 79357 1.84 102769 3.02

Spices 88148 2.77 86772 2.01 66855 1.96

Coffee 80674 2.53 115359 2.68 84792 2.49

Others 248653 7.791061423 24.62 937021 27.53

TOTAL 3190016 100 4310905 100.00

3404050 100.00

59

Category wise Distribution of Vessels entered the Port during the past 6 Years (Table 10)

NUMBER OF VESSELS CARRYING Total NRT

Year Containers

Coal Fertilizer & raw materials

Food grains

General cargo

Tankers

Others

2006-07

382 7 27 5 92 382 278 1173 9,571,341

2007-08

350 6 15 2 73 352 323 1121 11,009,143

2008-09

334 6 22 0 63 305 352 1082 11,110,174

2009-10

390 5 17 0 45 381 440 1278 10,546,078

2010-11

360 2 18 0 39 372 465 1256 10,758,101

2011-12

390 2 15 0 37 361 581 1386 12,219,423

2012-13

439 1 12 0 35 354 527 1368 13,61,4980

60

THE NET REGISTERED TONNAGE OF SHIPS ENETRED THE PORT DURING THE PAST 6 YEARS (Figure 7)

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-130

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

9571341

11009143 1111017410546078 10758101

12219423

13614980

NR T

61

THE NUMBER OF SHIPS ENTERED IN THE PORT TRUST IN THE PAST 6 YEARS (Figure 8)

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

0 200 400 600 800 1000 1200 1400 1600

1173

1121

1082

1278

1256

1386

1368

Number of Ships

Number of Ships

62

BREAK BULK CARGO OPERATION

Until the mid-1960s most general cargo (called ‘break-bulk’ cargo) travelled loose and each item had to be packed in the hold of a cargo liner using ‘dunnage’ (pieces of wood or burlap) to keep it in place. This labour-intensive operation was slow, expensive, and difficult to plan and the cargo was exposed to the risk of damage or pilferage. As a result cargo liners spent two- thirds of their time in port and cargo-handling costs escalated to more than one-quarter of the total shipping cost, making it difficult for liner operators to provide the service at an economic cost, and their profit margins were squeezed.

The shipping industry’s response was to ‘unitize’ the transport system, applying the same technology which had been applied successfully on the production lines in manufacturing industry. Work was standardized, allowing investment to increase productivity. Since cargo handling was the main bottleneck, the key was to pack the cargo into internationally accepted standard units which could be handled quickly and cheaply with specially designed equipment. At the outset many systems of unitization were examined, but the two main contenders were pallets and containers. Pallets are flat trays, suitable for handling by fork-lift truck, on which single or multiple units can be packed for easy handling. Containers are standard boxes into which individual items are packed. The first deep-sea container service was introduced in 1966 and in the next 20 years containers came to dominate the transport of general cargo, with shipments of over 50 million units per year.

The facilities provided in a port depend on the type and volume of cargo which is in transit. As trade changes, so do the ports.

At Cochin port trust, Break bulk cargo constitute mainly 6 products, they are as follows:

Timber logs Iron and steel Pipes Cement in Bulk Bags Defence Cargo Project cargo

63

The cargo operation of break bulk is mainly affected by the following factors:

Tariff Charges Availability of the Equipments The efficiency of the available equipments The efficiency of the employees Delay in customs clearance Availability and condition of storage facility Weather problems Employee’s issues (e.g.: trade unions, strike) Transportation (Availability of trucks and other vehicles for

transporting the cargo to the destined places at the right time)

The overall efficiency of the Break Bulk cargo is affected by the above factors and the problems which are seen in the Break Bulk cargo operation are seen in and around the above mentioned factors.

DISTRIBUTION OF BREAK BULK CARGO IN 2012-13 (Table 11)

Commodity Export Import Grand totalCoasta

lForeign Total Coasta

lForeign Total

Timber logs

0 0 0 0 94792 94792 94792

Iron & steel 0 1462 1462 12915 0 12915 14377Cement 0 0 0 11218 0 11218 11218Defence cargo

0 0 0 0 2212 2212 2212

Project cargo

0 0 0 403 318 721 721

Others 0 289 289 0 0 0 289Total 0 1751 1751 24536 97322 121858 123609

64

DATA ANALYSIS AND INTERPRETATION ON THE BASIS OF THE QUESTIONAIRE

Kindly rate the following questions on a scale of 1 to 5.

(Strongly disagree is assigned a value of 1, partially disagree is assigned a value of 2, neutral opinion is assigned a value of 3, partially agree is assigned a value of 4 and strongly agree is assigned a value of 5.)

There were a total of five respondents from which data was collected for the purpose this study.

1. Do you feel that the tariff charge at Cochin Port Trust is affecting Break Bulk Cargo Operations?

Strongly Disagree Partially Disagree Neutral

Partially agree Strongly Agree

Data of the respondents based on Tariff charges (Table 12)

Respondents Strongly Disagree

Partially Disagree

Neutral Partially Agree

Strongly Agree

1

2

3

4

5

Grand Total 0 0 0 0 5

Percentage to Total

0 0 0 0 100

65

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN CONSIDERING TARIFF CHARGE AS THE MAIN HINDRANCE TO BREAK BULK CARGO OPERATION (Figure 9)

RESPONDENT 1

RESPONDENT 2

RESPONDENT 3

RESPONDENT 4

RESPONDENT 5

0

1

2

3

4

5

6

TARIFF CHARGES

TARIFF CHARGES

INTERPRETATION

From the data above obtained from the respondents based on the survey, 100% respondents do feel that tariff charges at Cochin Port Trust are high as compared to its neighbouring ports.

66

2. Do you feel that the availability of Equipments at Cochin Port Trust is affecting Break Bulk Cargo Operations?

Strongly Disagree Partially Disagree Neutral

Partially agree Strongly Agree

Data of the respondents based on the availability of Equipments

(Table 13)

Respondents Strongly Disagree

Partially Disagree

Neutral Partially Agree

Strongly Agree

1

2

3

4

5

Grand Total 2 1 2 0 0

Percentage to Total

40 20 40 0 0

67

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN CONSIDERING AVAILABILITY OF EQUIPMENTS AS THE MAIN HINDRANCE TO BREAK BULK CARGO OPERATION (Figure 10)

RESPONDEN

T 1

RESPONDEN

T 2

RESPONDEN

T 3

RESPONDEN

T 4

RESPONDEN

T 50

0.5

1

1.5

2

2.5

3

3.5

AVAILABILITY OF EQUIPMENTS

AVAILABILITY OF EQUIPMENTS

INTERPRETATION

From the above table, around 40% of the respondent had a neutral opinion, 20% partially disagreed and 40% strongly disagreed regarding the availability of Equipments at Cochin Port Trust.

68

3. Do you feel that the efficiency of the available Equipments at Cochin Port Trust is affecting Break Bulk Cargo Operations?

Strongly Disagree Partially Disagree Neutral

Partially agree Strongly Agree

Data of the respondents based on efficiency of available equipments (Table 14)

Respondents Strongly Disagree

Partially Disagree

Neutral Partially Agree

Strongly Agree

1

2

3

4

5

Grand Total 0 2 2 1 0

Percentage to Total

0 40 40 20 0

69

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN CONSIDERING EFFICIENCY OF THE AVAILABLE EQUIPMENTS AS THE MAIN HINDRANCE TO BREAK BULK CARGO OPERATION (Figure 11)

RESPONDEN

T 1

RESPONDEN

T 2

RESPONDEN

T 3

RESPONDEN

T 4

RESPONDEN

T 50

0.5

1

1.5

2

2.5

3

3.5

4

4.5

EFFICIENCY OF AVAILABLE EQUIPMENTS

EFFICIENCY OF AVAILABLE EQUIPMENTS

INTERPRETATION

Around 40% of the respondent has neutral opinion, 40% partially disagreed and 20% partially agreed that the efficiency of the available equipments were affecting the cargo operations at Cochin Port Trust.

70

4. Do you feel that the transportation facility at Cochin Port Trust is affecting Break Bulk Cargo Operations?

Strongly Disagree Partially Disagree Neutral

Partially agree Strongly Agree

Data of the respondents based on the transportation facility (Table 15)

Respondents Strongly Disagree

Partially Disagree

Neutral Partially Agree

Strongly Agree

1

2

3

4

5

Grand Total 1 2 1 1 0

Percentage to Total

20 40 20 20 100

71

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN CONSIDERING TRANSPORTATION FACILITIES AS THE MAIN HINDRANCE TO BREAK BULK CARGO OPERATION (Figure 12)

RESPONDEN

T1

RESPONDEN

T2

RESPONDEN

T3

RESPONDEN

T4

RESPONDEN

T50

0.5

1

1.5

2

2.5

3

3.5

4

4.5

TRANSPORTATION FACILITIES

TRANSPORTATION FACILITIES

INTERPRETATION

From the above data 20% strongly disagree, 40% partially disagree, 20% had a neutral opinion, and 10% partially agree when considering the factor of transportation facility as the main hindrance for the cargo operation at Cochin Port Trust.

72

5. Do you feel that the efficiency of the workers at Cochin Port Trust is affecting Break Bulk Cargo Operations?

Strongly Disagree Partially Disagree Neutral

Partially agree Strongly Agree

Data of the respondents based on efficiency of workers (Table 16)

Respondents Strongly Disagree

Partially Disagree

Neutral Partially Agree

Strongly Agree

1

2

3

4

5

Grand Total 0 1 2 2 0

Percentage to Total

0 20 40 40 0

73

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN CONSIDERING EFFICIENCY OF THE WORKERS AS THE MAIN HINDRANCE TO BREAK BULK CARGO OPERATION (Figure 13)

RESPONDEN

T 1

RESPONDEN

T 2

RESPONDEN

T 3

RESPONDEN

T 4

RESPONDEN

T 50

0.5

1

1.5

2

2.5

3

3.5

4

4.5

EFFICIENCY OF THE WORKERS

EFFICIENCY OF THE WORKERS

INTERPRETATION

From the above table 40% of the respondents partially agreed, 40% had a neutral opinion and 20% partially disagreed when considering the efficiency of the workers as a hindrance for the cargo operations.

74

6. Do you feel that the delay in customer clearance at Cochin Port Trust is affecting Break Bulk Cargo Operations?

Strongly Disagree Partially Disagree Neutral

Partially agree Strongly Agree

Data of the respondents based on delay in customs clearance (Table 17)

Respondents Strongly Disagree

Partially Disagree

Neutral Partially Agree

Strongly Agree

1

2

3

4

5

Grand Total 1 4 0 0 0

Percentage to Total

20 80 0 0 0

75

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN CONSIDERING CUSTOMS CLEARANCE DELAY AS THE MAIN HINDRANCE TO BREAK BULK CARGO OPERATION (Figure 14)

RESPONDEN

T 1

RESPONDEN

T 2

RESPONDEN

T 3

RESPONDEN

T 4

RESPONDEN

T 50

0.5

1

1.5

2

2.5

CUSTOMS CLEARANCE DELAY

CUSTOMS CLEARANCE DELAY

INTERPRETATION

From the above table 80% of the respondents partially disagreed and 20% strongly disagreed when considering the delay in customs clearance as a hindrance for the cargo operations at Cochin Port Trust.

76

7. Do you feel that the employee issues at Cochin Port Trust are affecting Break Bulk Cargo Operations?

Strongly Disagree Partially Disagree Neutral

Partially agree Strongly Agree

Data of the respondents based on employee issues (Table 18)

Respondents Strongly Disagree

Partially Disagree

Neutral Partially Agree

Strongly Agree

1

2

3

4

5

Grand Total 3 2 0 0 0

Percentage to Total

60 40 0 0 0

77

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN CONSIDERING EMPLOYEE ISSUES AS THE MAIN HINDRANCE TO BREAK BULK CARGO OPERATION (Figure 15)

RESPONDENT 1

RESPONDENT 2

RESPONDENT 3

RESPONDENT 4

RESPONDENT 5

0

0.5

1

1.5

2

2.5

EMPLOYEE ISSUES

EMPLOYEE ISSUES

INTERPRETATION

From the above table around 60% strongly disagreed and 40% partially disagreed when considering employee issues at present as a hindrance to the cargo operation.

78

8. Do you feel that the weather problems at Cochin Port Trust are affecting Break Bulk Cargo Operations?

Strongly Disagree Partially Disagree Neutral

Partially agree Strongly Agree

Data of the respondents based on weather problems (Table 19)

Respondents Strongly Disagree

Partially Disagree

Neutral Partially Agree

Strongly Agree

1

2

3

4

5

Grand Total 0 1 3 1 0

Percentage to Total

0 20 60 20 0

79

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN CONSIDERING WEATHER PROBLEMS AS THE MAIN HINDRANCE TO BREAK BULK CARGO OPERATION (Figure 16)

RESPONDENT 1

RESPONDENT 2

RESPONDENT 3

RESPONDENT 4

RESPONDENT 5

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

WEATHER PROBLEMS

WEATHER PROBLEMS

INTERPRETATION

From the above table around 60% of the respondents had a neutral opinion, 20% partially disagreed and 20% partially agreed when taking weather conditions as a hindrance in the cargo operations.

80

9. Do you feel that the storage facilities at Cochin Port Trust are affecting Break Bulk Cargo Operations?

Data of the respondents based on Storage facility (Table 20)

Respondents Strongly Disagree

Partially Disagree

Neutral Partially Agree

Strongly Agree

1

2

3

4

5

Grand Total 0 1 2 2 0

Percentage to Total

0 20 40 40 0

81

GRAPH DEPICTING THE DATA OF THE RESPONDENTS WHEN CONSIDERING STORAGE FACILITIES AS THE MAIN HINDRANCE TO BREAK BULK CARGO OPERATION (Figure 17)

Respondent 1 Respondent 2 Respondent 3 Respondent 4 Respondent 50

0.5

1

1.5

2

2.5

3

3.5

STORAGE FACILITIES

STORAGE FACILITIES

INTERPRETATION

From the above table around 80% had a neutral opinion and 20% partially disagreed while considering “storage facilities” as a hindrance in the cargo operations.

82

FINDINGS AND SUGGESTIONS

The main problems faced during the Break bulk cargo operation area are as follows:

Tariff charges Availability of equipments Inefficiency of available equipments Lack of storage facility Inefficiency of the workers Employee and union problems Weather problems Transportation facilities

DATA COLLECTED ON THE BASIS OF QUESTIONAIRE (Table 21)

Respondent

Tariff charges

Availability of equipments

Efficiency of the available Equipments

Efficiency of the workers

Transportation facilities

Customs clearance delay

Employee issues

Weather problems

Storage facilities

1 5 3 3 4 4 2 4 3 3

2 5 2 3 4 1 2 4 4 3

3 5 3 4 3 3 2 3 3 2

4 5 1 2 2 2 1 3 3 3

5 5 1 2 3 2 2 1 2 3

Average 5 2 2.8 3.2 2.4 1.8 3 3 2.8

83

GRAPH SHOWING THE DIFFERENT PROBLEMS MENTIONED ON THE BASIS OF THE DATA COLLECTED FROM THE QUESTIONAIRE (Figure 18)

Tariff ch

arges

Availab

ility o

f equipmen

ts

Efficie

ncy of a

vailab

le eq

uipments

Efficie

ncy of th

e worke

rs

Transporta

tion facili

ties

Customs c

learan

ce dela

y

Employee

issues

Weather

problem

s

Storag

e faci

lities

0123456

Different problems

Series 1

Each and every problem mentioned above may cause hindrance to the future business at Cochin Port Trust.

One of the major issues among the problem interpreted from the survey conducted was identified to be the “High Tariff Charges” at Cochin Port Trust. The importers, exporters and the steamer agents may find it difficult to continue business with Cochin Port Trust if the high Tariff charge prevails.

84

Comparison of Tariff Charge between Cochin Port Trust and V. O. Chidambaranar Port Trust

In order to get a clear view of the major problem i.e. Tariff charge, a small comparison was done with the tariff charges at Cochin Port Trust and V. O. Chidambaranar Port Trust.

To compare the tariff, three charges were taken and compared, they were

Vessel related charges Pilot charges Berth Hire charges

DATA SHOWING VESSEL RELATED CHARGES AT COCHIN PORT TRUST AND V. O. CHIDAMBARANAR PORT TRUST (Table 22)

Name of the Port Type of vessel

Rate per GRT % increase at Cochin port trustCoasta

l(In Rs)

Foreign(In US $) Coasta

lForeign

Cochin Port Trust Break Bulk 7.69 0.287 46% 34.11V. O. Chidambaranar Break Bulk 5.25 0.2014

DATA SHOWING PILOTAGE CHARGES AT COCHIN PORT TRUST AND V. O. CHIDAMBARANAR PORT TRUST (Table 23)

Name of the Port Vessel size(In GRT)

Rate per GRT % increase at Cochin port trustCoasta

l(In Rs)

Foreign(In US $) Coasta

lForeign

Cochin Port Trust Up to 30000 21.49 0.8033 163.35 148.66V. O. Chidambaranar Up to 30000 8.16 0.3232

85

DATA SHOWING BERTH HIRE CHARGES AT COCHIN PORT TRUST AND V. O. CHIDAMBARANAR PORT TRUST (Table 24)

Name of the Port Vessel size(In GRT)

Rate per GRT at general cargo berth

% increase at Cochin port trust

Coastal(In Rs)

Foreign(In US $) Coasta

lForeign

Cochin Port Trust Up to 15000 0.2026 0.00757 211.6 202.8V. O. Chidambaranar Up to 15000 0.065 0.0025

86

Findings

From the above three tables we can see that the vessel related charges at Cochin port were 46% and 34.11% more than that at V. O. Chidambaranar Port Trust for coastal and foreign vessels respectively.

Pilot charges for vessels up to 30000 GRT at Cochin Port Trust was 163.35% and 148.66% more than that at V. O. Chidambaranar Port Trust for coastal and foreign vessels respectively.

Berth hire charges for vessels up to 15000 GRT at Cochin Port Trust was 211.6% and 202.8% more than that at V. O. Chidambaranar Port Trust for coastal and foreign vessels respectively.

The employee issues like strike have come down drastically in the last couple of years. Cochin port employees in the past 2 years have never conducted a strike. This is an added advantage and sends a good message to the outside world.

Another problem that Cochin Port Trust faces is the lack of Industrial base in Kerala. Unlike states like Gujarat, Bihar and some northern states Kerala lack Industries. This can also be sighted as a hindrance for the cargo business at Cochin Port Trust.

Cargo operations are affected between the month of June and September due to the bad weather condition (Monsoon season).

Lack of adequate storage facility and the substandard condition of the storage facility do have an impact on the break bulk cargo operation, since the cargo may be stored before dispatch.

The inefficiency and shortage of the available machines at Cochin Port trust also have a negative impact on the Break Bulk cargo operations.

The road conditions connecting to Cochin Port is of low standard creating problems in smooth transportation.

87

Suggestions

Tariff charges could be revised to attract more customers in the future.

The existing storage facilities should be maintained in a good standard and new storage facilities should be developed if the need arises.

The equipments at the Cochin Port Trust Should be maintained and checked for malfunctions in a routine manner.

Transportation facilities should be adequately arranged so that the customers don’t face any problem with the dispatch and delivery of cargo to their respective destinations on time.

The labours productivity should be monitored periodically.

The infrastructure potential of Cochin Port Trust should be utilised to the maximum extent possible.

Efforts can be put to strengthen the marketing of Cochin Port Trust to reach more potential customers.

CONCLUSION

88

Break bulk cargo is a type of cargo which requires a lot manpower and machinery for its movement. During the study at Cochin Port Trust, I was able to understand the cargo traffic and cargo operation of Break bulk cargo. Cochin Port Trust has good opportunities in the future if the infrastructure is developed and the available facilities are utilised to the best extent possible.

It has been a good experience to do a research oriented project in a highly reputed organisation like Cochin Port Trust. I was able to understand the functioning of different departments at Cochin Port Trust and was able to understand the break bulk cargo operations along with its problems. Findings and suggestions were also given for improving the Break Bulk Cargo operations during my research study at Cochin Port Trust.

REFERENCES

89

http://www.cochinport.com/ http://www.vocport.gov.in/Default.aspx ipa.nic.in/Definitief Volume 1.pdf http://echoofindia.com/new-delhi-indias-exports-likely-grow-10-28137 http://www.cochinport.com/index.php?

opt=projects&sub=20&id=3&tab=1 http://en.wikipedia.org/wiki/Cochin_Port_Trust Cochin Port Trust Administration Report www.tariffauthority.gov.in/

90

Questionnaire used for the study

1 .Name of the company:

2. Do you feel that the tariff charge at Cochin Port Trust is affecting Break Bulk Cargo Operations?

Strongly Disagree Partially Disagree Neutral

Partially agree Strongly Agree

3. Do you feel that the availability of Equipments at Cochin Port Trust is affecting Break Bulk Cargo Operations?

Strongly Disagree Partially Disagree Neutral

Partially agree Strongly Agree

4. Do you feel that the efficiency of the available Equipments at Cochin Port Trust is affecting Break Bulk Cargo Operations?

Strongly Disagree Partially Disagree Neutral

Partially agree Strongly Agree

5. Do you feel that the efficiency of the workers at Cochin Port Trust is affecting Break Bulk Cargo Operations?

Strongly Disagree Partially Disagree Neutral

Partially agree Strongly Agree

91

6. Do you feel that the transportation facility at Cochin Port Trust is affecting Break Bulk Cargo Operations?

Strongly Disagree Partially Disagree Neutral

Partially agree Strongly Agree

7. Do you feel that the delay in customer clearance at Cochin Port Trust is affecting Break Bulk Cargo Operations?

Strongly Disagree Partially Disagree Neutral

Partially agree Strongly Agree

8. Do you feel that the employee issues at Cochin Port Trust are affecting Break Bulk Cargo Operations?

Strongly Disagree Partially Disagree Neutral

Partially agree Strongly Agree

9. Do you feel that the weather problems at Cochin Port Trust are affecting Break Bulk Cargo Operations?

Strongly Disagree Partially Disagree Neutral

Partially agree Strongly Agree

10. Do you feel that the storage facilities at Cochin Port Trust are affecting Break Bulk Cargo Operations?

Strongly Disagree Partially Disagree Neutral

Partially agree Strongly Agree

92

10. Suggestions if any in the services offered by Cochin Port Trust?

Thank You

93